How to Send Money to the Netherlands from the UK: Best Money Transfer Services

With Wise, your transfer should arrive in just 2 hours, whether you opt to pay by bank transfer, credit card, or debit card.

This is way faster than many of its competitors. TorFX, Atlantic Money, and Currencies Direct could all take a couple of business days to complete the same transfer. Regency FX and XE are a bit faster than the others, but at 24 hours, they’re still much slower than the others.

If you want to use Wise to send GBP, then this will be much slower as you’ll need to use the SWIFT network. Otherwise, though, Wise is the best option if you want your recipient to be able to use the funds on the same day. You can even track every step of the transfer in your Wise account.

Even though services like TorFX and XE Currency charge zero transfer fees, they offset it by marking up exchange rates on your transactions. Meanwhile, Atlantic Money’s flat £3 fee structure and mid-market exchange rate mean that it is the cheapest option in most cases.

The cost-effectiveness of Atlantic Money only increases with the size of your transfer. Want to send £100,000? Your recipient will get over €120 more than if you’d used the next cheapest service.

Wise is best if you want all your payment information in one place. As a feature-rich app, Wise lets you set up market rate alerts and even track live exchange rates.

Atlantic Money is an app-only service. It sought to perfect its app without crowding it with too many features. You can create an account on the app, send money with in-app assistance, and check payment trends with ease.

Both Wise and Atlantic Money are available on iOS and Android stores.

De Nederlandsche Bank is the central bank of the Netherlands. It plays an important role in shaping financial policies, reforms, and transactions nationwide. It also oversees ongoing investigations into financial irregularities, including overseas fund flows.

Meanwhile, the Netherlands Tax Administration, also called the Belastingdienst, is the tax authority. The Belastingdienst also engages in rolling out allowances and initiatives for Dutch citizens.

The Financial Conduct Authority (FCA) and the HM Revenue & Customs (HMRC) are the top regulators in the UK. They ensure proper collection of taxes and compliance with rules. The regulators track payments for suspicious activities as part of anti-money laundering guidelines.

You and the recipient in the Netherlands might need to report funds transfers, even if they are gifts. If authorities flag any transaction, your money could get stuck. If the regulators are not happy with your reasons, you could face a formal investigation. The transaction could also be cancelled by the bank.

This will probably only affect transfers over €10,000. To avoid delays, just make sure to provide a reason for your transfer if asked and any additional paperwork.

There is no limit on how much money you can send to the Netherlands from the UK. However, large transfers could lead to higher fees. Most money transfer companies and banks charge fees as a percentage of the transaction amount.

Transaction limits could depend on your service or bank. Money transfer providers generally increase these limits upon successful verification of purpose and income sources.

If you are sending money as a gift or wages, take preemptive steps like informing the money transfer provider beforehand. Provide sufficient documentation, if possible, to avoid any delays.

The money you lose to fees when sending money abroad depends on several factors. Destination, speed, service, and the transfer amount together determine your transaction fees. You could pay more for instant online money transfers or less common transfer routes.

There are primarily three kinds of fees for overseas money transfers. They can be classified as transfer fees, currency conversion, and third-party fees.

Transfer fees are the charges you incur for using the services of a money transfer provider or a bank. Many money transfer companies don't have transfer fees but mark up the exchange rates. The markup translates into currency conversion fees. Wise lets you capture live, midmarket exchange rates on your transactions.

Third-party fees arise from credit card providers or banks upon the use of their services to fund payments.

Some money transfer services offer provisions for placing different market orders for sending money overseas. For instance, place limit orders to fix your desired rate for a future transaction in advance.

Your payments to the Netherlands are viewed as income or gifts. Sending money home could lead the authorities to see your regular payments as income. Ultimately, it could attract taxes you are not liable to pay.

To avoid this, specify the purpose of your money transfer during the transaction. This could help in faster processing and accurate calculation of taxes.

Business payments made to the Netherlands are taxable. The tax rate depends on your income level.

If you have Dutch income up to €75,518 and have not reached the state pension age of 67 years in 2024, you pay 36.97% in taxes. For income above €75,518, the tax rate is 49.5%.

The Netherlands also lets parents send up to €6,633 in the 2024 financial year, completely tax-free. The limit is €6,035 for 2023. Any money exceeding the limit is taxed at a rate between 10%-40%, depending on the relationship with the donor.

You could also send your children a one-off, tax-exempted gift of €31,813, if they or any of their partners are between 18-40 years of age. Once used, you cannot use this option in your lifetime.

The Netherlands also allows you to fund your child’s education with a tax-free gift of up to €66,268 for 2024. For sending money to any other person in the Netherlands from the UK, the tax exemption limit is €2,658 for this year.

The HMRC in the UK allows you to send gifts up to £3,000 to the Netherlands without taxes. The limit is £5,000 for a child and £1,000 per person for wedding gifts.

The receiver in the Netherlands must have the following ready to receive money from the UK:

• A valid bank account with BIC code and IBAN.

• Valid residential or business address

• Transaction reference number, especially for cash pickup

• A valid government ID

• Verifiable contact information