- Sending funds to Germany from Australia by bank transfer is the most common choice, but not necessarily the best one.
- Money transfer services offer faster and cheaper options compared to banks.
- No matter what transfer method you choose, there are some laws and taxes you should know about before sending money to Germany.
Transferring money to Germany from Australia is a simple process as long as you transfer funds through a bank or an authorised money transfer company.
This guide will help you choose the best option based on the amount you want to send.
Need to transfer money to Germany from Australia?
Best ways to send money to Germany
Common reasons people transfer money overseas to Germany
Australia and Germany have had a strong relationship for many years. Many Australians move to European countries attracted by the stable government, free education, and better healthcare system. Germans also move to Australia in search of employment opportunities, to complete their studies, or as working travellers.
The main reason people transfer money overseas to Germany is to send funds to their families. Australians who want to emigrate to Germany may also send money to buy property. Likewise, investors and businesses may send money to invest in real estate, set up businesses, and pay overseas employees, suppliers or contractors.
Other reasons include paying for education overseas (families often send money to Australian students in Germany) or funding personal purposes, such as getting married overseas.
Business vs personal considerations
Whether you’re sending money to Germany from Australia for business or personal purposes, there is no limit on the amount you can send (other than the limits imposed by your bank or financial institution).
However, the European Central Bank (ECB) monitors all transfers made within the Eurozone to combat fraud and money laundering. This includes transfers made from an overseas country like Australia, either in a foreign currency or in the euro.
All German banks and authorised financial institutions – including registered money transfer services – must report any suspicious transactions to the German Financial Intelligence Unit (FIU). The FIU investigates each transaction and can block funds if the suspicions are met.
The federal government (Bundesregierung) monitors all transactions for tax purposes. Australian residents in Germany may be required to pay tax on their Australian income (including income from pensions, rent, or selling property overseas). However, you will not pay tax on the money coming from personal assets (savings).
Australian businesses are also required to pay tax in Germany for work carried out through offices based in Germany. However, the income from business conducted overseas will not be taxed in Germany. Check with a financial advisor if you're unsure.
Still not sure? Compare other money transfer services.
How much money can you send to Germany from Australia?
The Australian and German governments don't limit the amount of money you can send or receive in either country. However, your bank or financial institutions may limit the maximum amount for each transaction.
Most Australian banks have a limit between $5000 and $10,000 per transaction for personal accounts. Some banks allow you to increase the limit to $50,000 or more, but you'll usually have to call your bank or visit the branch to request a limit increase.
Business accounts enjoy higher limits, with the maximum about $100,000 per transaction.
Money transfer services generally have higher limits (or no limits at all). Revolut, one of the most popular money transfer apps in Europe, has no limits on the amount of AUD you can send through the app. Wise, another popular service, limits each transaction to €165,000 for personal accounts.
How much does it cost to send money to Germany through a bank?
Costs are made up of fees PLUS the margin on the currency exchange rate. Bank transfers cost about $25-$35 per transaction. Plus there's the AUD to EUR currency exchange rate, which may not be as competitive as specialist money transfer services and apps.
Alternative ways to send money to Germany
Sending money through a money transfer service (app or website) is generally cheaper. Some services are free of charge, while the average costs rarely exceed $10 per transaction.
What to compare to get the best deal
Getting the best deal is easy as long as you compare the following factors:
- Transfer options
- Transfer speed
- Payment options
- Currency exchange margins
- Fixed and variable fees