A competitive exchange rate can save you thousands.
While your local bank branch may be the most obvious way to send money overseas, a secure money transfer company will offer a much better exchange rate — but whichever you choose, you may need to file with the IRS to avoid hefty fines.
Should I use my local bank?
Check transfer limitsSome service providers will limit how much you can send daily or monthly, so choose a provider with a high limit or no limit when sending $1 million overseas.
NegotiateMany of the rates quoted by providers may be affected by the amount you're sending and could be negotiable, especially with larger sums.
Research tax laws.Each country has their own set of tax laws, and you or your recipient may need to file taxes.
Research sanctions.If you're sending money to a country with US-imposed sanctions, contact a professional to help you navigate the rules.
Specialized money transfer companies are typically the cheapest and fastest option for secure overseas transfers. You can also track your money along each step of the transfer, with online and phone support available if you have any questions.
Rochelle has always wanted to work in Tokyo, and now she's saved enough to make the leap to full-time resident. She needs to transfer $1 million to her Japanese bank account for a down payment on a new apartment and living expenses.
On this transfer, Rochelle can save ¥943,400 — more than $8,500 — by using CurrencyTransfer, though the transfer could take up to a day longer.
No limit 1 - 2 days USD 0.00 0.895 EUR 895,436 Exclusive: Minimum transfer of $1,000 for Finder readers (normally $5,000).
You can, but it might be pricey. On top of weaker exchange rates and higher fees, you'll find that it typically takes longer for your bank to transfer money internationally. This could be a problem if your money needs to get to its destination by a certain time. Also, your bank may not be able to transfer money to every country.
Given the amount of money you're looking to send, a solid exchange rate is critical. Even minor variances in exchange rates can save — or cost — you thousands of dollars.
For example, if Company A quotes you an exchange rate of 1 USD = 0.880 EUR and Company B quotes you a rate of 1 USD = 0.885 EUR, that half a cent difference adds up to $5,000 on a $1 million transfer.
If you have time on your side, you may want to use a limit order. A limit order allows you to set a target exchange rate with a service or broker, which monitors the rates 24/7 to make sure you don't miss it. Once exchange rates meet your target, the service or broker will contact you to complete the transfer.
Money transfer providers charge fees to increase profits and make up for the time they spend filling out reports for international transfers, such as currency transaction and Know Your Customer reports.
Some fee-free transfer providers make up that money with less favorable exchange rates, which can cost you more when you're sending a large transfer.
When choosing a transfer provider, factor in both the exchange rate and any fees to get the best deal.
In addition to filing traditional income tax statements, US citizens with bank accounts offshore must complete a Report of Foreign Bank and Financial Accounts (FBAR) by April 15 of each year that an overseas account held $10,000 or more at any point in time. The rules stipulate this requirement even if the account has a lower balance by the year's end.
This means that if you transfer a large sum of money overseas, even if it is invested shortly after, it needs to be reported to the IRS. Penalties for not complying, whether by accident or on purpose, are significant. Those who mistakenly fail to report can expect fines of up to 5% of the asset value involved. For those who wait until an investigation is launched, the penalty increases to up to 50 percent.
US residents are also required to report worldwide income, including from foreign accounts and investments. You may need to factor this in when thinking about offshore business or properties.
Sending $1 million or more overseas may require additional planning in some situations. When dealing with complicated situations or countries with additional requirements, contact a lawyer or tax professional.
Some countries will require you to own property in that country in order to open an offshore account or holding company. That can mean significant additional costs — not just for the purchase of a residence, but also for the legal or account registration fees that may be required for setting up the holding company.
Offshore trusts, foundations or businesses can provide a way to restructure ownership of assets in the case of lawsuits or debt issues at home, making them an attractive option to protect individual assets from seizure. However, you can end up in serious legal trouble if you don't file the proper tax forms.
If you send $15,000 or more as a gift to someone other than a spouse, you'll need to file a gift tax return. Depending on which country your recipient is in, they may also be required to file or pay gift taxes.
If you're sending $1 million or more overseas, even a small difference in the exchange rate can add up to thousands of dollars, so compare international money transfer providers to make sure you're getting the best deal.
Will the IRS find out if I don't report a large transfer?
Yes. Both banks and money transfer companies report large transfers, sometimes with reporting thresholds as low as $1,000. That means that even if you don't report the transfer on your taxes, the government will know about it.
How can I make sure my transfer is secure?
Look for a transfer provider that offers bank-level encryption and only transfer money to people you know. If you receive an email requesting money, don't click it — instead, get in touch with the recipient to make sure it's legitimate, and then go directly to the transfer provider's website.
Do I have to report gifts over $15,000 if I haven't reached the lifetime exemption?
Yes, you'll need to fill out a gift tax return every year you gift someone over $15,000, regardless of whether or not you've reached $15,000.
Transferring a large amount of money overseas would mean that you need to comply with the local laws of both Switzerland and Thailand that are related to sending and receiving money. You might need to know what tax you need to pay or the documents needed to ensure that you legally transfer money. With money laundering in the rise, it is not difficult to see that world governments want to regulate the flow of money in their country.
For this reason, please directly get in touch with the proper authority to ensure you have covered all legalities.
Do you know if Foreign Money Transfer Services are in African countries like Ghana and can the cash be withdrawn?
Yes, there are available money transfer services in Ghana and other African countries and yes, you're able to pick it up in a form of a cash. Companies like Western Union and MoneyGram offer several cash pickup centers in Ghana and other African countries. You may want to check this page for the guide and list of money transfer services to Ghana.
How long does it take for you to borrow from one million dollars to Europe? How many days ? Or how many weeks?
While we do not represent any company that we feature on our pages, we can offer you a general advice. If you wish to have a personal loan you may want to consider the options available here.