Here's what to consider when emigrating, funding a business or studying abroad requires a large transfer.
Whatever your reasons for sending money to Europe, there’s a lot to consider. While international money transfer specialists have taken the headache out of getting your money to Italy, the UK and countries in-between, you may be on the hook for taxes on large transfers into the eurozone or out of Australia.
We've gathered the tax info that goes along with moving large amounts of money to Europe.
How Europe regulates large remittances
Each country in Europe has its own gift tax, which is the tax your recipient pays when you gift money or property valued above a specified amount. Some countries exempt gifts from the burden of taxation altogether, while others consider the relationship of you to your gift beneficiary.
Here's a general rundown of how European countries handle the gift tax at the time of writing.
|Country||Gift size exempt from taxation|
|Albania||No gift tax|
|Andorra||No gift tax|
|Armenia||No gift tax|
|Austria||No gift tax|
|Azerbaijan||Exempt from gift tax if received from family members|
|Belarus||Tax law provides exemption for inheritances and partial exemption for general gifts|
|Belgium||3–30% of the gift amount|
|Bosnia and Herzegovina||2–10% of the gift amount|
|Bulgaria||0.4–0.8% on inheritances from family members and 3.3–6.6% for other beneficiaries|
|Croatia||5% if gift is worth more than HRK50,000|
|Cyprus||No gift tax|
|Czech Republic||1–40% depending on degree of family relationship|
|Denmark||No gift tax|
|Estonia||No gift tax|
|Finland||€1 to €4,999|
|France||5–45% of gift amount, depending on degree of relationship|
|Georgia||No gift tax, though inheritance taxes depend on degree of relationship|
|Germany||Remote relatives or family typically pay higher taxes|
|Greece||Varies by relationship of giver to recipient|
|Hungary||2–40% of gift amount, depending on degree of relationship|
|Iceland||Gifts for special occasions are exempt provided they're "not of extraordinary value"|
|Ireland||Varies by relationship of giver to recipient|
|Italy||Up to €1 million exempt for spouses, children and grandchildren|
|Kazakhstan||No gift tax|
|Latvia||No gift tax|
|Liechtenstein||No gift tax|
|Lithuania||€2,500 provided that gifts come from close relatives|
|Luxembourg||0–48% of gift amount, depending on relationship to beneficiary|
|Macedonia||2–5% of gift amount, depending on relationship to beneficiary|
|Malta||No gift tax|
|Moldova||No gift tax|
|Monaco||Rates vary depending on relationship to beneficiary|
|Montenegro||No gift tax|
|Netherlands||Exempt up to €4,479, depending on relationship to beneficiary, or up to €22,379 once in a child's lifetime|
|Norway||No gift tax|
|Poland||Rates vary by relationship of giver to recipient|
|Portugal||No gift tax|
|Romania||No gift tax|
|Russia||No gift tax|
|San Marino||Up to €1 million exempt for spouses, children and grandchildren|
|Serbia||1.5–2.5%, depending on relationship to beneficiary|
|Slovakia||No gift tax|
|Slovenia||€5,000 for immediate successors|
|Spain||7.65–34%, depending on value and relationship to beneficiary|
|Sweden||No gift tax|
|Switzerland||No gift tax|
|Turkey||10–30%, depending on the gift's value and relationship to beneficiary|
|Ukraine||No gift tax|
|United Kingdom||No gift tax|
|Vatican City||Up to €1 million exempt for spouses, children and grandchildren|
Do I have to report large transfers out of Australia?
You personally won't have to report any money you send out of Australia, no matter the amount. There are laws in place that require money transfer companies and banks to report all transactions over $10,000 or any transfer they think is suspicious.
The monitoring is done by AUSTRAC (Australian Transaction Reports and Analysis Centre). You won't have to do anything on top of this, but keep a clear record of these transactions just in case.
How will my recipient receive my remittance in Europe?
Your many options for sending money to Europe include bank-to-bank transfers, cash pick-ups and transfers to mobile wallets.
If your friends or family are picking up your money in person, they may need to show government-issued ID or a transaction confirmation number to prove they’re your intended recipient. For electronic transfers to their bank account, they won't need to provide any additional information.
Confirm with your bank or independent money transfer provider the exact information your friends and family might need to receive your funds.
As with all money transfers, be wary of potential fraud and only send money to people you know. Using a reputable provider can safeguard you from potential scams.
If you'd like to know more about sending money to particular countries in Europe, check out our guides on some of the most popular remittance countries:
DISCLAIMER: This article is general advice. It does not consider your own personal circumstances and may not be applicable to you. You should obtain professional advice and consider your own situation before acting on anything contained in our article.
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