Sending your salary home from China
Photo: Li Yang / Unsplash
If you're working here and paid in yuan, at some point you'll want to move money home: a mortgage in the US, savings in Australia, a pension top-up in Europe. It's entirely possible. It just isn't as casual as a transfer between two banks inside the eurozone.
The reason is that China manages money leaving the country closely. Converting yuan into foreign currency is a regulated step, and the bank has to check that your money is what you say it is: earned, taxed, legal income.
Why the bank asks so many questions
In January 2017, Bloomberg reported that China's foreign exchange regulator was asking banks to scrutinize individual currency purchases more closely. The regulator said policy hadn't changed: ID was enough within the yearly quota, and anything beyond it needed documents proving the transaction. From what expats describe, branches have stayed careful ever since, and that's the mood you'll meet at the counter.
Bank guides today still differ. HSBC China's personal foreign exchange guide describes an annual facilitation quota equivalent to 50,000 US dollars for non-mainland individuals, and asks for salary documents when you buy foreign currency with your earnings. Bank of China's English page says foreign customers have no annual convenience quota at all and must do the conversion at a branch counter, showing proof that the money is legal income in China.
My take: don't argue with the branch about which reading is right. Whatever your bank's version is, the documents below satisfy it.
The document kit
- Passport and residence permit.
- Work permit and your employment contract, both in date.
- Recent payslips or an income statement from your employer.
- Proof of individual income tax paid. You can usually download a tax record from the Individual Income Tax app, or ask HR.
- Your overseas account details: account name, number, bank name and address, SWIFT code, and IBAN if relevant. The account should be in your own name.
Bank of China says once it has verified your originals, later transactions can go through without resubmitting everything. HSBC's guide says documents should be specific to each transaction. Ask your branch which applies, and keep a folder either way.
Your options compared
| Route | Good for | Watch out for |
|---|---|---|
| Wire from your Chinese bank | Larger amounts, regular transfers | Often counter only at first visit. Fees on both ends, plus the bank's exchange rate. |
| Online transfer service | Smaller, frequent transfers at better rates | Only some services support sending from China. Limits are tied to your declared income and tax. |
| Alipay or WeChat Pay | Paying for things in China | Not a way to send money abroad as a foreigner. |
| Carrying cash | Not a plan | Customs declaration rules apply, and it's risky. |
On online services: Wise says on its China blog that it has allowed transfers out of China since July 2023, to accounts in your own name, with limits that depend on your income in China and tax paid. The same post states plainly that expats can't send money abroad through Alipay. Check current availability and limits before relying on any service.
A timeline that works
- First month: open your bank account at the bank your employer uses. Ask at that point whether the branch handles outbound wires for foreigners.
- After your first payslip and tax filing: do a small test transfer. It shows you the real cost and exposes any missing paperwork when the stakes are low.
- Every month or quarter: send regularly, rather than letting a year's salary build up. Large one-off amounts draw more questions.
- Before you leave China for good: move your balance out while your work permit and contract are still valid. After they expire, proving the money is legal income gets much harder.
What it really costs
A bank wire has three costs: the sending bank's fee, any intermediary or receiving bank fee, and the gap between the bank's exchange rate and the mid-market rate. The last one is the biggest on large amounts and the least visible. Ask the bank for the rate before you confirm, and compare it with the rate you see in a currency app at the same moment. Online services tend to show the total cost upfront, which makes comparison easier.
If the bank says no
- Missing document: ask exactly which one, in writing or as a photo of their checklist, and come back with it.
- "Not at this branch": ask which branch handles foreign currency for foreigners. Smaller branches often send these to a main branch.
- Tax record doesn't match the amount: send what your tax records support now, and the rest after the next filing.
Common mistakes
- Splitting transfers to stay under a limit. HSBC's guide specifically warns against it, and it can get you flagged.
- Sending to someone else's account. Send to your own account abroad first, then pay others from there.
- Only comparing the fee. The exchange rate margin often costs more than the fee. Compare the amount that actually arrives.
- Using a friend's quota. Quotas can't be lent or borrowed, and HSBC's guide notes that people put on the regulator's watch list lose their quota for that year and the next two.
Quick questions
How long does a wire take?
Usually a few working days, depending on the receiving bank and any intermediary banks. The first one is often slower because of the document checks.
I'm paid partly in dollars abroad. Does that help?
Yes. Some employers split pay between a local yuan salary and an offshore portion. If your contract allows it, it removes most of this hassle. Ask HR before you sign.
What about paying a hospital bill or school fee from abroad?
That's the other direction, and much simpler. See seeing a doctor for paying hospitals as a foreigner.
General information, not financial advice. Rules and limits change; check with your bank. Sources: Bloomberg via Business Standard (2017), HSBC China FX guide, Bank of China: foreign currency purchase, Wise China blog.
If something here has changed, email me. I re-check every guide and update the date at the top.
Written by David, who lives in China. About me