Sending money to the Philippines should be a quick and cheap process but most of the time, it’s not. Well, this is true for people still using banks. But if you’ll keep reading this Philippines Money Transfer Guide, you will be able to uncover the many benefits you didn’t know you can receive.
The first thing would be to use a Foreign Exchange (FX) company for their low fees and better currency exchange rates. But there are a lot of companies, which is the best? Take a look at the tables bellow and see for yourself.
The Guide’s Topics:
- Best Way to Send Money to Philippines
- Best Company to Transfer Money from Philippines
- Today’s Euro Rates
- Reasons to Move Funds into Philippines
- Regulation and Limitations
Cheapest Way To Send Money To Philippines
* Expected Rates reflect our rate expectations based on our research. We do not guarantee accuracy. For some companies we used a range of rates because they offer wholesale rates for large trades and higher rates for small trades.
Supported Countries & Payment methods
With World First you are able to make fee free money transfers to the Philippines, no matter how big the distance might be. You can send money from countries like USA, UK, Canada, anywhere in Europe, or even from Australia and New Zealand. To get started, all you need to do is to fill the form and request a free quote from their website.
MoneyCorp provides the same high quality services but it has another advantage for those that need to transfer smaller amounts – it has a minimum transfer of only 50 euros (or the equivalent in your local currency). For more info, be sure to check out their website here.
Best Company to Send Money from Philippines
|Min. Transfer: £ / € 1.|
Transfer: Online or using the App.
Why Them? Client Rating: 9.6/10. Best European Startup Award.
Supported Regions & Currencies
There are no real restrictions when dealing with foreign exchange in Philippines as the BSP (Bangko Sentral ng Pilipinas) will intervene only when is needed to prevent episodes of excessive foreign exchange volatility. Any FX company can freely offer their services to clients from all over the country.
Currencies: Our recommended FX company has access to a huge database of more than 100 international currencies so you can rest assure that any of your criteria will be meet with ease. Some of the usual destinations include the big countries like the United States, Canada, Australia, Switzerland, UAE, China or any of the countries that are members of the EU.
For countries that rely heavily on remittances (which means small transfers on a regular basis) like India, Poland, Sri Lanka, Bangladesh, Thailand, Nigeria or Ghana, we recommend using TransferWise because they have low and fixed spreads for this kind of transactions.
Today’s Foreign Exchange Rates for PHP
Sending Money To Philippines Bank Account
The Philippines Peso (code: PHP) is not a very important currency on it’s own but it is distributed worldwide through trading partners like the United States, Japan, China, Singapore, South Korea or European countries like the Netherlands and Germany.
Gambling: The influx of global business efforts is having a positive effect on the economy, at least on the main island and around Manila. The latter, if you didn’t know, is a growing gambling paradise for high rollers from China and other parts of the world.
City of Dreams Manila is a Las Vegas-style cluster of four casino-resorts which has already created 5,000 jobs and has been raking in more than $6 billion in annual gambling revenue each year.
Remittances: Most of the money influx to the Philippines comes from remittances sent from people working in foreign countries and overseas business owners who have workers and branches in this country. It is reported that in 2014 the total of remittances reached $28 billion.
The almost 13 million overseas Filipinos count for more than 10% of the country’s population, with the highest concentration being in the USA with 3.5 million people. This is not unusual as Philippines was a United States colony from 1898–1946.
Thinking Of Relocating To Philippines?
If you want to move to the Philippines and live there as an expat, you may find the following information helpful.
Advantages Of Moving To Philippines:
- Affordable Housing: Housing is 64% more affordable than the UK.
- Affordable Food: Food is 44% less expensive than the UK.
- Personal Care Costs are Low: Personal Care costs 62% lower than the UK.
Disadvantages Of Moving To Philippines:
- Education System: The education system is poor and expats must invest in international schools that average more than 10,000 GBP per year.
- Poor Electricity: There are many blackouts in the Philippines per month that is an enormous inconvenience to expats.
- Job Discrimination: Higher rate of job preference to Filipinos for employment hiring.
Best Way to Send Money to Philippines For Cheap
Foreign exchange companies will offer the smallest fees and sometimes even provide a zero fee for larger international transfers in addition to many other benefits. But how can they provide so much more compared to banks and remittance companies such as Western Union or MoneyGram ? The explanation is in their business model.
FX companies buy currency in large quantities for which they receive a wholesale price. When a customer decides to place a transfer, they actually help the currency dealers to move the currencies. That’s why these companies can provide such low fees and great exchange rates, especially when compared to high street banks.
Because, most of the time, the money is sent to a bank account, these are the details needed for your next transfer:
- Bank Name and Address
- Swift/BIC Code
- Account Number
- Receiver’s Complete Name
After you provide all the details listed above, the process is simple:
- You create a free account with the company.
- Receive a quote from one of the dealers – be it online or by the phone.
- Send the money to your account so you can fund the transfer.
- Get a confirmation from the company (usually the same dealer that gave you the quote) that the transaction is completed.
Our Company Recommendation:
- Send Money to Philippines: Companies that provide international money transfers to Philippines.
- Send Money from Philippines: Companies that take on Filipino Customers.
Regulations and taxes when transferring money to and from Philippines
The Philippines’s currency is the Philippine Peso (PhP). The PhP is fully convertible, making transfers in and out of the Philippines relatively simple.
Bangko Sentral ng Pilipinas
Bangko Sentral ng Pilipinas (the Philippines central bank) oversees payment systems, monitors the proper function of financial systems, and works to preserve price stability.
The PHP is now a free floating currency. Although the Bangko Sentral ng Pilipinas can intervene in monetary markets to ensure the PhP’s stability, its policy is to refrain from foreign currency trading except in the case of drastic shifts.
There are no transfer restrictions on money going in and out of Philippines, but foreign transfers exceeding US$10,000 must be declared to customs authorities. All sums exceeding PhP400,000 must be reported to the Anti-Money Laundering Council.
Hard currency over the value of PhP10,000 must be reported to the central bank.
Taxation on foreign income
Residents of the Philippines are taxed on any foreign income. Non-residents are taxed only on income originating in Philippines. Double tax treaties are in place to avoid double-taxation.
Biggest banks in Philippines
- Banco de Oro Universal Bank
- Bank of the Philippine Islands
- Philippine National Bank
The Philippines diaspora is everywhere so is not hard to send money to Philippines, but it is expensive. And when you talk about diaspora, you talk about remittances. And in this discussion, every pound makes a difference. So stop using the banks to stop overpaying for something that should so easy to do in 2016 with all this technology around us. If you need to send money from Philippines, be sure to use our listed FX companies and start enjoying zero fee transfers and great currency exchange rates.