Many people who move to Germany regularly send money to their family back home. This is allowed and completely normal. However, the cost of such a transfer can vary a lot. It is often made up of two parts: a fee and a markup on the exchange rate. The exchange rate is the price at which euros are changed into another currency. If you compare both, more money often reaches your family. This page is for everyone who wants to send money abroad. It is not an obligation, just help for your everyday life.
What you need
- A valid passport (Reisepass) or national ID card (Personalausweis). Providers must check your identity.
- Possibly your residence permit (Aufenthaltstitel). This is the document that allows you to stay in Germany. Read more at Sorting out your residence permit.
- A current account (Girokonto) in Germany. This is a normal bank account for everyday use. See Opening a bank account. With some providers, you can also pay in cash.
- A registered address (Meldeadresse). This is the address at which you are registered with the citizens' office (Bürgeramt). Many providers ask for it. See Registering your address.
- The details of the person receiving the money: full name, country, city and often the address.
- For a transfer to a bank account: the IBAN (international account number) and often the BIC (a code that identifies the bank).
- For apps: a smartphone and a phone number. See Choosing a mobile phone plan.
Step by step
- Decide how your family should receive the money. The usual options are: to a bank account, as cash for pickup, or to a mobile money account (a money account on a mobile phone). Not every option is available in every country.
- Decide on the currency. Should the money arrive in euros or in the local currency? If the bank in your home country exchanges the euros, there may be another markup there.
- Compare the final amount. Ask: How much money will my family receive in the end? This amount shows the fee and the exchange rate together.
- Check the exchange rate. Look up the current mid-market rate (Mittelkurs). This is the rate halfway between the buying and selling rates. You can find it in the business news, for example. The further the provider's rate is from it, the higher the hidden markup.
- Check the transfer time and limits. How long does it take? How much money can you send per day or per month? New customers often have lower limits.
- Check that it is safe. The provider needs a licence from the financial regulator. In Germany, this is BaFin (Federal Financial Supervisory Authority, Bundesanstalt für Finanzdienstleistungsaufsicht). A licence from another EU country can also be valid.
- Enter all details carefully. Write the name exactly as it appears on the recipient's ID or bank account. Check the IBAN twice.
- Send a small amount the first time. This way you can see whether everything works.
- Save the receipt. For cash pickup, you will get a transfer number. Only give this number to the person who collects the money.
Costs and deadlines
Fee and exchange rate: Some providers advertise a low fee but use a poor exchange rate. Others offer a good rate and charge a fixed fee. So always compare the amount that arrives in the end.
Banks: For transfers in euros within the EU, your bank may not charge more than for the same transfer within Germany. These transfers are called SEPA transfers (SEPA is the single euro payments area in Europe). They usually arrive by the next banking day at the latest. To countries outside this area, or in another currency, a bank transfer is often more expensive and takes several days. Sometimes intermediary banks (other banks along the way) also deduct fees.
Specialised money transfer providers: These companies only handle money transfers. For countries outside the EU, they are often cheaper or faster. Some also offer cash pickup. But prices vary a lot, so it is worth comparing. Below this text you will find links to providers.
Large amounts: Payments abroad of more than 12.500 euros usually have to be reported to the Deutsche Bundesbank (Germany's central bank). Ask your bank if this matters to you.
Typical problems for newcomers
You don't have a current account yet. With some providers, you can pay in cash at a branch or agent location. This is often more expensive. Having your own account makes things easier. See Opening a bank account.
You don't have a registered address yet. Some providers require an address in Germany. Register at the Bürgeramt as early as possible. This is your city's office for address registration (Anmeldung).
You don't have a Schufa record yet. Schufa collects data on whether people pay their bills. You usually do not need a Schufa report to make a transfer. Read more at Understanding and building your Schufa.
You speak little German. Many apps and websites are available in several languages. Check the language settings. If you have questions at a branch, bring someone who speaks German. See also Learning German.
The provider asks where the money comes from. This is normal. Under the Money Laundering Act (Geldwäschegesetz), providers must check where money comes from. The law is meant to prevent crime. Have your payslips (Lohnabrechnungen) ready, for example.
Fraud. Do not send money to people you do not know personally. Be careful with messages that pressure you or promise quick money. Do not use unlicensed people or groups who take money abroad "privately". This is not allowed in Germany, and your money is not protected.
Frequently asked questions
How much money can I send abroad?
Each provider has its own limits. For large amounts, the provider will ask more questions. If you carry cash of 10.000 euros or more across the EU border yourself, you must declare it to customs (Zoll).
Do I have to pay tax on the money I send?
If you support your family, you may be able to claim these costs in your tax return (Steuererklärung) under certain conditions. The rules are not simple. Keep all receipts and ask the tax office (Finanzamt) or a tax advisor (Steuerberatung). For your tax return, you need your tax ID (Steuer-ID).
What do I do if the money does not arrive?
First check the details on the receipt. Then contact the provider or your bank with the transfer number or the transfer receipt. Act quickly.
Can I send money with a credit card?
Some providers allow this. But it often comes with extra costs. Check your card's terms. Read more at Getting a credit card.