Buying Property in Portugal? Here’s What Every US Buyer Needs to Know About Currency Exchange
Portugal has long captured the imagination of American buyers: cobbled streets, golden beaches, great wine and let’s be honest, more bang for your buck compared to many parts of the US. But while you’re dreaming of your new Portuguese home, there’s one practical detail that too many buyers overlook until it’s too late:
Currency exchange.
And no, it’s not just about checking the Google rate and hoping for the best. If you’re transferring dollars to euros for a property purchase, the way you handle your currency conversion can significantly impact your total cost, sometimes by thousands of dollars.
Here’s what every US buyer should know:
1. The Exchange Rate Moves… and It Matters
The EUR/USD rate is constantly shifting. A seemingly small change, say from 1.08 to 1.15, can mean the difference of several thousand dollars on a €300,000 property.
Example:
If you're buying a €500,000 home, and the rate moves just 2%, your cost in dollars could swing by over $10,000. That’s not pocket change, it’s a kitchen renovation!
What to do instead:
Use a currency provider that allows you to lock in a rate ahead of time (called a “forward contract”) or set up rate alerts so you can move when the rate is in your favor.
2. Your Bank May Not Be Your Best Bet
Many US buyers simply wire the funds through their US bank. Sounds easy, right? But banks typically add a margin on top of the exchange rate plus fees for international transfers.
It’s like shopping for a luxury villa and being charged boutique prices for a bargain-basement rate.
What to do instead:
Work with a specialist currency provider who gives better exchange rates, lower fees, and access to personal support. (Shameless plug: that’s exactly what we do at Moving Currency.)
3. You Can Plan Ahead (and You Should)
Buying overseas is exciting, but it’s also stressful. The notary date is set, the deposit is due, and the last thing you need is for the euro to spike unexpectedly.
Most clients don’t realize they can secure today’s exchange rate for up to 12 months, giving you peace of mind, and a fixed figure to work with.
What to do instead:
Speak with a currency specialist early in your buying journey. We can help you create a strategy for your transfers, not just react at the last minute.
4. Timing Your Transfers Can Save You Thousands
You don’t have to send the full amount in one go. Sometimes, breaking up transfers or waiting for a better rate can give you a better deal. Other times, speed is key.
The secret? Having someone on your side who understands the FX market and can guide you on timing based on your specific situation and timeline.
What to do instead:
Have a quick chat with us at Moving Currency. We’ll walk you through your options, no jargon, no pressure.
🌍 5. Currency Support is Part of Your Buying Team
You’ll likely have a realtor, a lawyer, maybe even a mortgage broker. But the FX piece? That’s often missing from the table and that’s a missed opportunity to save money and stress.
A good currency partner doesn’t just make the transfer. They help you feel confident and in control of a financial process that can feel overwhelming.
In Short: Don’t Leave Currency Until the Last Minute
You wouldn’t book a transatlantic flight without checking for the best price. So why transfer hundreds of thousands of dollars without checking for the best rate?
Currency exchange isn’t just a transaction, it’s a strategy.
And we’re here to help you get it right.
Ready to make your move?
At Moving Currency, we help Americans buying in Portugal save money, reduce stress, and make smarter transfers when moving dollars to euros.
Book a free call to chat about your plans, or visit www.movingcurrency.com for more info.