For decades, sending money across borders meant paperwork, hidden charges, and uncertainty. Today, the story has changed. If you want to send gift money from India to Europe, the process is faster, digital, and tightly regulated to ensure transparency and safety. This guide unpacks every step from the latest RBI rules to practical tax insights and shows you how to make the most of modern platforms such as HOP Remit by moneyHOP.
The Growing Trend of Cross-Border Gift Transfers
Every year, thousands of Indian families support loved ones overseas. The reasons vary: a wedding in France, a child studying in Germany, a festival in Ireland, or a simple act of generosity. In 2024 alone, over USD 27 billion moved from India to Europe under the Liberalized Remittance Scheme (LRS), a testament to how cross-border gifting has become part of modern life.
Behind these figures lies a crucial truth: the way you send gift money from India to Europe affects both the cost and compliance of your transfer. Using the right method can save time, avoid unnecessary TCS deductions, and ensure that your funds reach securely and legally.
Need to pay your university fees and living expenses abroad?
Make international money transfers easier than ever! Enjoy no paperwork, secure & swift transfers, and real-time tracking.
Understanding the Rules Before You Transfer
The Reserve Bank of India’s LRS allows every resident individual to remit up to USD 250,000 per financial year for permissible purposes such as education, investment, travel, or gifts. When you send gift money from India to Europe, it falls under the “gift or donation” category.
Key compliance points
- The transfer must be made through an Authorized Dealer Bank (AD) or a licensed digital remittance provider regulated by the RBI.
- You will need a valid PAN, passport, and KYC documents, and a gift declaration letter explaining the purpose of the transfer.
- Both FEMA (Foreign Exchange Management Act) and Income-tax rules apply. Gifts exceeding the permissible limit may attract Tax Collected at Source (TCS) or additional scrutiny.
TCS Rules You Cannot Ignore
From April 2025, the threshold for TCS on foreign remittances, including gifts, stands at ₹10 lakh per financial year. Remittances below this amount are exempt from TCS. Any gift transfer exceeding this threshold will attract 20% TCS.
Example: If you send ₹12 lakh as a gift, only ₹2 lakh is taxable under TCS, resulting in ₹40,000 collected at source.
This TCS is not an expense; it can be adjusted or claimed as a credit when you file your annual income tax return in India. Staying under the limit, however, can help you save upfront.
Want to avoid high TCS? Check out this guide on How to Avoid 20% TCS on Foreign Remittances
Five Reliable Ways to Send Gift Money from India to Europe
1. Digital Remittance Platforms
Today, the simplest and most transparent way to send gift money from India to Europe is through digital remittance platforms such as HOP Remit. These services offer live exchange rates, 24-hour rate locks, and minimal fees.
Advantages
- 100% digital onboarding
- Transfers typically completed within 24-48 hours
- Real-time tracking and transparent pricing
This method suits almost every gifting scenario, from birthdays to family support.
Learn more: Complete Guide to International Money Transfers with HOP Remit
2. Bank Wire Transfers
Traditional bank transfers remain an option, but they often include hidden correspondent bank fees and exchange-rate mark-ups. Processing may take three to five business days, and customer support can be slow. This method is best reserved for larger or institutional transfers.
Know more: ICICI Bank Charges for International Transactions
3. E-Gift Cards and Online Vouchers
If the amount is small and you prefer a personal touch, e-gift cards from international merchants like Amazon, Apple, or European retail brands can be a convenient alternative. However, these are not substitutes for regulated remittances under LRS.
4. Foreign Currency Demand Drafts
Some banks still issue physical demand drafts payable overseas. These are secure but outdated transfers take a week or more, and the costs are relatively high.
5. Cash and Courier Services
Sending physical cash is risky, costly, and largely non-compliant with FEMA norms. Avoid this route altogether.
How to Transfer Gift Money from India to Europe Without Making These 5 Costly Mistakes
How to Send Gift Money from India to Europe Safely in 2025
To ensure your transfer is both fast and compliant:
- Select a regulated remittance platform.
- Complete KYC and choose “Gift” as your purpose code.
- Enter the beneficiary’s details accurately (IBAN, address, SWIFT).
- Upload your gift declaration letter and ID documents.
- Confirm the total cost (including TCS, if any) before payment.
Following these steps helps you send gift money from India to Europe efficiently and avoids unnecessary regulatory hurdles.
Country-Specific Considerations
Each European nation has slightly different banking practices. Understanding these can save time and cost.
| Country | Common Receiving Mode | Processing Time | Typical Fee Range |
| United Kingdom | Bank transfer (Faster Payments) | 1-2 days | Low |
| Germany | SEPA credit transfer | 1-2 days | Low |
| France | SEPA credit transfer / e-wallet | 1-2 days | Low |
| Italy | Bank transfer | 2-3 days | Moderate |
| Netherlands | SEPA transfer | 1-2 days | Low |
When you send gift money from India to Europe, always check that the beneficiary’s bank supports SEPA or instant transfers for quicker credit.
Required Documents for Sending Gift Money Abroad
To transfer gift money from India to Europe, you’ll need:
- Valid Passport
- PAN Card or Aadhaar (KYC)
- Gift Declaration Letter
- Recipient’s Details (Name, IBAN/SWIFT Code, Address)
- Proof of Relationship (for family transfers)
Additional documents like birth/marriage certificates may be required based on recipient type.
How to Send Gift Money with HOP Remit in 5 Easy Steps
- Create Your HOP Remit Account: Quick registration via email/phone with full KYC.
- Enter Transfer Details: Input the amount and choose purpose: gift, maintenance, etc.
- Add Beneficiary Info: Name, IBAN, address, and relationship type.
- Upload Documents: Aadhaar/PAN + Gift Letter. All done digitally.
- Pay and Done! Use UPI, Net Banking, or Debit Card. Money is transferred typically within 24-48 hours.
Want to send living expenses or university fees to Europe instead? See our complete guide for sending living expenses to Europe from India
Comparison of Remittance Methods
| Method | Speed | Exchange Rate | Fees | Ease of Use | Security |
| Bank Transfer | 3-5 days | Moderate | High | Medium | High |
| HOP Remit | 12-24 hrs | Lowest | Low | High | High |
| Debit/Credit Cards | 1-3 days | High | Medium-High | High | Moderate |
| Forex Cards | 1-3 days | High | Moderate | High | High |
| Demand Draft | 5-10 days | Moderate | Low | Low | High |
Looking for more comparisons? See how HOP Remit stacks up against ICICI Bank
Why Choose HOP Remit by moneyHOP
Thousands of Indians trust HOP Remit for their international transfers. The platform has been designed specifically for users who want to send gift money from India to Europe or pay for education and living expenses abroad.
What makes it different
- Lowest exchange rates displayed upfront
- Zero hidden charges and transparent transaction summary
- 24-hour rate lock to safeguard against currency fluctuation
- Transfers in under 12-24 hours with complete digital tracking
- 24×7 support for guidance at every step
When you use HOP Remit, you combine convenience with compliance. You see every cost element clearly before confirming, and your money moves swiftly through licensed channels.
Experience a faster, smarter way to send gift money from India to Europe.
Save big on your every international money transfer!
Send money at the lowest exchange rates & ZERO convenience fees with moneyHOP.
Who Can You Send Gift Money to?
According to FEMA & RBI, you can send gifts to:
- Spouse
- Parents (including step-parents)
- Children and their spouses
- Siblings (including step-siblings)
For others (friends, distant relatives), proper documentation and declaration are mandatory.
Common Scenarios for Gift Remittances to Europe
- Parents Supporting Children Studying in France or Germany
- Gifting Newlyweds in Italy or Spain
- Helping a sibling settle in the Netherlands
- Holiday or festival gift remittance to loved ones in Estonia or Ireland
Related: How to pay university fees in Europe from India?
Practical Tips to Maximise Value
- Compare the total effective rate, not just the advertised FX rate.
- Keep a copy of your gift declaration letter and transfer receipt.
- Monitor exchange rate movements before initiating large transfers.
- Use rate-lock features on digital platforms to avoid losses.
- Reconfirm the recipient’s IBAN and SWIFT details to prevent delays.
Final Word
If you are planning to send gift money from India to Europe, combine knowledge of RBI rules with the efficiency of modern remittance technology. Understand the limits, factor in TCS, and choose a regulated platform that values transparency.
The goal is simple: ensure that your money reaches your loved ones promptly and safely, while you remain fully compliant with Indian and European regulations. HOP Remit by moneyHOP embodies this balance of speed, trust, and clarity in every transaction.
Leave a Reply