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The best ways to send money abroad: a quick guide

Need to send money to family or friends overseas? Have funds in foreign accounts you need to access in your new home? Sending money abroad may be cheaper and faster than you might think.

Published: 1 February 2017 08:52 CET
The best ways to send money abroad: a quick guide
Photo: TransferWise

As more people live their lives across borders, the need to send money abroad is greater than ever. There are plenty of reasons expats need to send money overseas, and the number of available options is on the rise as well.

Whether you’re an expat juggling funds across banks in multiple countries, or a small-business owner who needs to pay invoices to an overseas supplier, there are plenty of options for moving money abroad safely and efficiently. And many are cheaper and more-user friendly than an old-fashioned bank transfer.

Below are a few options to consider when you need to make your next international money transfer.

Xoom

Xoom is a PayPal company that allows users to transfer money abroad, reload mobile phone credit balances, and pay bills with an easy-to-use app or online interface. Xoom currently provides service in 53 countries, with manageable fees ($4.99 for using a bank account). The maximum transfer amount is $2,999. And as you can guess by its name, Xoom is fast – delivering funds quickly regardless of which option you choose.

TransferWise

TransferWise is a user-friendly peer-to-peer service that lets users transfer money abroad in 38 different currencies spanning 55 countries. Fees are minimal and always upfront, with transfers under €400 costing only €2 (larger transfers cost just 0.5 percent of the total amount transferred). TransferWise also features the true exchange rate as well as fast delivery times. The app and web interface are also well-designed and easy to use, with a handy comparison tool.

Currencies Direct

This online service is good option for anyone looking to transfer more than £100. Currencies Direct offers international money transfers in 39 currencies and doesn’t charge any fees, and there is no upper limit on how much you can transfer. Exchange rates vary with the size of the transfer – the more you transfer, the better the rate. The website is also translated into 9 languages.

CurrencyFair

Founded in 2010, CurrencyFair is a peer-to-peer currency exchange that allows you to bypass banks altogether. Besides the basic €3 transfer fee, users pay an additional fee (0.38 percent on average) based on the amount exchanged and how easily they match with another user. The service is currently available for 20 currencies.

OFX

OFX (formerly known as UKForex) allows users to make international transfers in 155 currencies. There are no fees, although there is a minimum transfer of £100. Users can make transfers online or over the phone, and with offices across the world, OFX offers 24-hour customer support. Setting up recurring transfers is a snap, and OFX also offers different hedging tools to minimize risk.

This article was produced by The Local and sponsored by TransferWise

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Americans in France: What you need to know about your pension

The food. The weather. The wine. The lifestyle. France has plenty to offer retirees - but ensuring you make the most of your hard-earned pension will make your new life in l’hexagone even better.

Published: 25 February 2022 15:02 CET
Updated: 25 February 2022 17:00 CET
Americans in France: What you need to know about your pension

Lots of Americans retire to France, and there are generous bilateral agreements in place that make matters relatively straightforward.

First things first; US citizens can bring any type of US-based pension to France – although you’ll have to inform the US tax authorities that you’ll be paying French income tax on it.

You can move either before or after your pension starts to pay out and it doesn’t affect your payments.

US citizens coming to retire in France still have to file a US tax return every year, as well as a French one. Dual taxation agreements mean that you won’t pay tax twice on the same income, but you do have to complete two sets of tax declarations.

You can only forego US income tax responsibilities if you renounce your US citizenship – a process that is lengthy and expensive.

Tom Goold, founder of international financial advisers Valiant Wealth, said: “Generally, France is an attractive retirement destination for US expats with one of the best double taxation agreements and favourable views on US retirement accounts such as IRA 401(k)s and the like.

“If you pay state income tax in the US then this is eliminated in France. One negative could the higher estate taxes in France but there are certain structures that help navigate this issue.

“If this is a concern then you should work with an appropriately qualified advisor who has US experience and regulation.”

For further information, log on to the IRS website for advice and information on exclusions and deductions.

Tax matters

You should inform tax authorities in the USA that you’re moving to France. 

Pensioners are treated favourably here, with a 10 percent reduction factored in on income up to €36,600. You also pay tax as a household so you probably end up paying less tax than you might elsewhere.

If you own property in France expect to pay property taxes in addition to taxes on your income.

Once you have been living in France for three months you are entitled to register within the health system and if you become ill, incapacitated or need extra care as you get older, France has a generous social security system. 

Americans in France: What’s the deal with health insurance?

Currency matters

Be aware that currency fluctuations will mean that the amount that finally makes it into your bank account will change from month to month.

Other challenges

There’s a piece of US legislation known as FATCA that means all Americans in France, not just pensioners, may struggle to open a bank account – here’s some tips on how to get round this.

READ ALSO What are the biggest challenges for Americans in France?

In all cases, it is best to obtain independent advice that’s appropriate to your personal situation, from a financial expert.

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