Transferwise
If you want to transfer money online, but don’ t want to send a wire transfer, new services like Transferwise can help.( For a full review of the different services, read our article on the best ways to transfer money internationally coming out in September 2016.)
Transferwise is based on a peer-to-peer system that cuts out middleman banks and allegedly reduces the fees of moving money overseas. I haven’ t found this to be the case; the cost to send $ 5,000 to a foreign bank account was as much as $ 50; even crappy US banks charge less to send larger wires.
In reality, services like Transferwise are a better replacement for expensive money senders like Western Union or Moneygram, not for replacing wire transfers. However, Transferwise is easier to use than a wire if your domestic bank dislikes your moving money offshore, since you send the money domestically and their service handles the rest.
Take cash from an ATM
It sounds too easy, but among the easiest ways to move money offshore is merely to take it out offshore to begin with. Sometimes, the simplest solutions are the best.
In The Best Offshore Banks, we discuss a number of high quality banks that require $ 2,000, $ 1,000, or even less in their foreign currency equivalent to open. The only catch with some of these banks is that— unlike accounts that allow you to wire money in later— you need to deposit the money when you open the account.
These banks don’ t allow remote account opening, but you can literally use their ATM to take out the amount of the minimum deposit. If you’ re domestic bank ATM card imposes a limit on daily withdrawals( usually $ 400 or $ 500 for US banks), you may need to plan one day ahead so you can max out the limit on two different days in order to get enough cash.
Bitcoin and cryptocurrencies
Bitcoin has been put forward as the possible“ ultimate offshore bank account” due to its ability to store money securely in the cloud. Bitcoin guru Stephanie Murphy spoke extensively about the privacy benefits of using Bitcoin at two of my Passport to Freedom conferences.
However, Bitcoin can also be used as a mechanism to transfer funds offshore. If you own Bitcoin in your home country, you can access them in your destination country by using services like Local Bitcoins, or by using one of the growing numbers of platforms that connects directly to a bank account.
Coinapult, for instance, allows you to store Bitcoins and freeze their value to the value of a foreign currency, gold, or silver, reducing volatility until you want to move them into your foreign bank account. Coinbase and other services allow transfers to connected bank accounts, although many offshore jurisdictions are not yet supported.
Sell your gold and silver
If you own gold or silver offshore, such as in a vault here in Singapore, you can often sell those precious metals and have funds wired into your local bank account. Singapore is an excellent option for this as gold storage here is highly secure and Singapore bank accounts are also excellent.
If you already own gold and silver, there are ways to ship it overseas( again, Singapore is a good option) and later sell it for cash. Transporting gold on your person can be risky since customs forms are required in many cases. You should also make sure you follow all rules regarding sales of precious metals, capital gains taxes and other reporting requirements in your home country. Consult a tax professional for help.
If you’ re wondering why“ put money in a suitcase and show up in the Virgin Islands” isn’ t on the list, it’ s because almost everyone on earth— save those in Hong Kong and a few other countries— has to declare cash being taken out of the country.
While transporting any amount of cash is legal in most countries, most law-abiding citizens don’ t carry large amounts of cash over borders. Those who do often make customs officials suspicious enough to go so far as to confiscate your cash. On top of the legal hassles, most banks don’ t want huge piles of cash being deposited due to money laundering concerns; many banks now charge a cash deposit fee for the privilege.