Transferring dollars to Canada is a simple and feasible process for Iranians looking to send money to their loved ones in the country. With the rise in immigration to Canada and the need to pay for university tuition or rent, numerous intermediary financial institutions have emerged to facilitate this money transfer. Although there is no direct banking relationship between Iran and Canada, effective solutions for sending money to this country are available. In this article from Hafez Exchange, we will explore various methods for transferring dollars and important considerations in this regard.
Ways to Send Money from Iran to Canada
If you need to transfer money to Canada for any reason, generally your only option is to send dollar-denominated remittances. For this purpose, you can easily deposit the desired amount in Iranian rials, which can then be received in Canada as dollars. There are various methods available for sending dollar remittances to Canada, which we’ll outline below:
Sending Cash to Canada
The most direct method for transferring money to Canada is carrying cash. While this approach is straightforward, it comes with numerous drawbacks: it lacks security, takes considerable time, and involves significant risks. Nonetheless, it remains the simplest option available to you. You can convert your money into Canadian dollars in Iran, take it with you to Canada, and deposit it into the bank account of the intended person or organization.
However, this method poses several risks, such as the possibility of loss or theft of the cash, especially if the amount is substantial. Moreover, it requires careful planning as you cannot decide to travel to Canada at any moment, making cash transportation slower compared to other methods.
In summary, while carrying cash offers simplicity, it is fraught with security concerns and logistical challenges that make it less practical for larger sums or urgent transfers.
Also read: Exchange offices in Canada
Sending Money to Canada via Exchange Offices
Using exchange services for sending dollars to Canada is the best and simplest method available to you. Right now, you can visit an Iranian/Canadian exchange office, deposit the desired amount into their account, and rest assured that the recipient in Canada will receive it in dollars within 1 to 2 business days. However, in addition to exchange rates, you should also consider the exchange office fees.
Reputable Iranian/Canadian exchange offices like Hafez Exchange offer significant services in this regard, ensuring the most fair and reasonable fee rates. Today, the most reputable Iranian exchange offices in Canada are well-known, so choosing one of the best is all you need to do.
Transferring Money to Canada via PayPall
PayPall isn’t a digital exchange, rather an online financial network where you can perform international banking services. Those with a PayPall card can easily transfer funds between Iranian and Canadian banks using the same card.
PayPall is an international American system that unfortunately does not provide its services to Iranians due to sanctions. However, some companies offer to set up a legal and official PayPall account in your name, circumventing these sanctions for a fee.
Generally, people routinely transfer money internationally using the card, but for an annual or two-year for
Transferring Money to Canada via Digital Currency
This method falls under the category of using exchange services for sending dollars to Canada, but with a twist: instead of using Iranian rials and Canadian dollars, you utilize reputable digital currencies. You also switch from physical exchange offices to online exchange services.
In this approach, you simply need to have a digital wallet and convert your money initially into a stablecoin like Tether (USDT) or any other digital currency. Then, you transfer it to the recipient’s digital wallet in Canada. This method is one of the fastest ways to transfer money to Canada with minimal fees. However, trusting any online digital exchange for securing your funds may not always be straightforward.
Since digital currencies are not yet widely regulated, trusting online exchanges for security can be challenging. Additionally, the volatility of digital currencies means there could be fluctuations in the amount of money transferred during the process.
Also read: Guide to transferring money to Canada via cryptocurrency
Sending Dollar Transfers to Canada via Western Union
Western Union is a global financial network for transferring money internationally. Users can quickly send dollar transfers to Canada by simply entering the recipient’s passport information at the destination.
This financial transfer system is one of the top and fastest methods for transferring money to Canada. However, due to sanctions, its services are not directly available in Iran. Only individuals with an international bank account can utilize Western Union’s services.
Sending Money to Canada via SWIFT Code
You can also use a method called SWIFT (Society for Worldwide Interbank Financial Telecommunication) to send dollar transfers to Canada. SWIFT is a web-based international transfer system with branches worldwide. Even in Iran, there are approximately 30 institutions that are SWIFT members and provide related services.
This method is considered one of the standard, fast, and relatively cost-effective solutions for transferring money to Canada. However, due to Western sanctions against Iran, SWIFT transactions face significant limitations today, making it less reliable for such transfers.
Sending Money to Canada via MoneyGram
MoneyGram is another international bank transfer system similar to Western Union. The main difference lies in the daily transfer limit between international accounts and other operational details, but fundamentally, they serve the same purpose.
To use MoneyGram’s services, you must also have an international bank account. Otherwise, due to sanctions, using this service is not possible within Iran.
Steps to Send Dollar Transfers to Canada
The steps for sending dollar transfers to Canada can vary depending on the method you choose.
In some methods like PayPal or Western Union, you first need to open an international currency account before proceeding with the money transfer.
In the method involving digital exchange services, you would create a digital wallet first, convert your money into common currencies, and then initiate the transfer.
Generally, (excluding cash transfer methods), you typically don’t need to separately convert money for sending transfers to Canada. Instead, you can pay the desired amount in Iranian rials and be assured that the conversion will occur during the transfer process.
The simplest steps for transferring money to Canada are through exchange offices, where you deposit the money into their account and your task is complete. The exchange office automatically converts the money into dollars and transfers it to your Canadian recipient within a few short days, deducting their fee from your amount.
However, you can opt to pay the exchange fee separately to ensure the principal amount remains intact.
If you intend to conduct money transfer transactions within a formal, legal, or corporate framework, you must prepare the following documents in addition to the ones mentioned above:
– Representative introduction documents with complete identification information on the company letterhead.
– A copy of the company’s business card.
– Company registration number.
– Copy of the company’s official gazette.
– Official invoice for the money transfer signed by the company’s CEO.
– Company address, telephone number, fax number, and email address.
– Copy of the CEO’s and company representative’s identification cards.
– Country representative.
Sending Money Transfer Fees to Canada
One of the most crucial considerations when sending a money transfer to Canada is the discussion surrounding conversion and transfer fees. Whether you use exchange services, digital exchanges, platforms like PayPal, SWIFT, and others, or even interbank transfers (though impossible from Iran to Canada), all are subject to fees.
Determining the fees for sending dollars to Canada depends on various factors. The type of sender and receiver accounts, the amount of money being transferred, the daily exchange rate, and other factors all influence fee determination. Each exchange service requests its own specific fee for transferring money to Canada from you.
It’s important to note that these fees consist of two parts: currency conversion fees and transfer fees. The exchange service charges a fee for converting your Iranian rial into dollars (a fee you must pay even if you were to convert money domestically) and another part for the expenses incurred in sending the transfer.
Many exchange services charge these fees as a percentage or a combination thereof, while others have fixed rates for this service. For instance, for transferring a remittance up to $1,500, they might charge $100 as a fee.
When sending a money transfer to Canada, choose an exchange service that offers a fair fee rate and, more importantly, conducts transactions with transparency. Some unreliable exchanges may appear to have low fees but charge you excessively beyond the normal exchange rates.
Therefore, when selecting an exchange service for sending a money transfer to Canada, be vigilant and proceed with full awareness.
Key Considerations for Sending Money to Canada
Choosing the best and safest way to send money to Canada involves several key considerations that must be taken into account:
1. Tax Regulations: Canada has stringent tax laws requiring individuals to declare all sources of income, whether domestic or foreign. Therefore, transferring money to Canada involves serious tax considerations, and to exempt oneself from these taxes, any received funds must be declared to the government.
2. Accuracy of Sender and Receiver Information: The most critical aspect of transferring money to Canada is accurately determining the origin and destination of the funds. Clear identification of both the sender and the receiver ensures a smooth transfer process with minimal complications.
3. Documentation and Receipts: It’s crucial for the recipient in Canada to retain all documentation and receipts related to the received funds. Canadian banks may report the deposited amount as income to tax authorities, necessitating legal documentation to substantiate the legitimacy of the money.
Ensuring compliance with these considerations will help facilitate a secure and efficient transfer of funds to Canada.
Free Interbank Transfers for Sending Money to Canada
Interestingly, on paper, there is a possibility of free interbank transfers for sending dollar transfers to Canada, offered by some reputable large banks. For this to happen, both the sender and the recipient must have accounts with the same bank and transact in the same currency (both in Canadian dollars), ensuring that no exchange rate differences apply during the money transfer. Under such circumstances, the movement of funds from one account to another resembles a straightforward bank transfer.
Although this method is generally not accessible to ordinary individuals, it is sometimes used for large-scale government and commercial transactions.
Maximum Amount of Money Transfer from Iran to Canada
If you intend to use exchange services to send dollars to Canada, there are generally no restrictions on the amount you can transfer. You can deposit any amount into the foreign exchange account of the exchange office and they will transfer the equivalent amount in dollars to Canada for you.
However, if you plan to carry cash with you, Iranian airport regulations do not permit carrying more than 5,000 euros (or equivalent) with you. Upon arrival at a Canadian airport, you must declare this amount to officers and fill out necessary forms to avoid potential accusations of money laundering.
The maximum amount that can be transferred via Western Union is 8,000 Canadian dollars per day, and through MoneyGram, it is also 10,000 Canadian dollars per day.
Also read: Money transfers in exchange offices
Hafez Exchange is one of the best cryptocurrency exchanges in Canada that has been serving our dear compatriots for years. I recommend reading the following article:
Cryptocurrency Regulations in Canad
Is it Better to Transfer Money through Exchange Offices or Cash?
Naturally, using exchange services for transferring money to Canada is much preferable and easier than carrying cash and dealing with its associated hassles. It also offers higher security and faster transaction processing.
However, the issue of fees for using exchange services cannot be ignored. Additionally, individuals traveling to Canada as tourists or visitors often prefer to carry the money they need in cash.
Nevertheless, due to the limitations involved in transferring money in cash, generally when you need to move more than 10,000 Canadian dollars, using Iranian/Canadian exchange services is practically the only solution.
Hafez Exchange is one of the safest and most reputable centers with a distinguished track record in quickly transferring dollar remittances to Canada. You can utilize their services not only for sending money to Canada but also for remittances from Canada to Iran.
Frequently Asked Questions
Do I need to pay taxes on the amount I receive in Canada from Iran?
Canada taxes its citizens on income earned abroad, including income received from Iran. However, if you declare on your tax forms that the money received is not from your own income but rather as a remittance, it will not be considered part of your taxable income. Therefore, it will be exempt from taxes. Additionally, transferring money to Canada from Iran incurs no tax in Iran.
How many days does it take to transfer a USD remittance to Canada through an exchange?
This process typically takes between 1 to 2 business days at most.
What is the exchange fee for transferring money?
While the exact amount varies depending on the exchange and the method of transfer, generally, exchanges charge between 3% to 5% of the total transfer amount as a fee.
Can money be sent to Canada through Iranian banks?
No, Iranian banks are subject to Western sanctions and have no direct relationship with Canadian banks.
Is it possible to send a remittance to Iran from Canada?
Yes, exchange services operate bidirectionally. Besides transferring money from Iran to Canada, you can also send remittances to Iran from Canada.
