Guides

"Пари пращане" (Pari Prashtane) or Money Sending — whether you're looking to send money to a family member or engage in a business transaction, navigating the money transfer landscape to Bulgaria doesn't have to be complex. Here's what you need to know.

TL;DR

• Sending money to Bulgaria involves navigating a complex landscape that goes beyond big banks and basic fees. 
• From understanding "valutni kursove" to being aware of receiving "taksa," the challenges are many. 
• By taking a well-researched approach and opting for the less-travelled routes, you can ensure a smooth and cost-effective money transfer experience.

The Financial Ecosystem in Bulgaria:

In Bulgaria, significant banking players like UniCredit Bulbank, DSK Bank, and United Bulgarian Bank handle international transfers. These banks work closely with global financial networks, ensuring secure and swift transactions. The country's dual reliance on the Bulgarian Lev (BGN) and the Euro adds another layer of complexity for those who are looking to remit money. 

For digital transfers, transactions exceeding €10,000 are automatically reported to customs. Additional paperwork is necessary for business transactions, to comply with AML (Anti-Money Laundering) laws.

Tips for Hassle-Free Transfers:

• Understand all your options:  Online platforms like Wise (formerly TransferWise), Revolut or smaller fintech companies such as Tap Tap Send often offer the best rates. 
• Bank Requisites: Make sure your recipient has a Bulgarian bank account or identify banks that allow cash pickups.
• Cost Comparison: Utilise online comparison tools to evaluate both service fees and exchange rate margins.
• Partnerships: Local alliances with Bulgarian entities can offer specialised routes for sending money.
• Currency Nuances: Don't just rely on converting to Leva; sometimes, remitting in Euros can be more cost-effective.

Recent events that had an impact on “valutni kursove"

• COVID-19 Pandemic (2020): The pandemic led to an economic contraction in Bulgaria, with real GDP estimated to have decreased by 4.6% in 2020 due to lockdown measures and a second wave of the virus. (Negative)
• Joining the European Union’s Exchange Rate Mechanism (ERM-II) (2020): Bulgaria joined the ERM-II and the Banking Union in July 2020, which is a significant step towards adopting the Euro as its currency. (Positive)
• Economic Expansion and Challenges (2023): Economic expansion is expected to slow down in 2023 before picking up in 2024, with export growth set to slow down due to subdued foreign demand. (Negative)

Action Items:

1. Compare Rates and Fees: Use online tools to compare not just rates but also the "taksa" and regulatory costs.
2. Timing: Check for days or times when currency conversion rates are more favourable.
3. Avoid Herd Mentality: Don’t follow the crowd by opting for well-known financial institutions; sometimes lesser-known platforms offer better rates.
4. Inquire About Receiving Fees: Before sending money, inquire with the recipient's bank in Bulgaria about any extra fees for currency reception.
5. Stay Updated: Keep tabs on Bulgaria's financial news. Regulatory changes can impact fees and rates.

Today's (22 Dec 2024) most favourable exchange rate for sending money from United Kingdom to Bulgaria in GBP is offered by TransferGo at a rate of 2.35 BGN. Including all the fees the recipients will receive 234.54 BGN for your 100 GBP. For other currencies, please visit our rates page.