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How to Receive Money from Abroad in 2025: 5 Best Options

Matt Woodley
Matt Woodley
-      Published:
July 4, 2025
-      
5
min to read

Receiving money from abroad can be simple when you understand the available methods, associated fees, potential risks, regulatory considerations, and tax implications.

Receiving money internationally is more than simply getting paid; it is about maximising every dollar, euro, or pound you receive. Whether the funds come from family support, freelance invoices, or cross-border trade, the channel you choose directly affects speed, fees, FX rates, and legal compliance. This guide shows you how to pick the optimal route -bank wire, specialist platform, mobile wallet, multi-currency account, or broker - so you keep more money, clear regulatory hurdles, and avoid tax headaches.

Why Receive Money from Abroad?

Receiving money internationally isn’t just a deposit - it’s a chance to cut fees, shorten wait times, and stay compliant. Pick the right channel and you’ll lock in sharper FX rates, meet AML rules, and avoid tax-time surprises whether the cash comes from family support, freelance invoices, or global trade.

🏦 Banks

Secure but slow and pricey. Good for large, infrequent transfers when sender insists on a bank wire.

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⚡ Online Platforms

Wise, Revolut, PayPal—instant payouts and mid-market FX. Best everyday option under £5k.

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📱 Mobile Wallets

Payoneer, Skrill, Xoom—cash pickup and instant access for the unbanked.

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💱 Multi-Currency

Hold 40+ currencies, convert later, batch payouts. Ideal for freelancers & SMBs.

Why it helps

💰 Brokers

Lowest spreads and dedicated support on transfers above £25k.

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🏦 Bank Transfers – Secure Yet Pricey

How it works: The sender kicks off a SWIFT or SEPA payment using your IBAN, SWIFT/BIC, and account name. Funds land straight into your bank—no third-party wallets involved.

⚙️ FactorWhat to Expect
⌛ Processing time2–5 business days (Eurozone SEPA ≈ 1–2 days)
💸 Bank fees£8–£12 per incoming wire (HSBC, Barclays)
🔄 FX margin2–3 % above mid-market rate
🎯 Best use-caseLarge, infrequent transfers where sender only trusts their bank
💡 Pro tip: On transfers above £20,000, get a live quote from a currency broker before accepting your bank’s rate—savings often top £300.

Exact details to send your payer

  • Account holder name: exactly as it appears on your bank account.
  • Bank address: full branch or head-office address (street, city, country).
  • IBAN: International Bank Account Number for your account.
  • BIC / SWIFT code: 8–11-character identifier of your bank.
  • Payment reference: invoice number or purpose of funds so you can trace it.

⚡ Online Money-Transfer Platforms – Fast & Transparent

Specialist services cut out bank overheads and deliver funds in minutes across Tier-1 corridors (US↔UK, EU, CA, AU, NZ).

  • Wise: Mid-market FX + 0.4–0.6 % fee; >50 % arrive instantly. Best for cost transparency.
  • Revolut: Interbank FX on weekdays, free up to plan limits. Ideal for peer-to-peer within Europe.
  • PayPal: Instant receipt but 4–5 % total cost. Use only when sender insists on PayPal.
  • Remitly: Cash-pickup network + express delivery; markup varies by corridor. Great for speed to cash.
  • Western Union: Global coverage; fees $0–$50 + 1–5 % FX. Emergency cash option.
💡 Quick cost check: Receiving $1,000 → GBP on 5 July 2025 costs £4–£6 with Wise versus £35–£45 with PayPal.

💱 Multi-Currency Accounts – Hedge FX Risk

Platforms like Wise, Revolut, and CurrencyFair let you hold, receive, and convert 40+ currencies under one login.

  • No forced conversion: Keep USD income in USD until rates improve.
  • Batch payouts: Convert when mid-market spreads narrow.
  • Business friendly: Auto-reconcile invoices in native currency.
💡 Best for: Freelancers and SMBs juggling multiple currency streams and looking to minimise FX costs.

💰 Currency Brokers – Best for High-Value Transfers (≥ £25k)

See our in-depth currency broker guide for strategy tips. Dedicated brokers combine tight FX spreads (≈ 0.3–0.7 %) with personalised service and risk-management tools.

BrokerStand-out Feature
XE No transfer fees; 24/7 dealing desk
OFX Forward contracts & rate alerts
Currencies Direct Tailored hedging for SMEs
TorFX Dedicated account managers
💡 Why use a broker? On a £250,000 property payment, shaving 1 % off the FX margin saves nearly £2,500—far eclipsing any flat bank fee.

🛡️ Compliance Checklist

  1. AML / KYC: Verify sender identity; refuse unclear “gifts.”
  2. FCA regulation (UK): Use FCA-licensed firms to safeguard client funds.
  3. GDPR & data privacy: Ensure providers store data in compliant jurisdictions.
  4. Reporting thresholds: Automatic filings on transfers ≥ $10,000 (US) or £10,000 (UK).
💡 Remember: Non-compliance can freeze funds mid-transfer. Always keep copies of IDs and transfer receipts for at least 5 years.

📑 Tax Rules in Tier-1 Countries (Snapshot 2025)

  • United States: Gifts > $100k → Form 3520. All foreign income taxable.
  • United Kingdom: Gifts tax-free, but derived income taxable. Large inflows queried by HMRC.
  • Canada: Declare foreign income; FINTRAC monitors transfers > CAD 10k.
  • Australia: Gifts exempt; foreign investment income reportable.
  • New Zealand: No gift tax; worldwide income taxable with foreign-tax credits.
💡 Tip: Double-check with a tax advisor—rules change frequently, and penalties for misreporting can be steep.

📦 Tracking & Record-Keeping

  • Real-time alerts: Wise, Revolut, and major banks notify you the moment funds hit your account.
  • Reference numbers: Save SWIFT MT103 or Western Union MTCN codes for easy auditing.
  • Retention: Store receipts and purpose-of-funds notes for at least 5 years.
💡 Audit prep: Keep a digital folder with PDFs of every incoming transfer—makes tax time painless and protects you during compliance reviews.

Conclusion

Choosing the right method for receiving money from abroad depends on specific needs - speed, cost, tax implications, and regulatory compliance.

By exploring bank transfers, multi-currency accounts, currency brokers, and mobile wallets, you can maximize your received funds while minimizing fees and risks.

Matt Woodley
Written by
Matt Woodley
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Matt Woodley is the founder of InternationalMoneyTransfer.com, with degrees in Finance, Marketing, Economics, and History from the University of Auckland. Leveraging his expertise and experience in the international relocation industry, Matt has built a platform that simplifies global money transfers. His work focuses on efficiency, transparency, and making international currency accessible, driven by a passion for innovation and simplicity.

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