Working with US clients from abroad: W-8BEN guide

If you live outside the US and invoice a US client without a tax form on file, the client may withhold 30% of what they owe you. A completed W-8BEN, plus a treaty claim where your country has one, is how you can lower that. This guide covers the form, the treaty lookup, the payment rail and the contract terms.

Why a US client might withhold 30%

The default rate is 30%, and the client is the one who has to collect it. The IRS says in Publication 515 that "most types of U.S. source income received by a foreign person are subject to U.S. tax of 30%," and that the tax is generally withheld from the payment. The client, called the withholding agent, is personally liable if they fail to withhold what they should.

That is why a nervous accounts team sees "foreign contractor, no form" and applies the full 30%. They are protecting themselves. Your job is to give them paper that shows who you are and which rate applies.

Two cases cover most solo business owners:

• You do all the work from outside the US. As a general rule, pay for services is sourced where the work is done, so this income is usually not US-source income. You still send the form so your client can document it.
• You spend time in the US doing the work for that client. Income earned on those days can be US-source, and this is where a treaty claim matters most. This case gets specific fast, so talk to a cross-border accountant.

The IRS page on nonresident alien withholding is the plain-language starting point for both.

File a W-8BEN with every US client

A W-8BEN is a certificate that you are not a US person, and it can claim treaty benefits. You give it to the person asking for it, which is the client or the platform paying you. You do not send it to the IRS. The IRS instructions say to give it before the payment is made or credited.

The fields that matter most:

• Your legal name and your country of citizenship.
• A permanent address outside the US.
• Your tax number from your home country (the foreign TIN).
• The treaty claim: the country where you claim residence for treaty purposes, and, where the treaty needs more conditions, the article and rate you are relying on.

A W-8BEN generally stays in effect from the date you sign it through the last day of the third following calendar year, according to the IRS instructions. A form signed in 2026 is therefore good through 31 December 2029, unless your circumstances change. If they do, a new form is generally due within 30 days.

Publication 515 adds a bonus. Foreign persons who give a valid Form W-8 are exempt from backup withholding and from Form 1099 reporting. So if a client asks for a W-9, which is a US-person form, send the W-8BEN with one line explaining why.

Look up your country's treaty

A tax treaty can reduce the 30% rate, in some cases to zero. Publication 515 says a reduced rate, including exemption, may apply when there is a treaty between your country of residence and the US.

The IRS keeps the official list in its US income tax treaties A to Z. Use that page and the treaty text for your country, not a third-party summary. For independent personal services, many treaties exempt a contractor who has no fixed base or permanent establishment in the US, but the wording and conditions differ by country.

The US has no income tax treaty with some countries, and independent professionals there often get a worse result. Check the list for your own country before you promise a client a rate. If there is no treaty, you have two realistic options. You can accept the withholding and try to recover part of it through a US return, or you can speak to an accountant about whether the income is US-source at all.

The client decides whether to accept your claim. The IRS does not pre-approve it, so a correct form with the right treaty reference gets accepted far more often than a vague one.

Pick a payment rail that costs less

The payment method can take more than the tax does. PayPal's international receiving fee is 4.40% plus a fixed fee, and it adds a currency conversion markup of about 4%, according to XFlowPay's comparison. The same comparison lists Payoneer at 1% to 3% for international transfers and up to 3% for currency conversion, with a $29.95 annual fee if you receive less than $2,000 in 12 months.

On $5,000 a month, one extra percentage point is $600 a year. A rail that costs 4% more than another one costs you $2,400 a year on that income. These are fee schedules that change, so read the current page of whichever provider you use before you decide.

Three questions help you choose:

• Does the client pay by bank transfer, card or a marketplace? Your options depend on that.
• Do you receive in USD and convert later, or is the provider converting for you at a markup you can see?
• Can the client pay without opening a new account?

If you invoice direct clients, ask your bank or a multi-currency account provider for local US bank details so a US client can pay by domestic transfer. For marketplace work, you are tied to the platform's own payout method. For more on billing in another currency, see the guide to multi-currency invoicing.

Track where your income comes from

Even with a W-8BEN on file, you still owe tax in the country where you live. Most countries tax residents on worldwide income, so US client income goes on your home return like any other income.

Keep one set of books. Record the gross invoice, anything withheld and the date. If tax was withheld in the US, your home country may give you a credit for it, but only if you can prove the amount.

The US side is separate. Your client may issue a Form 1042-S for payments to a foreign person where tax was withheld, and you generally get no 1099-NEC. A processor's 1099-K is also a US-person form; our 1099-K guide covers that side. Ask your accountant how to report both at home.

Contract terms that prevent payment friction

Three clauses solve most of the stalled-payment problems.

Bill in a currency both sides understand, usually USD for a US client. State the amount, the due date and the method of payment.

Add late-fee terms and a due date such as net 14 or net 30. International chasing is harder, so give the client a written reason to pay on time. Check that a late fee is allowed where you and the client are based.

Add a short tax clause: "Contractor will provide a signed Form W-8BEN. Client will apply the withholding rate that the form supports." This heads off a well-meaning accountant who would otherwise apply 30%. A lawyer should check the clause for your situation. The free contract templates roundup shows where this fits.

How Delivvo keeps a cross-border job moving

Delivvo handles the parts of a US job that are not tax: getting the deal signed, putting the due date on the invoice and getting the money to you without a platform skimming it. It does not file tax forms for you, and none of this is tax advice. Ask your accountant about the rate.

1. Send the quote and contract from one link. The client signs with a typed or drawn signature, and you get a signing record with a SHA-256 hash, the IP address and the device, plus an archived PDF.
2. Put the W-8BEN clause in the contract. You edit every clause, so the wording is yours to adjust.
3. Share your signed W-8BEN in the client portal as a file. The client opens the portal with a one-time code, no password, so their accounts team can find it later without asking.
4. Issue the invoice with a sequential number and a due date. Connect your own Stripe, PayPal or Checkout.com account, and the client pays through it. Delivvo takes 0% and is never the merchant of record.
5. Let reminders run. A late payment rule sends a reminder at 7, 14 and 30 days and stops once the invoice is paid.

Every invoice carries a verification code, so a US client can confirm it is genuine. You can read how the payment side works on the payments page.

Next, look at Delivvo for teams or how the CRM fits around it.

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