There are the following methods of transferring money to or from Bulgaria:
Bank transfer
SWIFT transfer
One of the safest and fastest methods of transferring money is via the Society of Worldwide Interbank Financial Telecommunications (SWIFT) system. A SWIFT transfer should be completed in a few hours, although even SWIFT transfers can take five working days, especially from small branches that are unused to dealing with foreign transfers. The cost of transfers varies between banks – not only commission and exchange rates, but also transfers charges – but is usually between €30 and €50.
Currency dealer
It can be quicker to use a specialist currency dealer to carry out the transfer for you, and you may get a better exchange rate than from a bank. In effect, you transfer money to the dealer’s account and the dealer pays it into the third party account. Dealer transfers can work out cheaper than using banks; some charge no fee and make their money solely on commission so you should shop around for the best rate.
An increasing number of dealers offer an online service, whereby you can arrange a transfer via the internet. Companies specialising in foreign transfers include the following:
- Currency Solutions (www.currencysolutions.co.uk );
- Foreign Currency Direct (www.currencies.co.uk );
- Global Currency Exchange Network (www.gcen.co.uk );
- HIFX plc (www.hifx.co.uk ) – currency exchange and brokerage;
- Moneybookers.com (www.moneybookers.com );
- Worldwide Currencies (www.worldwidecurrencies.com ) – offers a range of financial products and services;
- XE.com (www.xe.com ) – apparently the world’s most popular currency site.
When you have money transferred to Bulgaria, make sure you give the name, branch number and bank code of the receiving bank and your account number. Otherwise, it’s possible for you money to be ‘lost’ in the system and it can take weeks to locate.
Always check charges and exchange rates in advance and agree them with your bank and/or dealer – you may be able to negotiate a lower charge or a better exchange rate. You should also check what fees are charged by the Bulgarian bank for receiving the money, as this can be a percentage of the amount transferred, which can amount to a large sum on a major transfer.
SURVIVAL TIP
If you plan to send a large amount of money to Bulgaria or abroad for a business transaction such as buying property, you should ensure that you receive the commercial exchange rate, rather than the tourist rate.
It isn’t advisable to close your bank accounts abroad, unless you’re certain you won’t need them in the future. Even if you’re resident in Bulgaria, it’s cheaper to keep money in the currency of your home country if you visit regularly than it is to pay overseas withdrawal fees to your Bulgarian bank.
This article is an extract from Buying a Home in Bulgaria
from Survival Books.