Who pays bank charges on international freelance payments?

Paid in foreign currency and losing money to bank charges? Add clauses on invoice currency, payer bears fees and exchange rate. Copy-paste wording.

The risky clause

Payments will be made in the Client's local currency net of any bank fees and taxes.

Why it is dangerous

Intermediary bank fees, platform fees and FX can quietly cut your income. Specify the invoice currency, that the payer covers sender-side charges and how withholding tax is handled, with receipts. This is general information; ask a CA about tax and FIRC or FIRA documentation for foreign receipts.

Safer clause to propose

Invoices are issued in [USD]. The Client bears all sender-side bank and transfer charges. Any withholding tax shall be documented by an official certificate.

Message to send

Hi [Client],

Could we invoice in USD with transfer charges borne by the sender, and share any withholding tax certificate? That keeps the amount clean on my side. Thanks, [Your Name]

Frequently asked questions

Who normally pays transfer fees?

The contract decides. Ask that the sender pays sender-side fees.

What about tax on foreign payments?

Tax depends on both countries and your status. Ask a chartered accountant.

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