As freelancing continues providing global opportunities, one rookie mistake is working with international clients without a valid contract. It creates ambiguity in the work process and can lead to sharp disagreements, disrupt your earnings, and damage your reputation. These contracts outline the scope of work, payment terms, deadlines, and responsibilities while addressing complexities such as regional differences, currency exchange, and international regulations. A well-crafted contract protects both parties, minimises disputes, and fosters a professional relationship.

However, we understand that negotiating cross-border freelance contracts can be difficult. As always, we have curated a number of tips and templates to help you negotiate a good cross-border freelance contract.

Also read: The best international bank accounts for freelancers and remote workers

Considerations for cross-border freelance contracts

Before drafting the contract for your next gig, consider the following important factors and tips that can help.

1. Understand legal and jurisdictional differences

Understand the relevant regulations guiding freelancing and contracts in your jurisdiction and how they vary from your client’s.

Tip: If necessary, consult a legal professional familiar with international contracts to review the terms, especially for high-value projects. Otherwise, speak with more experienced freelancers to clarify such issues.

2. Clarify payment terms

Cross-border payments involve currency exchange, transaction fees, and varying banking regulations. Clarifying payment terms, including payment currency, payment method, schedule, late payments, and delayed task completion. To avoid misunderstandings, agree on a currency, preferably a relatively stable currency such as EUR, GBP, USD, or stablecoins. Outline the payment method and who bears transaction fees. You should also clearly define payment milestones or deadlines, such as 50% upfront and 50% upon completion.

Tip: Use digital payment platforms like Grey to reduce currency conversion fees and simplify international transactions. Grey supports USDC, EUR, GBP, and USDC transactions.

Also read: Freelancer's guide to handling currency fluctuations

3. Address tax obligations

Taxation is a critical aspect of cross-border freelancing. Depending on the countries involved, you may need to account for VAT or sales tax and withholding tax. Also, for tax documentation, request a tax residency certificate if required to avoid double taxation under international tax treaties.

Tip: Consult an accountant with expertise in international taxation to ensure compliance and optimise your tax obligations.

4. Discuss intellectual property (IP)

Clarify who owns the rights to the work once it is delivered and paid for. For creative fields like design, writing, or software development, you may wish to retain the right to showcase the work in your portfolio. Clarify when and how IP rights transfer, usually once payment is confirmed. If you retain IP rights, outline how the client may use your deliverable. Where applicable, include a non-disclosure agreement (NDA) to protect sensitive information.

Tip: Register your work with a copyright office if it’s high-value or sensitive to ensure legal protection.

5. Define scope and deliverables

Being unclear about the task scope can lead to disputes and misunderstandings. Specify deliverables, deadlines, and the exact nature of services you will provide. Understand the client’s expectations and define what you can offer. Define the number of revisions included and the cost of additional revisions. Set realistic deadlines, taking into account time zone differences and potential delays.

Tip: Use project management tools like Trello or Asana to track progress and ensure transparency.

6. Plan for termination and exit strategies

Include a termination clause to address scenarios where either party wishes to end the contract. Specify a notice period before termination, compensation for the work hours already out, and provide directives for returning or destroying confidential materials.

Tip: Include a “kill fee” clause to compensate for time invested if the client cancels prematurely.

7. Document everything

Confirm all agreements in writing, including email clarifications, to avoid disputes.

Tip: Use contract management tools like PandaDoc or HelloSign for efficiency.

Template for cross-border freelance contracts

Now that you know what to consider for your contract, let’s show you a simplified template you can adapt.

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Freelance Services Agreement

This Freelance Services Agreement (“Agreement”) is made on [Date] between:

• Client: [Client Name], located at [Client Address], hereinafter referred to as the “Freelancer”; and
• Freelancer: [Freelancer Name], located at [Freelancer Address], hereinafter referred to as the “Client”

1. Services/scope of work

The Freelancer agrees to provide the following services:

[Detailed description of services, e.g., “Design and development of a responsive website with five pages”].

Deliverables: [List deliverables, e.g., “One fully functional website and source files”].

Revisions: [Specify, e.g., “Two rounds of revisions included”].

Deadline:

2. Payment terms

The Client agrees to pay the Freelancer [Amount and currency] via [Payment method]. Payment will be made as follows: [Schedule, e.g., 50% upfront, 50% upon completion].

3. Intellectual property

Upon full payment, all intellectual property rights in the delivered work shall transfer to the Client. The Freelancer retains the right to showcase the work in their portfolio.

4. Confidentiality

Both parties agree to keep confidential any sensitive information obtained during this Agreement.

5. Termination

Either party may terminate this Agreement with [X] days’ written notice. The Client shall pay the Freelancer for all work completed up to the point of termination.  A kill fee of [e.g., 25% of the total fee] shall apply if the Client terminates without cause.

6. Governing law and dispute resolution

This Agreement shall be governed by the laws of [Country]. Any disputes will be resolved through [Arbitration/Mediation/Court] in [Jurisdiction].

Signatures:

Client: ___________________________ Date: ________

Freelancer: ________________________ Date: ________

Managing payments as a global freelancer

Negotiating cross-border freelance contracts may feel daunting at first. However, it becomes easier with practice and the right structure. Always adapt templates to your specific situation, and remember that clarity is the most powerful tool in negotiation.

Ensure you have clear payment terms and use a reliable payment solution to receive your payment. Grey offers multi-currency accounts in USD, GBP, and EUR and supports USDC transactions, facilitating cross-border payments. The platform is tailored for global freelancers, offering low-cost transactions, competitive conversion rates, swift payment processing, and automated invoicing to support your contracts.

Get started with Grey today to manage your freelancing payments efficiently.

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