Deutschland Kompass
← Back to home

ROUTE

Sending Money Abroad

Where banks hide the fee (in the rate!), when SEPA is free, and the €12,500 rule. Savings per thousand: €30–45.

✓ Checked: 15/08/2026

Inside the EU and in euros, sending money is a non-issue: an ordinary SEPA transfer is free and arrives the next day. Things get interesting beyond the eurozone, and there one insight matters above all: banks make their money on the exchange rate, not the fee. The fee can be zero while the transfer still costs several per cent, simply hidden in the rate.

  1. 1

    STEP

    The Ways to Send — and Where Fees Hide

    Within the EU, SEPA is free and takes a day. Beyond it, banks charge more than fees: the main markup hides in the exchange rate.

  2. 2

    STEP

    In Practice: Services and the €12,500 Rule

    Transfer services exchange at the real rate for a transparent fee. Know one German rule: payments of €12,500+ abroad must be reported to the Bundesbank.

More about this route

The only honest metric is therefore the amount that ARRIVES with the recipient in their currency. Everything else is marketing. Traditional banks effectively take 2–5 per cent, specialised services 0.3–1. Per thousand euros that is a difference of €30–45, and on regular transfers home it adds up to a few hundred euros a year.

The route's second step is a German formality worth knowing in advance: payments abroad from €12,500 must be reported to the Bundesbank under AWV rules. It is pure statistics, free and without consequence — an online form or a call to a free number, five minutes. What costs money is not the report but its absence.

WHERE PEOPLE MOST OFTEN LOSE MONEY AND TIME

FREQUENTLY ASKED QUESTIONS ABOUT THIS ROUTE

How much does switching transfer method actually save?

Per thousand euros the gap between a traditional bank and a specialised service is roughly €30–45. If you send about €500 home every month, that is some €200–270 a year — for exactly the same amount of effort per transfer.

What is the clean way to move savings when relocating?

One transparent transfer with a clear payment reference rather than a series of small ones. From €12,500 add the AWV report — free and done in five minutes. Keep the confirmations: if your bank or the tax office asks later, a traceable record of purposes saves weeks of correspondence.

Are transfers inside the EU really free?

In euros between accounts in the SEPA area, yes — an ordinary transfer costs nothing and arrives within one business day. Costs appear wherever currency is converted: a payment to a country with a different currency lands back at the exchange rate, not the fee.

Why keep transfer confirmations?

Because the questions arrive months later. A bank may ask about the origin of a large sum, the tax office about income from abroad. A record with clear payment references settles that with a single letter; without one it turns into correspondence.

WHAT USUALLY COMES NEXT

Share