Borders are no barrier for the seasoned freelancer. International expansions are both exciting and strategic, and as a freelancer, that diversification is essential. It’s important to keep your fingers in as many pots as possible.
That said, freelancing in 2025 creates some challenges. To create an efficient international stream of income, workers need to eliminate unnecessary fees. Here’s how to pay and get paid across borders — without sacrificing profit.
The Cost of Going Global
Going global is strategic under the right circumstances. Yet without direction, freelancers can find themselves struggling under mounting costs with no sight of those promised benefits. To mitigate that leaking profit, it’s essential to understand the cost of “going global.”
Most banks charge an international transfer fee, which covers the cost of processing the transaction. It sounds reasonable, but in reality, this can range from $30 to $50 per payment. If fees are deducted from payment, a single mishandled transaction could leave freelancers at risk of a loss. Always negotiate who’s responsible for these fees as part of your contract.
It’s essential to note that exchange rates fluctuate, and delays can erode earnings. Furthermore, those fluctuations seem even more likely given the business and economic outlook for 2025.
Smarter Solutions for Fast, Affordable Transfers
In reality, banks are one of the worst options for international transfers. Those rigid systems and set fees are a nightmare for freelancers or small business owners. Instead, get creative and explore the smarter solutions available for fast and affordable transfers.
Money transfer platforms like Revolut or Wise offer competitive deals. Look for platforms that combine transparent pricing with better exchange rates.
Best Practices for Managing International Invoices
Ultimately, international currency transfers are a delicate dance. When paying an international invoice, transparency is the most important factor. Who handles the fees, what systems dictate the exchange rate, and when will the worker receive payment? Having that concrete idea of payment timeline and overall cost is vital for establishing expectations. Consider legal obligations, too, like foreign tax agreements and labor laws.
As a recipient of an international invoice, don’t be afraid to ask these questions. Communication and contractual adherence are key.
Keeping It Tax-Ready
Always operate with tax season in mind. Keeping accurate records is an essential part of freelancing across borders, even if you’re entitled to an exemption under systems like the W8-BEN. Whether you’re hiring or working, these documents save a massive headache in January and April. It might even save you money; nobody wants to accidentally pay tax twice.
Freelancing across borders isn’t always simple, but with efficient systems in place, it can be rewarding.
