Moving abroad and transferring money overseas

Are you moving abroad and want to transfer your savings, the proceeds from selling your home, or another large amount of money overseas? If so, you may need to convert your euros into another currency. When transferring large amounts, even a small exchange rate difference can have a significant financial impact.

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For example, a 1% difference in the exchange rate on €300,000 amounts to €3,000. That is why it is worth planning your currency transfer in advance and considering when and how to convert your money.

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Transferring money abroad when moving overseas

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When you move abroad, you will usually transfer your money to a bank account in your new country. If the account is held in a different currency, your euros need to be converted first.

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For large amounts, it is important to look beyond transaction fees and consider the actual exchange rate you receive. Even a small difference in the rate can make a significant difference when transferring substantial amounts.

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HanzePay helps individuals and businesses with international payments and foreign exchange transactions. You have a dedicated account manager who can help you understand your options and plan your currency transfer.

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Why does the exchange rate matter when moving abroad?

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Moving abroad often involves transferring a substantial amount of money, for example:

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• personal savings;
• proceeds from selling your home;
• proceeds from selling a business;
• investments or other assets.

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The larger the amount, the greater the impact of exchange rate movements. That is why it can be useful to consider your currency transfer well before your actual move, rather than waiting until the last moment.

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Can you lock in the exchange rate before moving?

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If you already know that you will need a large amount in another currency in the coming months, you may be able to lock in an exchange rate using a forward contract.

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With a forward contract, you agree on an exchange rate today for a currency transaction that will take place at a future date. This allows you to know in advance how many euros you will need for a specific amount in the foreign currency.

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This can be useful if, for example, you are moving abroad and plan to transfer the proceeds from selling your home to your new bank account at a later date.

The main benefit is certainty: for the amount covered by the contract, you are less exposed to exchange rate movements between the time you agree the rate and the future transaction.

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Can I transfer my money in multiple transactions?

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Yes. You do not necessarily have to convert and transfer your entire amount at once.

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Depending on your situation, you could convert part of the money now and another part at a later date. You could also use a forward contract to secure the exchange rate for a future currency requirement.

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The right approach depends on factors such as your moving date, the currency you need and when you will need access to the money.

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What should you consider when transferring money abroad?

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When moving overseas, there are several things worth considering:

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Exchange rate
For large transfers, even a small exchange rate difference can have a significant financial impact. Look at the overall rate and costs of the transaction.

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Timing
Currency markets move every day. Planning your transfer in advance can help you avoid having to make a large transaction at the last minute.

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Payment date
Consider when you will actually need the money and allow enough time for the international payment to be processed.

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Currency risk
If you already know that you will need a large amount in another currency on a specific date, locking in the exchange rate may provide greater certainty.

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Moving abroad? Plan your currency transfer in advance

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Moving to another country involves many financial decisions. If you are transferring a large amount of money overseas, the exchange rate can be an important part of that decision.

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By considering the timing, exchange rate and options for managing your currency risk in advance, you can have a clearer picture of your financial position when you move. HanzePay specialises in international payments and foreign exchange transactions. With a dedicated account manager, you receive personal guidance throughout your transaction.

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Want to know what options are available for your situation? Get in touch with HanzePay.

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Frequently asked questions about transferring money when moving abroad

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What is the best way to transfer my savings abroad?

This depends on the amount, destination and currency you need. For large amounts, it is worth considering your options for converting and transferring your money before you move.

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Can I transfer my savings to a foreign bank account?

Yes. You can transfer money from a bank account in the Netherlands to a foreign bank account. If the receiving account is held in another currency, the money will first need to be converted into that currency.

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Can I lock in the exchange rate before moving abroad?

Yes. A forward contract allows you to agree on an exchange rate for a future currency transaction. This can provide greater certainty about the amount of euros you will need.

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Can I transfer my money in multiple transactions?

Yes. You can convert and transfer your money in multiple transactions. This can be useful if you do not need access to your entire amount at the same time.

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Is a foreign exchange specialist cheaper than my bank?

Not necessarily in every situation. However, when transferring large amounts, even a small difference in the exchange rate can have a significant impact. It is therefore important to consider not only transaction fees, but also the total amount you will receive after the currency conversion.

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