Transferring Large Sums of Money Internationally

Whether you’re transferring foreign earnings to a US bank account, financially supporting your family from abroad, or purchasing overseas property, expat life often involves transferring large sums of money internationally.

While moving large sums of money internationally is common and necessary for most expats, it can still trigger additional reporting obligations or expensive transfer fees. In fact, the average transfer fee is about 6% of the amount transferred.¹ So how do you minimize these fees and stay fully compliant?

Below, we’ll go over some of the most important details about transferring large sums of money overseas, from the most cost-efficient approach to typical fees, tax implications, and more.

Is it legal to send big amounts of money overseas?

US expats often worry, “Is it legal to send money abroad?” In this case, you can breathe easy. The answer, for the most part, is a resounding “yes” — provided, of course, that you don’t make transfers through illicit means like money laundering.² In fact, nearly $5 trillion is transferred internationally each day.³

Another common question is, “Are there rules for transferring large sums of money internationally?” In this case, the answer can vary depending on the country. 

Certain countries may have rules or regulations regarding how much you can send, how often you can do so, and whether you must report it. Make sure to review the rules around international transfers in both the country from which you are sending and the destination country.

Considerations when sending large sums of money overseas

Before deciding to send a large sum of money overseas, consider the following:

Fees & exchange rates for international transfers

Exchange rates vary depending on the currencies you convert from and to as well as the transfer method. Because these rates fluctuate on a day-to-day basis, you may get a much more favorable rate one day than the other. Some services may guarantee locked exchange rates for a certain period, such as 24-72 hours.

Before sending money internationally, it’s worth checking the exchange rates across several different transfer services. Some may offer better rates than others — for example, foreign currency exchanges at airports often have among the least favorable exchange rates.  

Most services also charge processing fees. Again, it’s a good idea to compare fees across different services. 

Which country you’re sending money to

Depending on which countries you’re transferring money from and to, you may encounter different: 

• Transfer methods
• Required documents & information
• Regulations
  • For example, when transferring large sums of money to the UK, you may want to confirm that your transfer method is covered by the British Financial Conduct Authority
• Transfer limits
• Tax/reporting obligations

Security for sending large sums of money internationally

Certain methods of transferring funds (e.g. bank transfers, transfer services) are much more secure than others (e.g. mailing a check or cash). Even with the more secure services, however, it’s possible to enter the wrong information, encounter scams, or have personally identifiable information (PII) compromised — so do your due diligence beforehand.

Ease of use

Some international transfer methods, like cryptocurrency transfers, require more technological know-how than others.

Transfer speed 

Depending on the service you use, transfers may go through instantly or could take several days to arrive. When mailing a check to an overseas recipient via snail mail, it may take several weeks.

Documentation required

Transferring funds through a bank may require you to provide documents to verify your identity, which can add an extra obstacle to the process.

Customer support

Some international transfer methods may have built-in customer support — but even then, some likely offer better support than others. For particularly large amounts of money, it’s a good idea to research how your desired transfer service supports customers.

Purpose: Is this money a gift? 

Different types of transactions sometimes have different fees, taxes, and reporting requirements. Monetary gifts, for example, may trigger the gift tax (more on that in a bit).

B!T related: Selling Gifted Property vs. Selling Inherited Property: A Tax Guide

Ways to transfer large sums of money internationally

There are a couple of primary methods for large international transfers: bank transfers and transfer services.

Each of these options has its own distinct timeline, requirements, and associated fees. While international bank transfers are the more traditional method, that doesn’t necessarily mean it’s the best option.

Below, we break down these two options in more detail so that you can determine the right method for you.

International bank transfer

Transferring large sums of money between bank accounts internationally usually involves a wire transfer (aka an electronic funds transfer) administered by the bank itself. To complete a wire transfer, you must typically:⁴

• Navigate to your bank’s wire transfer section
• Specify how much you want to send, when, & why
• Enter your recipient’s information, including their:
  • Name & address
  • Name & address of their bank 
  • Bank account number & type (e.g. checking, savings)
  • Bank routing number
  • SWIFT or BIC code, if applicable
• Confirm the details
• Accept the fees, terms, & conditions
• Authorize & complete the transfer

Some folks, however, feel more secure going to a bank in person to make a transfer with the help of an employee.

Some financial institutions may charge a flat fee for international wire transfers (at an average of $44),⁵ while others charge a percentage of the amount sent. Keep in mind that if you’re converting the money into another currency, an exchange rate will apply. Funds may take up to five days to transfer.⁶

Although most US banks allow account holders to make international wire transfers, some offer quicker, cheaper, or more reputable wire transfer services than others. A few of the best US banks for making international transfers include:⁷

• Bank of America
• Chase
• Citibank
• PNC Bank
• US Bank
• Wells Fargo

International money transfer services

The other main way of transferring money overseas is through an online money or wire transfer service. These are third-party sites or apps that facilitate transfers between accounts. Many expats choose these services because they are quicker and cheaper than completing a wire transfer through their bank.

A couple of the more well-known international money transfer service options include:

Wise

Formerly known as Transferwise, Wise supports money transfers in 47 currencies to over 160+ countries. Most transfers are completed in less than 24 hours, with longer transfers taking up to two days. In some cases, transfers go through instantly. The exchange rates are executed at mid-market rates, and fees vary by currency. 

Wise has a standard limit of $1,000,000 per wire transfer, with lower limits for ACH payments ($50,000) and debit/credit cards ($8,000).

Clear Currency

Clear Currency, on the other hand, supports transfers in 35+ currencies to over 130 countries. International transfers typically take one to three working days to arrive. Exchange rates vary by country and there is no transfer fee. Additionally, Clear Currency assigns each customer a dedicated account manager.

The standard transfer limit for Clear Currency is £50,000 (~$61,166). You can reach out to a team member for support if you want to transfer a larger amount.

Additional transfer services 

A few other services you can use to make international transfers include:

• PayPal: Send up to $60,000 in a single transaction to 110+ countries instantly to other PayPal accounts or in several days to a bank. Fees are typically 5%, with a minimum of $.99 and a maximum of $4.99. Converting from one currency to another incurs an additional 3% or 4% fee.
• Revolut: Make transfers to 70+ countries. Fees and limits vary by currency, although most currencies have no single-transaction limits. Weekend transfers incur additional currency exchange fees. Arrival times vary by country, but often arrive instantly or same-day.
• Western Union: Supports 130+ currencies and 200+ countries. Fees and transfer limits vary by region, currency, amount, and payment options. Transfers typically arrive within one to five days
• Xe: Supports 100+ currencies and 200+ countries. Depending on where you’re sending to and from, transfers arrive within minutes or up to three days. Transfer limits vary by country, while fees vary based on country, amount, transfer type, and payment method.
• Remitly: Supports 75+ currencies across 150+ countries. Arrival time depends on various factors, while fees vary depending on where you’re sending from and to. Transfer limits vary based on country and whether or not you have a verified account.

How to track transfers

One of the benefits of transfer services is that they typically offer you a way to track your transfers. 

You can usually navigate within a transfer service’s website or app to find a dedicated tracking section. Within it, you can usually see how much you sent, who the recipient is, what the status of the transfer is, how long it will take to arrive, and more.

Other methods of transferring large sums of money overseas

A few more ways to transfer large amounts of money internationally include:

• Cryptocurrency transfers
• Money orders
• Mailing a check or cash
  • Note: Keep in mind, this is generally the slowest and least secure option

Security & fraud prevention tips

It’s understandable to be nervous when sending large sums of money overseas. By taking the right precautions, though, you can greatly reduce the risk of running into problems. This might include:

• Using sites like Trustpilot and Reddit to ensure the service you’re thinking of using has a good reputation.
• Double- and triple-checking that the amount and recipient’s information are correct.
• Only sending transfers to those you know personally or those whose identity you can verify.
• Choosing services with encrypted platforms.
• Keeping an eye out for suspicious recipient behavior, like sending you a link or QR code to complete the transfer, pressuring you to make the transfer as soon as possible, changing the requested amount, offering to invest the money for you, etc.
• Looking up the transfer service’s customer protection policies.
• Speaking with a customer service representative of the service you plan to use in advance.
• Using a password manager with two-factor authentication (2FA) to store your login information.
• Tracking your transfer and verifying that the recipient received it.
• Regularly monitoring your financial accounts.
• Never making a transfer while connected to a public Wi-Fi network.

Tax compliance for transferring large sums of money to the US

The US’s citizenship-based taxation system means that even if you move to another country, you’re still subject to taxation. If you receive or send large amounts of money internationally, you may be subject to additional reporting (and sometimes tax) obligations.

Foreign Bank Account Report (FBAR)

If the sum of your foreign financial accounts exceeds $10,000 at any point in the year, you must file FinCen Form 114, better known as the Foreign Bank Account Report (FBAR).

Foreign Account Tax Compliance Act (FATCA)

On a similar note, anyone with over $200,000 in certain foreign financial assets by the end of the year — or over $300,000 at any point during the year — must report them on Form 8938 per FATCA regulations. The reporting thresholds vary for those who are married and filing jointly as well as those who live within the US.

Gift tax return (Form 709)

If the international transfers you make include gifts of over $18,000 to any one recipient in 2024 — or over $19,000 in 2025 — you must file Form 709, aka the gift tax return. If the recipient is your foreign spouse, however, the filing threshold increases to $185,000 for 2024 and $190,000 for 2025. 

Having to fill out the form, though, doesn’t necessarily mean that you’ll have to pay US taxes on that gift. You’ll only be subject to the gift tax, which can range from 18% to 40%, if your total gifts exceed the lifetime limit of $12,920,000.

Uplevel your personal finance strategy with expert tax advice

If you’re making a large international transfer, odds are that your finances are complex. For individuals with high income, multiple streams of income, and/or foreign tax and reporting obligations, the right tax strategy can make a major difference in your take-home pay.

Resources:

1.  International Bank Transfer Fees: All Costs Revealed [2023] 
2.  International Money Transfers: What You Should Know Before Sending Money
3.  Explaining the history of how money is transferred internationally
4.  The Total Guide to International Wire Transfers
5.  How much are wire transfer fees?
6.  How Long Does a Wire Transfer Take? 
7. 6 Best Banks for International Money Transfers and Alternatives [2023]

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