Send Money to Cuba

Ways to Send and Receive Money in Cuba

Understanding the Currency in Cuba

It should be noted that the currency exchange situation in Cuba is different from most other countries, and as a result, how you will send money into the country will differ. Cuba has two official currencies: the Cuban Peso (CUP), a closed currency, meaning it is not open for exchange in the international market. So you can only access it inside Cuba. The other Cuban official currency, the Cuban Convertible Peso (CUC), is tied to the exact value of the American Dollar (USD), as it is meant to be used by tourists in Cuba.

Both of these currencies are considered legal tender inside Cuba, although there are many abnormalities surrounding how they are used within the Cuban economy. For your typical money transfer to Cuba, your money will be converted from your current local currency to the Cuban Convertible Peso (CUC). To convert money into CUP is impossible outside of Cuba, even in the case of an online money transfer.

How can I pay for my money transfer to Cuba?

Once you create an account with a participating money transfer provider, you can select from several different payment methods. For example:

• Bank transfer: By linking your bank account to the transfer app, you can transfer money directly from your account; this can take a bit longer than other payment methods but will generally come with the lowest fees

• Credit card: Paying with a credit card can speed things along but often comes with additional fees — some transfer apps charge different fees for credit/debit cards, and your credit card provider may also charge for currency conversions or cash advance fees when sending money overseas

• Debit card: Paying with a debit card is just as convenient as paying with a credit card, though you may still face currency conversion fees or cash advance fees

• Digital wallet: If you use a digital wallet like Google Pay or PayPal, you can link your account to pay for the transfer — so, while PayPal doesn’t let you send money to Cuba directly, you can use this as a payment option when using a compatible transfer app

What is the best way to send money to Cuba?

Currently, your only reliable way to send money to Cuba is through a money transfer provider. But that’s usually your best bet when sending money overseas, especially when paying with a bank transfer. Even if you use a transfer provider that charges fees, apps like Western Union reserve their lowest rates when paying with a bank transfer.

Paying with a credit or debit card may also be an option, and doing so can also help you complete the transfer. However, these payment methods can generate cash advance fees and currency conversion fees, and some credit cards come with high interest rates that can be troublesome if you don’t pay your balance immediately.

Even though bank transfers are prohibited, you can still use a cash pickup. Some money transfer apps even provide a locator tool to help you (or the recipient) find a convenient cash pickup location.

How long does it take to send money to Cuba?

Money transfer times vary between providers, but they can also be impacted by the amount you send (since it takes longer to clear security protocols) and the time of day you initiate the transfer. That’s because some banks have cut-off times; transfer requests after this time frame may be delayed until the following morning.

The transfer times of top money transfer apps include:

• Western Union: One business day

• TropiPay: The following day

Again, these estimates are all based on transfers of $2,000 or less. You may see delays when sending higher dollar amounts.

What is the fastest way to send money to Cuba?

Money transfer apps are the fastest way to send money to Cuba. Money transfer providers like Western Union or TropiPay can offer next-day transfer times and safe, reliable service.

Most providers also allow you to pay for the transfer using a debit or credit card. Sometimes, this can accelerate the process; just be aware you may incur additional fees.

For another fast option, try a cash pickup.

While this method requires recipients to be physically present with the bank or agent, transfers can generally be completed within minutes. And since most transfer apps can facilitate these pickups, they can also help you locate a safe, convenient bank or agent in the recipient’s geographic area.

Explore the best money transfer providers today using the helpful search tool on MoneyTransfers.com.

How much does it cost to send money to Cuba?

Senders will need to consider both the cost of the transfer itself and the exchange rate, both of which can vary by provider.

Some providers charge a fixed fee, while others charge a percentage fee based on how much money you send or your method of payment.

For example, Western Union charges different rates for different payment options:

• Bank transfers: $30

• Credit cards: $100

• Debit cards: $50

You can also use MoneyTransfers.com to compare the exchange rate of popular apps. These rates are usually compared to the mid-market rate, representing the midpoint between the buying and selling price of foreign currency.

What is the cheapest way to send money to Cuba?

The cheapest way to send money to Cuba is to use a money transfer provider and pay for the transaction with a bank transfer.

For instance, Western Union offers the lowest fees when paying with a bank transfer ($30), while a credit card payment will cost $100, not counting any fees assessed by the credit card provider.

Want to learn more about transfer fees and exchange rates? Start researching money transfer providers at MoneyTransfers.com.

What do I need to send money to Cuba?

When sending money to Cuba, you’ll need to provide the following through the money transfer app:

• Your personal information: You’ll need to provide your full legal name and contact details and verify your identity with a valid photo ID (driver’s license or passport)

• Information about the recipient: Remember, you can only send money to direct relatives, so you’ll need to enter the recipient’s name and contact details, then clarify your relationship with them; you’ll also need to enter their banking details, including the SWIFT code — in Cuba, the SWIFT code ranges from eight to 11 characters and identifies both the bank and local branch receiving the money

• Payment method: To complete the transfer, simply select your preferred payment method; just pay attention to the fee structure, as your method of payment may compound the fees you’ll pay when sending money to Cuba

What do I need to receive money in Cuba?

Recipients must have either a valid bank account or a digital wallet. To receive money, you’ll need to provide:

• A valid driver’s license

• A passport

• A Cuban National ID card

If you’re receiving funds in your bank account, communicate all your banking details before making the transfer.

Do I pay tax on money transfers to Cuba?

Transfers to Cuba are limited to family members, but any gifts you send your relatives won't be taxed unless they exceed the USA’s gift allowance of $17,000 (or $34,000 if you’re married and filing jointly).

Transferring money to Cuba for commercial purposes is a bit trickier since only family members can receive remittance, and current regulations limit the kinds of companies that USA residents can do business with.

Do recipients pay taxes on remittances? Cuban tax law can be complex; the exact tax depends on the amount received and its purpose. Recipients may want to consult a local tax professional to understand the requirements.

What reasons do people send money to Cuba?

The most reliable estimates indicate that the USA is home to around two million Hispanics of Cuban descent, though the number may be relatively higher. And while relations with America’s island neighbor are improving, the Department of State cautions against travel.

For these reasons, a need exists for a convenient money transfer method. Apps can help you send money to family members for reasons like:

• Travel expenses

• Medical bills

• Paying debts

• Education/tuition

Due to restrictions, however, senders are prohibited from sending money to anyone (family or otherwise) who has ties to the Communist Party of Cuba, including government workers.

Things to Consider When Sending Money to Cuba

You may want to send money to Cuba for many different reasons. You need to be aware of separate considerations for each reason to get the best deal. We hope you find it useful to help you send money to Cuba without problems.

Expats

Expats that travel to Cuba may want to receive money from friends and family in case of emergencies. This section outlines a few considerations that must be made when sending money to expats in Cuba.

• Fees: reducing fees when sending money internationally can be tricky if you do not know where to get a good deal. Money transfer services have lower overheads than banks, so they are an excellent place to start looking for lower charges. It ensures the recipient gets more of the original amount of money sent.

• Taxes: there are no taxes to pay for sending or receiving money in Cuba as a gift transfer. However, recipients may want to hire the services of a local tax accountant to ensure they understand the laws surrounding international money transfers.

• Transfer time: when expats need funds in emergencies, it is crucial to reduce transfer time. Bank transfers take the longest at around 2-7 business days. Therefore, you need to choose faster services like Western Union. These allow for same-day transfers, which is handy when time is an essential factor. They have over 400 locations inCuba, which means getting to one should not be a problem.

Overseas Weddings

Cuba is a beautiful country, so it would be a nice place to have wedding photos. But, unfortunately, there are a lot of payments to make when setting up a large wedding. The expenses you need to pay to depend on the complexity of the requirements and the number of guests attending.

• Transfer Time: Booking wedding venues and catering companies in advance is the best way to ensure that you get the best deal. Therefore, funds need to arrive in the country as fast as possible. Opting for fast money transfer companies is your best bet for reducing the transfer time.

• Charges: You will get charged for international money transfers, and there is no way around it. However, you can reduce them by comparing your options and choosing the most competitive one. For example, money transfer services like Western Union offer competitive fees for sending money to Cuba.

• Transfer Cap: You may want to send a large amount of money to Cuba if you are paying for an expensive wedding. Make sure the method you have selected does not have low transfer caps.

Buying Real Estate

Cuba has lovely properties by the ocean that you can invest in for the future. It is illegal for foreigners to buy real estate in Cuba. However, many people invest in real estate through 3rd parties. Here is what you should consider when purchasing real estate in Cuba.

• Fees: you will need to send large amounts of money to pay for real estate. Therefore, you need to choose a payment method where the fees do not scale with the transfer amount. Fixed fees ensure that you get a good deal for large international money transfers to Cuba. Some services have capped percentage-based fees, which are also applicable for sending large sums of money.

• Transfer Cap: to pay for real estate with low transfer caps means you need to make several payments. The fees may stack with this approach, which is not ideal. Instead, find a money transfer company with high fees caps that accommodate sending large amounts of money.

• Taxes: You need to learn the tax laws in Cuba regarding buying real estate. This ensures that there is no liability legally and unforeseen charges do not have to be paid. Hiring a local tax accountant can help you understand what you might owe to the Cuban government when buying real estate.

Salary

You can receive your salary from abroad when living in Cuba. It is excellent for freelancers that prefer to look for work internationally and enjoy the Cuban lifestyle. Here is what you should consider when receiving your salary from abroad in Cuba.

• Fees: To ensure that you get most of your salary without high fees, you need to consider the transfer method carefully. You may want to opt for methods that have a long transfer time but offer lower fees. Also, look for services that match the mid-market rate for currency conversions.

• Taxes: Most countries worldwide will tax you on income – even if it comes from abroad. Learning the local tax laws regarding income is a smart idea to avoid legal trouble with the Cuban government. We advise that you seek professional legal advice from a tax accountant to ensure the appropriate taxes are paid.

• Convenience: Choose a money transfer method that offers efficiency and convenience since you will likely receive a regular salary. This means the user interface should be responsive and easy to navigate. Also, a mobile app is handy to manage your finances while on the move.

Business

There are a few options to receive business money in Cuba. To avoid stunting your business growth, choosing a reliable money transfer company is vital. Also, having a few backup options is handy when the primary one is no longer viable.

• Transfer Caps: you may need to send a large amount of money to pay for inventory and pay suppliers. Therefore, you need access to a transfer service with high caps. The transfer caps should be much higher than you need right now since your business may grow, and the requirements will change.

• Processing Speed: cash flow is important to maintaining business health. You need to pay for new inventory in time so that you do not go out of stock. Therefore, choose a money transfer service that offers fast processing speeds. Some allow you to receive money instantly or wait up to 24 hours.

• Taxes: Most countries tax business income on profits made. Organizing your paperwork for business-related money transfers is critical to ensure that taxes can be completed without problems. Take the time to research the local tax laws in Cuba or outsource the work to a competent tax accountant.

Pension

Pensioners who choose to retire in Cuba will want to receive money on time reliably. In the section below, we will outline what you should keep in mind when trying to get a better deal for international money transfers.

• Fees: to get a good deal on pension transfers, you need to choose the proper fee structure for the amount you are sending. For example, if your pension income is low, you might want to opt for a percentage-based fee format.

• Taxes: In many countries, pension income is considered the same as money earned from working. Therefore, you may have to pay taxes on pension money. To simplify the process of understanding your tax obligations in Cuba, hire a local tax accountant.

• Transfer Time: You may need to receive pension money quickly to pay for living costs. Therefore, find money transfer services with same-day processing speeds. This ensures you do not have to wait for multiple days to get your hand on the money.

Sending money to major banks in Cuba

The following banks are popular in Cuba:

• BICSA

• BNP Paribas

• BPA Bank

• Fransabank

• Havin Bank

• Banco Metropolitano

• Republic Bank

• Scotiabank

These financial institutions can be used for money transfers and, in some cases, convenient cash pickups.

What apps can I use to send money to Cuba?

You can send money to Cuba using apps like:

• Western Union

• TropiPay

Recent advances in telecommunications have also allowed Cuban companies to develop mobile wallets, including the new Etesca mobile wallet.

If you need to locate a money transfer provider with convenient fees, exchange rates, and transfer times, start your search on MoneyTransfers.com.

Useful links for Cubans abroad

If you’re a Cuban expat or have loved ones from the country living abroad, you might benefit from the following resources:

• The Cuban Embassy (Washington, DC)

• The United States Embassy in Cuba

• State Department: Updates on Cuba Travel Advisories

• Cuban American Alliance for Leadership and Education (CAALE)

• Expatriates.com

And, of course, don’t forget MoneyTransfers.com. We can assist you with money transfer providers, tax info, and more.

Sending different amounts of money to Cuba

When sending money to Cuba, you’ll need to pay close attention to the amount you send. Here’s what you can expect.

Sending under $1,000 to Cuba

Most money transfer apps let you send up to $2,000 overseas. As long as you send to approved recipients (i.e., family members), you can do so safely and conveniently.

Sending $1,000 or more to Cuba

You may run into money transfer limits when sending more than $2,000 to Cuba. For example, Western Union only allows you to send $3,000 without a security verification, though you can send up to $50,000 after verifying your identity.

Sending $10,000 or more to Cuba

Western Union is the best app for sending over $10,000 to Cuba, though you must undergo a security verification process. Sending large amounts to Cuba may also attract the attention of American authorities. Ensure you only send money to authorized family members without connection to the Cuban Communist Party.

Sending $100,000 or more to Cuba

If you want to send more than $100,000 to Cuba, you won’t be able to do so with a standard money transfer app. Some online brokers like TorFX or Currencies Direct may be a better option when sending large amounts.

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