Receiving US Payments
A comprehensive guide to receiving payments from US clients as a Turkish freelancer or business. Compare Stripe, PayPal, and Wise, understand tax requirements, and learn best practices.
Key Points
- You need W-8BEN form to avoid 30% US withholding tax
- Turkey has a tax treaty with the US - often reducing withholding to 0-15%
- Each platform has different fees and Turkey availability
- You must still report income in Turkey
Contents
Overview: Receiving Payments from US Clients
As a Turkish freelancer or business working with US clients, you have several options for receiving payments. Each platform has different fee structures, verification requirements, and tax implications.
Important: Before receiving any payments, you should complete W-8BEN form to establish your tax status as a non-US person. Without this, US payers may withhold 30% of your payment.
Stripe for International Freelancers
Standard Stripe Account (Turkey)
Stripe is available in Turkey with some limitations. You can accept card payments and have funds deposited to a Turkish bank account.
Turkey Stripe Features
- Accept payments in USD, EUR, and other currencies
- Payout to Turkish bank accounts in TRY
- Processing fee: 2.9% + $0.30 per transaction
- Payout timing: 7 days standard
Stripe Atlas (US LLC)
If you form a US LLC, you can use Stripe Atlas which provides a US bank account and full Stripe functionality. This is often preferred for significant US business.
Stripe Atlas Includes: Delaware LLC formation, US bank account (Mercury or Silicon Valley Bank), EIN acquisition, and registered agent for one year. Cost: $500 one-time.
PayPal Business
PayPal is widely used and trusted by US clients. Turkish residents can open PayPal accounts and receive international payments.
PayPal Turkey Fees
- Receiving payments: 3.4% + fixed fee
- Currency conversion: 3-4% above mid-market rate
- Withdrawal to Turkish bank: varies
Limitation: PayPal Turkey has limited functionality compared to US/EU accounts. Some features like PayPal Credit and certain business tools may not be available.
PayPal Invoicing
PayPal offers free invoicing tools that are useful for freelancers. Clients can pay invoices with their PayPal account or credit card.
Wise (formerly TransferWise)
Wise offers multi-currency accounts with local account details in multiple countries. This allows US clients to pay you via local US bank transfer.
Wise Advantages
- US account details (routing + account number) for ACH transfers
- No fees to receive USD
- Mid-market exchange rates with transparent fee (0.4-1%)
- Hold balances in multiple currencies
- Debit card available in some regions
How US Clients Pay You via Wise
- You open Wise account and get US account details
- Share your US account details with the client
- Client sends ACH or wire transfer (domestic US transfer)
- Funds arrive in your Wise USD balance (1-3 days)
- Convert to TRY and transfer to Turkish bank
Platform Comparison
| Feature | Stripe | PayPal | Wise |
|---|---|---|---|
| Receiving Fee | 2.9% + $0.30 | 3.4% + fixed | Free (ACH) |
| FX Rate | ~1% markup | 3-4% markup | Mid-market |
| Speed | 7 days | Instant | 1-3 days |
| Client Experience | Card payment | PayPal/Card | Bank transfer |
| Best For | SaaS, e-commerce | Quick payments | Large invoices |
Recommendation: For large invoices ($1,000+), Wise typically offers the best value. For smaller recurring payments, Stripe or PayPal may be more convenient for clients.
W-8BEN Requirements
The W-8BEN form certifies that you are not a US person for tax purposes. This is essential to avoid automatic 30% withholding on US-source income.
Who Needs W-8BEN?
- Individuals: W-8BEN (individual version)
- Companies/LLCs: W-8BEN-E (entity version)
Key Information Needed
- Full legal name (as on passport)
- Country of citizenship: Turkey
- Permanent residence address in Turkey
- Turkish tax ID number (TC Kimlik No or Vergi Kimlik No)
- Signature and date
Turkey Tax Treaty Benefit: Turkey has a tax treaty with the US. For most service income, this reduces withholding to 0%. Claim this benefit in Part II of W-8BEN by citing the US-Turkey treaty.
Withholding Tax Rules
| Income Type | Without Treaty | With Turkey Treaty |
|---|---|---|
| Service fees (freelance) | 30% | 0% |
| Royalties | 30% | 10% |
| Dividends | 30% | 15% |
| Interest | 30% | 10% |
Note: The 0% rate for service fees applies when you are providing services from Turkey and don't have a "permanent establishment" in the US. If you have a US office or spend significant time working in the US, different rules may apply.
Invoicing US Clients
Professional invoices help establish credibility and ensure smooth payments. Include these elements:
Invoice Elements
- Your business name and address (Turkey)
- Client name and address
- Invoice number and date
- Detailed description of services
- Amount in USD
- Payment terms (Net 15, Net 30, etc.)
- Payment instructions (bank details, PayPal, etc.)
- Note: "W-8BEN on file - 0% withholding per US-Turkey treaty"
Turkey Tax Obligations
Income earned from US clients is still taxable in Turkey. As a Turkish tax resident, you must report worldwide income.
Important: Not reporting foreign income is tax evasion and can result in significant penalties. Work with a Turkish accountant (SMMM) to properly declare your income.
Key Points for Turkey
- Report all USD income converted to TRY at transaction date rates
- Quarterly advance tax payments may be required
- Annual tax return deadline: March 31
- Keep all invoices and payment records for 5 years
Frequently Asked Questions
Do I need a US LLC to receive US payments?
No. You can receive US payments as an individual Turkish freelancer using Wise, PayPal, or Stripe Turkey. A US LLC provides some advantages (US bank account, credibility) but is not required.
What if my client doesn't accept W-8BEN?
Most US companies are legally required to collect W-8BEN from foreign contractors. If a client is unfamiliar with the form, explain that it's a standard IRS requirement. Without it, they should withhold 30%.
Which platform has the lowest fees for $5,000 payment?
Wise: $0 to receive + ~$35 (0.7%) to convert = ~$35 total. Stripe: $145 (2.9%) + ~$35 FX = ~$180 total. PayPal: $170 (3.4%) + ~$175 FX (3.5%) = ~$345 total. For large invoices, Wise is usually best.
Can I hold USD instead of converting to TRY?
Yes, with Wise you can hold USD balance indefinitely. This can be useful for hedging against TRY depreciation or paying USD expenses. However, for Turkish tax purposes, you must still report the income when earned (at that day's exchange rate).
Related Guides
Cite This Entry
EchoLegal, “Receiving US Payments Guide,” EchoLegal Legal Encyclopedia, v1.0 (last updated Feb 17, 2026), https://echo-legal.com/en/abd-odemeleri-alma-rehberi.
Receiving US Payments Guide, EchoLegal Legal Encyclopedia (last updated Feb 17, 2026), https://echo-legal.com/en/abd-odemeleri-alma-rehberi.
ecl-gde-00014Disclaimer
This guide is for informational purposes only and does not constitute tax, legal, or financial advice. Payment platform terms and fees may change. Consult with qualified professionals for your specific situation.