A Complete Understanding of How to Transfer Gift Money from India to Europe

In Europe, cross-border payment methods are rapidly evolving, with a tendency towards digital transfers, according to a Visa study. In 2023, more and more European consumers are opting for apps and online platforms to securely and conveniently send money to their friends and family. This shift is particularly noticeable in France and Poland, where 62% to 67% of individuals now use devices for person-to-person remittances. In comparison, the United States still heavily relies on payment methods like cash and cheques lagging behind at 61%. It’s interesting to note that in France, a country where people tend to send rather than receive remittances frequently, around 40% of individuals who hadn’t previously used digital remittance methods are now considering adopting them in the future. This trend highlights a revolution in cross-border payments that is reshaping Europe’s financial landscape.

Scope For Online Remittances In Europe

Soon after the pandemic, cash quickly became a thing of the past in major fintech hubs such as Amsterdam, London and Berlin. Instead, people started relying on contactless and mobile payments for their shopping needs. This shift towards convenience also impacted banking services, leading to an increase in the demand for online-only banks. These innovative banks, known as neobanks, offered appealing benefits such as fees and round-the-clock service availability, attracting customers away from banks. Although establishing trust was initially a challenge, people’s attitudes towards technology have changed over time, resulting in a growing acceptance of banking solutions. As a result, many individuals now place even greater trust in these challenger banks compared to traditional financial institutions.

Modes of Sending Gift Remittances to Europe

1. Cash: There are ways to send money to Europe, including using a courier service or sending it through the postal service. It’s essential to be aware that sending cash internationally carries some risk as it is more vulnerable to theft and fraud.
2. Gift Cards: Sending money to Europe can be made easier with the use of gift cards. There are plenty of retailers where you can buy these gift cards and have them conveniently delivered to the recipient in Europe. The great thing about gift cards is that they provide the recipient with a range of shopping options, making them a versatile and thoughtful gift choice.
3. Certificate of Deposits (CD): A CD is a savings account that provides a higher interest rate compared to a standard savings account. Individuals have the option to buy CD’s from either banks or Non-Banking Financial Companies (NBFCs) in India and have them delivered to recipients in Europe. The recipient can later convert the CD into cash upon its maturity. CD’s generally require a deposit and have a term ranging from 1 to 5 years.
4. Wire Transfer: Sending money internationally via wire transfer is an efficient method. You have the option to initiate a wire transfer either from your bank account or by using a money transfer company. On an average, wire transfers usually take around 1–2 business days to complete the process successfully.
5. Money transfer companies: There are companies specializing in international money transfers that provide services for sending money across borders. Such companies often provide reasonable exchange rates and ensure speedy processing times.

Comparison of Cross-Border Payment Methods

Mandatory Documents Required For Remitting Gift Money To Europe

The documents required for remitting gift money to Europe from India may vary depending on the money transfer service you use. However, some of the common documents required include:

• Passport: Passport number
• Proof of Identity: Government-issued ID, such as driver’s license or PAN card
• Gift Letter: Letter stating that the money is a gift
• Recipient’s Details: Full name, address, and bank account information

Make sure to reach out to the money transfer service you’re using and find out what documents they specifically need. You might have to submit paperwork like a marriage certificate or birth certificate if you’re transferring money to your spouse or child.

Calculation Of TCS On Remittances

Here are a few additional points to keep in mind:

• As per the RBI, Under the Liberalized Remittances Scheme (LRS), every Indian resident can send up to USD 2,50,000 in a financial year. An individual can remit multiple times during the year for various purposes permitted under the LRS limit. However, the total amount of all such transactions must not exceed USD 2,50,000 in a Financial Year.
• It’s worth mentioning that the TCS on remittances is applicable even if the amount is sent to a close family member.

Rates & Fees

The charges and fees for sending gifts from India to Europe will vary based on the following factors:

• The specific amount of money being sent
• The chosen method of sending
• The bank or money transfer service being utilized

Why choose moneyHOP?

HOPRemit by moneyHOP is an instantaneous, cost-effective, user-intuitive, and contactless international remittance service that is tailor-made to serve every individual. It provides customers with complete transparency and significantly reduces the total transaction costs of sending money abroad. The HOPRemit platform represents the perfect concoction of a fintech’s agility and the security observed in a bank.

Here Are Some Best Features That Make HOPRemit Promising:

• Best Exchange Rates: HOPRemit provides some of the best exchange rates for currency conversions. They regularly update their exchange rates to ensure that customers get the most favorable rates possible.
• No Hidden Charges: HOPRemit is committed to transparency and honesty in their dealings. They do not charge any hidden fees or commissions, so customers can rest assured that the amount they see at the time of the transaction is the exact amount they will be charged.
• Fast Processing Time: HOPRemit understands the importance of timely money transfers. They process transactions quickly, usually within 48 hours, so that the money reaches the recipient as soon as possible.
• 24/7 Availability: HOPRemit operates round-the-clock, 365 days a year. Customers can access their services at any time of the day or night, regardless of their location.
• Freeze Exchange Rates for 24 Hours: HOPRemit offers the option to freeze exchange rates for up to 24 hours. This means that customers can lock in a favorable exchange rate and be certain that the amount they will receive at the time of the transaction will remain the same, regardless of any fluctuations in the market.

5 Simple Steps To Transfer Gift Money With moneyHOP

• Create an Account: To get started with HOPRemit, you’ll need to create an account by signing up using your email address and phone number. This process is quick and easy, and once you’ve signed up, you can start using the platform right away.
• Enter The Amount: Once you’re signed in, the first step is to choose the amount you want to send. You can do this by selecting the currency you want to send, choosing the purpose of the transfer, and entering the amount you want to send.
• We’ll Verify Your Details: To ensure security and prevent fraud, HOPRemit requires all users to complete their KYC (Know Your Customer) verification process. This involves providing some basic information about yourself, such as your name, date of birth, and address, and uploading a valid government-issued ID, such as an Aadhaar or PAN card. The verification process usually takes just a few minutes, and once completed, you’ll be able to use all the features of the platform.
• Enter Recipient Details: Once your account is verified, you can enter the details of the recipient you want to send money to. This includes their name, address, and other relevant information, such as their bank account details. You may also need to upload some additional documents, such as a proof of relationship or bank statement, depending on the purpose you have selected.
• Pay For Your Transfer: Finally, you’ll need to choose how you want to pay for your transfer. HOPRemit offers several payment options, including net banking, credit/debit cards, and UPI (Unified Payment Interface). Once you’ve selected your preferred payment method, you can complete the transaction, and your recipient will receive the funds within a few hours or days, depending on the country and payment method used.

Who Are All Considered As Close Relatives?

The following are considered to be close relatives:

• Husband and Wife
• Father (Provided that the term “Father” includes step-father)
• Mother (Provided that the term “Mother” includes the step-mother)
• Son (Provided that the term “Son” includes the step-son)
• Son’s wife
• Daughter
• Daughter’s husband
• Brother (Provided that the term “Brother” includes the step-brother)
• Sister (Provided that the term “Sister” includes the step-sister)

Who All Do We Serve?

Our Foreign Remittance Services for Europe

• Send money to Germany
• Send money to Estonia
• Send money to Netherlands
• Send money to Spain
• Send money to France
• Send money to Italy

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Way Forward

To summarize, the increase in gift remittances to Europe can be attributed to a combination of factors, including people moving to Europe because of better economic conditions and the popularity of money transfer services. The growing number of individuals immigrating to Europe, along with the positive economic climate, has made it financially feasible to send gift remittances. moneyHOP has made the process more efficient by offering industry-best rates and low fees. This convergence not only enables cross-border gift transfers from countries like India to Europe but also indicates a sustained trend that is expected to continue growing. Migration patterns, economic prosperity and accessible remittance services are anticipated to remain key factors in the future.