Common Reasons for Sending Money to Ireland
Just as there are hundreds of thousands of transactions to Ireland, the reasons behind the remittances are widely varied as well. Below are some of the reasons Irish nationals in the diaspora send money home.
Irish nationals send regular payments to help their families cater for expenses such as food, medicare, and other basic costs.
In Ireland most first time home buyers take up mortgages to finance their purchases. The current rules allow for mortgage facilities of up to 3.5 times the borrowers combined income.
Income repatriation & Savings
Some Irish nationals especially those who work on contract abroad, often send their earnings home instead of banking them in their host countries. Also as part of prudent financial management, Irish diaspora transfer money into savings accounts back in Ireland. Whether they are anticipating to return someday or not, such buffers always come in handy.
Whether it is investing in financial assets or physical assets such as real estate properties, Irish diaspora is keen on building an investment portfolio back in their home country.
Why Send Money with a Money Transfer Service?
The choice of whether or not to send money with an online money transfer provider is influenced by factors such as the urgency, cost, exchange rate, availability and many others. Below are some of the top reasons why you should consider sending money through money transfer providers.
Ease of Set-Up
Signing up for an online money transfer account and the verification process can take anywhere from a few minutes to a couple of hours. In the subsequent transfers, there is nothing required other than keying in the recipient details and sending the transfer. Banks usually require a lot of documentation and they submit their customers to lots of KYC (Know Your Customer) procedures.
Online money transfer providers generally charge lower exchange rate margins giving senders high rates. Providers such as TransferWise use the mid-market rates for transfers, it doesn’t charge any margin.
With remittances coming from countries as far as Mongolia, Nicaragua, Malta, and St. Kitts and Nevis, the multi-currency feature is indispensable. Thanks to money transfer operators like WorldRemit, TransferWise, OFX, and XE, you can send money in 60+ currencies across the globe.
Security and Reliability
Most money transfer operators have put in place industry-grade security features and two-factor or multi-factor authentication security layers. This level of security helps in ensuring customer information and funds transfers are protected all at times.
Speed of Transfer
Depending on the transfer route, your funds may be available in Ireland the same day or the following business day. Cash pickups are normally delivered within minutes.
Apart from exchange rates, providers charge fees for the payment method chosen and other transfer fees. Typically, these fees are lower than what main street banks charge.
Things to Consider When Sending Money to Ireland
Every country has its own rules and laws regarding the handling of money and foreign income. In Ireland, you need to be aware of the following factors as you send money home.
Double Taxation -Ireland has over 70 double taxation agreements. When repatriating income that has already been taxed abroad, check the relevant agreements so that you don’t end up paying income tax twice.
Irish Rental Income -If you invest in property back in Ireland, you will be taxed on your rental income irrespective of whether you are domiciled in Ireland or not.
Daily Spending and Withdrawal Limits -Debit cards issued by the different banks have varying withdrawal and spending limits. Depending on the amount you are sending, the recipient may either opt for over-the-counter withdrawal or direct bill payment online. The average card spending limit is €5,000 while cash withdrawal limits can be as low as €500.
Sending money to Ireland can be a simple process with the right providers. Always watch out for exchange rates, transfer fees, and hidden fees. Doing a cross-comparison helps.
Looking to Send Money Somewhere Else?
Sending money anywhere else in the world is as easy as sending money to Ireland. If you're looking to send money to another country, here is the list of the most popular destinations.