How to Invoice International Clients: Currency, Conversion & Fees
Your first client abroad feels like a milestone — until the invoice comes back with questions: which currency, whose bank handles the conversion, and why did $180 disappear between the invoice total and your account? International invoicing has three moving parts: currency, conversion, and tax. Get each one right and cross-border work pays just as well as local work.
Which currency should you invoice in?
There are two sensible answers, and they suit different situations:
Invoice in your own currency. You state the price in your home currency (USD, GBP, AUD, CAD) and the client handles conversion on their side. Your income is predictable — you receive exactly what you invoiced. The downside is friction: the client has to figure out what they'll pay in their currency, and some procurement departments insist on invoicing in theirs.
Invoice in the client's currency. You convert your price at the current exchange rate and invoice in their currency. The client sees a familiar number and pays without thinking. The downside is exchange-rate risk: if your currency strengthens between invoicing and payment, you receive less than expected.
For freelancers, invoicing in your own currency is usually the right default. It removes a variable you can't control, and professional clients are used to receiving foreign-currency invoices. The exceptions: enterprise clients whose systems genuinely require local-currency invoices, and markets where you're competing with local freelancers and the client's-currency quote makes you easier to compare.
If you do invoice in the client's currency, protect yourself: state the exchange rate source and date on the invoice ("Converted at the mid-market rate on 1 October 2026"), and consider adding a clause that rates moving more than a few percent before payment trigger a re-quote. For longer projects, milestone billing in your own currency avoids the problem entirely — see our milestone billing guide.
Exchange rates: the hidden pay cut
The exchange rate your bank shows you is not the real exchange rate. The "real" rate is the mid-market rate — the midpoint between buy and sell prices on currency markets. Banks and payment processors add a markup (spread) on top, typically 2–4% for traditional banks, and pocket the difference. On a $5,000 invoice, a 3% spread costs you $150. Every single time.
This is where the fees actually live in international invoicing. The headline transfer fee is often small; the conversion spread is where money quietly disappears. When comparing payment methods, always ask: what rate do I actually receive, not what rate is quoted? Any provider that won't show you the rate before you confirm is telling you the spread is how they make money.
Practical rules:
- Never let the sender's bank convert. "Let your bank handle the conversion" means the worst available rate. Receive in the invoice currency, then convert it yourself with a low-cost provider.
- Hold foreign currency when you can. If you regularly earn in USD but spend in GBP, hold the USD and convert when the rate moves in your favour — or when you actually need the money — rather than converting every payment automatically.
- Time conversions loosely, not obsessively. Checking rates daily is a poor use of billable hours. Convert when you need the money, or set a rough threshold and convert when the rate looks good. Don't let rate-timing delay client work.
Payment methods compared
The right method depends on your volume and the client's location, but here's how the main options stack up:
Bank transfer (wire/SWIFT). The universal fallback — every business on earth can receive a wire. Also the most expensive: sending banks charge $15–$50 per transfer, intermediary banks may take a cut along the way, and conversion happens at the bank's rate unless you arrange otherwise. Fine for large, infrequent payments where the client insists. Ask the sender to choose the OUR charge option (they cover intermediary fees) rather than SHA (fees split) or BEN (you pay everything).
Multi-currency accounts (Wise, Airwallex, etc.). The modern default for freelancers. You get local bank details in multiple currencies (a USD account number, a EUR IBAN, a GBP sort code), so clients pay you as a local transfer — no wire fees for them. Conversion happens at the mid-market rate with a transparent fee (typically from around 0.2–0.6% depending on the route, far below bank spreads). Receiving local transfers is usually free; incoming SWIFT payments carry small flat fees (e.g. a few dollars per wire). If you invoice internationally more than occasionally, a multi-currency account typically pays for itself within a month or two.
PayPal invoicing. Ubiquitous and easy — clients trust it and you can be set up in minutes. The cost is high for cross-border work: US PayPal invoicing fees run about 4.99% + a fixed fee for international transactions (roughly 3.49% + $0.49 domestic, plus a 1.5% international uplift), and currency conversion adds a spread of around 3–4% on top. On a $2,000 invoice, PayPal can cost you $150+ all-in versus ~$10–15 via a multi-currency account. Use PayPal when the client requires it or for small one-off payments where convenience beats cost — not as your default for large international invoices.
Stripe / card payments. Good when clients prefer paying by card. Standard US rates are 2.9% + $0.30 domestic, with an extra ~1.5% for international cards and ~1% more for currency conversion. Reasonable for sub-$1,000 invoices; the fixed $0.30 makes it proportionally worse on very small payments.
Crypto / stablecoins. Some freelancers accept stablecoins (USDC/USDT) for cross-border work — near-instant, low fees, no bank involved. The practical problems: volatility if you hold, tax reporting complexity, and client comfort. A niche option, not a default.
The short version: for regular international invoicing, a multi-currency account beats bank wires on cost and beats PayPal on both cost and transparency. Give clients a preferred method in the contract and on the invoice, but keep a fallback (wire details) for the procurement department that insists.
Tax: what changes when the client is abroad
This is where freelancers worry most, and it's simpler than it looks. The general principle across the US, UK, Canada, and Australia: services sold to clients in another country are usually taxed where the client is, not where you are — which usually means you charge no sales tax or VAT, and the client handles any tax obligation under their own system (often called reverse charge).
Country specifics to be aware of:
- US: there is no VAT. Sales tax on services sold to international clients generally doesn't apply — see our guide to US sales tax on invoices.
- UK: exports of services to business clients abroad are generally outside the scope of UK VAT (the client's country applies its own rules, often reverse charge). Keep evidence the client is a business abroad. Details in our VAT registration thresholds guide.
- Canada: supplies of services to non-residents are generally zero-rated for GST/HST — you charge 0% but can still claim input tax credits. Keep records proving the client is outside Canada.
- Australia: GST-free treatment generally applies to exports of services where the recipient is outside Australia. Our Australian tax invoice guide covers the invoice requirements.
Three non-negotiables whatever your country: state the tax treatment on the invoice ("0% — exported service" or similar wording your accountant confirms), keep proof the client is abroad (their business address on the invoice counts), and check with your accountant before your first international invoice — a 20-minute conversation now beats an amended tax return later. If you're near a VAT/GST registration threshold, cross-border revenue still counts toward it in most systems.
What to put on an international invoice
Beyond your standard invoice fields, international invoices should include:
- Currency code, explicit. "USD 2,400" not "$2,400" — a client reading "$" may reasonably think their own dollar. Use the three-letter code everywhere: line items, total, and payment details.
- Your payment details for that currency. The local account details (or multi-currency account) matching the invoice currency, so the client pays locally. Include SWIFT/BIC only as a fallback.
- Who bears conversion and transfer fees. State it plainly: "All transfer and conversion fees are the client's responsibility; the invoiced amount must arrive in full." If you absorb fees, price them in instead.
- Tax treatment line. "VAT 0% — service supplied to a business customer outside the UK" (wording per your jurisdiction).
- Payment terms that account for transfer time. International transfers can take 1–5 business days. Net 14 still works, but "due on receipt" is unrealistic across borders — the money physically cannot arrive that fast.
Pricing for international work
Two adjustments experienced freelancers make:
- Price in the fees. If a payment method costs you 1% and conversion costs 0.5%, that's 1.5% off your rate on every invoice. Either add it to your price or choose the cheaper rail — don't absorb it silently. Our freelance rate calculator can fold the true cost into your target rate.
- Don't discount for the client's currency being "cheaper." If your rate is $100/hour, it stays $100/hour whether the client is in New York or Nairobi. Purchasing-power discounts are charity, not pricing strategy — offer them deliberately if you want, never by default.
FAQ
Should I invoice in USD or my local currency? Invoice in whatever currency your costs and taxes are denominated in — usually your home currency. It makes your income predictable and your bookkeeping simple. Only invoice in the client's currency when their procurement process requires it or when it wins you the work.
Who pays the currency conversion fee? Whoever the contract says. The cleanest arrangement: you invoice in your currency, the client pays in your currency, and any conversion on their side is their cost. If you receive in a foreign currency and convert, the fee is yours — build it into your price.
Do I charge VAT/GST on invoices to foreign clients? Usually not — exported services are typically zero-rated or outside the scope of your domestic VAT/GST, with the client's country applying its own rules. But the specifics depend on your country, the client's country, and whether they're a business or consumer. Confirm with your accountant for your first invoice to each new country.
How do I get paid by a US client as a UK/EU/AU freelancer? The practical route: open a multi-currency account that gives you US bank details (account and routing numbers). Your US client pays you as a domestic ACH transfer — free and familiar for them. You hold USD, then convert to your home currency at the mid-market rate when you need it. This avoids wire fees and bad bank conversion rates on both sides.
What if a foreign client pays late? The same escalation applies as domestic — reminders, late fees where your contract allows, formal demand. The practical difficulty is enforcement across borders, which is why prevention matters more: deposits up front (see how to invoice for a deposit), milestone billing so no single invoice is make-or-break, and payment terms the client's accounts team can actually meet.
Can I just use PayPal for everything international? You can, and many freelancers do when starting out. Just know what it costs: roughly 5% + conversion spread on international invoices, versus well under 1% all-in through a multi-currency account. On $50,000 of annual international revenue, the difference is a few thousand — worth an afternoon setting up a better rail.
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