Sending Money Home: International Money Transfers for Expats

Whether you are sending a monthly contribution to a UK savings account, paying a UK mortgage from an overseas salary, repatriating a year's earnings, or making a property purchase deposit, the mechanics and costs of moving money internationally deserve more attention than most expats give them.

The difference between a poorly chosen transfer method and a well-chosen one can run to hundreds or thousands of pounds on a large transfer. On a series of regular smaller transfers, the cumulative advantage of choosing the right provider is equally material over time.

The Real Cost of a Transfer

The stated fee on an international transfer is only part of the cost. The other, typically larger, component is the exchange rate margin — the difference between the mid-market rate (which you can check on Google or XE.com at any time) and the rate the provider actually applies to your transfer.

A high-street bank transferring £10,000 to a euro account might charge a stated fee of £25 but apply an exchange rate 2.5% below the mid-market rate. The effective cost is therefore approximately £275, not £25. The stated fee is the small visible fraction of the total.

Specialist transfer providers typically apply margins between 0.3% and 1% above the mid-market rate — a fraction of what traditional banks charge. For regular transfers and large amounts, this difference is significant.

Provider Comparison

Wise (formerly TransferWise). The benchmark for transparent, low-cost personal and business transfers. Wise charges a clearly disclosed percentage fee (typically 0.4–1% depending on currency pair and transfer size) and applies the mid-market exchange rate with no additional FX margin. The combination makes it consistently competitive for most currency pairs. The Wise multi-currency account also allows you to hold, convert and receive in multiple currencies, which is useful for expats with income and expenses in different currencies. Maximum transfer limits apply and vary by account verification level.

Revolut. Revolut's personal account offers fee-free currency exchange up to a monthly limit (which varies by account plan — free plans have lower limits; paid plans are higher). Beyond the monthly limit, a 0.5% fee applies. The exchange rate is close to mid-market during normal market hours; a 1% markup applies at weekends when interbank markets are closed. Revolut is highly convenient for small and medium regular transfers; less competitive for very large single transactions.

OFX. OFX specialises in larger transfers (typically $1,000+ minimum). The margin over mid-market is typically 0.4–0.6% for major currency pairs, with no fixed transfer fee. OFX is well-suited for property purchase transfers, large lump sum repatriations and business payments. Their 24/7 customer service and dedicated dealer relationships are particularly useful for time-sensitive large transfers.

Currencies Direct. A UK-based specialist broker offering competitive rates on large transfers and forward contracts. Well-regarded for property purchase transactions and regular overseas payments. Personal service from a dedicated dealer is a differentiator for clients moving large amounts.

WorldFirst. Primarily focused on business customers and marketplace sellers, though private clients can use the service. Competitive for business-to-personal and large regular transfers.

HSBC Global Money. HSBC's international money management offering provides competitive transfer rates between HSBC accounts in different countries. If both you and a recipient (or your own accounts) are with HSBC, this can be very efficient. The limitation is that it works best within the HSBC ecosystem.

SWIFT bank transfers. Standard bank-to-bank international transfers use the SWIFT network and are universally accepted. The downside is cost: banks typically charge £15–40 per transfer plus an FX margin of 1.5–3% over mid-market. For small or infrequent transfers where universal acceptance matters, SWIFT is fine; for regular or large transfers, the cost is disproportionate.

Exchange Rate Strategies for Large Predictable Transfers

When you have a known future currency need — a UK mortgage payment due in three months, school fees due in September, a property purchase completion in six weeks — you can manage exchange rate risk proactively rather than accepting whatever the spot rate is on the day.

Forward contracts. A forward contract locks in today's exchange rate for a transfer to be made at a specified future date (typically up to twelve months forward, sometimes longer). If GBP/EUR today is 1.17 and you want certainty that you will exchange at that rate when your payment falls due in two months, a forward contract provides that certainty. You give up potential upside (if the rate improves) but eliminate downside risk (if it deteriorates). Forward contracts are offered by specialist currency brokers (Currencies Direct, OFX, moneycorp, Halo Financial) and require a small deposit (typically 5–10% of the notional).

Rate alerts. Setting a target exchange rate and receiving an alert when it is reached allows you to transact opportunistically rather than transferring on a fixed schedule regardless of rate. Most specialist transfer providers offer this functionality.

Regular payment plans. For recurring transfers — sending the same amount monthly — specialist brokers can automate regular payments at a pre-agreed rate or at the prevailing market rate with notifications. This is more efficient than logging in to initiate each transfer manually and ensures payments are made reliably.

Annual Allowances and Transfer Restrictions Abroad

Several countries impose restrictions on the amount of money that can be sent abroad by residents:

India. Under the Liberalised Remittance Scheme (LRS) regulated by the Reserve Bank of India (RBI) under the Foreign Exchange Management Act (FEMA), Indian resident individuals can remit up to USD 250,000 per financial year for permitted purposes. This does not directly restrict what you transfer into India as a foreign investor, but is relevant if you or a family member has Indian resident status.

China. Chinese residents face an annual foreign exchange purchase quota of USD 50,000 equivalent per individual under SAFE (State Administration of Foreign Exchange) rules. This applies to Chinese residents and affects the practical ability to move RMB abroad. As a foreign expat residing in China, remitting legitimately earned and taxed foreign-currency income has a separate and more permissive set of rules, but these are complex and worth verifying with a specialist.

South Africa. South African residents face a foreign investment allowance of ZAR 10 million per year plus a single discretionary allowance of ZAR 1 million. A SARS Tax Compliance Status (TCS) PIN is required for the foreign investment allowance. South African residents who become UK expats and cease South African residency need to formally cease their South African tax residency, which involves specific procedures with SARS.

EU. The EU has no general restrictions on intra-EU transfers. Transfers to and from non-EU countries above EUR 10,000 must be reported by financial institutions to prevent money laundering, though this does not prevent the transfer.

AML Queries and Documentation

Under anti-money laundering regulations, banks and transfer providers in most jurisdictions are required to flag transfers above certain thresholds and to conduct enhanced due diligence on large or unusual transactions. The thresholds vary but a transfer of £10,000 or more is a common trigger for additional documentation requests.

If a bank contacts you to explain a large transfer, this is not necessarily adversarial — it is a compliance process. Being prepared with documentation is the most effective response:

• Source of funds (salary payslips, employment contract, investment account statements)
• Purpose of transfer (property purchase, mortgage payment, savings accumulation)
• Destination account ownership (confirming the receiving account is your own or an identified third party)

Where a very large transfer is anticipated — a property sale repatriation, a pension lump sum, an inheritance — notify your bank and transfer provider in advance. Pre-clearing the transaction before the transfer day prevents delays and reduces stress significantly.

Tax Treatment: Non-Dom Regime and the New FIG Rules

For UK non-domiciled individuals, the previously available remittance basis of taxation allowed foreign income and gains to remain untaxed in the UK as long as they were not remitted (brought to) the UK. This regime was abolished for new arrivals from April 2025, replaced by a Foreign Income and Gains (FIG) regime providing a four-year exemption for new UK arrivals on foreign income, after which worldwide income is taxed in the UK.

For expats who are not UK residents, UK tax does not apply to non-UK source income regardless of where it is remitted. Transfers of foreign income to a UK bank account by a non-UK resident do not, of themselves, create UK tax liability — though they may raise banking compliance queries, as above.

Always take specialist tax advice before making large transfers, particularly in the year of becoming or ceasing to be UK resident.

How Global Investments Can Help

Global Investments introduces clients to specialist currency brokers who offer institutional-grade rates on large transfers — particularly relevant for property purchase transactions. When buying property abroad, the timing and rate of the currency conversion on your purchase funds can make a meaningful difference to the effective purchase price.

Our advisers can also assist with the broader financial planning context around international money flows — currency risk management, repatriation strategy and tax-efficient structuring. Speak to our team to discuss your plans.

This article provides general information only. Transfer provider rates and terms change. Tax regulations affecting cross-border income and remittances are complex and subject to change. Always take professional advice on the tax implications of large cross-border transfers.