Save time and money when transferring your money abroad

It might look confusing and unusual to use anything other than a bank to send money for any reason other than a generic transfer, however, there are many more ways to use money transfers.

For instance, you can sign up with a money transfer provider to receive your pension abroad. Many money transfer companies have dedicated teams and resources for that particular reason.

You can save a lot on fees if sending large sums at once. For example, if you’re looking to buy a house abroad you can benefit from the better exchange rate and lower fees by using a money transfer company compared to a traditional bank.

You can use money transfer services for the same reasons you use your bank, but with lower fees, quicker delivery times and better exchange rates.

Finding the best exchange rate is crucial to maximising the money received on the other end. Usually, you will receive better exchange rates with money transfer provider compared to a traditional bank. Here’s are a few tips to find the best exchange rate online:

• Start looking early: various providers will offer different exchange rates on different days, start looking as early as you can to identify the best provider for your currency pair. 
• Pay attention to the current exchange rate: staying up to date with the current exchange rate will give you the advantage to buy and sell on time. Currencies fluctuate daily due to supply and demand, so checking it frequently is advised to get the best rate possible. Alternatively, you can sign up with our price alerts to know when your currency reaches the desired price.
• Avoid using your bank: banks are trustworthy, reliable and convenient, but they do not provide value for money. They charge high fees and usually have higher costs compared to the money transfer provider.

Unless you don't mind paying higher fees to send money abroad, we recommend you avoid using your bank to for international money transfers. Banks usually charge a lot of different fees for each transfer you make, including handling charges and foreign exchange commission.

Money transfer services, on the other hand, provide the same security, quicker delivery times and much lower fees as they are deposited directly to recipients bank account without any intermediaries.

The process will largely depend on the provider you use, however, the process typically involves the following steps:

• You will need to sign up with the chosen provider (use our comparison tools to find the best service for your needs)
• Then you will need to deposit the amount you want to send and the fees associated with it. 
• The provider will transfer your funds in the right currency directly to the recipient without any intermediaries.
• You can deposit your money with a bank card online or you can make a transaction inside the store.

This process usually takes 1-2 days for the recipient to receive their money, but some providers can send money instantly.

Tax laws vary from country to country but are very complex in every instance.

In America, in most cases, you won't need to pay taxes on receiving small financial gifts but you may be required to report the gift to IRS if the gift value exceeds $100,000. IRS will then decide if you need to pay tax or not.

In the UK, you do not need to pay taxes on receiving small money transfer gifts, however, you might be required to pay tax on larger amounts. There is no set amount to pay as rates fluctuate every day. To get a better understanding of the taxes you might need to pay, you should contact HMRC.

In Australia, if you receive an inheritance from overseas you are not required to pay taxes, however, if this money is put towards an investment, all the earning are taxable. If you’re receiving a monetary gift, it will not be taxable, however, Australian Tax Office (AOT) doesn’t view all the international money transfers as gifts, hence you should contact AOT to explain your situation if the gift is high in value.

Each country in the EU will have its own set of tax laws and rules for receiving monetary gifts. However, money sent for a business will be taxed as a foreign income. If you’re looking to receive a large amount from abroad, you should hire an accountant or contact your local tax office for any further advice.

To ensure you don’t violate the law, contact a tax expert in your country to assist you with your international money transfer.