Send Money from India to Europe Tax-Free: The 2025 Complete Guide

Transferring money from India to Europe shouldn’t come with hidden taxes, confusing limits, or endless documentation. Whether you’re sending tuition fees to a university in France, covering medical costs in Germany, or supporting a relative’s living expenses in Spain—this guide shows you how to send money from India to Europe tax-free in 2025.

All legally. All transparently. All under your control.

What Does It Really Mean to Send Money from India to Europe Tax-Free?

The phrase “tax-free” doesn’t mean bypassing the law. It means knowing how to:

• Avoid Tax Collected at Source (TCS) under India’s LRS rules

• Ensure your recipient abroad doesn’t face tax trouble

• Stay compliant with both Indian and European remittance laws

Thanks to the Liberalized Remittance Scheme and updated TCS thresholds, it’s now easier than ever to send money from India to Europe tax-free, especially when the purpose is education, family support, or medical expenses.

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TCS Rules in 2025: What Changed?

Starting April 1, 2025, the TCS threshold for foreign remittances under LRS has increased to ₹10 lakh per financial year.

Here are the new TCS rates:

If your annual foreign remittances stay within ₹10 lakh, you can send money from India to Europe tax-free for most valid purposes.

Still unsure who actually pays TCS and when? Here’s a quick, visual breakdown to help you spot tax triggers instantly.

How to Send Money from India to Europe Tax-Free: Your 2025 Checklist

Sending money abroad without triggering TCS or compliance issues requires smart planning. Here’s your step-by-step strategy:

1. Stay Under ₹10 Lakh in a Financial Year

Transfers below this threshold are exempt from TCS unless they are for luxury travel or investments.

2. Use Education Loans Where Possible

If you’re paying for education and the money is coming from an approved education loan, there’s zero TCS, no matter the amount.

3. Split Transfers Across Family Members

Each family member has an individual USD 250,000 LRS limit. You can distribute transfers across multiple people to stay under the ₹10 lakh mark.

4. Choose the Right Purpose Code

Purpose codes are critical for compliance. Examples include:

By declaring the correct purpose, you ensure your transfer qualifies under the LRS and you send money from India to Europe tax-free.

5. Use a Trusted RBI-Compliant Platform

A platform like HOP Remit by moneyHOP not only ensures regulatory compliance but also offers transparency, low fees, and real-time tracking.

Can You Send Money from India to Europe Tax-Free for Education?

Yes, and it’s one of the most straightforward use cases.

Here’s how it works:

• If the remittance is below ₹10 lakh, no TCS is charged.

• If it’s above ₹10 lakh and funded by a loan, still no TCS.

• If self-funded, you’ll pay 5% TCS only on the amount exceeding ₹10 lakh, and even that is refundable at tax filing time.

This makes education one of the safest ways to send money from India to Europe tax-free, especially if structured properly.

European Tax Rules: Will the Recipient Be Taxed?

In most European countries, money received from India for personal purposes is not considered taxable. This includes:

• Tuition fees

• Medical expenses

• Living or maintenance support

However, large or unlabeled transfers could trigger inquiries from banks or local tax authorities. That’s why it’s important to use platforms like moneyHOP that provide clear documentation and purpose-tagged receipts.

Comparing the Options: What’s the Best Way to Send Money?

If you want to send money from India to Europe tax-free and without surprises, digital-first platforms like HOP Remit are your best option.

Real-Life Scenarios Where You Can Avoid TCS

Scenario 1: A parent sends ₹9.8 lakh for their child’s first semester in France. It falls under education (S0305). No TCS applies.

Scenario 2: A family supports an elderly relative in Italy by sending ₹6.5 lakh under the maintenance code (S1301). Still tax-free.

Scenario 3: An Indian student pays €25,000 in tuition using an education loan. Even though the amount exceeds ₹10 lakh, there’s 0% TCS due to loan source.

In each of these cases, it’s entirely possible to send money from India to Europe tax-free by using purpose codes and staying under limits.

Why Choose HOP Remit by moneyHOP?

Here’s what makes HOP Remit the smarter way to send money:

• No hidden markups: What you see is what you pay.

• Lowest transfer charges: Among the best in the market.

• Fully RBI and FEMA compliant: Safe and legal.

• Real-time tracking: Know exactly when and where your money moves.

• One-time document uploads: Perfect for students or repeat transfers.

Thousands of Indians now send money from India to Europe tax-free with HOP Remit. It’s simple, secure, and transparent.

Check our live exchange rates here

Conclusion

With the new ₹10 lakh TCS threshold, it has never been easier to send money from India to Europe tax-free. The key is knowing your options, using the right purpose codes, and picking a transparent platform like HOP Remit that’s built for ease and compliance.

Over 50,000 users trust HOP Remit by moneyHOP to handle international transfers with speed, clarity, and care. Whether you’re sending for tuition, support, or emergencies, you deserve a solution that respects your time and money.

Start sending money from India to Europe tax-free, backed by smart strategy and real compliance. Choose HOP Remit today.