Relocating to Portugal, or even spending an extended period there, means adjusting to a new way of managing money. Whether you’re setting up your first bank account, sending funds across the country or getting the hang of mobile payments, having a solid understanding of Portugal’s financial tools will make your transition a whole lot smoother.

This is one of the many adventures of expats in Portugal!  Not unlike figuring out schools, managing healthcare, and furnishing a home, learning the ins and outs of how to bank in Portugal is something on your list to tackle when you consider moving here to Portugal.

Perhaps, like me, you are new to the international banking scene  Those of us who are not uber-rich probably are. It’s been a learning curve to figure out how to transfer money, which payment method to use in Portugal, what currency conversion means for us personally and so on.

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Let’s walk through everything you need to know, from opening a local bank account to using Portugal’s favorite mobile payment app, MBWay (think Venmo for Portugal, but even better!), and tips for managing international money transfers.

Step One: Setting Up a Bank Account in Portugal as an Expat

Opening a bank account in Portugal is required for a visa in most cases.  We used a lawyer to help with our process and recommend our friends at Moviinn.  They can help you get this set up remotely.  We didn’t know which banks were available, which one was best or how to go about this.

A bank account will be required for many things, like paying rent, utilities and receiving a salary or pension. Here’s what you’ll typically need to open an account.  Gather the following items in advance for your visa application or if you are trying to open an account in Portugal:

• Valid ID: A passport or EU national ID card.
  
• NIF (Número de Identificação Fiscal): Your Portuguese tax number. You can get this at a local tax office or through a lawyer or fiscal representative.  Again, having a friend like Moviinn in your corner goes a long way.  They can get this set up for you!
  
  Once you have your NIF, you’ll also be able to manage certain tax-related updates online. For instance, if you need to change your registered tax address, you can do so through the Portuguese Tax Authority’s online platform, the Portal das Finanças. Just log in with your NIF and password, navigate to the ‘Personal Details’ (Dados Cadastrais) section, and update your address from there. The system is fairly straightforward and allows you to manage these changes without needing to visit a tax office in person.

 This NIF number is also required for your visa application and is like your Portuguese social security number.  You’ll soon memorize this, as you are asked for it with all purchases in Portugal!

• Proof of Address: This can be a lease agreement, utility bill or even an official letter showing your name and address, whether in Portugal or your home country.
  
  • Note: if you use your address in the USA, like we did, you’ll need to get this changed later.  This isn’t as easy as it should be, and requires an appointment and an in-person visit with the financial office, but it is possible.

• Proof of Income or Employment: Recent payslips, employment contracts or pension documentation will usually suffice.  We are self-employed, so this looked more like business tax returns and bank statements for us. Being self-employed does require a bit more paperwork, but it’s not impossible.
  
  
• Portuguese Phone Number: Necessary for mobile banking and SMS confirmations.  This is hard to obtain before living in Portugal. You can try to get one on a previous scouting trip or your lawyer might use their phone to begin with. You can update it later, or they can.
  
  
• Initial Deposit: Depending on the bank, this ranges from €25 to €300. However, for your visa application, you’ll need much more.  We were required to prove that we had at least 1200€ per person.  The more money you can transfer and show on your visa application, the better!
  

Banking in Portugal: Top Banks to Consider

If you’re planning to move to Portugal or have just arrived, picking the right bank can greatly impact how smoothly you adjust to your new financial life. Many banks cater to both locals and newcomers, and understanding what each one offers can guide you in making a good choice. 

Millennium BCP: is often suggested to expats because of its friendly customer service and strong digital tools. As one of the largest private banks in the country, it provides banking services that are convenient and easy to access. They usually have English-speaking staff available, and their mobile app is well-liked for its simple layout.

For international residents, Millennium BCP offers specialized accounts, mortgages and options tailored for Portuguese citizens living abroad. It also works with MBWay, Portugal’s top mobile payment app.

However, some users report that opening an account can come with some administrative challenges, and premium account fees tend to be higher unless you meet specific conditions.

Caixa Geral de Depósitos, or CGD: is Portugal’s largest publicly owned bank. Its long history gives it a strong sense of reliability. With many branches and ATMs, it is particularly appealing for those living outside major cities or who prefer in-person service. 

The bank offers a full range of services, from everyday banking to long-term investments, and often provides support in multiple languages, although the level of English can differ from place to place. While CGD’s physical accessibility is a benefit, its digital services may not seem as current as those offered by some private or online-only banks.

Novo Banco: Created from the restructuring of Banco Espírito Santo, Novo Banco has found a place with personalized services for foreign residents. One of its notable offerings is a “Welcome Account” for newcomers, which usually includes essentials like a current account, debit card and free domestic transfers.

Some packages even include accident insurance with repatriation, the return of someone to their home country, which many expats find reassuring.

This is the bank we used (after a recommendation from our lawyer) and we’ve liked it overall.  I think the fees are a bit higher than other banks, but we’ve had very few problems over all with transferring. 

Clients may also have a personal account manager for customized support. However, even though the bank is working to modernize, its apps and online services can feel less refined than those of tech-savvy competitors like ActivoBank or Millennium BCP, and monthly fees may apply.

Santander Totta: has the backing of a global brand. As the Portuguese branch of Banco Santander, it provides the international stability that many expats value. Whether you need help with finances across countries or want a full range of products, from basic accounts to investment services, Santander typically meets your needs.

Its platforms allow for banking at any time, and they often offer support in multiple languages, including English. While it is friendly to expats, it’s important to read the details, as some global or premium features might come with extra fees.

For those who prefer to manage everything digitally, ActivoBank might be the right choice. It is a subsidiary of Millennium BCP and is aimed at users who feel comfortable with online or mobile banking. Most operations, including account setup, can be completed without visiting a branch. This is practically a miracle in Portugal!

Activo is known for having minimal to no fees on standard services. The app and website are available in English, which is a big advantage for newcomers. 

Even though ActivoBank is a digital bank, it provides access to the Multibanco ATM network and is fully compatible with MBWay. This ensures convenience for both online and in-person transactions. 

Portugal’s banking scene has options for everyone, from traditional stability to modern digital services. The best choice depends on your lifestyle, financial goals and whether you want a hands-on or hands-off banking experience. Comparing features, service quality and fees will help you find the right fit as you adjust to life in Portugal.

Pro Tip: Some banks allow you to open accounts online. However, visiting a branch in person can speed things up, especially for your first account. It also gives you a chance to ask about English-speaking services.

Embracing MBWay: Portugal’s Mobile Payment Superpower

Once you’ve got a local bank account and a Portuguese phone number, it’s time to unlock the convenience of MBWay, the country’s go-to digital wallet. Whether you’re paying for coffee, splitting a dinner bill or shopping online, MBWay makes life a lot easier.

I love MBWay.  It’s like Venmo on crack and integrated with the government of the entire country.  It’s amazing!  Not only can you transfer money to others, but you can also use it on most websites in Portugal to make purchases.  

In fact, sometimes it is the only way to purchase online (as I can never get my US card to work on Portugal sites).  I use this to buy groceries online, purchase movie tickets, pay our babysitter and more!

What is MBWay?

MBWay is a mobile payment system linked to your bank card. It connects your phone number with your account and enables:

• Instant Money Transfers: Send or request money using just a phone number. It’s quick and usually free.
  
• In-Store Payments: Pay using QR codes or NFC tap-to-pay, depending on your device.
  
• Online Shopping: Skip entering card numbers. Just input your phone number and confirm in the app.
  
• Card-Free ATM Withdrawals: Generate a code in the app to withdraw cash at Multibanco ATMs without a physical card.
  
• Virtual Cards (MB NET): Create temporary or reusable virtual cards for safer online shopping.

Limits and Costs

Though specifics depend on your bank, most users can transfer up to €2,000 per transaction, with a monthly cap of €5,000. MBWay is free for personal use through most banking apps, especially for peer-to-peer transfers.

Sending Money to Portugal: Smart International Transfers

If you need to bring in money from abroad, whether it’s for a property purchase, tuition or regular living expenses, you’ll want to avoid excessive fees and poor exchange rates. 

I use our home bank, Chase, to do international wire transfers.  They aren’t cheap; I get charged about $15-20 on each side (by each bank).  The exchange rate also changes every day!  The value of the dollar changes rapidly at times.

In case you want to use something other than your bank, consider these:

Trusted Money Transfer Services

1. Wise: is recognized for its straightforward approach to international transfers. It uses the real mid-market exchange rate, so you don’t lose money on hidden fees. The fees are low and easy to understand, usually between 0.4% and 0.6%.

Transfers are often very quick, with many arriving in minutes or just a few hours. Most transfers are completed within 24 hours. We recommend Wise for its flexibility. It is very easy to hold and exchange multiple currencies in one place. You also receive local bank details in several countries, which makes getting international payments smooth and easy.

If you are sending larger amounts or making frequent transfers, Wise is a reliable, cost-effective choice.

2. Revolut: offers more of an all-in-one digital banking experience, making it ideal if you’re looking for more than just money transfers. It supports multi-currency accounts, budgeting features, crypto trading and even perks like travel insurance on premium plans.

Revolut is especially convenient for smaller, everyday transfers or sending money between other Revolut users. However, we noticed that some fees may kick in for larger transfers or those made outside regular business hours, especially after passing the limits included in free or standard plans. The fee structure can also be a bit less transparent than Wise’s.

3. Caxton app: developed by a trusted and long-established UK company, offers a convenient solution for managing international money transfers and multi-currency accounts. It allows users to send funds to over 195 countries in more than 30 different currencies, supporting both single and recurring payments. 
   
4. Others to explore include: Xe, Moneycorp, Remitly, WorldRemit. These services provide various benefits, such as flexible payout options and fast delivery.

Tips for Smooth Transfers

When sending money internationally, being informed and cautious can make a big difference in how much your recipient gets and how smoothly the process goes. Many transfer services promote “no-fee” options, but this can be misleading. Instead of upfront charges, some providers offer less favorable exchange rates, which effectively raises the hidden cost.

To truly understand what you’re paying, it’s important to compare the final amount that arrives in the recipient’s account, rather than just focusing on the stated fees.

Timing is another key factor to consider. Some transfers are completed instantly or within the same day, which is great for urgent situations. However, others might take several days due to bank processing times, time zone differences or national holidays in either the sending or receiving country. 

Being aware of these potential delays can help you choose a service that fits your urgency and avoid last-minute surprises.

It’s also crucial to double-check all recipient information before you start a transfer. Small errors, like an incorrect IBAN, a mistyped SWIFT/BIC code or even a misspelled name, can lead to your payment being delayed, rejected or sent to the wrong person. Often, these transfers can’t be reversed easily, if at all. Taking the time to verify the details with your recipient beforehand is a simple step that can prevent major problems later on.

Our Experience Banking in Portugal

As I stated above, we have an account through Novo Banco that was set up by our immigration lawyer.  It has worked fine, although I think the fees are high for Portugal.

My first big experience with banks in Portugal came when I went to open accounts for our kids.  I figured this would be fairly simple, as we were doing this from the US.  Think again!

When I tried to visit the branch near us, the rep spoke to me in English first, so I spoke back in English.  He was a bit rude and told me I needed more paperwork (school records for the kids, for example). 

I eventually got the paperwork in order and went back, just to be told I was now missing more paperwork.  Now we needed a utility bill. Annoying that they didn’t ask for this the first time, but whatever.

This process continued for several painful months.  They kept me running in circles and I ultimately realized they didn’t really want to help me.  A secret to Portugal: paperwork sucks and often, the person that you need to help you doesn’t really want to unless they already know you.  As an expat, this can be very frustrating!

I finally went back one day and argued with the rep, now  in Portuguese, about how  ridiculous this process was.  Wow, all of a sudden they started to listen!  They started to praise my Portuguese and suddenly the process got done in about three days!  

To be honest, I’m still not sure what really happened, but I dread all things bank-related.  I did get the kids’ accounts open, thankfully.  Interestingly, these automatically become the property of the child once they turn 18, so they told me clearly to make sure the money that is in there is what I want the child to receive. 

Children cannot have a debit card until they are 14 and this is also difficult to get.  Alternatively, I opened my kids’ debit accounts with Chase all online in minutes, and they tend to use this to get cash.  It just depends.  However, our oldest can now have MBWay and this is super handy to send money back and forth for Ubers, etc.

Someday we might tackle buying a house here, and then we really will have to embrace the bank experience!  

Navigating a new country’s financial system may feel overwhelming but you’ve got this!  I promise, if we can do it, so can you.  In the meantime, lean on your new Portuguese friends (who are usually very happy to help and give recommendations) and buckle up for the adventure.

Additional Readings

Moving to Portugal Checklist

How To Obtain A Portuguese D7 Visa For Your Family: Everything You Need To Know

Obtaining a Portuguese Health Number, SNS Number, or Número de Utente de Saúde, As An American Expat