To save money and simplify the process of purchasing property in Portugal, it is advisable to plan your finances ahead and consider using a specialist to transfer funds.
When purchasing property in Portugal, you must use Euros, which can be a challenge for international buyers using a different currency. To transfer funds, buyers often make the mistake of leaving it until the last minute and using their regular bank account, which can result in paying more than necessary due to various factors.
One such factor is the volatility of exchange rates, making it difficult to pick the right time to transfer without expert help. For example, the USD/EUR exchange rate fluctuated significantly in 2022, from €1.14 to €1.01 between February and August. By timing the exchange correctly, a buyer could have saved $60,000 on a €500,000 property, paying $505,000 instead of $565,000.
Regular banks also o er less competitive rates compared to specialist currency exchange companies. Additionally, they may add excessive fees for overseas transfers, resulting in buyers being charged by both the sending and receiving bank. Therefore, seeking the help of a specialist currency exchange company is advisable to avoid paying more than necessary.
Using a currency exchange company when buying or selling a property abroad can be beneficial for several reasons. Firstly, currency exchange companies typically offer better exchange rates compared to banks, resulting in more foreign currency for your money. Secondly, they charge lower fees, saving you money, especially when dealing with large sums of money, such as in property transactions. Thirdly, currency exchange companies specialize in foreign currency transactions and have access to up- to-date market information and expertise, providing personalized advice to help you make informed decisions. Lastly, they offer convenient and flexible services, such as online transactions and 24/7 customer support, saving you time and e effort compared to visiting a bank branch during their working hours.
Overall, using a currency exchange company can save you money, time, and e effort when buying or selling property abroad. However, it is crucial to choose a reputable and reliable currency exchange company and to review their terms and conditions, exchange rates, and fees carefully before making any transactions.
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