How Affluent Families, Expats, and Investors Can Avoid Hidden Costs with Major International Money Transfers

Many affluent expats and investors are unaware of the hidden fees that can occur with foreign currency exchanges, taking away from their new lifestyle and peace of mind in Portugal.

With Portugal’s appeal of the Golden Visa Investment Program attracting global attention for its favourable residency and investment opportunities, more and more affluent families and investors need to transfer their wealth into Euros.

​According to World Bank data, personal remittances received in Portugal in 2022 were approximately €1.02 billion, accounting for 0.4% of the country's GDP. Additionally, data from Trading Economics indicates that remittances into Portugal amounted to €372.39 million in January 2024 alone.

However, hidden costs in these transactions can often erode wealth without affluent families, expats and investors being aware.

The True Cost of Currency Exchange

Even a small percentage of fees can significantly impact large sums of capital.

As of March 31, 2025, the interbank rate for USD to EUR was approximately 0.9245. If a business, investor, or affluent expat needed to transfer $500,000 to EUR, the interbank rate would convert this amount to €462,250.

However, the effective exchange rate would be lower when using a traditional bank or broker with a 2% mark-up. Here's an example:

• Interbank Rate: 0.9245
• Amount in EUR (Interbank): $500,000 * 0.9245 = €462,250
• Broker's Mark-Up (2%): 0.9245 * 0.98 = 0.90601
• Amount in EUR (With Mark-Up): $500,000 * 0.90601 = €453,516

This means the business, investor or affluent expat would have to pay €9,245 due to the mark-up alone. This substantial financial leakage is often overlooked in standard transaction processes.

Choosing the Right Platform for Currency Exchange

However, avoiding these unnecessary mark-ups has become possible, with Portugal Pathways and its expert FX partners offering a more cost-effective alternative.

Collaborating with FX solution partners who charge less compared to the typical 2-4% charged by banks, Portugal Pathways is helping expats, investors, and affluent families make considerable savings, especially for large-scale transactions common with investments and relocations.

"Our community is globally minded, managing assets and responsibilities across borders," explains Paul Stannard, Chairman and Founder of Portugal Pathways and the Portugal Investment Owners Club.

"They need to know precisely how much their transactions cost and how to minimise these expenses. Awareness and education about currency transfer costs are crucial for maintaining and growing their wealth."

"Portugal Pathways emphasises transparency, with our expert FX partner platform allowing clients to clearly understand the rates and fees applied to their transactions, avoiding hidden costs."

"A user-friendly online currency account is also provided, enabling efficient management and monitoring of funds, as well as competitive exchange rates, ensuring clients receive better value for their transactions.”

“Clients can also lock in exchange rates with forward contracts to protect against market volatility, while secure and reliable payment solutions are ensured to safeguard clients' financial transfers.”

“By working with Portugal Pathways and our partners, our community avoids unnecessary costs for their FX exchanges so they can focus on what truly matters: their family's future in Portugal and investment goals.

If you're ready to improve your currency exchange strategy, contact Portugal Pathways via the form below. We will then connect you with our expert FX partners.

Contact us today to explore how Portugal Pathways can help you optimise your currency transactions and safeguard your global financial interests.