Does Portugal Use the Euro? The Application of the Euro in Portugal and Remittance Guide

Since 2002, Portugal has officially used the euro (€), replacing the former Portuguese escudo and becoming part of the EU’s monetary union. This change has made remittances, tourism, and cross-border transactions more convenient, and also enhanced market stability. This article will provide a detailed introduction to the usage of the euro in Portugal, the specific denominations of the euro, remittance methods, and how to ensure the security of funds, helping readers better understand the application of the euro in Portugal.

Does Portugal Use the Euro?

Portugal joined the eurozone in 2002, officially adopted the euro (€) as its official currency, and stopped using the Portuguese escudo. This decision is part of the EU integration process, allowing Portugal to enjoy the economic stability brought by the single currency.

The introduction of the euro has not only made the domestic market more transparent but also promoted the development of international trade. For enterprises, the use of the euro has reduced currency exchange costs, improved the convenience of cross-border transactions, and strengthened the economic ties between Portugal and other eurozone countries. In addition, the euro has eliminated exchange rate risks, enabling enterprises to make more accurate budgets and long-term plans.

For individual users, the use of the euro means that international remittances and overseas consumption have become simpler. In the past, if tourists or expatriates went to Portugal, they needed to exchange Portuguese escudos. Now, the euro can be directly circulated within the eurozone without additional exchange, reducing the possibility of exchange rate losses.

What Are the Denominations of the Euro in Circulation in Portugal?

The euro currency system in Portugal consists of two parts: coins and banknotes. Coins are divided into 1, 2, 5, 10, 20, 50 cents, as well as 1 euro and 2 euros. The denominations of banknotes range from 5 euros to 500 euros, including 5, 10, 20, 50, 100, 200, and 500 euros.

These coins and banknotes are commonly used throughout the eurozone, which is not only convenient for local residents’ transactions but also makes it more convenient for tourists traveling within Europe. In addition, banks and remittance service providers in Portugal allow users to directly remit euros to the payee’s bank account, avoiding unnecessary currency exchange fees.

For daily consumption, small transactions usually use coins or small-denomination banknotes, while large transactions use electronic payments, credit cards, or bank transfers. Since Portugal is one of the EU member states, its banking system is highly compatible with other European countries, making international transfers and online payments in euros faster and safer.

How to Remit Money to Portugal? What Is the Safest and Most Convenient Way?

There are various ways to remit money to Portugal, and the fees, arrival times of funds, and convenience of different methods vary.

Firstly, bank wire transfer is one of the most common remittance methods. Most international banks offer euro transfer services, and users can conduct cross-border transfers through the SWIFT code and IBAN (International Bank Account Number). This method is suitable for large-value fund transfers, but it may take 1-3 working days for the funds to arrive, and the bank may charge relatively high handling fees.

Secondly, online remittance platforms have become an increasingly popular choice, such as Wise (TransferWise), Western Union, and PayPal. These platforms usually offer lower fees and faster arrival times of funds, and some transactions can even be completed within a few minutes. In addition, users can remit money using real-time exchange rates to avoid losses caused by exchange rate fluctuations.

Another popular way is through digital wallets and prepaid cards. Users can conduct cross-border transfers through digital payment platforms such as Apple Pay, Google Pay, or Revolut. The advantage of this method is that transactions are fast, the fees are low, and the operation is convenient, especially suitable for daily small-value payments.

How Do Tourists Exchange Euros in Portugal?

For tourists planning to visit Portugal, exchanging euros is an essential step. Although most transactions in Portugal can be made using credit cards or mobile payments, it is still recommended to carry a certain amount of cash to deal with some situations where only cash payments are accepted, such as small shops or local markets.

Tourists can exchange euros through the following channels:

• Airports and banks: Most airports and banks provide currency exchange services, but they may charge additional handling fees or offer lower exchange rates.
• Currency exchange points: There are several currency exchange centers in the main cities of Portugal. Some exchange points offer more favorable exchange rates, but it is necessary to pay attention to whether additional fees are charged.
• Withdrawing cash from ATMs: Using an international debit card or credit card to withdraw cash from an ATM usually gets a conversion rate closer to the market exchange rate, but a withdrawal fee may be charged.

To get the best exchange rate, it is recommended that tourists check the exchange rate of the euro against their home currency on the day before remitting money and choose the exchange method with the best exchange rate and the lowest fees.

Conclusion:

Since Portugal adopted the euro in 2002, it has greatly promoted the development of international trade, tourism, and cross-border remittances. The use of the euro has made international transfers more convenient and reduced the risks brought by exchange rate fluctuations. For individuals and enterprises that want to remit money to Portugal, choosing a safe and reliable remittance method is crucial to ensure that the funds can arrive quickly and safely.

If you want to break through the remittance limit and enjoy remittance services covering most regions of the world, you can consider BiyaPay. It adopts the local remittance method to ensure that the funds reach the payee’s account safely in the shortest time, while avoiding high handling fees and cumbersome international transfer processes. For users with frequent remittance needs, this is a high-quality option that saves time and money.