The information written on here was true at the time of writing this article, but some things may have subsequently changed.
If you are looking to get money out of Argentina by investing (“killing two birds with one stone”) contact me using this form, use the WhatsApp function below or email (firstname.lastname@example.org).
Often times, “killing two birds with one stone” by investing and taking money at the same time, is the most efficient option.
Argentina is only about a third smaller than the United States. Despite the difference in size, Argentina is in many ways similar to the United States: it is a country of an amazing variety of landscapes, natural wonders and types of places – from high Rocky Mountains and glaciers to deserts and large busy cities to the wide open country of cowboys.
Argentina is located at the southernmost tip of South America. Located in the Southern Hemisphere, its seasons are opposite to those in the United States. When it’s winter in the US, kids spend the summer in Argentina!
Some people call Argentina “El Sur del Sur”, which means “South of the South”. In fact, the first settlers moved far south from North and Central America about 18,000 years ago into what is now Argentina.
Most North Americans are unaware of the breathtaking scale of this South American country. Firstly, it is quite large – the second largest after Brazil on the southern continent. It also boasts an incredibly diverse climate and geography, from subtropical jungles in the north to arctic conditions in the south.
You have kilometers of coastline, towering Andes, desert regions and some of the most fertile farmlands in the world. With a population of nearly 45 million, it is home to modern cities, quaint villages and everything in between.
Of course, there is a strong Spanish influence, but with immigrants from all over Europe, the Baltic states and even China, Buenos Aires is almost a microcosm of the world’s cultures. It is not for nothing that it is often called the “Paris of Latin America”.
In 2020, Argentina is estimated to be home to some 60,000 expatriates, and about half of them live in this dynamic city on the banks of the Rio de la Plata. The city has something to offer the expat. As already mentioned, this is a city of immigrants, so newcomers are always welcome here. Easily find familiar products, customs and people speaking your language.
Banking system in Argentina
In Argentina, Law No. 21 526 (1977) regulates banking. According to this law, the Central Bank of Argentina (BCRA) is the executive and regulatory body that issues standards and oversees the activities of financial institutions included in the law (authorization and conditions of work in the banking sector; determination of permitted, prohibited and restricted operations; monetary control; ensuring compliance with operating ratios; information; accounting and control systems; dissolution and liquidation, etc.).
To operate in Argentina, foreign banks must register with the BCRA and obtain appropriate authorization prior to starting banking in the country. In addition, there are minimum capital requirements for doing business by these organizations.
Let’s see the features of the financial system of Argentina. There are:
- Commercial banks
- State: federal, provincial and municipal.
- Private local banks with Argentine capital: cooperative banks and non-cooperative banks.
- Foreign banks: private local banks and local branches of foreign banks.
- Investment banks
- State provincial banks.
In addition, there are local banks with foreign capital, mortgage banks, development banks, savings banks, financial companies, savings and loan associations for the construction of houses or other real estate, credit associations and representative offices.
Financial transactions are usually conducted in Argentine pesos (legal tender), US dollars and government securities. Argentina’s financial system consists of three segments: Argentine pesos, foreign exchange and liquid assets, which are managed by all banks in the financial system.
The banking system is pretty stable in Argentina and can insure every expat that their money will be in a safe place. But, eventually as there are a lot of expats and half of them definitely work and regularly send money to their families abroad, banking services cannot be the best option.
It is not a secret for almost everybody that transferring money via banks is tax-inefficient and you pay much money to organize the transfer. So to send money abroad from Argentina you have to search for other options, such as special money transfer companies, which are mainly focused on transferring your money with low fees and without any losses.
Initially money losses are connected with different currencies, as you send in pesos, and the money receiver will get it in the current country’s currency. In general, money transfer companies always offer you a calculator where you have an opportunity to choose your currency and the amount and the recipient’s data, and see how much he/she will get.
In this article we are going to discuss all the tax efficient options of sending money abroad for Argentina expats, and mainly we will be focused on money transfer companies such as:
- Transfer Wise
- Currency Transfer
- World Remit
- Western Union
Let’s discuss all of them and see what they can offer us and what’s each ones features.
The first option on the list is one of the most famous – TransferWise.
Focused on making global transfers between banks, TransferWise is cheaper than a regular local bank to send money abroad and is transparent about the exchange rate and applicable fees. What about TransferWise currencies? There are 22 currencies available to send and receive, although you can send money in 27 more foreign currencies.
TransferWise may not be the best choice in some circumstances for sending money overseas, but it will be the right choice for many, especially when it comes to saving money on bank charges.
Ideally, choosing the best overseas money transfer provider starts with a helpful service that has offices in your country of residence, which comes with in-house service and security benefits? However, TransferWise has headquarters in the United Kingdom (UK), the United States, and Estonia (including Europe).
In addition to their international money transfer service, once you sign up, you can use the TransferWise limitless account card, which allows you to accept money in Pounds Sterling, Euros, US Dollars and Australian Dollars and store up to 40 currencies, much like having a local bank account in the US. UK, EU, Argentina and many other countries and it’s easy to finance. Argentinians will be able to move money from more to and from over 60 countries with TransferWise.
TransferWise is extremely transparent, avoids hidden fees associated with other competitors, and clearly defines what you pay for, which means you can easily see what transaction fees will be associated with a bank transfer.
Each transaction is charged a fee based on three factors: the amount you send, the method you pay for the transaction, and the average market exchange rate.
If you send a token amount of money, you will always pay their minimum commission. It is cheaper than fees charged by other services. This nominal amount is £ 2 for a transfer up to £ 400. For anything beyond this, the commission is 0.5% of the amount sent.
Transfer Wise is mainly one of the most popular international money transfer companies that can offer you super low fees and a transparent action. But anyways, let’s see other companies too, and the next one will be Currency Transfer.
CurrencyTransfer, founded in 2014, supports 23 currencies and offers transfers to 26 countries in Europe, North America, the Middle East, Asia and Oceania. Since they charge the brokers directly, you don’t have to pay to use the trading platform.
CurrencyTransfer also offers a Best Rate Guarantee, which allows customers to receive a refund of the price difference when they book with the best rate provider.
CurrencyTransfer combines the exchange rates of its member brokers. It also allows you to compare exchange rates in real time with the average market rate. This means that you can choose a vendor that offers a rate closest to the market average, which is often the best option.
If you find a higher exchange rate after booking a transfer through CurrencyTransfer, please send an email them to receive a refund on site.
CurrencyTransfer does not charge any money transfer fees. The company’s exchange rates are also higher than those offered by banks. This way, the transfers are not only free, but your recipient also gets more money when you use their services.
While CurrencyTransfer doesn’t specifically specify a minimum or maximum transfer amount, it recommends transfers over £ 5,000, over $ 6,000 to get the best deals.
Currency Transfer only supports 23 currencies in 26 countries around the world, and you can only send money from Monday to Friday. Also there are no Android and iOS smartphone or tablet apps.
The company only supports bank-to-bank transfers and you will have to provide your identity card to sign up for an account.
WorldRemit’s network isn’t as big as brands like Western Union, but better rates and lower fees can often be found with WorldRemit. In addition, the WorldRemit app and website tell you in advance what exchange rates and fees you will pay without first registering. This makes it easy to compare with other companies to see if you are getting the best deal.
One of the main disadvantages of WorldRemit is that you cannot pay with cash, but its global network supports receiving cash in many countries around the world.
Other shipping options such as mobile airtime top-up, bill payment, and door-to-door cash delivery complement this service for some shipping destinations. You will also often be able to find promotional codes to get a better deal if you are purchasing an item for the first time.
Transfers via WorldRemit will add both a commission and a markup to the average market margin. Transfer fees for WorldRemit vary, but the standard fee for sending from the US to most countries is $ 3.99. WorldRemit fees and exchange rates may vary based on the following:
- Location. Fees and exchange rates may differ depending on the country you are shipping to. Even if the two destination countries use the same currency, the exchange rate offered by WorldRemit may differ when sent to each.
- Number. Although the commission for most transfers is $ 3.99, in some countries the commission will be higher depending on the amount you are sending.
- Delivery. Sending cash usually has a higher fee, while sending to a bank account is cheaper.
Unlike many competitors, WorldRemit offers the same exchange rate no matter how much you send.
Another option is Western Union. This company gives you an easy way to send cash overseas — even if the recipient doesn’t have a bank account.
Western Union is a well-known name in the money transfer industry and almost everyone has a bank account. But what should you use when sending money to friends and family? Answer: it depends on your circumstances.
To make a transfer using Western Union, you go to its website, enter the amount you are transferring and to which country, and see how much you will pay for the exchange. Once completed, Western Union converts and sends your money to a bank account or to receive cash at locations around the world. You can also initiate a transfer over the phone, through the mobile app, or in person.
For domestic transfers, Western Union typically charges $ 5.99 for sending up to $ 50 for receiving cash anywhere in the US, with transfer fees increasing to around $ 100 for a $ 1,000 transfer. When transferring to a bank account, you will pay a lower fee: $ 5 for a transfer up to $ 50 and about $ 45 for a $ 1000 transfer.
For international transfers, calculating transfer fees can be confusing. While most fees start at $ 5, they can go up to $ 45 when paid by credit or debit card for cash in some countries. However, when sending money to high-traffic countries such as Mexico or India, some agents offer commission-free transfer options.
Depending on the country you are sending money to, the typical Western Union exchange rate can be 6% higher than the market average. If you’re sending a large amount overseas, that means hundreds of dollars go straight to Western Union’s coffers.
Delivery speed depends on the translation option. At the agent’s office or over the phone, your translation can be delivered in minutes (at higher costs). The cheapest options can take five days or longer, depending on the country.
So yes, Western Union can also be a good option for you to send money from Argentina to your family or friend.
The final option on this list is Azimo.Azimo provides a simple and user-friendly platform for day-to-day transfers. However, the service suffers from a lack of phone support and lackluster customer service.
It features an elegant website and intuitively designed mobile apps that enable its customers to send messages to over 200 countries around the world. Its transfers are fast and inexpensive, especially when sending money to South Africa, Nigeria and other African countries.
Customers who have used Azimo praised it for its flexibility in payment methods, from credit cards to debit cards to bank transfers. In addition, the fact that you can send as little as $ 1 through the platform makes it easier for customers to regularly send small amounts of money to support their families back home. Besides internet money transfer services, Azimo also allows users to send conversations to their families and friends.
Customer support is a very important element when making an international money transfer. As such, the lack of phone support on Azimo and the limited availability of online customer service make it a bit difficult for customers to get help when they need it most.
With the target market in mind, Azimo has tried to regulate the costs of its transfers by simulating different fee structures and exchange rate differences depending on the countries to which customers are transferring money.
Transfer Fee – Azimo charges a variable or fixed fee for its transfers. The key factors that determine the amount you will be charged are the transfer payment method, payment method, and participating countries. Typically, the commission is £ 1-10.
Exchange Rates – Like most remittance providers, Azimo charges margins above market average or interbank rates. Its margin is between 1% and 3%. Compared to banks charging an average of 5%, Azimo’s rate is clearly ahead of banks. They allow their clients to fix the rate at the time of the transfer so that you know exactly how much the recipient will receive.
Other fees – As a rule, Azimo has no hidden fees. The only fees you need to be careful with are credit card fees. They can go up to 2.99% per transaction. However, if you are using your local bank to pay and receive transfers, no fees should be charged.
While providers like TransferWise and CurrencyFair do not charge margin on their exchange rates, they are pushing the needle towards transfer fees. In addition, Azimo has good control over remittance corridors from Africa, a payout network coverage not many companies have.
Quick guide to remember while making money transfers
Compare the values with other services you are considering so you can make an informed decision about which service to use.
Here are some of the rates for the following money transfer service providers:
- Banks – 3% -7%
- PayPal – 6% -8%
- Other international money transfer companies – 0.5% -1.8% (depends on the amount and currency)
The 0.845% rate offers low commissions compared to others and is very competitive. Note, however, that this proportion will change depending on a number of variables, so we recommend to well think before making a transfer and also use one of listed above companies.
How to compare transfer companies when transferring money from Argentina?
You will, of course, want to factor in the costs. But other factors may also influence your choice, let’s see them.
- Exchange rates. Almost all providers distort exchange rates for profit. Compare the rate you are offering with the mid-market rate — the rate that banks and transfer services use when trading among themselves — and find the lowest margin in between.
- The transfer fee. Find out if the provider charges a flat fee or a percentage of your transfer. If you are sending a large amount, ask if you are eligible for a free transfer.
- Payment and delivery options. Some transfer companies allow you to pay by credit card online, by phone, or via the app. Others offer places for cash payment and pickup. Also ask how your recipient can receive your funds: bank account, cash pickup, mobile wallet, and more.
- Transmission speed. If you need to do it quickly, companies like Western Union and MoneyGram allow you to get cash quickly, often in minutes. If you have more time, you will get better rates and fees from an independent provider.
- Transfer limits. Your best option may depend on how much you want to send. For large transfers, choose the best exchange rate – especially since providers encourage large transfers by offering low fees. For smaller amounts, consider the commission you will be paying in excess of the exchange rate.
- Flexible transfer options. Ask if you can schedule payments in advance or protect your transfer from market fluctuations with a limit order or forward contract.
- Support. Most companies offer customer service via online chat, telephone, in person, or email. Make sure help is available if you need it.
Advantages of using wire money transfers
- You get an exchange rate, which means they beat banks. They transact on live exchange rates and use various monitoring tools to tap the best exchange rates.
- Online transfer method is quicker and faster than conventional methods. The transferred money arrives the same day, or maximum, within one to two working days, in some cases.
- Online method gives wide option of currency pairs and currency options.
- The online system is available 24/7. You hold a choice to transfer money at any time of the day.
It is possible to get money out of Argentina but it is getting harder.
It is best to consider each option carefully and send out smaller amounts gradually, to stay within the rules.
There might also be further restrictions in the future.
What is the theory behind the “global currency reset”? The article below will reveal all.
Could it happen in the coming years?