Invoicing European client when residing in Canada
Thread poster: Kaisa Partanen

Kaisa Partanen  Identity Verified
Canada
Local time: 08:23
English to Finnish
+ ...
Jan 21, 2014

Hello everyone,

I am dealing with my first direct client and I am preparing the first invoice. This client is in Europe and I live in Canada, but I am originally from an European country so I still have an account there. My questions is that what is the most convenient way to transfer the money/invoice the client. I first agreed on bank transfer, but I know that my Canadian bank will charge me 15 CAD for that and I am sure they will charge the client as well. My client said that they can also do Paypal if I prefer, but the project manager recently asked me if they could transfer the money to the account in my home country because then it wouldn't cost anything (or maybe just couple of euros) between two EU banks. I don't mind leaving the money in my account in the my home country for while and I am only planning to transfer it in every 6 months.

This is an ongoing project and I am looking for the cheapest and the most convenient way for both me and my client. So am I allowed to transfer the money to the bank in my home country and then transfer it to my Canadian account? Is it going to mess up my taxes (not sure also how to pay taxes as a freelance in Canada-this is all new to me...)? Also, do I have to add taxes to the invoice?

I hope to hear experiences from people who have dealt with similar situations or can give some advice on what I should do!

Thank you,
Kaisa


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philgoddard
United States
Member (2009)
German to English
+ ...
Similar situation to you Jan 21, 2014

I'm a Brit living in the US, but most of my clients are in the EU. They make payments to my UK bank account, which costs them little or nothing - if they paid to my US account, it would cost them a lot more. I then transfer money to my US account periodically as I need it.

If you're a legal permanent resident of Canada, you should presumably be paying taxes there rather than Finland.


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Thayenga  Identity Verified
Germany
Local time: 14:23
Member (2009)
English to German
+ ...
If... Jan 21, 2014

... you ensure that all Canadian taxes will be declared as income at the arrival of the payment, then asking your client to pay you by using your European bank account. It will save both parties quite a lot of money.

Just make sure you check the Canadian laws to see if they permit this kind of payment. Using PayPal can also be quite expensive for you. Since this type of account (PayPal) is virtual (declaring the funds as income when they arrive), then nothing speaks - or shouldn't speak - against using your account in Europe.


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Kaisa Partanen  Identity Verified
Canada
Local time: 08:23
English to Finnish
+ ...
TOPIC STARTER
thanks Jan 21, 2014

Thanks for the tip! I pay taxes in Canada, but it is first time I am working as a freelancer here in Canada.
I think the easiest way is to transfer the money to my Finnish account, as you said. I was just worried that it would somehow illegal to transfer the money to my Finnish account, but I guess it is all fine as long as I pay my taxes in Canada and report my income earned abroad in Finland. I need to get a good accountant to help me prepare to declare the taxes since I have no clue how to deal with taxes here!

Thank you again philgoddard.


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DCM Linguistics  Identity Verified
United Kingdom
Local time: 13:23
Portuguese to English
+ ...
Maybe you can try Translator Pay Jan 22, 2014

It seems to be a lot cheaper than PayPal. I haven't used it yet, but heard only good things so far, so it might just be the solution for you.

http://www.translatorpay.com/Home.aspx


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Invoicing European client when residing in Canada

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