As a digital nomad or remote freelancer, working with international clients is often part of the lifestyle. But getting paid across borders isn’t as simple as sending a PayPal link. Currency differences, tax laws, and platform fees all come into play. To ensure smooth transactions and maintain professionalism, understanding how to invoice internationally is essential.
Choose the Right Invoicing Tool
Not all invoicing platforms are created equal when it comes to international payments. Look for services that support multiple currencies and have integrations with international payment gateways. Popular options include:
- FreshBooks – Offers multi-currency support and client portals.
- Bonsai – Built with freelancers in mind, includes contracts, proposals, and global invoicing features.
- Wave – Free and easy to use, supports international clients with Stripe or PayPal integration.
- PayPal Invoicing – Convenient for clients who already use PayPal, with wide currency support.
Choose a tool that fits your workflow and that your clients are comfortable using.
Set Your Currency Terms Clearly
When working with clients in different countries, always clarify what currency you’re charging in. If you’re invoicing in USD, EUR, GBP, or any other currency, this should be stated on the invoice and in your contract or agreement upfront. This avoids confusion and protects you from being underpaid due to currency conversion misunderstandings.
Include Essential Invoice Details
A professional international invoice should contain:
- Your full name or business name
- Your address and contact information
- Client’s name and address
- Invoice number
- Invoice date
- Description of services
- Payment terms (e.g., “Net 14” or “Due on Receipt”)
- Accepted payment methods
- Total amount due (with currency clearly stated)
- Any applicable taxes or VAT information
Keep your formatting clean and consistent across invoices to present a professional image.
Consider Currency Conversion Fees
Be aware that both you and your client might face currency conversion fees when money changes hands. If you’re accepting payment in your local currency, your client might be charged by their bank or payment processor. Likewise, receiving funds in a foreign currency can result in fees when you convert it to your own.
Discuss these possibilities beforehand. Some freelancers add a small surcharge to cover these expenses or suggest using a platform with low conversion fees like Wise (formerly TransferWise).
Use Global-Friendly Payment Methods
Depending on your and your client’s location, some payment methods are more accessible and affordable:
- Wise – Great for transferring funds internationally with low fees and real exchange rates.
- Payoneer – Offers global payment collection and local bank withdrawals.
- PayPal – Universally recognized, though it may charge higher fees.
- Stripe – Ideal for businesses with recurring payments or subscriptions.
- Direct bank transfers – Work well for larger clients but may involve SWIFT fees.
Ask clients what platform works best for them and offer at least two secure options.
Understand Tax Requirements
Even if your client is overseas, you may still be responsible for reporting that income to your home country’s tax authority. In some cases, you may also be required to collect VAT or include tax identification numbers on your invoice.
Freelancers in the EU, for instance, must be aware of VAT invoicing requirements if working with other European clients. If you’re unsure, it’s wise to consult with a tax professional familiar with international freelance work.
Automate Reminders and Follow-ups
Late payments can be more difficult to chase when your client is in another time zone or legal jurisdiction. Most invoicing platforms allow you to set up automatic reminders, reducing the need for awkward follow-up emails.
You can also set clear expectations by including a late fee policy in your terms and contracts, giving clients an incentive to pay promptly.
Keep Accurate Records
Maintaining clear records of all your invoices, payments, and communications with clients is critical for your financial health and tax reporting. Digital nomads often operate across multiple borders, so accurate documentation ensures you’re prepared for audits, tax filing, or resolving disputes.
Cloud-based accounting tools such as QuickBooks, Zoho Books, or Xero are excellent for tracking invoices, expenses, and bank reconciliations from anywhere in the world.
Invoicing international clients doesn’t have to be complicated. With the right tools and a clear process, you can ensure timely payments while building strong, professional relationships across borders.