Sending money from Germany to India: Wise, Remitly, and bank transfers compared

Every month, you earn in euros and need to send some of it to India. Your parents, your mutual fund SIPs, your home loan EMI, your NRE account. The difference between doing this well and doing this badly is €300 to €800 per year for a typical sender. That adds up.

Why bank transfers are expensive

Your German bank (Sparkasse, Commerzbank, Deutsche Bank) will happily send money to India via SWIFT. The problem is every layer charges you.

The fee stack for a typical bank transfer of €1,000:

1. Your German bank charges a sending fee: €15 to €35
2. Your bank adds a margin on the exchange rate: 1.5% to 3% above the mid-market rate. On €1,000 that is €15 to €30 you never see itemized.
3. An intermediary bank (correspondent bank in the SWIFT chain) may deduct €10 to €25 from the transfer.
4. The Indian receiving bank charges an incoming SWIFT fee: ₹200 to ₹500 (€2 to €5).

Total cost for €1,000 via a German bank: €40 to €90. That is 4% to 9% of the amount. For regular monthly transfers, this destroys your savings rate.

The hidden killer is the exchange rate markup. Banks quote you a rate that looks close to the market rate but is always worse. If the mid-market rate is 1 EUR = 93.50 INR, your bank might give you 91.20 INR. On €1,000, you receive ₹91,200 instead of ₹93,500. That ₹2,300 difference (about €25) never shows up as a "fee" on any receipt.

Wise (formerly TransferWise)

Wise is what most Indians in Germany use. It is a licensed money transfer company (regulated in the EU and India) that uses the mid-market exchange rate and charges a transparent, flat-ish fee.

How it works: Wise does not actually send your money across borders via SWIFT. When you send €1,000 to India, Wise takes your euros in their European bank account and pays out rupees from their Indian bank account. The money never physically crosses borders, which is why it is fast and cheap.

Fees: 0.55% to 0.75% for EUR to INR transfers. On €1,000 you pay roughly €6 to €7.50. The exact fee varies slightly with amount and payment method. Paying via bank transfer (SEPA) is cheapest. Paying via debit card adds a small surcharge.

Exchange rate: mid-market rate, visible on Google or xe.com at that exact moment. No markup. What you see is what you get.

Transfer time: bank transfer (SEPA) funding takes a few hours. Once Wise has your euros, the payout to an Indian bank account is usually same-day if you send before 2 PM CET on a weekday. Weekend transfers arrive Monday morning India time. Typical total: 4 to 24 hours.

Limits: Wise allows up to €1,000,000 per transfer for verified accounts, though transfers above €50,000 may require additional documentation. For most people sending €500 to €5,000 per month, there are no practical limits.

Setting up:

1. Create an account at wise.com with your German address
2. Verify your identity (passport, selfie, proof of address)
3. Add your Indian bank account (IFSC code, account number, name as on Indian bank account)
4. Fund via SEPA transfer from your German bank account
5. First transfer takes 1 to 2 business days for verification. After that, same-day is standard.

Wise multi-currency account: Wise also gives you a borderless account with EUR, INR, USD, and GBP balances. Useful if you receive payments in multiple currencies or want to hold euros and convert when the rate is favorable.

Remitly

Remitly is popular for smaller, regular transfers. It targets the diaspora market specifically and often runs promotional rates for new users.

Fees: Remitly charges a flat fee per transfer (€0.99 to €3.99 depending on amount and speed tier) plus a small exchange rate markup of 0.5% to 1.5%. The total cost on a €500 transfer is typically €4 to €8.

Speed tiers:

• Express: arrives in minutes to hours. Slightly higher fee.
• Economy: 1 to 3 business days. Lower fee.

Strengths: very good for amounts under €500. The app is clean and well-localized for Indian users. Customer support in Hindi available. Promotional exchange rates for first-time users can beat Wise on your first transfer.

Weaknesses: the exchange rate markup means Remitly is more expensive than Wise on larger amounts (€2,000+). Fee transparency is lower than Wise because the margin is partially hidden in the rate.

Limits: up to €9,000 per transfer, €30,000 per month for verified users.

Western Union and Xoom

These make sense in one specific scenario: the recipient in India needs cash pickup and does not have a bank account, or needs money urgently at a physical location.

Western Union: available at most post offices in Germany (Postbank/Deutsche Post locations). You can send in person or online. Fees are €5 to €15 for a €500 transfer, with an exchange rate markup of 2% to 4%. Expensive, but the recipient can walk into any Western Union agent location in India and collect cash within minutes.

Xoom (owned by PayPal): online-only. Similar to Western Union for cash pickup and mobile wallet top-ups. Fees are €3 to €8 per transfer. Exchange rate markup of 1% to 3%.

When to use them: emergencies where the recipient needs physical cash in India immediately. For regular bank-to-bank transfers, Wise and Remitly are always cheaper.

Direct bank transfer (SEPA to SWIFT)

Sometimes a bank transfer is the only option:

• Property purchases in India: RBI requires proof of funds routed through banking channels. Wise transfers may not always satisfy this for property registration purposes in some states. A direct SWIFT transfer from your German bank to your NRO/NRE account with a clear purpose code (like P0802 for property purchase) creates an audit-ready paper trail.
• Amounts above €50,000: some fintech services have practical limits or trigger additional reviews. A bank SWIFT transfer handles large amounts with a single fee.
• Employer-mandated channels: if your company handles relocation reimbursement or salary splitting, they may require bank-to-bank transfers.

How to reduce bank transfer costs:

• Use the OUR charging option (you pay all fees, recipient gets the full amount). This costs more upfront but avoids deductions along the chain.
• Ask your German bank about their foreign transfer pricing. DKB and ING charge less than Sparkasse for international SWIFT transfers.
• For recurring large transfers, negotiate a better rate with your bank's foreign exchange desk. This is possible if you transfer €5,000+ monthly.

Tax implications

This section confuses many people. The short version: sending money from Germany to India is not a taxable event in either country, with some caveats.

Germany side

Germany does not tax outgoing remittances. You have already paid income tax on your salary. Sending your post-tax money to India, to your family, or to your own Indian bank account is not taxable and not reportable. There is no form to file, no limit on amounts.

One exception: if you send more than €12,500 in a single month to a non-EU country (India qualifies), your bank is required to report this to the Bundesbank under the AWV (Außenwirtschaftsverordnung) reporting rules. This is a statistical report, not a tax. Your bank usually handles it automatically. If you do the transfer yourself, the reporting obligation is technically on you. In practice, banks flag it and file it. No tax consequence.

India side

LRS (Liberalised Remittance Scheme): this is an RBI rule that allows Indian residents to send up to $250,000 per financial year (April to March) outside India. It applies to remittances FROM India, not TO India. If you are sending money from Germany to India, LRS does not apply to you.

If you are an NRI (which you likely are if you live in Germany): LRS does not apply to NRIs at all. You can receive unlimited amounts in your NRE or NRO account.

TCS (Tax Collected at Source): this is a 2023 rule that applies to remittances FROM India. If an Indian resident sends money out of India above ₹7 lakh per financial year (for non-educational, non-medical purposes), TCS of 20% is collected. This does not apply to you sending money from Germany to India. It would apply if your parents in India were sending money to you in Germany from their own funds.

Receiving money in India: money received in your NRE account from your foreign earnings is not taxable in India. Interest earned on NRE fixed deposits is also tax-free in India. Money in your NRO account (from Indian sources like rent, dividends) is taxable in India per normal rules.

Summary of tax rules

Recurring transfers

If you send money home every month (most Indians in Germany do), set up automation instead of doing it manually.

Wise auto-transfers: Wise lets you schedule recurring transfers. Set a fixed EUR amount, a frequency (weekly, monthly, quarterly), and a recipient. Wise converts at the mid-market rate on the transfer date. You cannot lock in a rate in advance, but the mid-market rate is consistently fair.

Wise rate alerts: if you want to time the market slightly, set a rate alert. Wise notifies you when EUR/INR hits your target rate. This only makes sense if you are flexible on timing.

Standing orders from your German bank to Wise: set up a recurring SEPA transfer from your German bank to your Wise EUR balance. Then set a recurring transfer from Wise to your Indian account. This two-step automation means you never have to log in.

Remitly recurring: Remitly also supports scheduled transfers, but with less control over timing and rate selection than Wise.

How much Indians in Germany typically send home

There are no official numbers broken down by nationality, but from community surveys and conversations:

• Single Blue Card holders earning €55,000 to €75,000 gross typically send €500 to €1,500/month to India (for family support, SIPs, loan EMIs, NRE savings).
• Couples where both partners work send less proportionally, typically €300 to €800/month, since more expenses are local.
• After 3 to 5 years, the amount often decreases as people build savings and investments in Germany and Indian financial obligations reduce.

The average monthly transfer for an Indian professional in Germany is roughly €800 to €1,200, based on Wise's published corridor data for EUR to INR.

Comparison: €1,000 transfer from Germany to India

The math is clear. On a €1,000 transfer, Wise saves you roughly €40 to €70 compared to a bank transfer. Over 12 months of €1,000/month transfers, that is €480 to €840 per year in your pocket instead of the bank's.

Common mistakes

Using your German bank for regular transfers: the single most expensive mistake. Every monthly transfer via Sparkasse or Commerzbank SWIFT costs you 4% to 8%. Switch to Wise for anything under €25,000.

Not checking the exchange rate at the moment of transfer: the EUR/INR rate moves ₹1 to ₹2 on any given week. Sending on a bad day versus a good day can mean ₹1,000 to ₹2,000 difference on a €1,000 transfer. Wise shows you the exact rate before you confirm. Always check.

Sending large amounts without documentation: if you transfer more than €12,500 in a single month, make sure your bank has reported it (AWV Meldung). If you are buying property in India, keep records of every transfer, the exchange rate used, and the purpose. The Finanzamt in Germany will not tax the transfer, but if they audit you, they want to see where your money went.

Not using your NRE account: money sent from your foreign earnings to an NRE account is fully repatriable and the interest is tax-free in India. Sending to a regular savings account or NRO account means the interest is taxable in India and repatriation has limits. If you do not have an NRE account yet, open one at SBI, HDFC, or ICICI (all have NRI desks that handle remote account opening).

Splitting transfers to avoid reporting: some people split a €20,000 transfer into four €4,999 transfers thinking it avoids reporting. It does not. Banks track cumulative monthly amounts. This pattern (called "structuring") can actually trigger compliance alerts. Send the full amount in one transfer and let the bank handle the AWV reporting.

Ignoring the Wise debit card for India trips: Wise offers a multi-currency debit card. When you visit India, pay with the Wise card using your INR balance (topped up at mid-market rate before travel). This is cheaper than using your German bank's debit card (which charges 1.5% to 2% foreign transaction fee) and cheaper than withdrawing cash at Indian ATMs with your German card.

Step-by-step: your first Wise transfer

1. Go to wise.com and create an account with your German address
2. Complete identity verification (passport photo, selfie)
3. Click "Send money" and select EUR to INR
4. Enter the amount (e.g. €1,000)
5. Wise shows you: the mid-market rate, the fee (e.g. €6.50), and the exact INR amount your recipient will receive
6. Add your Indian bank account: full name (must match Indian bank records exactly), IFSC code, account number, account type (NRE, NRO, or savings)
7. Choose payment method: SEPA bank transfer (cheapest), or debit card (faster but slightly higher fee)
8. If paying by SEPA, Wise gives you a German IBAN to transfer to. Go to your German bank and send a SEPA transfer to that IBAN. Include the reference number Wise provides.
9. Once Wise receives your euros (usually a few hours for SEPA), the INR is sent to the Indian account. Same-day if before 2 PM CET on a weekday.

After your first transfer, the process is faster because your accounts are saved. Subsequent transfers take about 2 minutes to set up.

For large transfers (€10,000+)

If you are sending a lump sum for property purchase, family investment, or other large purposes:

• Wise: works fine for amounts up to €50,000 in a single transfer. Above that, you may need to provide additional documentation (source of funds letter from your employer, bank statements). Transfer time may extend to 1 to 2 business days for amounts above €25,000 due to compliance checks.
• Bank SWIFT: better paper trail. Ask for the MT103 confirmation (the SWIFT message receipt). Keep it for property registration or any official purpose in India.
• Currency timing: on a €30,000 transfer, a ₹1 difference in the exchange rate means ₹30,000 (about €320). Check the rate trend over the past week. If it has been volatile, consider splitting into two transfers a few days apart to average out the rate.

Related guides on this site

• Opening a bank account in Germany
• ELSTER: filing your German tax return yourself
• Freelancer life in Germany: Freiberufler, Gewerbe, and taxes
• First 30 days in Germany: the Indian arrival checklist