Moving large amounts of money from US to Canada

[nazgul86]

Hi everyone,

I would like to transfer a large amount of money (> 100k) from my US bank to my Canadian bank (for a house downpayment). I hold a Green Card in US and PR in Canada, currently living in Canada since beginning of the year, will be filing taxes with both US & Canada for 2020.

I've read that transfers > 10k may be scrutinized more by the tax services, but unclear on the exact implications, so I have some questions:

1) Would there be any extra fees other than the ones paid by the exchange rate / wire transfer?
2) Any tax complications due to the dual Green Card and PR residencies that I should be aware of?
2) Any recommendations on methods of transfer? I have used TransferWise in the past, and from what I've seen they offer the best rates compared to a bank wire transfer (through CHASE)


Thanks in advance

 

[Islander216]

1.) Not that i know of,
2.) If you're filing taxes in both countries, there shouldn't be any tax complications.
3.) You should talk to someone at the bank, because it's a large amount you should try to negotiate a good exchange rate from your bank. Shop around, if another bank is giving you a substantially better rate, open another bank account and transfer the funds there.

Also, be careful because it's a big amount, try to ensure a secure and reliable money transfer.

You should also be prepared to answer questions about source of funds.

 

[caipsnotes]

1.) Not that i know of,
2.) If you're filing taxes in both countries, there shouldn't be any tax complications.
3.) You should talk to someone at the bank, because it's a large amount you should try to negotiate a good exchange rate from your bank. Shop around, if another bank is giving you a substantially better rate, open another bank account and transfer the funds there.

Also, be careful because it's a big amount, try to ensure a secure and reliable money transfer.

You should also be prepared to answer questions about source of funds.

Definitely shop around, for large amounts you should get better than listed FX rates. If you have a US account in Canada, e.g. Scotiabank then simply transfer in USD and exchange in Canada is another option. Tangerine (part of Scotiabank) has better rates than Canadian banks and it's listed on their website. Questrade brokerage is another good option to exchange and they do give a break for large amounts. Also, Xoom from Paypal offers better rates than Transferwise.

For tax purposes be aware of FACTA and FBAR disclosure rules. Your Canadian banks should be aware that you are a US person for FACTA compliance.

 

[nazgul86]

Thanks for your replies, I actually have both Scotiabank and Tangerine, but the exchange rate I would get using TransferWise is still the best.

Example exchange rate from USD account to CAD account for $30k USD:
1. Scotiabank = $39,912.00 CAD
2. Tangerine = $40,320.00 CAD
3. Transferwise = $40,840.20 CAD

I have used TranfserWise before, for smaller sums, so I'm inclined to use that, because the difference with higher sums starts becoming more substantial. I guess I'll give a call to my banks first though, to make sure they're not going to get put on hold or anything like that (if there's any limits etc).

 

[caipsnotes]

Thanks for your replies, I actually have both Scotiabank and Tangerine, but the exchange rate I would get using TransferWise is still the best.

Example exchange rate from USD account to CAD account for $30k USD:
1. Scotiabank = $39,912.00 CAD
2. Tangerine = $40,320.00 CAD
3. Transferwise = $40,840.20 CAD

I have used TranfserWise before, for smaller sums, so I'm inclined to use that, because the difference with higher sums starts becoming more substantial. I guess I'll give a call to my banks first though, to make sure they're not going to get put on hold or anything like that (if there's any limits etc).

One drawback of Tangerine is that their FX rates are not updated frequently which can sometimes work in your favour. Transferwise is good, used it on many occasions but switched to Xoom (acquired by PayPal). Xoom's markup on spot rates is lower than Transferwise. At the end of the day go with what gives you peace of mind. All the best.