Sending Money Home from Norway: What Does It Actually Cost?

When you send money home from Norway, the real price is decided by two things: a visible fee and a hidden currency markup in the exchange rate, which often costs more than the fee itself.

What does it actually cost to send money home?

The real cost of sending money home from Norway has two parts: a visible transfer fee and a hidden currency markup in the exchange rate. Together, these can add up to anywhere from under one percent to over ten percent of the amount, depending on who you use.

According to the World Bank's database Remittance Prices Worldwide, sending a smaller sum of money abroad cost an average of 6.4 percent of the amount globally, as of the fourth quarter of 2023 - more than double the UN's target of under 3 percent (Sustainable Development Goal 10.c). Digital services were cheaper, averaging 4.96 percent, compared with 7.0 percent for non-digital solutions.

The currency markup is often the hidden cost. The bank or service sets its own exchange rate, slightly worse than the real market rate, and keeps the difference for itself. Forbrukerrådet (the Norwegian Consumer Council) has warned about similar currency markups on card use abroad: if you choose to pay in Norwegian kroner instead of the local currency, the markup can reach as much as six to seven percent - almost four times as expensive as the standard rate. The same principle applies when you send money: always compare the rate the service offers with the market rate, not just the fee shown at the top. This kind of hidden cost is useful to know about in personal finance in Norway generally, something SamfunnPrep also covers in a separate guide to personal finance in Norway.

Bank or money transfer service - which should you choose?

There is no single answer that fits everyone. A bank is often the safest choice for large amounts you send rarely, while specialized services like Wise, Western Union or MoneyGram are usually cheaper and faster for smaller, regular transfers.

If you send from your regular Norwegian bank, you will typically pay around 150 kroner in a fixed fee for a payment outside the EU/EEA (European Union / European Economic Area), on top of the currency markup - and sometimes an extra fee from an intermediary bank along the way. The advantage is that you use an account you already have (read about opening a bank account in Norway if you don't have one yet), and that your deposit is protected by the deposit guarantee scheme up to 2 million kroner.

Services like Wise usually show the real market rate and a clear, fixed fee before you confirm the transfer, with no hidden markup. Western Union and MoneyGram let the recipient pick up cash at a local office within minutes, which is useful when the recipient has no bank account - but this convenience often costs more than a plain bank transfer. Always check what the recipient actually receives in local currency before you choose, not just the fee the service shows you first.

What you need to send money internationally

To send money to a bank account abroad, you usually need the recipient's IBAN (International Bank Account Number, the international format of the account number) and the bank's SWIFT or BIC code, along with the recipient's full name and address.

The bank or payment institution must also verify who you are as the sender. You must show valid identification, and the transfer is linked to your fødselsnummer (national identity number) or D-number. If you are unsure about the difference, you can read more about the difference between fødselsnummer and D-number. If the recipient has no bank account, some services can instead deliver cash once the recipient shows identification at pickup.

How long does the transfer take?

A bank transfer usually takes between one and five business days, while digital services like Wise are often completed within a few hours, and cash payouts at Western Union or MoneyGram can be picked up by the recipient within minutes.

The time depends on which country and currency the money is sent to, whether public holidays or weekends delay the banking systems, and whether the transfer has to pass through several intermediary banks before it reaches the recipient's account. Always choose a service that shows the expected arrival time before you confirm the transfer, especially if the recipient needs the money quickly.

How to avoid fraud

Always use a bank or payment institution with a valid license from Finanstilsynet (the Norwegian Financial Supervisory Authority, which oversees banks and payment services) - never an unknown “agent” you have met through social media, or an offer with a rate that seems too good to be true.

You can check whether a service is licensed in Finanstilsynet's public register of companies. Be especially wary of requests to send money via WhatsApp or Facebook to a private individual claiming to represent a company, and of services that ask for payment in cash or gift cards before the transfer. Also note that deposits in ordinary banks are covered by the deposit guarantee scheme up to 2 million kroner, while customer funds held by pure payment institutions are not covered by the same scheme - even though the law requires them to be kept separate from the company's own money. SamfunnPrep always recommends double-checking a new service in the register before you send anything at all.

Limits, reporting and tax

There is no upper limit on how much you can legally send home from Norway, but banks and payment institutions are required to verify your identity and report transfers on to the authorities.

Under the hvitvaskingsloven (the Norwegian Anti-Money Laundering Act, against money laundering and terrorist financing), the bank must carry out more thorough customer checks when you are not already a customer and want to send at least 100,000 kroner - but for pure payment services, such as international money transfers, a much lower limit of 8,000 kroner applies. Several linked transfers are often counted together. This is nothing to worry about: it is a routine check, not a sign that you are suspected of anything.

For tax purposes, money you send as a gift to family is, as a general rule, not taxable for you as the sender. Norway abolished inheritance tax from 2014, so gifts - including money transfers to family - do not trigger any gift tax. If you do have income from work in Norway, however, this must still be entered on your own tax return in Norway, regardless of what you later use the money for.

Much of what you learn about personal finance in Norway - including rules on banking, tax and identification - is also part of the curriculum for the Samfunnskunnskapsprøven. Want to practice for free? Try SamfunnPrep for free and see what you already know.