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How to Get Paid as a Freelancer by International Clients

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Freelancer laptop showing an invoice in US dollars beside coins in pounds, euros, Canadian and Australian dollars

Last reviewed: September 28, 2026. Provider fees below are quoted as listed on each provider's official pricing page on that date, and tax rules are summarized from IRS, HMRC/GOV.UK, CRA and ATO pages checked the same day. Fees and thresholds change, so confirm the figures before you rely on them. This is general information, not individual tax or legal advice.

Short answer: The cheapest way to get paid by an international client is usually to give them local bank details in their own currency (a US ACH routing number, a UK sort code, a EUR IBAN and so on) through a multi-currency account, then convert to your home currency at or near the mid-market rate. A traditional SWIFT wire works everywhere but can lose money to intermediary banks and bank exchange margins. PayPal and card payments are convenient for clients but, on the fee pages we checked on September 28, 2026, they were the most expensive route once cross-border and conversion charges were added, and they carry dispute risk. Whatever route you pick, agree the currency and payment terms in writing, send the right tax form (W-9 if you are a US person, W-8BEN if you are a non-US individual paid by a US client), and keep a record of every payment and the exchange rate you used.

Winning a client in another country is the easy part. Getting their money into your account without losing a noticeable slice to fees, exchange rates or a payment that bounces three weeks later takes a little more planning. The good news is that the choices are fewer than they look. Almost every international payment to a freelancer travels by one of four routes, and once you know where each route charges you, comparing them becomes simple arithmetic.

This guide covers the receiving side only: what happens when a client in the US, UK, Canada, Australia or elsewhere pays you. If you are the one paying someone abroad, our separate guide on how to send money internationally covers that side of the transaction. Here we focus on receiving methods and their fees, invoicing currency, contract terms, dispute risk, the tax forms clients ask for, the scams that target freelancers, and the records you should keep.

The main ways money reaches you from an international client

Before comparing providers, it helps to see the plumbing. Each route has a different set of places where money can be deducted.

1. A cross-border bank wire (SWIFT)

The client's bank sends the payment over the SWIFT messaging network to your bank. If the two banks do not have a direct relationship, the payment passes through one or more correspondent or intermediary banks. This is the oldest and most universal route: nearly any business bank account in the world can send and receive a SWIFT payment. It is also the route with the least predictable deductions, because you often do not know in advance which intermediaries will touch the money.

2. A local transfer into a receiving account in the client's country

Providers such as Wise and Payoneer give you account details that behave like a domestic account in another country. A US client sends an ordinary domestic transfer (ACH) to a US routing and account number; a UK client pays a sort code and account number by Faster Payments; a eurozone client pays an IBAN by SEPA transfer. To the client, it looks like paying a local supplier. The money lands in a balance held in that currency, and you decide when to convert and withdraw.

3. A digital wallet payment (PayPal and similar)

The client pays from their PayPal balance, bank account or card, and the money appears in your PayPal balance. It is quick and familiar to many clients, but the receiver usually pays a percentage fee plus a fixed fee, an extra charge when the payer is in another country, and a currency conversion spread if the money is converted.

4. A card payment or payout through a processor or marketplace

If you take card payments through a processor such as Stripe, or you work through a marketplace such as Upwork, the client pays the platform and the platform pays you out, usually to a bank account or a linked service. You pay processing or service fees, and conversion may happen at the platform before the money ever reaches your bank.

Most freelancers end up using two routes: one low-cost default (typically local receiving details) and one fallback for clients whose finance teams insist on a wire or who prefer to pay by card. The rest of this guide is about choosing that default well and pricing the fallback correctly.

International bank wires (SWIFT) and intermediary fees

A SWIFT wire is often the first thing a large client's accounts payable team offers, because their systems are set up for it. It works, but you should understand three separate costs before you give out your bank's SWIFT/BIC code.

The sending bank's fee

The client's bank charges the client to send the wire. That usually is not your cost, unless the client deducts it from the invoice amount. It is worth stating on your invoice that the amount due is the net amount you must receive, so that any sending fee stays with the payer.

Intermediary (correspondent) bank fees

When the sending and receiving banks lack a direct link, the payment is routed through correspondent banks, and each one can take a fee out of the principal. The US Consumer Financial Protection Bureau's compliance guide for remittance transfers describes this directly: an intermediary bank deducts fees from each wire it processes, which is why the amount received can be lower than the amount sent (CFPB remittance transfers compliance guide). That guide is written for consumer transfers, but the mechanics of a business wire are the same. The practical result for a freelancer is an invoice for 2,000 dollars that arrives short by an amount you cannot predict precisely.

Wire instructions usually carry a charge code. "OUR" means the sender agrees to pay all charges, "SHA" means charges are shared (sender pays their bank, recipient bears the rest) and "BEN" means the beneficiary pays everything. Asking for OUR is reasonable, but not every client's bank will offer it, and even with OUR some intermediaries still deduct. A clause in your contract saying the client is responsible for all bank charges so that you receive the invoiced amount in full gives you the right to bill a shortfall, even if you decide to waive small ones.

Your bank's receiving fee and exchange margin

Many banks charge to receive an international wire, and if the payment arrives in a currency your account does not hold, the bank converts it at its own rate. That rate normally includes a margin over the mid-market rate. Banks publish their receiving fees in their tariff documents, and those vary widely, so look up your own bank's current schedule rather than relying on a typical number. The exchange margin is harder to find because it is rarely published as a percentage; the reliable way to measure it is to compare the rate your bank applied with the mid-market rate at the same time.

When a wire still makes sense

  • The client's policies require a wire to a named bank account in your own name.
  • The amount is large and a fixed fee is small relative to the total.
  • You receive the wire into a same-currency account (for example USD into a USD account), so no bank conversion happens on arrival.
  • No local receiving option exists for the client's currency.

Wires can also be received into a multi-currency provider. For example, Wise's receiving price page listed a fee of 6.11 USD for receiving USD wire and SWIFT payments, 2.16 GBP for GBP SWIFT payments and 2.39 EUR for EUR SWIFT payments on September 28, 2026 (Wise receive pricing). Intermediary deductions before the money reaches Wise can still apply.

Local receiving accounts and multi-currency balances

The idea behind a local receiving account is simple: instead of moving money across borders at the moment the client pays, the client makes a domestic payment in their own country, and the provider holds that balance for you. The cross-border step happens later, when you convert and withdraw, and you can often see the rate and fee before you commit.

Why clients like it

For a US client, paying a US routing number by ACH is routine. There is no SWIFT form, no need to find an intermediary bank code and often no sending fee. That removes friction from the client's side, which tends to mean faster payment. A UK client paying a sort code by Faster Payments, or a European client paying an IBAN by SEPA, sees the same thing: it is just another supplier on the payment run.

What it costs you

On September 28, 2026, Wise's receiving pricing page said account details were available for free in 22 currencies, and that receiving domestic, non-wire payments was free in AUD, CAD, EUR, GBP, HUF, NZD, PHP, SGD and USD (Wise receive pricing). The cost shows up when you convert: Wise's main pricing page listed conversion fees that vary by currency "from 0.23%", and said it uses the mid-market rate (Wise pricing). For the USD to GBP pair, Wise's own price calculator quoted a 0.33% variable fee (6.58 USD on a 2,000 USD conversion) when we checked on September 28, 2026 (Wise price calculator).

Payoneer's pricing page, which it marks "Last updated on 1 January 2026", listed receiving payments through a receiving account in your local currency as free, and through a receiving account in a currency that is not your local currency at 1% (minimum 1.00 USD or equivalent) (Payoneer pricing). So a freelancer outside the US who receives dollars into a Payoneer USD receiving account should expect the 1% line to apply, as listed.

Things to check before you rely on a receiving account

  • Whose name is on the account. Some clients' finance teams need the beneficiary name to match your contract or invoice. Check how your name or business name appears on the account details.
  • Which payment types are accepted. Local details may accept domestic transfers but treat wires differently, and fees differ. Tell the client which method to use.
  • How the money is protected. Many payment providers hold customer money as electronic money rather than as a bank deposit. Read how your provider safeguards balances in your country and decide how much you are comfortable leaving there.
  • Verification and limits. Providers verify identity and may ask about the source of funds, especially for large or unusual payments. Keep your contract and invoice handy so you can answer quickly.

PayPal, Wise, Payoneer, Stripe and marketplace fees (as listed September 28, 2026)

The figures below are copied from each provider's own public pricing page and the "last updated" date the page showed, where there was one. Your price can differ by country, account type and payment method, so treat this table as a starting point, not a quote.

ProviderWhat the pricing page listedPage date / checked
PayPal (US business account)Invoicing and PayPal Checkout: 3.49% + fixed fee (0.49 USD for USD). International commercial transactions: extra 1.50%. Seller currency conversion spread: 3.00%, or 4.00% where the listed currency differs from the currency received. Standard dispute fee: 15.00 USD.Page updated September 1, 2026; checked September 28, 2026
PayPal (UK business account)"All other commercial transactions": 2.9% + fixed fee (0.30 USD when USD is received; 0.30 GBP for GBP). International commercial transactions: extra 1.29% from the EEA, 1.99% from "all other markets", which includes the US. Conversion: 3% above the base exchange rate.Page updated July 15, 2026; checked September 28, 2026
WiseAccount details free in 22 currencies. Domestic (non-wire) receiving free in AUD, CAD, EUR, GBP, HUF, NZD, PHP, SGD, USD. USD wire/SWIFT: 6.11 USD; GBP SWIFT: 2.16 GBP; EUR SWIFT: 2.39 EUR. Conversion "from 0.23%" at the mid-market rate.Checked September 28, 2026
PayoneerReceiving account in your local currency: free. Receiving account in a non-local currency: 1% (min 1.00 USD). Payment requests: card up to 3.99% + 0.49 USD; ACH bank debit (US only) 1%. From another Payoneer balance: free. Moving funds between your balances: 0.50%. Withdrawals: 1.50 USD to a same-country bank in local currency; 1.2%–4% where a non-local currency or conversion is involved. Annual account fee 29.95 USD if the account receives less than 6,000 USD in any 12 consecutive months.Page states last updated January 1, 2026; checked September 28, 2026
StripeCard pricing varies by the country of your Stripe account; check your own country's pricing page. Dispute fees per Stripe's support page: 15 USD (US), 20 GBP (UK), 15 CAD (Canada), 25 AUD (Australia) per dispute received, plus the same amount again as a "dispute countered" fee if you contest it, for disputes opened after June 17, 2025.Checked September 28, 2026
UpworkFreelancer service fee described as variable, from 0% to 15% of earnings, shown before you accept a contract.Checked September 28, 2026

PayPal

PayPal's strength is familiarity. Plenty of small clients already have an account and can pay an invoice in a couple of clicks. The cost sits with you. A US freelancer invoicing a client in another country would, on the US fee page, pay 3.49% plus 0.49 USD, plus the 1.50% international commercial transaction fee, before any conversion (PayPal US merchant fees). A UK freelancer paid in dollars by a US client would, on the UK page, pay 2.9% plus 0.30 USD, plus 1.99%, and then 3% above the base rate if converting to pounds (PayPal UK merchant fees).

One detail catches people out: "friends and family" personal payments carry different pricing, but they are not meant for paying for work. PayPal's consumer fee page lists personal international transfers separately from commercial ones (PayPal US consumer fees). Asking a client to send business payments as personal transfers to save fees also takes the payment outside PayPal's Seller Protection, which applies to eligible commercial transactions.

Wise

Wise is built around holding balances in several currencies and converting at the mid-market rate with a separate, visible fee. For a freelancer, the useful parts are the local account details (so clients pay domestically) and the conversion fee, which, on the page we checked, starts at 0.23% and varies by currency pair. Wise also accepts SWIFT payments for a flat fee per payment in some currencies, which helps when a client can only wire.

Payoneer

Payoneer is widely used for marketplace payouts and for receiving from companies that already pay contractors through it. Its structure has more lines than Wise's: whether receiving is free or 1% depends on whether the receiving account currency is your local currency, there is a separate fee to move money between balances, a withdrawal fee that depends on the corridor, and an annual account fee if you receive less than 6,000 USD in a 12-month period (Payoneer pricing). The withdrawal line is given as a range, 1.2% to 4%, so look at the exact figure your account shows for your corridor before you withdraw.

Stripe and card payments

Stripe is a card processor rather than a receiving account. It makes sense if you sell productized services or retainers and want clients to pay by card or through a checkout link. Pricing depends on the country where your Stripe account is registered, with extra charges for international cards and currency conversion, so read the pricing page for your own country. What Stripe's support page makes clear is the dispute cost: a fee when a dispute is received and, since June 17, 2025, a second fee if you counter it, both listed per country (Stripe dispute fee update). Stripe's documentation says a received-dispute fee is not refundable for businesses outside Mexico, while the countered fee is returned if you win (Stripe: how disputes work).

Marketplaces

If a platform introduces the client, it usually controls how you get paid. Upwork describes its freelancer service fee as variable, from 0% to 15% of earnings, set per contract and shown before you accept (Upwork freelancer service fee). Withdrawal options and any conversion at the platform are separate from the service fee. When comparing a marketplace job with a direct client, compare what reaches your bank in your currency after the service fee, withdrawal fee and conversion, not the headline rate.

Exchange-rate markups and how to compare total cost

The most expensive part of receiving international money is often invisible: the exchange rate. A provider can advertise "no fee" and still take 2% to 4% through a rate that is worse than the mid-market rate, which is the midpoint between buy and sell prices on the wholesale currency markets. Some providers state their markup as a percentage (PayPal, for instance, lists a spread above its base rate); others apply a rate and leave you to work out the difference.

A simple way to compare any two methods

  1. Start with the mid-market value. Multiply the invoice amount by the mid-market rate at the time of the payment. That is the most you could receive with zero cost.
  2. Take off every fee in the chain. Receiving fee, percentage and fixed fees, cross-border fee, intermediary deductions, withdrawal fee.
  3. Apply the rate you actually get. If the provider converts at a marked-up rate, use that rate on what is left.
  4. Compare the final amount in your home currency. The difference between that figure and step 1 is the total cost. Express it as a percentage of the invoice so you can compare methods across different invoice sizes.

Two things distort this comparison if you are not careful. First, fixed fees matter more on small invoices: a flat fee of a few dollars is trivial on 5,000 dollars and significant on 150. Second, exchange rates move. If you hold a foreign-currency balance for a month before converting, your result depends on the market, not the provider. That is a currency decision, not a fee, and it can go either way.

It is also worth checking whether the client is being charged for conversion on their side. If you invoice in pounds and a US client pays by card, their card issuer may add a foreign transaction fee. Our guide to foreign transaction fees and dynamic currency conversion explains why paying in the merchant's currency is usually cheaper for the payer, which is relevant when you decide what currency to put on an invoice.

Worked example (hypothetical): receiving $2,000 three ways

This is a hypothetical illustration, not a test of any account and not a prediction of what you will pay. It follows a UK-based freelancer who invoices a US client for 2,000 USD and wants pounds in a UK bank account. Figures marked "published" come from pricing pages checked on September 28, 2026. Figures marked "assumed" are round numbers chosen only to show how wire costs add up; your bank's actual charges may be higher or lower.

Reference rate. Wise's calculator on September 28, 2026 quoted 1,503.73 GBP for 2,000 USD after a 6.58 USD fee, which implies a mid-market rate of about 0.7543 GBP per USD. At that rate, the full 2,000 USD is worth about 1,508.69 GBP. We use that same reference rate for every method so the comparison isolates the costs. PayPal applies its spread to its own base rate, which may differ slightly from this reference.

Method A: SWIFT wire to a UK high-street bank account in GBP

  • Intermediary deduction: 20 USD (assumed)
  • Bank converts 1,980 USD with a 2.5% margin below the reference rate (assumed)
  • Bank's incoming international payment fee: 10 GBP (assumed)
  • Result: about 1,446.27 GBP

Method B: PayPal invoice to a UK PayPal business account

  • Commercial transaction fee: 2.9% + 0.30 USD (published, UK page)
  • International fee for a US payer: 1.99% (published)
  • Total fee: 97.80 USD + 0.30 USD = 98.10 USD, leaving 1,901.90 USD
  • Conversion to GBP at 3% above the base rate (published)
  • Result: about 1,391.65 GBP

Method C: US client pays by ACH to Wise USD account details, then convert

  • Receiving a domestic USD (non-wire) payment: free (published)
  • Conversion USD to GBP: 0.33%, 6.58 USD, at the mid-market rate (published calculator quote)
  • Result: 1,503.73 GBP in the Wise balance, before any withdrawal to a UK bank
Method (hypothetical)GBP receivedCost vs 1,508.69 GBPCost as % of invoice
A. SWIFT wire to bank (assumed bank costs)~1,446.27~62.43~4.1%
B. PayPal invoice (published UK fees)~1,391.65~117.04~7.8%
C. ACH to Wise USD details (published fees)1,503.73~4.96~0.3%

A Payoneer version of the same payment is harder to pin down from the public page alone, because the withdrawal line is a range. Taking the published 1% for receiving into a non-local-currency receiving account (20 USD) and applying the ends of the 1.2%–4% withdrawal range to the remaining 1,980 USD gives roughly 1,433.86 to 1,475.68 GBP at the reference rate, a cost of about 2.2% to 5.0%. Treat that range as indicative only; your account shows the actual withdrawal rate for your corridor.

What the example shows. The gap between the cheapest and most expensive route here is over 100 GBP on a single mid-sized invoice. Over a year of monthly invoices, that is a meaningful amount. It also shows why the headline percentage is misleading: PayPal's commercial fee alone looks modest, but the cross-border fee and conversion spread roughly double the total. On the other hand, PayPal did not require the client to set up anything new, and the wire result depends heavily on bank charges we had to assume. If your client pays by wire only, the fair comparison is between wiring into your bank and wiring into a provider that charges a flat SWIFT receiving fee.

Which currency should you invoice in?

There is no single right answer, but there is a right way to decide. The currency on the invoice determines who carries the exchange-rate risk between the day you agree the price and the day the money lands.

Invoicing in the client's currency

When you invoice a US client in dollars, the client knows exactly what they owe, their finance team pays a domestic invoice, and nobody on their side has to think about exchange rates. That makes you easier to hire and can speed up payment. The trade-off is that your income in your home currency moves with the market. If the dollar weakens between signing and payment, you receive fewer pounds, Canadian dollars or Australian dollars than you expected.

If you already have local receiving details in that currency, invoicing in the client's currency is usually the smoothest option. You can then hold the balance until you need to convert or convert immediately to lock in the value.

Invoicing in your own currency

Invoicing in your home currency protects your income, but moves the conversion to the client. They pay their bank's or card issuer's exchange margin, and their finance team may be reluctant to process foreign-currency invoices. Some will agree; some will push back or pay late while they work it out. If you choose this route, name the exact amount that must arrive and state that bank charges are the payer's responsibility.

Practical middle paths

  • Price long projects with an adjustment clause. For multi-month work, you can agree that the rate will be reviewed if the exchange rate moves by more than an agreed percentage. Keep it simple and objective, for example by naming a public reference rate.
  • Convert on receipt. If you invoice in the client's currency but do not want to speculate, convert each payment as soon as it arrives.
  • Match costs to currency. If you pay for software or subcontractors in dollars, keeping part of your dollar income in dollars avoids converting twice.

What to put on an invoice in a foreign currency

  • Your legal name or business name and address, and the client's legal name and address.
  • A unique invoice number, invoice date and due date.
  • A description of the services and the period covered.
  • The currency code (USD, GBP, EUR, CAD, AUD) next to every amount, so there is no confusion between different dollars.
  • Payment details for the method you want the client to use, and nothing else. Listing three methods invites the most expensive one.
  • A line stating that all bank and transfer charges are for the payer's account.
  • Any sales tax or VAT information your own tax registration requires, including a note if the supply is zero-rated, GST-free or outside the scope of your local tax.
  • Your late-payment terms, if you are entitled to and intend to use them.

Payment terms and late-payment protections

Cross-border late payments are awkward to chase. Courts are far away and small debts are rarely worth litigating. That makes clear terms, agreed before work starts, more valuable than any remedy after the fact.

Set the terms in the contract, not just the invoice

Put the payment schedule, currency, method and due dates in the signed agreement or statement of work. For new clients, a deposit or milestone payments reduce your exposure. For ongoing work, invoicing monthly in arrears with short terms keeps the amount at risk small. If a client's standard terms say 60 or 90 days, decide before signing whether you can afford to wait that long.

UK: the late payment legislation

In the UK, businesses can claim statutory interest and fixed compensation when another business pays late. GOV.UK explains that if no payment date is agreed, payment becomes late 30 days after the customer receives the invoice or the goods or service, whichever is later, and that an agreed payment date must usually be within 60 days for business transactions (GOV.UK: late commercial payments). Statutory interest is 8% plus the Bank of England base rate for business-to-business transactions (GOV.UK: charging interest). You can also claim a fixed sum of 40 GBP for debts up to 999.99 GBP, 70 GBP for 1,000 to 9,999.99 GBP and 100 GBP for 10,000 GBP or more, plus reasonable recovery costs (GOV.UK: debt recovery costs). These rules apply between businesses and do not override a different rate that the contract sets.

EU: the Late Payment Directive

If your client is in the EU, Directive 2011/7/EU sets the baseline that member states have written into national law. The European Commission summarizes it this way: enterprises have to pay invoices within 60 days, public authorities within 30 days, creditors are automatically entitled to interest for late payment, statutory interest is at least 8% above the European Central Bank's reference rate, and a minimum of 40 EUR is due as compensation for recovery costs (European Commission: late payment). The Commission's scoreboard notes that longer business-to-business terms are possible only if expressly agreed and not grossly unfair to the creditor (EU REFIT scoreboard: Late Payments Directive). The Commission has also said it is working on a revision of the rules, so check the current position before relying on the details. Each country's implementing law is what actually applies, and which law governs a cross-border contract depends on the contract itself.

US, Canada and Australia

For private business-to-business freelance work in these countries, the practical protection is usually the contract: an agreed due date, an agreed late fee or interest rate that is lawful where the contract is governed, and the right to pause work. Some jurisdictions have specific rules for particular sectors or for paying freelancers, so check the law of the place named in your contract rather than assuming the UK or EU rules travel with you. Whatever the jurisdiction, write your late-payment term into the contract, repeat it on the invoice, and apply it consistently.

A calm chasing routine

  1. A friendly reminder on the due date, attaching the invoice again.
  2. A second reminder a week later, naming the late-payment term.
  3. A pause on further work until the account is up to date, as the contract allows.
  4. A formal letter stating the amount, interest and any fixed compensation, with a final date.

Chargeback and refund risk with card and PayPal payments

Bank transfers are generally final once they settle. Card and wallet payments are not. The payer can ask their card issuer or PayPal to reverse the payment, and for a freelancer that can mean losing both the money and the work already delivered.

Card disputes

Stripe's documentation explains that card networks usually allow cardholders to dispute a payment within 120 days, that you typically have 7 to 21 days to respond once a chargeback is opened, and that the whole process can take two to three months (Stripe: how disputes work). The disputed amount and a dispute fee are taken from your balance when the dispute opens. The card issuer, not the processor, decides the outcome.

PayPal disputes

PayPal's help page says buyers must open an "item not received" dispute within 180 days of payment, and a "significantly not as described" dispute within 30 days of delivery or fulfilment or 180 days of payment, whichever is sooner (PayPal dispute filing timeframes). PayPal's Seller Protection covers item-not-received and unauthorized-payment claims, and it can cover services and intangible items if you meet the requirements and can show the service was completed as described. Claims that a service was significantly not as described are excluded (PayPal: what is Seller Protection). The US fee page lists a standard dispute fee of 15 USD (PayPal US merchant fees).

How to lower the risk

  • Use bank transfer or local receiving details for large invoices, and keep card or PayPal for small or one-off jobs.
  • Get a signed contract or written acceptance of the scope before starting.
  • Keep delivery evidence: dated emails sending files, shared-folder logs, sign-off messages.
  • Describe the service clearly on the invoice and in the payment description so the payer recognizes the charge on their statement.
  • Answer questions quickly. Many disputes start as a client who does not recognize a charge or cannot reach you.

If you ever need to see the process from the payer's side, our explainer on disputing a credit card charge in the US and UK walks through what a cardholder does, which helps you anticipate what your evidence needs to answer.

Tax paperwork: W-9, W-8BEN and your home tax office

This section explains which forms exist and who asks for them. It is not tax advice. Your own position depends on your residence, your business structure and any tax treaty, so confirm the details with your tax authority or a qualified adviser.

If a US client asks you for a form

US businesses must collect tax information from the people they pay so they know what to report and whether to withhold. Which form you give depends on whether you are a US person.

Form W-9 is for US persons. The IRS describes it as the form you use to give your correct taxpayer identification number to someone who must file an information return about payments to you (IRS: About Form W-9). The W-8BEN instructions confirm that US citizens, including those living abroad, and US resident aliens use Form W-9 rather than W-8BEN (IRS: Instructions for Form W-8BEN).

Form W-8BEN is for foreign individuals. The IRS says you give it to the withholding agent or payer, not to the IRS, if you are a foreign person and the beneficial owner of the income (IRS: About Form W-8BEN). The current form is the October 2021 revision. According to the instructions, a W-8BEN generally stays valid from the date you sign it until the last day of the third calendar year after that, unless a change in circumstances makes the information incorrect. If you invoice through a company rather than as an individual, the company uses Form W-8BEN-E instead (IRS: Instructions for Form W-8BEN).

Why location of the work matters. The IRS sources income from personal services by where the services are performed (IRS: nonresident aliens, source of income). IRS Publication 515 explains that compensation for services a nonresident alien performs outside the United States is foreign-source income and not subject to US withholding, while most US-source income paid to foreign persons faces 30% withholding unless a lower rate or exemption applies (IRS Publication 515). If you actually perform work while physically in the US, different rules apply, and the W-8BEN instructions point nonresident individuals claiming a treaty exemption for services performed in the US to Form 8233 or Form W-4 instead. That situation is worth professional advice.

What the US client files. For payments made after December 31, 2025, the IRS says the Form 1099-NEC reporting threshold for nonemployee compensation rose to 2,000 USD, and may be adjusted for inflation from 2027. The same instructions say to use Form 1042-S, not 1099-NEC, for payments to nonresident aliens (IRS: Instructions for Forms 1099-MISC and 1099-NEC).

If you are a US freelancer paid by foreign clients

Foreign clients will not send you a 1099, but the income is still reportable. If your net self-employment earnings are 400 USD or more, you generally owe self-employment tax, which the IRS lists at 15.3% (12.4% Social Security and 2.9% Medicare) (IRS: self-employment tax). If clients pay you through a payment platform, the platform may send a Form 1099-K; the IRS page on 1099-K describes the threshold as more than 20,000 USD in payments and more than 200 transactions, and stresses that you must report all income whether or not you receive a form (IRS: understanding your Form 1099-K). If you keep money in accounts outside the US, you may also have a separate FBAR filing obligation: the IRS says US persons must file one if the combined value of their foreign financial accounts exceeded 10,000 USD at any time in the year, electronically through FinCEN, due April 15 with an automatic extension to October 15 (IRS: FBAR). Whether a given provider's balance counts as a foreign financial account depends on how that account is set up, so check rather than assume.

UK freelancers: Self Assessment basics

GOV.UK says you must send a Self Assessment tax return if, among other things, you were self-employed as a sole trader and earned more than 1,000 GBP (GOV.UK: who must send a tax return). You must tell HMRC by 5 October if you need to file for the first time. For the 2025 to 2026 tax year, the paper return deadline is 31 October 2026 and the online deadline and payment deadline are 31 January 2027, with a second payment on account due by 31 July where it applies (GOV.UK: Self Assessment deadlines).

Since 6 April 2025, GOV.UK says all UK residents are taxed on worldwide income and gains on the arising basis, with relief available to qualifying new residents under the four-year foreign income and gains regime (GOV.UK: tax on foreign income). Fees from overseas clients count toward your income just like UK fees; where they go on the return depends on how your business is set up, so use HMRC's guidance for your situation.

Making Tax Digital for Income Tax is also phasing in. GOV.UK says sole traders and landlords with qualifying income above 50,000 GBP should have started using it from 6 April 2026, with the threshold falling to 30,000 GBP from 6 April 2027 and 20,000 GBP from 6 April 2028 (GOV.UK: Making Tax Digital for Income Tax eligibility). For VAT, registration is required when taxable turnover over the last 12 months goes over 90,000 GBP, and GOV.UK notes that exempt and out-of-scope supplies are left out of that calculation (GOV.UK: when to register for VAT). Many services supplied to overseas business clients fall outside the scope of UK VAT, but check the place-of-supply rules for your specific service.

Canadian freelancers: CRA basics

The CRA says residents of Canada report their world income, meaning income from all sources inside and outside Canada, with some relief possible under tax treaties (CRA: completing your return). Sole proprietors are encouraged to report business or professional income and expenses on Form T2125 (CRA: report business income and expenses). Self-employed individuals generally have until June 15 to file, but any balance owing is due by April 30 (CRA: due dates).

For converting foreign-currency income, CRA guidance says a rate quoted by the Bank of Canada is generally acceptable, normally the rate in effect on the day the amount arises, with an average rate allowed in some circumstances and consistency required (CRA Income Tax Folio S5-F4-C1). For GST/HST, the small supplier threshold is 30,000 CAD over four consecutive calendar quarters, and zero-rated supplies count toward it (CRA: when to register for GST/HST). Many services supplied to non-residents can be zero-rated as exports, subject to conditions set out in CRA's export guidance (CRA: exports of services).

Australian freelancers: ATO basics

The ATO says Australian residents for tax purposes must declare foreign income, and all foreign income must be converted to Australian dollars, using either the rate at a specific time or an average rate depending on the circumstances. It offers a foreign income conversion calculator (ATO: foreign and worldwide income). Sole traders lodge an individual tax return that includes business income; if you lodge yourself, the return is due by 31 October (ATO: income tax return). You must register for GST once your GST turnover reaches 75,000 AUD (ATO: registering for GST). A supply of services to a recipient outside Australia is usually GST-free, but specific rules decide when that applies (ATO: exports and GST).

Scams that target freelancers: overpayments and fake checks

Freelancers are an obvious target for payment scams. You publish your contact details, you want new work, and you are used to receiving money from people you have never met. The most common pattern is simple: the "client" pays you more than the invoice and asks you to send the difference back or on to someone else.

How the fake check version works

The US Federal Trade Commission describes it plainly. A scammer sends a check for more than you are owed and asks you to send some of the money back. Banks must make deposited funds available quickly, and the FTC warns that seeing the money in your account does not mean the check is good. It can take weeks for a fake to be discovered, and you are responsible for repaying the bank (FTC: fake check scams). The FTC's list of common variants includes overpayment refund requests from people buying something from you.

Versions that target freelancers

  • The equipment advance. A new client sends payment that includes money for "software" or "equipment" you are asked to buy from their preferred vendor.
  • The accidental overpayment. A client pays twice or pays too much, then urgently asks you to wire, send crypto or buy gift cards for the difference.
  • The third-party payer. Money arrives from someone who is not your client, followed by a request to forward part of it.
  • The changed bank details. An email that looks like it comes from a client or platform asks you to update where you get paid, or tells you payment went to a "new" account.

Simple rules that stop most of them

  1. Never send money back out of a payment you received, by any method, to a client you do not already know well.
  2. If a payment exceeds the invoice, offer to refund it to the original payment method only after the funds have fully cleared, and confirm with your bank or provider that they have.
  3. Do not accept checks from unknown international clients. Ask for a bank transfer to your receiving details.
  4. Confirm any change to payment details by phone or through the platform, using contact details you already had, not ones in the email.
  5. Report attempts. In the US, the FTC takes reports at ReportFraud.ftc.gov. Other countries have their own reporting services.

If you pay for tools or subscriptions to do client work, using a separate virtual card number for each vendor limits the damage if one leaks; our guide to virtual credit cards covers the options.

Record keeping that makes tax time easier

International income creates more records than domestic work: one invoice can produce a payment in one currency, a fee in another and a conversion at a third rate. Keeping these together is what lets you, or your accountant, report the right figure in your home currency.

What to keep for every client payment

  • The contract or statement of work, and the invoice.
  • The payment confirmation from your provider or bank, showing the gross amount, date and currency.
  • Every fee deducted, as a separate line. Fees are often deductible business expenses.
  • The exchange rate used and the amount in your home currency, plus the reference rate you use for tax if it differs.
  • The client's country and, where relevant, evidence that the client is a business outside your country (useful for VAT, GST or GST/HST treatment).
  • Copies of any W-8BEN or W-9 you provided, with the date.

How long to keep records

CountryGeneral retention rule for self-employed records
UKAt least 5 years after the 31 January submission deadline for the relevant tax year (GOV.UK)
CanadaGenerally 6 years from the end of the last tax year the records relate to (CRA)
AustraliaGenerally 5 years from when the record was prepared or obtained, or the transaction completed, whichever is later (ATO)
USDepends on the situation; see the IRS guidance on how long to keep records for your case.

A simple spreadsheet with one row per payment (date, client, invoice number, currency, gross, fees, rate, home-currency amount, method) handles most of this. Download statements from payment providers regularly, because some only keep full detail online for a limited time and an account closure can make records hard to retrieve.

Country notes: US, UK, Canada and Australia

Clients in the United States

US companies commonly pay suppliers by ACH, and many prefer it to international wires. Giving a US client ACH receiving details usually means less friction and lower cost for you. Expect a request for a W-9 or W-8BEN before the first payment; send it promptly, because some accounts payable systems will not release payment without it. If you are a US freelancer paid by US clients, the 1099-NEC threshold for payments made after 2025 is 2,000 USD, but the income is taxable whether or not a form is issued.

Clients in the United Kingdom

UK businesses pay by bank transfer as a matter of routine, and a GBP sort code and account number lets them pay you like any domestic supplier. If you are a UK-based freelancer, the statutory late-payment rules give you interest and fixed compensation against business clients who pay late. If you are outside the UK and your contract is governed by English law, check with an adviser whether those rules apply to you, because the governing law and the details of the contract matter.

Clients in Canada

Canadian clients can pay CAD domestically if you hold CAD receiving details, and Wise lists CAD among the currencies where domestic, non-wire receiving is free. Canadian freelancers with foreign clients should note that zero-rated export sales still count toward the 30,000 CAD GST/HST small supplier threshold, which surprises some people whose clients are all abroad.

Clients in Australia

Australian clients pay by domestic bank transfer, so AUD receiving details remove the cross-border step for them. Australian freelancers receiving foreign currency need to convert income to AUD for their return and should keep a note of the rate method used. Services to clients outside Australia can be GST-free, but the conditions are specific, so check the ATO's export guidance before leaving GST off an invoice once you are registered.

When this doesn't apply

  • You are an employee, not a contractor. If a foreign company treats you as staff or pays you through an employer of record, payroll and tax withholding follow different rules.
  • You invoice through a limited company or corporation. Business entities use different forms (for example W-8BEN-E instead of W-8BEN) and file different returns.
  • You live in a country with currency controls or restricted providers. Some providers are not available everywhere, and some countries require foreign earnings to come through specific channels. Stripe's own documentation notes that transfers involving countries with currency controls are processed only through authorized channels.
  • You work physically inside the client's country. Travelling to the US or elsewhere to perform the work can change where income is sourced and whether withholding or local tax registration applies.
  • You sell goods, not services. Customs, import VAT and marketplace rules for physical goods are outside this guide.
  • You are sending money abroad. That is the sending side, which our separate guide linked in the introduction covers.

Decision checklist: choosing how to get paid

  1. Which currency is the client paying in? If you can offer local receiving details in that currency, start there.
  2. How does the client's finance team prefer to pay? ACH, Faster Payments, SEPA, wire, card or PayPal. Ask before you invoice, not after.
  3. What is the total cost for this invoice size? Use the four-step comparison: mid-market value, minus fees, at the rate you actually get.
  4. How big is the invoice? Flat fees hurt small invoices; percentage fees hurt large ones.
  5. How reversible is the payment? Card and PayPal payments can be disputed for months. Bank transfers are generally final once settled.
  6. Who carries exchange-rate risk? Decide the invoice currency deliberately and write it into the contract.
  7. Are the terms in writing? Due date, currency, method, who pays bank charges, late-payment terms.
  8. Have you sent the right tax form? W-9 for US persons, W-8BEN for non-US individuals, W-8BEN-E for non-US entities.
  9. Do you know your home reporting rules? Registration thresholds, filing deadlines, currency conversion method.
  10. Is the payment legitimate? No overpayments to refund, no changed bank details you have not confirmed, no checks from strangers.
  11. Is the record complete? Invoice, payment confirmation, fees, rate and home-currency amount saved together.

FAQ

What is the cheapest way to get paid by a client in another country?

Based on the published fees compared in this guide, the lowest-cost route was usually a local transfer from the client into receiving account details in their currency, followed by conversion at or near the mid-market rate. On pricing pages checked September 28, 2026, Wise listed free domestic receiving in USD, GBP, EUR, CAD and AUD among others, with conversion fees that vary by currency. Your best option depends on your country, the client's currency and the invoice size, so run the numbers for your own case.

Payoneer vs Wise vs PayPal: which has lower fees?

On the pages we checked, PayPal carried the highest combined cost for a cross-border invoice once the commercial rate, international fee and conversion spread were added. Wise charged nothing to receive domestic payments in its supported currencies and a separate conversion fee. Payoneer's receiving fee depended on whether the receiving account is in your local currency (free) or another currency (1%), with further withdrawal and annual fees possible. Compare them on your actual invoice amount and corridor.

Do I need to fill in a W-8BEN as a freelancer outside the US?

If you are a non-US individual and a US client or platform asks for it, yes, you generally give them a W-8BEN to certify that you are a foreign person. You give it to the payer, not the IRS. It generally stays valid until the end of the third calendar year after signing unless your circumstances change. If you invoice through a company, the company uses W-8BEN-E.

Will a US client withhold 30% from my payment?

Under IRS Publication 515, compensation for services a nonresident alien performs outside the United States is foreign-source income and not subject to US withholding. A correctly completed W-8BEN helps the client apply that treatment. Work performed while you are physically in the US is treated differently, and treaty claims for that situation use other forms, so get advice if that applies to you.

Should I invoice in my currency or the client's?

Invoicing in the client's currency makes you easier to pay and often gets you paid faster, but you carry the exchange-rate risk. Invoicing in your own currency protects your income but pushes conversion costs and hassle onto the client. Many freelancers invoice in the client's currency and receive into local details, then convert on arrival.

Can I charge interest if a UK or EU client pays late?

For UK business-to-business contracts, GOV.UK says you can claim statutory interest of 8% plus the Bank of England base rate and fixed compensation of 40, 70 or 100 GBP depending on the debt size, unless your contract sets a different arrangement. In the EU, the Late Payment Directive provides for statutory interest of at least 8 percentage points above the ECB reference rate and at least 40 EUR compensation, as applied through each country's national law. Which law applies to a cross-border contract depends on what the contract says.

A new client overpaid me and wants the difference back. What should I do?

Treat it as a likely scam. The FTC warns that funds can appear in your account before a check or payment is found to be fake, and that you would have to repay the bank. Do not send money anywhere. If you believe the overpayment is genuine, wait until your bank confirms the funds have fully cleared, then refund only to the original payment method.

Do I have to pay tax on income from foreign clients?

Generally, yes, in your country of residence. The UK taxes residents on worldwide income, the CRA says residents report world income, the ATO says residents must declare foreign income, and US citizens and residents report all income regardless of where it comes from. Treaties and specific reliefs can change the result, so check with your tax authority or an adviser.

Next step

Pick your next invoice and run the comparison before you send it. Look up the mid-market rate, then work out what would land in your account by wire, by PayPal and by a local transfer into receiving details in the client's currency, using the fees on each provider's pricing page that day. If the cheapest route needs the client to change how they pay, send them the details with the invoice and a one-line explanation. While you are at it, confirm that your contract names the currency, the due date and who pays bank charges, and that the client has the right tax form from you. Those three steps, done once per client, prevent most of the problems in this guide.

Sources

All sources accessed September 28, 2026.

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