International Money Transfer – Germany


Written by Germany Simplified

November 6, 2020

Here is all you need to know about International money transfer in Germany. Money transfer is the practice of transferring money from one bank account to another. This happens via a special transferring form. Usually, you receive bills with specified amounts of money and relevant bank details of the recipient. It is a good idea to keep a copy for yourself whenever you engage in transactions.

If you are someone who lives in Germany, or are thinking of moving to Germany, sooner or later you will need to transfer money from your original country to a bank account in Germany, or vice versa. You might need funds to pay off bills, buy a house or pay your tuition fees, or only to support your basic expenditure. Incoming and outgoing of funds in necessary.  No matter what your reason is for transferring money to or from Germany, the same general guidance of how to go about it applies.

A good way to make an international transfer of funds depends on a lot of factors. Cost, convenience, speed and many other factors have to be considered before transferring money. You also need to know that the fees charged to transfer your money are only part of the cost you will pay. German banks claim “No fee” which does not mean “no cost.” All banks take a cut from the exchange rate. Being well informed can save you a lot of money!

Depending on where you transfer money, there are many ways to go about it.

Ways to transfer money abroad

Bank Drafts

Transferring money via bank drafts is a payment on your behalf, guaranteed by the issuing bank which will immediately debit the payer’s account for the specific check’s amount and withdraw the amount of money from his/her account. Bank drafts are usually used by banks while they are dealing with other banks. Bank drafts also come into play when a creditor or a seller does not accept an ordinary cheque from a debtor or buyer in another city or country. Bank drafts are the best solution in such cases. Although, there is a nominal fee charged by your bank for the transaction. In normal circumstances, a draft will certainly be paid, and it is generally accepted as a cash equivalent. This is also known as banker’s draft.

SWIFT transfers

SWIFT (Society for Worldwide Interbank Financial Telecommunication) is a code that is recognised internationally comprising of 8 or 11 alphanumerical characters. It is usually used by banks for international wire transfers. SWIFT is a chained network that enables worldwide financial institutions to send and receive information upon financial transactions. It functions in a reliable and secure environment. However, it is not responsible to hold member’s accounts, nor to perform clearing or settlement forms and it also does not facilitate fund transfer. The only job of SWIFT is to send payment orders which are settled by both correspondent accounts. In order to enjoy banking transaction exchanges, both correspondents must have a good and balanced banking relationship.

How to send money abroad?

One of the boons of online money transfer services is their convenience. Nowadays, you do not have to visit banks n person. You just have to sit at home and press a few buttons here and there on your smart devices and your work is done.

Here is a detailed guide on how international money transfer works in Germany: –


Opening an account

The first step in order to go ahead with a money transfer is to open a bank account. Once you have decided which online transfer service you would like to use, you need to first make an account on their website. You will have to provide a few details such as your name, date of birth and email address. Depending on the service you have chosen, you might have to verify your identity.

Choosing the amount and how to deliver it

Next, you need to give proper details of what kind of transaction you want to make. How much money will you be sending? What currency is your money already in, and which one would you want to convert it into? Can you wait for the transfer to take place or is the transfer urgent? All these are very important questions which you have to be prepared to answer while sending funds from Germany.

Add recipient’s details

You will also have to add necessary details about your recipient, which includes their name, account number and other important bank details.


After adding all the necessary information, you have to pay the money to the transfer company. You can do this with either a credit card or debit card. This process is just like online shopping, or a regular bank transfer. You might need to enter a special reference number to make sure your money gets forwarded on to the right place and the right person.

Finish the transfer

The finishing process of your transfer is pretty simple. Once the transfer company receives your funds, they will begin the process of transferring your money to the final holder. This might take some time, probably a few days. As soon as your transfer is done, you will be instantly notified.

Cost of sending money abroad

Whatever money transfer mode you choose, your final payment will depend on other important factors. These factors are: –

  • Speed of transfer.
  • Amount of transfer money.
  • The currencies that are involved in the transfer.
  • Bank transfer fee.

You need to be absolutely sure while you choose your mode of transferring the money. You need to also keep a check on the total cost involves which takes into account all of the factors mentioned above. Some companies may seem like they charge really low fees, but often this means that their exchange rate is high, and so you end up paying more.



There are a few things you need to keep in mind while transferring money to and from Germany. Do not get fooled by no cost money transfers because you will spend a lot more in those cases. Before sending or accepting money in Germany, give this article a read.

Read here to know more about the Business Opportunities in Germany.



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