Financially relocating: Top things to consider when sending money overseas What do you need to know before sending money internationally? Familiarising yourself with the requirements of an international transfer is a necessity if you want to save the most money. Before embarking on any transfer, you need to understand three important factors: Exchange rates: An exchange rate is the rate at which one currency may be converted into another, also called rate of exchange of foreign exchange rate or currency exchange rate. Transfer fees: Transfer fees are another major factor to investigate before committing to any service. Whether it’s a flat rate or a percentage of the amount you plan on transferring, transfer fees can sometimes be a lot higher than expected. If you don’t check out the required transfer fees of different channels first, you're liable to pay more than what's necessary to make the transfer. Deducting the transfer fees during the process is a common practice of international bank transfer in China. As you may not aware of the fee amount included in the mean time, it is suggested to include a considerate sum to cover the amount you intend to transfer. Speed of delivery: The time it takes for bank transfers to process can vary depending on the bank or financial institution you use to make the payment, as well as the bank or institution that receives the funds. Other factors can include the currency that your payment is converted into and the financial regulations of the country you send money to. As a general rule, a foreign transfer to a foreign account arrives within 3-7 working days of your payment being made. Since local banks have stringent monitoring over capital overseas transfer, the approval and processing time is usually longer. If you’re using online bank transfer, you will have 24/7 online access to your account, where you can view your payments and monitor the progress. In addition, our dedicated Crown customer service team can provide you with any updates you require. How do I send money abroad with minimal fee? The requirements and regulations in place to make an international bank transfer vary from country to country. However, most overseas payments require the holder name and BIC/SWIFT code of the beneficiaries account. Some countries, like Europe, may require that you also provide your recipients’ IBAN. With changing requirements and multiple transfer platforms to choose from, deciding on a transfer service can be a headache. In fact, many people use their bank to transfer finances simply because they believe it’s more secure, convenient. When looking for the cheapest, and most efficient way to send your money online, working with international payment providers is often the best bet. Now that we’ve gotten the basics out of the way, let’s take a closer look at the financial steps you should take before relocating 1. Open an international bank account to facilitate easy transfers Open a bank account with an international bank of your destination country having a branch in mainland China. This is the safest and most secured way in getting your money transferred through accredited banks. Most banks will offer online banking and telephone support to ensure that you maintain easy access to your finances as well as being able to get paid and withdraw money without the need for currency management. However, you will potentially still be exposed to exchange rate fluctuations as well as transfer fees between accounts. This option will also offer peace of mind that you will be able to deal with people in your native language and easier to get help where necessary, although they often will not offer great rates of interest so for long term savings, this may not be the best option. Different banks may offer a complimentary international savings account, so if that is a requirement always include this on your checklist when comparing different banks. 2. Consult a tax advisor on what to expect Do you dread tax season? Well, once you move abroad, your tax situation will get a lot trickier. Everything about your move may have gone smoothly and seemed to be very straight forward, after all thousands of people become expats every year right? So what could make it so complicated? What makes your taxes particularly complicated is that you’ll need to file local taxes in your new jurisdiction, which means learning the tax laws and regulations of your anticipated country of residence. If you have lived in China for more than 183 days (within a tax year) before moving out, you are also required to pay China’s individual income tax in accordance with the regulations. 3. If you are of retirement age, plan how to distribute your retirement pensions If you have participated in the basic retirement pension and relocated abroad before your retirement, the savings in your personal account will be returned to you and the pension agreement will be terminated. Alternatively, you can also choose to keep the pension account without surrendering the insurance. After the payment period reaches 15 years and you are about to retire under statutory retirement age, though no longer a China citizen, you can still go back to China to file for your retirement and apply to access your pension account. After the retirement, retirees can also receive monthly pensions while abroad. The annual pension certification can also be processed at the local Chinese embassies and consulates, then forward back to China. 4. Make plans for your current investments and estate planning Expat financial planning requires a lot of time and effort. To help you get started with planning investments and estate planning, here is a quick financial checklist that you can use: Research how your existing investments will be affected by your move abroad. You should also look into where you should hold your investments. If you want to invest, research the offshore investments that work for you. Research how your estate will be affected by your move abroad. If you have sufficient capital, you can consider keeping your property at hometown, then sell it after confirming your stay at your destination country. If you have an individual savings account, make necessary contributions or close it before you leave to avoid tax implications. Contact a qualified investment specialist to help you organize your investment portfolio. Moving your finances abroad can be tedious at any point in the process. You might find yourself steering your mind away from the stressful parts of the planning, in favor of the more fun bits of moving abroad. Even if you are well organized, you may need to speak to a professional to get advice that is specific to your needs. In addition, make sure that the adviser you are speaking to is regulated in the country of your destination. Preparing for a relocation? Chat to one of our advisors about what you to prepare for, including your belongings, finances and more. We're with you all the way. Get in touch