MoneyTransfers

Iraq

Recent and historic conflicts have destabilized much of the Middle East, leaving many Iraqis looking for a safer place to live. Those that find security in the United States may want to support their friends and family by sending money back home. This guide will introduce you to the best ways to send money to Iraq, including reliable money transfer providers reviewed by MoneyTransfers.com.

Sarah Edwards
Author 
Sarah Edwards
11 minutes
February 9th, 2024
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What Ways Can I Send and Receive Money in Iraq?

You’ll be able to make a money transfer to or from Iraq in the following ways.

Ways to Send Money to Iraq

Money transfers to Iraq can be completed in several ways.

Iraq is part of the Society for Worldwide Interbank Financial Telecommunication (SWIFT) network, which facilitates bank transfers between it and the USA. However, this network isn’t always reliable, and your money may be transferred between several intermediaries, adding to your transfer times and transaction costs.

While international money orders were once relatively standard, their fee structure has been eclipsed by money transfer apps. Even so, some providers allow you to integrate your digital wallet, which may offer greater convenience.

Generally speaking, money transfer providers are the best way to send money to Iraq. These app-based services tend to be faster and more convenient than other methods.

MoneyTransfers.com offers reviews of top providers, ensuring that you find a safe, affordable method for sending money to Iraq. Use the search tool today to find a provider.

Ways to Receive Money in Iraq

You can receive money in Iraq using several methods, including:

  • Bank deposit: A bank deposit ensures that money goes directly to the recipient’s bank account; this method is secure and reliable, but it can take one to two business days to complete

  • Cash pickup: In a cash pickup, money is transferred to a participating bank or agent on the recipient’s behalf — recipients must be physically present to receive their money, but the whole process can be completed within minutes

  • Digital wallet: A digital wallet is ideal for those who don’t have access to a bank account in Iraq; popular choices include Zain Cash, AsiaHawala, and FastPay

How can I pay for my money transfer to Iraq?

When using a money transfer provider, you can pay for the transfer in several ways:

  • Credit card: Most providers allow credit card payments, which can also streamline the transfer process; however, many credit card companies charge additional fees for currency conversions or cash advance fees when sending money overseas, and you may face interest charges if you don’t pay your balance immediately

  • Debit card: Paying with a debit card affords the convenience of a credit card without the threat of interest charges; like a credit card, however, you may incur additional cash advance or currency conversion fees

  • Bank transfer: The most direct form of payment is to transfer money from your bank account; this may take longer, depending on your provider, but you’ll face lower fees than with a credit or debit card

  • Digital wallet: Some providers let you link your digital wallet (such as Google Pay or Apple Pay) to the app for added convenience, though you may incur fees depending on your wallet

What is the best way to send money to Iraq?

As a general rule, the best way to send money to Iraq is with a money transfer provider, specifically when paying with a bank transfer. Western Union offers a convenient way to send money without additional fees. You can also pay for the transfer with a credit or debit card, though you may incur additional fees.

Money transfer providers also rely on their own network of banks rather than the traditional SWIFT network. That makes them much faster and more affordable than traditional money transfer procedures.

How long does it take to send money to Iraq?

The exact transfer time will vary based on several factors, including:

  • Your method of payment

  • The amount you’re transferring

  • The time of day you initiate the transfer

  • Your money transfer provider

For example, some banks have a cut-off time, after which your transaction could be delayed until the following business day. And if you send large amounts of money, you could experience delays as your money clears security protocols.

Money transfer providers offer some of the fastest transfer times. For example:

  • Western Union: One to two hours

  • Payoneer: Instant (though it can take up to two business days for funds to be withdrawn to the recipient’s bank account)

Again, these estimates are based on transfer amounts of $2,000 or less, so you may see delays when sending higher amounts.

What is the fastest way to send money to Iraq?

Money transfer providers are usually the fastest way to send money to Iraq. They eliminate the need to rely on the SWIFT network, delivering fast, reliable service. And Western Union allows you to transfer money without paying a dime in transfer fees, with one to two hours of transfer times.

For another rapid option, try a cash pickup. Money transfer providers can facilitate cash pickups by locating approved banks or agents. The recipient must be physically present to receive the money, but the transfer time is often as little as a few minutes.

You might pay with a credit or debit card to accelerate the transfer process. Remember that this speed comes with the cost of currency conversion fees, cash advance fees, or even interest charges on your unpaid balance.

If speed is an issue, avoid bank transfers that rely on the SWIFT network. Transfer times are often long since your money will bounce between intermediary banks, which can add to your fees.

How much does it cost to send money to Iraq?

In addition to the amount you’re transferring, you may also have to pay a fee to use a money transfer provider. While some providers charge a fixed fee, others charge percentage fees that vary depending on the amount you send and your chosen payment method.

Thankfully, Western Union charges no fees. But when sending money overseas, you’ll also need to pay attention to the exchange rate, which relates to how well your money converts to the Iraqi dinar.

MoneyTransfers.com compares the exchange rate of popular apps to the mid-market rate, which is the midpoint between the buying and selling price of foreign currency.

Western Union offers an exchange rate of 1262.8494, which means that when you send $2,000, the recipient receives IQD 2,525,698.87.

What is the cheapest way to send money to Iraq?

The most cost-effective way to send money to Iraq is through a money transfer provider, paying with a bank transfer. Western Union allows you to make fast transfers with no additional fees.

Credit and debit cards may streamline the transfer, but you could face additional charges for overseas transfers. Some providers may even charge you fees depending on your method of payment.

Wire transfers often come with the highest fees. And when using the SWIFT network, it’s common for your money to be relayed between multiple intermediaries, each of which will add its own charges.

You can compare the costs of common money transfer apps using the search feature on MoneyTransfers.com.

What do I need to send money to Iraq?

You’ll need the following information to send money to Iraq, some of which you’ll provide when creating an account with your money transfer provider:

  • Your personal info: A money transfer provider will ask for details like your full legal name, address, and contact details, along with a valid photo ID to verify your identity

  • Information about the recipient: In addition to the recipient’s name and contact details, you’ll need some basic information about their bank; this includes the SWIFT code (which is linked to their bank) and the Iraqi IBAN number — in Iraq, the IBAN code is 23 alphanumeric characters: a two-character country code (IQ), a two-digit checksum code, four characters from the SWIFT code, and three digits that identify the bank branch, followed by a 12-digit bank account number

  • Payment method: To send money, you’ll enter your method of payment (e.g., bank transfer, credit/debit card, digital wallet)

What do I need to receive money in Iraq?

To receive money in Iraq, you’ll need to provide your contact details, as well as a photo ID, such as:

  • A driver’s license

  • A passport

  • An Iraqi National Card

If you don’t have a bank account, you can also transfer money to a digital wallet, though you’ll still need to provide the above details when creating an account with a digital wallet provider.

Do I pay tax on money transfers to Iraq?

In the USA, gift amounts aren't taxable if they fall below the gift allowance. As such, you can send up to $17,000 (or $34,000 if you’re married, filing jointly) without having to pay taxes.

However, this can change when sending money for commercial purposes. If your business sends more than $10,000 during the tax year, or you have a foreign account with more than $10,000, you may have to pay taxes.

Do Iraqi recipients pay tax on money transfers?

Gift amounts of IQD 20 million (roughly $15,267) aren’t taxed, but gifts in larger amounts are taxed at varying rates. For example:

  • IQD 20 million to IQD 30 million: 3%

  • IQD 30 million to IQD 60 million: 4%

  • IQD 60 million to IQD 90 million: 5%

  • Over IQD 90 million: 6%

Payments received for commercial purposes are classified as worldwide income and must be reported on the recipient’s income taxes.

What reasons do people send money to Iraq?

The Iraqi region has seen considerable instability due to global conflicts. As of 2010, the United States was home to 140,000 Iraqi immigrants; today, that number has climbed to 164,000.

Unfortunately, the USA has issued a level 4 travel advisory, which strongly warns against visiting the country. Consequently, there’s a need to support those in Iraq who may need assistance with expenses like:

  • Traveling

  • Medical bills

  • Paying debts

  • Education/tuition

  • Investments/businesses

Despite travel restrictions, Americans can still use a money transfer app for safe, convenient transfers to Iraq.

Sending money to major banks in Iraq

Iraq is home to many major banks, including:

  • Babylon Bank

  • Gulf Commercial Bank

  • Trade Bank of Iraq

  • Bank of Baghdad

  • National Bank of Iraq

  • Commercial Bank of Iraq

  • Ashur National Bank

Many of these institutions are fully compatible with today’s money transfer apps, and some even perform cash pickups for added convenience.

What apps can I use to send money to Iraq?

You can send money to Iraq using apps like:

  • Western Union

  • Payoneer

What if the recipient doesn’t have a local bank or lacks immediate access to a banking center? Several digital wallets are available, including:

  • AsiaHawala

  • Zain Cash

  • NassWallet

  • FastPay

Notice that other popular apps like PayPal don’t work in Iraq, so you must use the providers above.

As always, you can use MoneyTransfers.com to search for providers that match your needs and budget.

Useful links for Iraqis abroad

Iraqi expats can avail themselves of the following resources:

Don’t forget to bookmark MoneyTransfers.com, which can provide additional information on money transfer apps, tax details, and more.

Sending different amounts of money to Iraq

You may face limits when sending money to Iraq based on how much you can transfer. Here’s what to expect.

Sending under $1,000 to Iraq

Most money transfer apps let you send up to $2,000 overseas without hassle. Western Union is no exception — the app enables you to transfer money fee-free.

Sending $1,000 or more to Iraq

Again, most transfer apps let you send up to $2,000, but you may face some limits once you exceed this amount. Western Union only allows you to transfer up to $3,000 unless you go through an extra step to verify your identity.

Sending $10,000 or more to Iraq

Many apps start attaching limits once you hit the five-figure transfer mark. However, if you verify your identity with Western Union, you can send up to $50,000.

Sending $100,000 or more to Iraq

Most money transfer providers are unable to send large amounts overseas. If you need to transfer large amounts of money to Iraq, you might contact a broker such as TorFX or Currencies Direct.

Want to Send Money Somewhere Else?

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Contributors

Sarah Edwards
Sarah is a proficient Content Writer who specialises in the financial sector. Her expertise lies in delivering clear, informative articles that help readers navigate the complex world of financial transactions and currency exchanges.