How do I move money from the UK?

Getting your savings to Portugal is mostly about three things: not losing money on the exchange rate, declaring large amounts of cash, and knowing how Portugal will tax what you leave in the UK.

The exchange rate

On 9 October 2026 one euro was worth 0.8479 pounds, or about €1.18 to £1. We use that rate across our Portugal guides. Rates move every day, so check again before you send.

Banks and transfer firms make money in two ways: a fee, and a margin (a mark-up) on the exchange rate. A transfer advertised as “free” can still cost you through a poor rate. The fair way to compare is the total number of euros that arrives.

• Compare quotes on the same day, for the same amount
• Ask whether your Portuguese bank charges to receive an international payment
• For large sums, ask whether the rate is negotiable
• Don’t try to time the market with money you need on a fixed date, such as a rental deposit

Choosing a transfer provider

Check that a UK provider is on the FCA (Financial Conduct Authority) Financial Services Register. Money held by a non-bank payment firm is not covered by the FSCS (the UK’s Financial Services Compensation Scheme). Electronic money and authorised payment institutions must “safeguard” your money instead, in a separate account or with insurance; small payment institutions don’t have to. Don’t leave large sums sitting with a transfer firm.

Once the money reaches a Portuguese bank, deposits are covered by Portugal’s deposit protection fund (Fundo de Garantia de Depósitos) up to €100,000 (about £84,700) per depositor, per bank, whether or not you live in Portugal.

Carrying cash: the €10,000 rule

Under EU rules (Regulation 2018/1672), anyone entering or leaving Portugal from or to a country outside the EU, such as the UK, with €10,000 (about £8,470) or more in cash must declare it to the tax and customs authority (AT, Autoridade Tributária e Aduaneira) and make it available for checks. Cash sent separately, for example in a parcel or in your removals, can trigger a demand for a disclosure declaration within 30 days. The AT can hold undeclared cash for up to 30 days, extendable to 90, and it regularly seizes cash at Lisbon airport. A bank transfer avoids all of this.

Keeping UK accounts

Many movers keep a UK current account for UK bills, pensions and visits home. UK deposits stay protected by the FSCS up to £120,000 per person, per bank (the limit since 1 December 2025). Some UK banks limit what they offer customers who live abroad, so ask yours before you go and update your address.

ISAs, savings and UK investments

You can keep your ISA when you move, but you can’t pay into it once you are no longer UK resident, and you must tell your ISA provider. The UK still treats it as tax-free.

Portugal does not. Portugal’s income tax code says residents are taxed on all their income, including income from outside Portugal. Portugal has no ISA wrapper, so interest, dividends and gains inside an ISA are taxable like any other savings. Under article 72 of the code, savings and investment income and the net gain on selling shares and funds are taxed at a flat 28%. You can choose instead to add them to your other income and pay the normal scale rates, which can be lower if your income is low. A 35% rate applies to income from places on Portugal’s list of tax havens. Where the UK has also taxed the income, Portugal gives a credit for the UK tax, capped at the Portuguese tax on it. A long-running column in Portugal Resident by advisers Blevins Franks warns that some Britons wrongly assume ISAs don’t need to be declared. Get advice

UK pensions

A new UK–Portugal tax treaty has applied since 2026. Under Article 17, private and workplace pensions paid to a Portuguese resident are taxable only in Portugal. Under Article 18, UK government service pensions (civil service, armed forces, local authority) stay taxable only in the UK if you are a British national. Lump sums and drawdown can be treated differently in Portugal, so get advice before you draw on a pension. See What happens to my UK pension? and Do I still pay UK tax?

How much cash you need to rent

Under the Civil Code (article 1076, as changed by the Mais Habitação housing reforms), a landlord can ask for a deposit (caução) of no more than 2 months’ rent, and for rent in advance of no more than 2 months. A deposit is not compulsory, but it is common.

Example: a flat in Lisbon at €1,500 a month could need a €3,000 deposit plus up to €3,000 in advance: €6,000 (about £5,080) before you buy a bed, plus any agency fee. See How do deposits and rental contracts work? and How much does it cost to live in Portugal?

A sensible order

1. Get your NIF (tax number), which Portuguese banks ask for (see how)
2. Open a Portuguese bank account (see how)
3. Send a first amount by transfer to cover temporary housing, the deposit and rent in advance
4. Keep a UK account open for UK bills and income
5. Get UK–Portugal tax advice before you sell investments or take pension money