Best way to receive money from Abroad
Where you are repatriating your funds from a bank account abroad, or need to receive money from abroad, the services we have reviewed can help you slash related costs in comparison to banks. We have reviewed more than 30 foreign exchange companies which specialise at sending and receiving money from abroad at preferential rates, and our conclusions are below.
Top Rated Services: Repatriation of Funds + Receiving Money from Abroad
- Repatriate Funds to UK, USA, Australia, EU, NZ, Singapore, Hong Kong
- Dedicated Dealers Assisting with Process
- UK Customer Experience Award
- Most Currencies Handled
- Client Reviews96% Satisfaction on Feefo
- Repatriate Funds to UK, USA, South Africa, Australia, EU, Norway, Sweden, NZ, UAE, China,
- Dedicated Dealers Assisting with Process
- Since 1996
- Best Online Platform
- Client Reviews 9 / 10 Ranking TrustPilot
- Repatriate Funds to UK, EU, Australia, Canada, South Africa
- Dedicated Dealers Assisting with Process
- Industry Veteran
- Personalised, Friendly, Service
- Client Reviews9.7 / 10 - TrustPilot
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Who can use these services?
- An expat who is moving to another country and need a repatriation of funds from his home account.
- An expat who is moving back home after an expatriation period and need to repatriate money from his foreign account.
- An individual who sold a property to an overseas investor and received money from abroad in foreign currency (checks are also accepted).
- An individual who sold property in a foreign country and requires to repatriate the funds back to his account.
- An individual who inherited money from a deceased relative abroad and need to repatriate the funds back to his account.
- Any business owner (even sole traders) who need to receive payment from abroad for service provision to a client abroad.
- The use-cases are unlimited as long as the source of money can be tracked and documents can be provided upon request.
Advantages of using these firms for receiving money from abroad
The way these companies operate is as a mediator between private clients and banks. By trading large quantities of currencies every year, they are able to buy and sell foreign currency while paying very low spreads. This advantage is being rolled over to its clientele, which enables private individuals to save a great deal on fees, which can become thousands of Pounds, Euros, or Dollars in savings. This is especially true if the clients are transferring large amounts, which is usually the case with repatriation of funds from abroad.
The second major advantage which is especially relevant when repatriating funds, is guidance from a specialist currency dealer. That guidance is a two-fold guidance in the case of repatriation:
1. The process itself raises a lot of questions. How to send the funds, tax implications, and limitations in regards to the amounts that can be transferred into the country is a major issue. Even though the currency dealer is not a licensed tax advisor, he can provide general advice on the topics, and refer you to the right sources.
2. Currency movements play a huge role on high-volume transfers. Even if you are potentially saving on fees, you could end losing on currency movements. Currency dealers working in these companies can direct you on the right timing to go ahead with the transfer, as well as provide tools such as Forward Contracts to mitigate future risks and lock current exchange rates. They can also advise on how the money should be transferred (whether in batches or as a one-time-off) to maximize saving.
How does the process work?
As mentioned earlier, foreign exchange firms are just a mediator between banks and consumers. That means that in order to get paid from abroad, or receive funds from your own bank account abroad, the payment should at some point be moved to their ring-fenced client accounts, exchanged to domestic currency, and then moved over to your account.
By doing so you are also avoiding recipient fees; your currency firm will guide you so you will maximise your saving in every aspect from the top of the chain to the bottom of it.
Here’s how you can receive money from Spain to the UK:
How can this save me money?
One of the things banks like to do is to make money wherever it is most difficult to check them. This is why banks all over the world charge money while receiving international transfers / repatriating capital. Not only do they charge high exchange rate fees if the currency should be automatically exchanged, but they also charge fees if it’s a same-currency transfer. This means you would be paying anywhere from 0.1% to 2.5% on money coming from abroad, even if you have a foreign currency account One example of this is if you are repatriating money from the USA to your Israeli USD account.
With currency services like the one recommended on this website, you will just pay for the currency exchange itself, without paying anything for the for the international wire, which is a lot less than what you would have paid with banks. There are no additional (hidden) fees incurred.
> Click here to learn more about the Bank / FX Companies differences.
How do you get started?
Sign up with more than one more company, and check which rates are offered to you. These rates will usually represent saving of at least 50% against banks, so it is usually best if you ’verify with your bank how much the repatriation of funds would potentially cost you.
If you like the rate, you will need to register with the company. The companies we have featured here are UK-based, so clients from UK or Europe would have the easiest time registering, while clients from other locations might need to provide a little more information about them and the purpose of this transfer. The reason for that is to prevent any form of money laundering and be in compliance with the FCA‘s orders. In addition, at least one of the accounts involved in the transfer in either sending or receiving the funds must be on your name.
When you are a verified customer, you can, at any moment, lock the exchange rate and move the money (or receive it from abroad). You can do so verbally on the phone, or through the online trading platform. You will have up to five working days to move money from your bank account to a segregated bank account that you will be provided with in order to fund your transfer.
Experiencing trouble with any money repatriation service listed on our website?
Let us research into it while you find a better way to receive money from abroad. View our FX Case Investigation service and comment there with your inquiry, or contact us via our About Us page. We promise to look into it, and assist as much as we are legally allowed to.
MoneyTransferComparison.com reviews foreign exchange providers since 2014 and focuses on levels of service. We had multiple companies which we recommended and partnered up with which failed our readers – as a result, we have lowered their ratings and they are not longer recommended.
Will I have to pay tax on property sold abroad?
In the UK: It depends on the situation. If you are a returning expat who has been living in the property for the past 36 months, it might be considered under the private residence relief rules, and you will be exempted from taxes. If this was not your main residence, then Capital Gain taxes will be incurred upon sale (and not upon retrieval of funds to UK).
>More information can be found on Gov UK Capital Gain Tax Guide.
In the USA: It also quite depended on the situation. If you lived the property that was sold for at least two of the past five years as your primary residence, then tax will be exempted up to the level of USD 250,000. In any other scenarios, you will have to pay normal capital gains taxes.
If you are renting out a house abroad, you can deduct things like bills and mortgage payments from your rental report that you would have to submit to the IRS – as long as the house is rented 15 days a month or more.
>More information can be found on Investopedia US Overseas Property Section.
In Australia: Your main residence is completely exempt from taxation. To determine whether it is indeed your main residence, the Australian Tax Office uses several factors. On all other cases of selling property abroad, you will be liable to pay capital Gains taxes.
> More information can be found on the Australian Taxation Office.