International Money Transfers for UK Expats (Best Options 2025)

Moving abroad as a UK expat brings exciting opportunities, but it also creates new financial challenges. One of the most significant ongoing concerns is how to transfer money internationally – whether you're sending funds back to the UK, receiving your salary from a UK employer, or managing finances across multiple countries.

The good news? The international money transfer landscape has evolved dramatically in recent years, with new players offering better rates, lower fees, and faster transfers than traditional banks. 

In this guide, we'll explore the best options available to UK expats in 2025.

Why Traditional Banks Fall Short for Expats

Before diving into the best alternatives, it's worth understanding why traditional banks often aren't the optimal choice for international transfers:

Hidden Costs: Banks typically add a 3-5% markup to exchange rates while advertising "no fees" 

Slow Processing: Transfers can take 3-5 working days, even within developed countries 

Poor Transparency: Exchange rates and total costs often aren't clear until after the transfer 

Limited Flexibility: Restricted timing options and limited currency pairs

These issues become particularly problematic when you're making regular transfers or dealing with large amounts.

Best International Money Transfer Services for 2025

1. Wise (Formerly TransferWise)

Best For: Regular transfers, transparency, and overall value

Wise revolutionised international transfers by using the real exchange rate and charging transparent fees. Instead of marking up exchange rates, they charge a clear percentage fee (typically 0.35-2% depending on the currency pair).

Key Features:

• Real mid-market exchange rate
• Multi-currency account with 40+ currencies
• Debit card for spending abroad
• Business accounts for expat entrepreneurs
• Excellent mobile app

Wise charges a transparent fee structure of 0.35-2% depending on the currency pair, with transfers typically completing within hours and sometimes within minutes. This makes it ideal for regular transfers and day-to-day banking needs for expats who value transparency and consistent service.

2. Remitly 

Best For: Quick transfers to specific countries

Remitly focuses on remittances and excels in certain corridors, particularly for transfers to Asia, Latin America, and Africa.

Key Features:

• Express transfers (often within minutes)
• Economy option for better rates
• Strong presence in emerging markets
• Good customer support

Remitly offers variable costs that depend on your destination and chosen speed option, with express transfers completing in minutes to hours while economy transfers take 1-3 days. It's particularly well-suited for quick transfers to family members in specific regions, especially in Asia, Latin America, and Africa.

3. Western Union 

Best For: Cash pickup options and global reach

While more expensive than newer competitors, Western Union offers unmatched global coverage and cash pickup options.

Key Features:

• Massive global network
• Cash pickup available in most countries
• Mobile app and online platform
• Multiple payment methods

Western Union typically charges higher fees compared to newer competitors but remains competitive in certain corridors, with transfers completing within minutes to hours. It's the best choice when recipients need cash pickup options or you're sending money to countries with limited banking infrastructure.

4. XE Money

Best For: Large transfers and rate tracking

XE Money offers competitive rates for larger transfers and excellent rate tracking tools.

Key Features:

• No fees on transfers over certain amounts
• Rate alerts and tracking
• Forward contracts for future transfers
• Good for business transfers

XE Money offers no fees on large transfers combined with competitive exchange rates, though transfers take 1-4 working days to complete. This makes it perfect for large one-off transfers or business payments where speed is less critical than cost-effectiveness.

5. Revolut

Best For: European expats and frequent travelers

Revolut combines international transfers with a comprehensive digital banking platform.

Key Features:

• Multi-currency accounts
• Excellent exchange rates (with premium plans)
• Travel-friendly features
• Cryptocurrency options
• European banking license

Revolut provides free transfers with premium plans (small fees apply to standard accounts) and delivers usually instant transfers within Europe, with other regions taking several hours. It's ideal for European expats who want a comprehensive digital banking solution that goes beyond just money transfers.

Key Factors to Consider When Choosing

1. Exchange Rates 

Look for providers offering the mid-market rate or rates very close to it. The mid-market rate is the real exchange rate you see on financial news sites, without any markup added by the transfer company. Avoid providers that don't clearly display their exchange rates upfront, as this often indicates they're hiding significant markups that will increase your transfer costs.

2. Fees Structure 

Knowing the total cost is crucial when comparing services, as fees can come in multiple forms. You'll encounter fixed fees per transfer, percentage-based fees calculated on the transfer amount, exchange rate markups that inflate the cost above the real market rate, and potential receiving bank charges that may be deducted from your transfer. Always calculate the complete cost including all these elements to make an accurate comparison.

3. Transfer Speed 

Consider your specific needs when choosing transfer speed, as faster options typically cost more. Instant transfers are perfect for emergencies but come with higher costs, while same-day transfers work well for urgent but planned payments. Transfers taking 1-2 days offer a good balance between speed and cost-effectiveness, whereas 3-5 day transfers provide the cheapest option when you're not in a hurry.

4. Security and Regulation 

Ensure your chosen provider meets proper regulatory standards and security requirements. They should be FCA regulated if they're UK-based services, properly licensed in all countries where they operate, use secure transfer protocols to protect your money and data, and offer compensation schemes that protect you if something goes wrong with your transfer.

5. Customer Support 

Quality customer support becomes essential when dealing with international transfers, especially across different time zones. Look for providers offering 24/7 support availability to help when issues arise, multiple contact methods including phone, email, and live chat, local language support in your destination country, and dedicated expat services that understand the unique challenges of living abroad.

Tax Implications for UK Expats

International transfers can have significant tax implications that many expats overlook. You need to understand these implications to maintain compliance with both UK and overseas tax authorities while optimising your tax position.

UK Tax Considerations

Non-resident status may affect your tax obligations on UK income, even after you've moved abroad. If you're receiving UK rental income, employment payments, or pension distributions, you may still need to file UK tax returns regardless of where you transfer the money. The key is understanding what income remains subject to UK tax and ensuring proper declaration.

Remittance basis taxation applies to UK residents who aren't UK domiciled. Under this system, you only pay UK tax on overseas income that you bring into the UK. This means transfers from overseas accounts to UK accounts could trigger UK tax liabilities on previously untaxed foreign income, while transfers from the UK overseas typically don't create additional obligations.

Double taxation treaties between the UK and over 130 countries help prevent paying tax twice on the same income. However, these treaties provide relief mechanisms rather than complete exemptions. Understanding which country has primary taxing rights on specific income types helps structure transfers efficiently and claim appropriate relief on tax returns.

Overseas Tax Obligations

Local reporting requirements vary significantly by country, with many requiring residents to report foreign accounts and large international transfers above specific thresholds. For example:

• Australia requires reporting of foreign income and assets
• EU countries often have thresholds above which incoming transfers must be reported
• The US has strict FATCA requirements affecting even non-US citizens in certain circumstances
• Failure to meet these requirements can result in substantial penalties

Currency gains and losses may be taxable events in some jurisdictions. If you earn income in one currency but transfer it when exchange rates have moved significantly, you might have taxable gains or allowable losses for tax purposes. This is particularly relevant for expats who maintain multiple currency accounts or time transfers for favorable rates.

Documentation requirements are essential for tax compliance across multiple jurisdictions. You should maintain detailed records including:

• Source and purpose of each transfer
• Exchange rates used and fees paid
• Tax treatment in both sending and receiving countries
• Bank statements and transfer confirmations

These records become crucial during tax audits or when claiming foreign tax credits, especially as tax authorities increasingly use sophisticated systems to track international transfers.

Red Flags to Avoid

Be cautious of providers that:

• Don't clearly display exchange rates
• Require full payment before showing total costs
• Lack proper regulatory licensing
• Have consistently poor customer reviews
• Offer rates that seem too good to be true

The Best International Money Transfer

Choosing the right international money transfer service can save UK expats thousands of pounds annually while providing better service and convenience than traditional banks.

For most expats, Wise offers the best combination of transparency, cost-effectiveness, and features. However, your specific needs – whether regular small transfers, occasional large amounts, or specialised requirements like property purchases – should guide your choice.

Remember to:

• Always compare total costs, not just fees
• Consider the tax implications of your transfers
• Keep detailed records for tax and compliance purposes
• Review your chosen service annually as the market continues to evolve

The international transfer market is highly competitive and constantly improving, meaning better options for expats every year. Stay informed about new services and features that could benefit your specific situation.

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