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tyroleanhat · Joined: 21 Oct 2013 Posts: 209 Location: Austria / China

what are the rules of sending money to EU?
I heard there is a 70.000 RMB limit per year- is that true? is this a rule only for teachers? how can I get much bigger amounts out the country?

LarssonCrew · Joined: 06 Jun 2009 Posts: 1308

I've been thinking about this and honestly I will open two bank accounts, a spending account and a send home account.

I'll mail the send home account card back to my brother and text him the pin number, then every month transfer 15000 across and have him take out multiples of 200 pounds [the limit in the UK] whicxh is about 2000 give or take. So he sdoes that 6 timse and then goes with cash in hand and plumps it into my UK account.

tyroleanhat · Joined: 21 Oct 2013 Posts: 209 Location: Austria / China

Now i am even more confused - you're sending 15000 each month? That's way more than 70.000 a year..

Also I heard, this only applies to regular bank accounts and transfers. If you send via western union, its different, although the fees are really high then.

jimpellow · Joined: 12 Oct 2007 Posts: 913

China is very hip on currency controls that keep wealth within the country in hopes that it will boost domestic investment and spending. What it has been most successful in achieving is an outrageous housing bubble.

My first plan when I decided I had had enough fun and to become a net saver, rather than spender, was to bring back silver (of which I am a fan). This ended up being a very stupid idea once I read how US Customs is very fond of confiscating (civil forfeiture) precious medals even if you have all your forms correct. Very ironic I must add as silver and gold are the only legal currencies per the Constitution. I just found a couple Chinese friends I could trust and went to the bank and transferred it through them.

The restriction applies to all foreigners who are paid directly in China, not just teachers, as far as I know.

tyroleanhat · Joined: 21 Oct 2013 Posts: 209 Location: Austria / China

tyroleanhat · Joined: 21 Oct 2013 Posts: 209 Location: Austria / China

Just found what seems to be an answer to my question:

"If you are a foreigner and working in China you can transfer an amount up to the total of your entire earnings minus the taxes you paid to China in a one time shot and only when you are leaving China permanently and not returning (repatriating). For example, if you earned 1,000,0000 rmb each year for ten years and paid 30% tax so your net was 700,000 rmb each year times ten years you can legally transfer 7,000,000 in a one time shot. You need to prove through your firm you earned it while in China and that taxes were paid."

Can somebody confirm this is true?

jimpellow · Joined: 12 Oct 2007 Posts: 913

tyroleanhat · Joined: 21 Oct 2013 Posts: 209 Location: Austria / China

Well I am planning to earn money in China for a long time, at least for the next 5 years. So this seems to be a good solution - a one-time transfer of all my savings before I leave China for good. of course there is some paper-work, proof of employer, taxation etc. involved, but it will be only once in 5 years for me.

LarssonCrew · Joined: 06 Jun 2009 Posts: 1308

If you haven't been to China before be aware the banks can be annoying, and just sometimes won't do it.

You could have everything but they may say 'ma fan' and just say the system is down or it can't be done.

jimpellow · Joined: 12 Oct 2007 Posts: 913

I think your research sounds good - for now at least. Sure you want to build up such a bundle and hope the government does not change course as governments are apt to do with others' wealth?

Also, the poster above hits on a good point about hitting unexpected issues when you least expect it. Not good if you are just about to leave.

How strong will the Chinese RMB be in five years? You a gambler? I would play it safer and hedge by moving at least some of it into your native currency along the way. And as almost all currencies now have negative returns compared to real inflation, you may want to hedge further through investments.

It's very common now for governments to play games to keep reported inflation rates low. Even more so in China where inflation statistics are used to transform nominal growth rates into real growth rates to meet political goals.

Not knocking you at all. I think it is great you intend to accumulate wealth and have a plan. I would just think through the funny money games that are being played today and how they can impact you.

Mandrews1985 · Joined: 22 Apr 2012 Posts: 69 Location: Daegu, South Korea

LarssonCrew · Joined: 06 Jun 2009 Posts: 1308

Fortunately bank cards are only 5 RMB, I would be tempted to open another account and keep rinsing and repeating, there's about 10+ banks I can think of. So that should be at least 10 years I could do it.

I can't think of any other way and I'm not going to beg a coworker to do it to get around the racist and xenophobic idea of limiting foreigners but not Chinese.

jimpellow · Joined: 12 Oct 2007 Posts: 913

LarssonCrew · Joined: 06 Jun 2009 Posts: 1308

Wrong topic, my bad.

LarssonCrew · Joined: 06 Jun 2009 Posts: 1308

I can't imagine losing that sort of money, if I had saved even 1000 usd a month that'd be 12 grand she lost, that's a car or a deposit on a house.

And of cousre onmce you've left China you can't sue anyone, and beside, will the courts do anything to actually help a non Chinese?