How to get your IBAN in Canada : A detailed guide

Bank accounts in the EU and a number of other countries around the world are identified with IBANs (international bank account numbers). However, Canadian banks use SWIFT codes, which do not allow for direct transfers to IBAN accounts

Sending money abroad from Canada through intermediate banks can become expensive when you factor in transfer fees and markups on foreign exchange rates; however, there are providers such as Wise which offer an IBAN for transfers to and from the EU, at the mid-market exchange rate. Read on to find out more!

Why don’t Canadian banks use an IBAN?

To send money abroad, you’ll need your recipient’s details. In Canada, a SWIFT code is used to identify the receiving Canadian bank branch.

EU banks are identified with SWIFT codes as well, but transferring funds to the EU also requires an IBAN number to pinpoint the specific receiving bank account.

While SWIFT codes and IBANs both help your money reach the right destination, Canadian banks aren’t part of the IBAN system — to transfer or receive money to and from the EU, you’ll need an intermediary.

The financial institution which facilitates your international transfers might be a credit union, currency exchange provider, or your own bank. However, you may run into hidden fees or additional markups on foreign exchange rates when using them, and it can take several days for your money to arrive.

Depending on your destination country, you might also need to visit a bank branch in person for an international transfer, as many Canadian banks don’t allow online transfers to all countries in the EU.

Get your IBAN with a free Wise account

You may be thinking: “can I get an IBAN without opening a bank account in the EU?” The answer is definitely yes!

Wise offers a free-to-open multicurrency account that provides an IBAN, along with account details in CAD, USD, INR, EUR, and more.

It’s also free to send and receive same-currency transfers between Wise accounts. When you transfer different currencies, they’re converted at the mid-market exchange rate, meaning no additional markup fee.

Here’s how to get an IBAN with Wise:

1. Navigate to Add another currency to your account and open a EUR balance
2. Under your new balance, select Get your account details
3. Follow the steps to verify your identity

Once you’re verified, you can view your new IBAN number and easily share it with others.

How to transfer money between Euros and Canadian dollars in Canada

Online money transfers: Canada’s largest banks let you send money abroad from a Canadian dollar account through online banking. While the base transaction fees are relatively low, foreign exchange fees and costs incurred by other intermediary banks involved in the transaction will still apply on top of them.

One catch: you can only transfer from CAD to EUR, not vice versa— and your bank may not include all countries in the EU as available recipients.

Wire transfer: If you can’t send money to your desired country via online banking, or you need to receive an international transfer, you’ll need to visit a bank branch in person for a wire transfer.

These are more costly than online international transfers, and banks may charge additional service fees.

Take note that while Canadian banks are required by law to tell you how much you’ll be charged to send money abroad, this won’t include potential costs added when the money is received in the foreign country⁷ — meaning that your recipient might end up with less than intended.

Non-banking options: Some well-known alternative financial institutions, for example Western Union, also offer transfers between international accounts online, but you’ll be subject to unpredictable markups on foreign exchange rates¹⁴.

If you want a provider that doesn’t charge extra for foreign exchange rates, consider Wise. Unlike banks, which may slap you with hidden fees, Wise will show you all transfer fees upfront.

Wise makes it easy to send and receive money across 40 currencies, almost anywhere in the world — often within seconds!

Can you receive money from the EU without an IBAN?

If you don’t have an IBAN, you can still receive money from the EU. The sender can transfer money to your Canadian dollar account via your bank’s SWIFT code, which functions similarly to an IBAN.

However, SWIFT (used in Canada) and IBAN (used in the EU) are separate systems — meaning transfers can often take several days to reach their destination.

Intermediary banks and financial institutions involved in transfers between the IBAN and SWIFT systems can also charge you unexpected fees and add hidden markups on exchange rates.

Receive money without hidden fees with Wise

A multicurrency account with Wise is free to open, and lets you set up EUR account details including an IBAN.

Once you have your account details, share them with the sender and get your money quickly and easily.

Currency sent through Wise is exchanged at the mid-market rate — without any markup — and the exchange rate you’re shown is guaranteed for up to 48 hours while your transfer processes.

Final thoughts on getting an IBAN in Canada

Differences in international banking systems can make it complicated and expensive to transfer money abroad.

If you’re sending money abroad from your Canadian bank, you can use online transfers, which offer lower base transaction fees than a traditional wire transfer — but you’ll also face additional hidden fees, and you can’t receive international transfers via online banking.

You can also opt for a more costly wire transfer to send and receive international funds, with the catch that in most cases, they can only be performed in person, leading to even more additional service fees.

Opening a Wise account can help you save on international transfers, with fees starting at just 0.48%.¹⁵. Wise will also provide you with an IBAN number for your EUR account, making sending and receiving euros quick and easy.

Sources:

1. Send money internationally to your recipient’s bank account with TD Global Bank Transfer
2. How do I send an international transfer? | National Bank
3. International Money Transfer: Safe & Easy - BMO Canada
4. International Money Transfer | Scotiabank Canada
5. CIBC Global Money Transfer
6. RBC International Money Transfers - RBC Royal Bank
7. Sending money to someone in another country - Canada.ca
8. TD Canada Trust - List of Services & Fees
9. National Bank - Fee Guide for Personal Banking Solutions
10. BMO - Personal Account Fee Disclosure
11. Bank Account Related Fees | Scotiabank Canada
12. Sending and Receiving Wire Transfers | CIBC
13. Additional Account Services - RBC Royal Bank
14. International Money Transfers | Western Union Canada
15. Wise Fees & Pricing: Only Pay for What You Use