How To Transfer Money Out Of China
David
Posted on June 9th, 2009
Expats who live and work in China will attest to the hassle banking can be. From opening an account to making deposits and transferring money it’s not particularly foreigner friendly and frequently requires the patience of a saint. Things gets even more tricky if you get paid in Renminbi (RMB) and want to transfer some of your earnings back home. In general China is adverse to money flowing out of the country and due to the complexity of the process bank staff will often look for any excuse to deny you being able to so.
Photo by David Dennis
I’ve recently completed the rather tortuous process successfully for the first time so thought I’d share how it works in the hope that others might be able to avoid disappointment -
What you will need:
- Passport with valid Residence Visa (and sometimes Residency Permit)
- Employment contract original copy officially stamped or ‘chopped’
- Tax receipts for each month of your employment (depending on how much you want to transfer)
- SWIFT code of your bank back home (e.g. BARCGB22 for Barclays UK)
- Bank account information for both sending and receiving parties (name, address etc.)
- Sufficient funds up to the amount you have paid tax on (duh!)
What it will cost (other banks may vary):
- Bank of China – 150 RMB service charge, 0.1% of the total to be transferred
- Bank of Communications - 80 RMB service charge, 0.1% of the total to be transferred
In the past only the Bank of China could make foreign transfers but this has been recently liberalised so most banks should now be able to provide telegraphic transfer services.
The process (Chinese speaker needed to help unless you are fluent yourself):
- Take all you documents to your bank who will take photocopies (and probably be less than cooperative)
- Buy the amount of foreign currency you want to transfer (usually Dollars, Euros or Pounds Sterling) – this will be placed in your account – you wont receive any cash only a receipt
- Fill in an application form for funds transfers (overseas). Be sure to enter your details very carefully otherwise your money could end up in someone else’s account! The bank will probably insist that the charges be “shared” between both banks
- Submit the form and wait a day for the transfer to complete (praying optional!)
- Return the next day to the bank who will give you a receipt detailing whether the transfer was successful or not.
Last but not least, avoid illegal/blackmarket/unofficial money exchangers as you will probably get ripped off or worse. If you’ve had any other experiences of currency exchange in China feel free to leave a comment below.
Related posts you might like:
The trickiest part is converting money to a foreign currency, especially if you didn’t know about the receipt requirements beforehand and don’t have any on hand. But it’s worth mentioning that these requirements don’t apply to Chinese citizens, so if you have a Chinese person you trust you can probably get them to help you. Put the money in their account (withdraw+deposit is faster and more convenient than transfering it), let them convert it, and then put the EUR/USD/GBP/whatever back in your own account for the relatively simple task of wiring it abroad.
Thanks for the tip Kevin. That sounds like a good way to get around the tax limits. When your Chinese person has converted the RMB into a foreign currency is it easy to transfer it back to your account? I would imagine the bank might be a bit suspicious about that!
Awaful for a country wanting to be a world leader. China needs to make this transparent and easy just as the other emerging great leader India has for a few years now
Hello,
I have just had to deal with these banking problems in China.
I am almost 100% positive 1.0%. NOT 0.1 % ! I wish it were the other way around.
Also HSBC is the worst bank in China if anyone is wondering. (maybe not the worst, one of them)
Hi Joe – thanks for the info about HSBC – sounds like they charge a higher rate than the Chinese banks. It’s a pity the process is still so hard and expensive!
I’m working in ShenZhen and I found this article a few days ago,what is it real? http://www.shenzhenstuff.com/profiles/blogs/international-money-transfer
Thanks for the link Smith – that’s another useful resource. Agreed this method is complicated and a waste of time but in the end you don’t have much choice.
the link seems useful, thanks Smith, it is very hard to send some money from pingdu-shandong province, china-to Indonesia. ugh, the tellers in pingdu couldn’t speak english, they don’t have the western union service, though their banks’ names are on western union list. huff! dead end.. (0.o)
Is it possible to send small amounts of money (200 USD) from China abroad by Western Union or Money Gram? Can these companies operate properly? Thanks and regards, IW
Yes this is still possible but probably a little more expensive than doing via a bank.
Cheers guys,
Thanks for the advice, I live in Shanghai and need to send some money back home, so appreciate the advice and the comment. Luckily there are like-minded people in the land of confusion.
Have a nice day.
plz can you help me out eiyh the site of which i can use in transfering money to bank of china from cc to bank account?
you prompt reply will be duely and highly appreciated.
Best Regards
Smith
I found this post extremely useful and you were right about needing to have the patience of a saint. I just completed the process successfully for the first time by myself today and I wanted to cry. I used the China Construction Bank, which charged me 120 RMB fee for transferring out the money, which does not include the fee that your western bank may charge. Apparently, the 100 RMB is a flat fee and there was a 20 RMB service charge. Ouch.
I was intending to do a monthly transfer but now I might as well just wait it out and transfer a lump sum. Sigh.
China.
Glad it helped a bit Olivia – I also ended up doing quarterly transfers because of the fees. After a while the bank got used to seeing me so it became a bit smoother but still enough to tear your hair out sometimes!
Thanks this has been really helpful!
Does anyone know if it is possible to use a Chinese bank card to withdraw money from an ATM outside of China?
Hi Vinh – presumably your Chinese bank card uses the “Union pay” system? If so it’ll work in many countries around Asia but unlikely anywhere else. Also check with your bank how much they charge for foreign withdrawals or you might get a nasty surprise!
Hi,
I’ve used my Bank of China Unionpay card at Travelex machines in London before. NatWest (another UK bank) cash machines seem to work as well. In Russia I find I can use Bank of Moscow and TransKreditBank. Not sure if you’re from either of these places, but it does show that these Unionpay things can be useful outside Asia.
I remember there being a charge, but it wasn’t too much (Sorry, don’t know the exact figure).
Do you atleast remember vaguely/approx how much is the fee to transfer from one of these banks Bank of Moscow or transkredit bank in Moscow?Thanks!
Thanks David for useful information.
I need to transfer money 30K USD to Japan and UK. Is there any restriction
depending on tax paid?
————————–
Tax receipts for each month of your employment (depending on how much you want to transfer)
This is a very useful string. Can someone help me understand the following:
What is the process of transferring RMB from a Chinese bank account to a bank account in Hong Kong? Is the process very complicated?
thanks much!
And what about making a transfer money if I am student in China?? I have no employment contract, so how could I make a transfer?
Great article, I will be trying this soon so fingers crossed.
Just a few things I have found out:
1. With western union you cannot transfer money to yourself because you need to be at the other end to collect it.
2. HSBC operate in so many different countries so I thought this would make things easier. It doesn;t unless you have one of their special accounts (need high deposit to open or monthly fees entail) however I was lead to believe that if you were doing it often (like a business wit international transactions) then it would be a good idea. What they basically do is open up accounts for you in all the countries you operate, there are still charges and waits – and no ‘single account’ but the actual process of doing it supposedly easier.
3. Money that has been converted (other than rmb) may not show up on your printed bank book. I had money arrive and had no idea it was there for a long time.
Currently (Oct 2011) foreigners can transfer only US$500(approx 300GBP/3000RMB) in one transaction. I have used a few, CCB charge 100 while SPD charge 80. Problem is the limit makes it expensive (around 3%), in addition overseas banks will charge to receive the money (about GBP7 in the UK), turning your 3000 yuan limit into 2800 per time.
I’ve done it a few ways (that’s what she said
. The easiest is to get a Chinese person to take their ID card and do it in their name. This removes the $500 restriction as each Chinese can transfer US$50000 a year overseas – enough for most of us!
For those in Guangdong (and with a multi-entry visa) or who go to Hong Kong every so often, opening an HSBC account in Hong Kong is a good alternative, they will convert your RMB to your home currency (for the major currencies)and you just go online when you want to send it back (your bank at home needn’t be HSBC). To open the account you need your passport and proof of residency on the mainland. The other benefit is that the money usually in your account at home in a day or two, whereas using the cashier at a Chinese bank can mean your cash doesn’t get home for over a week. HSBC charge HK$110 for this, but be aware that your home bank may charge more for using HSBC’s express service, also some HSBC accounts have a below balance fee so you may need to keep a minimum amount in there to avoid this.
Thanks for the update Danny – that’s some very useful info.
My understanding (and experience) is that foreigners can transfer out any amount as long at they have tax certificates to prove they paid tax on that amount. As others have said, it can be very hard to find a bank which is approved to do overseas transfers – then you have to find the specific person who is trained and authorised to go through the process, which is quite complex. Allow 2 hours the first time – and be prepared to come back the next day to complete the process with the document you forgot the first time! Some staff will try to dissuade you from doing it because it causes them a lot of work – I recently had a manager tell me that foreigners are subject to the USD50k per year limit which applies to Chinese citizens.
Hello!
So how much FX a foreigner is allowed to transfer out of China, maximum?
$500 per day or per month? A friend told me $500 in a year!!! It can not be true right?
And is this amount limitation all same for Western Union, MoneyGram, bank accounts?
Thanks for this post, it was helpful. In my case I just transferred 240 USD out of china using the communication bank. The total charge was 184 RMB. They told me that if I come here with a Chinese friend to the transfer the fund in their name the charge would be lower but they did not know by how much. They also said that it may take at least one week to process.
Very interesting post, thanks to all participating members to share experience
. 2 more question though :
- if you succed to exchange your RMB to foreign currency in China, there is no limit to transfer out this foreign amount?-
- Danny mention about HSBC HK, but means you need to carry cash in HK and exchange there right? or you can have a RMB account in HK?
Thanks!
I tried this yesterday and was indeed told that I needed the documentation you listed. It also seems that a lot of branches are incapable of, or too lazy, to help so it’s worth finding the branch HQ.
I wasn’t told about any limits, somebody mentioned 3000, and I want to transfer 6000.
Nightmare! There wasn’t any problem receiving the £16,000 that i have transferred into China n the last 3 years, but now I want to send £600 back and it’s like this! Family might not be getting Xmas prezzies this year =(
Hi,
My husband has recently moved to China. Is Western Union Money Transfer good, (meaning cheap and hassle free)?
Need your expert advise please. Also, he will be needing to transfer the amount on a monthly basis.
Hello!
A Chinese person who lives in Hong Kong is moving to the UK and is buying my house.
You literally couldn’t write the script so far, but the saga finally seems to be drawing to a close!
I received word that the buyer transferred the money from an account in Hong Kong last Thursday (UK Thursday – not sure about time differences!).
Does anyone have any idea how long this transfer process can take?
Thanks for any opinions,
Mike
Just a query..my bf is in the process of moving out from China and retiring here in the Philippines. He said his lawyer transferred all his funds in a bank here in the Philippines and been waiting for a confirmation. My question is how long does it take for him to get a confirmation both from the bank here and his bank in China?
And is it true that he will not be able to withdraw money from his bank account in China while it’s still in the process of transferring all his funds? He cancelled his work and residence permit already…that is what he told me.
Some opinions will be very much appreciated
Thanks for the tips.
Here in Thailand, I just took an extra ATM card, sent it home, and a relative can withdraw money with very little cost from Canada.
Is it possible to do the same with a Chinese ATM?
And is there any way to transfer money online from China? Wouldn’t it be easier?
I appreciate this page as I am faced with the task of sending money overseas to the UK. I went to try and do this but found I didn’t have all the documents so I have to go back again.
Something I’m confused about is what they mean by the ‘account number’ for the receiving account in the UK. Do they actually mean the 8 digit UK bank account number (surely this won’t work without a sort code?!) or the 16 digit card number or the IBAN number? Perhaps anyone who has successfully transferred to the UK could help me??!!
Thanks in advance!
Hi Charlotte – when you write down the ‘account number’ be sure to include both the 8 digit UK bank account no. and your sort code. I’m pretty sure there is a separate field where you can enter the international code for your UK bank.
I have a clarification on “The Process #2″, does this mean that I also need to have a USD account, aside from the regular RMB account? Thanks.
Hi Sheila – no, you don’t need a USD or other foreign currency account. The converted amount is somehow stored in your existing RMB account till you transfer it.