Bringing €100k from Singapore to Ireland

Kotek Besar

My in-laws are originally from Singapore and now live in Ireland. They are looking to buy their own house in Ireland. They have the equivalent of €100000 in a bank account in Singapore.

Transferring the S$ to € via bank to bank telegraphic transfer from Singapore to Ireland would be costly, due to exchange rates and commission.

I was thinking of bringing the cash over for them, as I'm going to Singapore next month for a holiday anyway. This is what we'd do:

1. Transfer the S$ from in-law's account in Singapore to my account in Singapore. This can be done online and is instant.

2. When in Singapore next month, I will withdraw the funds from my account in cash (S$).

3. I will change the S$ to € at a money changer, which has a more favourable rate and does not charge commission.

4. I will bring the €100k cash to Ireland and my in-laws can go and buy their house.

My question is, is anything in the above illegal? I believe any cash amount over €10k that is entering / leaving the EU must be declared. So I'll declare it. But will it be a problem?

Cicero

Why don't your parents in law purchase a bank draft in Singapore and bring that to Ireland instead- then lodge it in their own names in an Irish bank, once they are happy with the exchange rate? If they loose the bank draft, there is normally a way to cancel it and have it re-issued- at least there is in Ireland- they should talk to their bank

the way you describe above may lead to tax and other complications, potentially costing you and them a lot more than a commission fee.

Cicero

Kotek Besar wrote: »

My in-laws are originally from Singapore and now live in Ireland. They are looking to buy their own house in Ireland. They have the equivalent of €100000 in a bank account in Singapore.

Transferring the S$ to € via bank to bank telegraphic transfer from Singapore to Ireland would be costly, due to exchange rates and commission.

I was thinking of bringing the cash over for them, as I'm going to Singapore next month for a holiday anyway. This is what we'd do:

1. Transfer the S$ from in-law's account in Singapore to my account in Singapore. This can be done online and is instant.

Could this be considered a gift in Singapore? And if so, would that mean the funds would then be subject to gift tax?[/I]

2. When in Singapore next month, I will withdraw the funds from my account in cash (S$).

and I will be waiting for you when you come out of the bank...:p

3. I will change the S$ to € at a money changer, which has a more favourable rate and does not charge commission.


are you quite sure of this?...many places don't charge commission but their rates are not as good as banks....

4. I will bring the €100k cash to Ireland and my in-laws can go and buy their house.

and when they are asked the source of this 100K in cash, what exactly will they say in reply? they will have absolutely no proof of where the money came from, which will create one very difficult situation for them

My question is, is anything in the above illegal? I believe any cash amount over €10k that is entering / leaving the EU must be declared. So I'll declare it. But will it be a problem?

......tax implications, proving the source of funds and safety/security of carrying all of that money will be at least three reasons I can think of not to do this...I can't comment on the legality of it, but from a practical perspective, it will raise many problems for you and them.

johnnyskeleton

Speak to a solicitor before doing anything as crazy as that, this forum is not for advice etc.

Just one comment though:

Kotek Besar wrote: »

Transferring the S$ to € via bank to bank telegraphic transfer from Singapore to Ireland would be costly, due to exchange rates and commission.

You will have to pay exchange rates and commission anyway if you want to convert it from one currency to another. I fail to see how changing it into cash carries a lower commission than a bank transfer.

Kotek Besar

Local money changers in Singapore have very competitive rates compared with banks (both Singapore and Irish banks). Of course a small commission is built into the rate offered, but it's a relatively small commission in comparison with the banks.

Anyway, my concern at the minute is that local money changers wouldn't carry such a large quantity of Euros, and may not be able to get that much even if ordered in advance.

Purchasing a draft in Singapore is undesirable because that would mean that either a bank in Singapore or a bank in Ireland would have to do the conversion - and that's costly, as mentioned.

I'm now looking at transfermate.com as an alternative. I used them a while back when I bought a car from the UK and they were quite competitive at the time. It wouldn't be as cost effective as changing cash at a Singapore money changer, but it may be more practical.

Regarding being able to show the source of funds when buying a house, what are the rules on this? Is it a legal requirement or not? If we were to go with plan A as per OP, would it suffice to show the transfer from their bank to mine (in S$), and then the presentation of the cash in € to the property owner?

johnnyskeleton

Kotek Besar wrote: »

Local money changers in Singapore have very competitive rates compared with banks (both Singapore and Irish banks). Of course a small commission is built into the rate offered, but it's a relatively small commission in comparison with the banks.

What is the exact difference, have you worked it out?

Bank of China and HSBC both operate in Singapore, and AFAIK both have caps on the commission payable at around €25-30, plus another small transaction charge, so I would imagine that the price differential we are talking about is less than €100. For the additional security ALONE it is worth that, nevermind any legal, customs or tax implications.

Regarding being able to show the source of funds when buying a house, what are the rules on this? Is it a legal requirement or not? If we were to go with plan A as per OP, would it suffice to show the transfer from their bank to mine (in S$), and then the presentation of the cash in € to the property owner?

Again, no legal advice on this forum. Will ask mods to close it.