Sending money to New Zealand from the UK? If you’re thinking of using traditional banks, be warned that they’re very expensive and slow.
Thankfully, you have other options. There are now much faster and cheaper services, like Wise, XE, and Tor FX. This guide will help you to identify the best ones, whether you are looking for speed, cost-effective transfers, or a user-friendly app.
Top Money Transfer Providers to Send Money to New Zealand
Wise has it all. It uses the mid-market rate for exchanges, so there are no nasty surprises of hidden fees. The transfer fees are also very reasonable—just £0.35 + 0.42%. This makes Wise cheaper than most competitors, especially if you’re sending a large amount.
You also won’t have to wait too long for your transfer to arrive. While many services take at least a couple of business days or more to send money to New Zealand, Wise will get your funds there by the next day.
To top it all off, Wise has a user-friendly mobile app, protects users with safeguarding and 2FA, and provides other handy features like a multi-currency debit card and interest.
- Very transparent fees
- The app is very easy to use
- Auditing, safeguarding and 2FA for security
- No cash pickup
- Limited integration with some banking systems
Need to get funds to New Zealand in a jiffy? Then XE is your best option. Transfers typically arrive in under 24 hours. And you can pay with credit card, debit card, or bank transfer.
XE doesn’t charge a fee, but it adds a markup to the mid-market exchange rate so it’s not as cheap as other providers like Wise and TorFX. However, you can set XE rate alerts to be notified when the rate improves and save yourself a bit of dosh.
Like Wise, XE also offers an intuitive app that makes money transfer a breeze. There are even a couple of handy extra tools like a travel expenses calculator and an IBAN calculator.
- Transfers should arrive in less than 24 hours
- No fees added
- You can set up rate alerts
- XE doesn’t use the mid-market rate
- Not as many payment methods as some providers
If saving your pennies is important to you, then give TorFX a try. There are no transfer fees. Although TorFX adds a markup to the mid-market rate, it’s only a small one.
Transfer speed is the letdown for TorFX—it can take as long as 2 business days for your funds to arrive. But TorFX can be a good way to send large amounts as there is no maximum transfer limit.
You’ll get a dedicated account manager who you can call to help you set up secure transfers. Alternatively, use the app or online service to transfer up to £25,000 quickly and conveniently at any time.
- Save money with no fees
- You’ll get a dedicated account manager
- Send as much as you want
- You won’t get the mid-market exchange rate
- Verifying your identity can be a pain
How to Send Money to New Zealand Using a Money Transfer Company?
The process of sending money to New Zealand by using an online money transfer service is simple. You only need to follow these three steps to execute a transaction!
Step 1: Compare Providers to Find the One That Best Fits You
Step 2: Sign Up with the Chosen Provider
Step 3: Transfer Money
What Are the Fastest Ways to Send Money to New Zealand?
If speed is your main concern, then XE is the best option. Your funds should arrive in under 24 hours. This is much faster than TorFX and Currencies Direct, which take 1 to 2 business days. Even Wise can’t deliver funds to New Zealand until the next day.
The great thing with XE is that you’ll get live tracking and notifications, so you’ll know what’s happening with your transfer.
What is the Cheapest Way to Send Money to New Zealand?
Prefer saving money? Well then, opt for TorFX. It doesn’t charge any transfer fees.
TorFX does add a margin to the exchange rate, but it’s only a margin of 0.29%, which works out to less than Wise’s transfer fee.
What’s more, TorFX lets you use forward contracts to secure good exchange rates for future transfers, as well as limit and stop loss orders to manage your exchange rate risk.
What Are the Best Apps to Send Money to New Zealand?
Wise, XE, and TorFX all have top-notch apps. The clear layouts make them super easy to navigate, plus they’ve all got more than 4 stars on the Apple and Google Play stores.
The extra features these apps offer are another bonus. Get rate alerts with XE and a multi-currency wallet with TorFX and Wise.
Transfer Safety
Both New Zealand and the UK are highly regulated, so there isn’t too much risk when transferring money. That said, it is still important to know what threats there are when sending money between these two countries.
The biggest threat to you is undoubtedly the threat of phishing and other scams. This is when bad actors might create a website impersonating a money transfer service to trick you into revealing your sensitive information or depositing money.
To avoid this, be extra careful and only use regulated international money transfer providers like the ones in this guide. Ensure that their website is legitimate, and always double and triple-check the money transfer details before completing the transaction.
Also remember that bank transfers are typically your safest option, although they are both slow and expensive.
Things to Consider When Sending Money to New Zealand Online
If you plan to send money to New Zealand, there are things you must consider. These include the New Zealand laws regarding limits, taxes, payment types, but also the cost of sending the funds.
Even your reason for sending the funds can play a role in the overall process. So, if you need to transfer money, consider the following:
Local Authorities
In New Zealand, the country’s central bank, The Reserve Bank of New Zealand, is in charge of managing the monetary policy. It regulates the financial sector and issues the local currency, the New Zealand dollar (NZD).
The bank also works closely with the New Zealand Ministry of Justice. They have stated that businesses must report international transfers and physical cash transactions over certain amounts, known as prescribed transactions. These include international wire transfers that exceed $1,000 (~£785) and physical cash transactions of $10,000 (~£7,850) or more.
As an individual, there is no law-prescribed limit to how much money you can transfer to or out of New Zealand. However, higher amounts will likely be reported in the interest of compliance with AML and CTF laws.
How Much You Are Sending Abroad
Another important thing to consider is how much you are sending. Depending on the service you choose to use, a smaller or larger amount may mean smaller or larger fees. Services like WorldRemit, for example, will charge a small fee for transfers up to £500 but have no fee for larger amounts.
Tax obligations in New Zealand will also depend on the amount received, as the tax rate is a graduated scale, rather than a flat rate.
As for the amount that you can send, it depends on the service. Wise, for example, allows you to send up to 2 million NZD per transfer.
The Cost of Money Transfer
One big consideration when sending money to New Zealand from the UK is the cost of doing so. This can vary greatly based on the transfer service, the amount you send, and other factors.
The costs that you can expect associated with sending money from the UK to New Zealand include:
Exchange rate
Transfer fees
Income tax
Potential additional charges
The costs of using transfer services are generally lower than if you use wire transfers, and they are usually also faster. Furthermore, some international money transfer services offer features that can help reduce fees, such as forward contracts or guarantee rates.
Payment Type and the Reason for the Transfer
Payment type and reason for the transfer can play a role in how much you pay in taxes or even fees. Businesses, for example, have to pay a flat 30% tax rate in New Zealand, while the tax rate is a graduated scale for individuals receiving money from abroad.
Apart from that, listing a reason for the transfer clearly and accurately can help speed up transaction processing. The financial authority will be able to easily identify the payment type and the purpose of the transaction, rather than have to delay the transaction and investigate it more deeply.
Tax Regulations in New Zealand
The tax regulations in New Zealand are fairly easy to understand. Recipients who are New Zealand residents are obligated to pay taxes on all payments that come from abroad. The only payments that are not taxed are prize money and inheritances. But you might be required to prove that the payment belongs to one of these categories if you claim such.
Business-related transactions are also taxed, with businesses having to pay a flat 30% fee. For individuals, the fee is as follows:
Up to $14,000 - 10.5%
$14,001 to $48,000 - 17.5%
$48,001 to $70,000 - 30%
$70,001 and over - 33%
No notification - 45%
Company tax - 28%
What Do You Need to Send Money to New Zealand?
In order to send money to someone in New Zealand, you will need certain information. According to Wise, you only need the following details about the recipient:
Full name
Their 15-16 digit bank account number
If you send the money via a bank, you need:
Recipient’s full name
Address
Bank name
Account number
Swift/BIC code (BKNZNZ22 for the Bank of New Zealand)
Transaction purpose
Your ID
Transfer amount and currency
Paying transfer fees
What Do You Need to Receive Money in New Zealand?
In order to receive money in New Zealand from abroad, there are only a few requirements. You will need:
A government-issued ID to confirm your identity
A bank account
Transfer information, such as the amount being sent, the currency, and potential reference number
A consent form (in some cases)
You will have to provide the sender with some of your details, such as full name and address.
