Earning in USD while living outside the US seems to be the goal of many entrepreneurs, freelancers and remote workers, especially when you live in a country with a relatively lower living cost. Receiving payments in USD protects against local currency fluctuations and opens you up to a global client base.
While this goal is feasible, it can be cumbersome if you don’t know how to navigate international payments. This article exposes the secrets of international payments that people have been hiding from you. Here are the things no one tells you about earning in dollars while living abroad.
Also read: Working with international clients: A freelancer’s guide to getting paid
If you think all the money the client sends will end up with you after converting to your local currency, you will be making a bad assumption. It might shock you to realise how much money is lost to payment solutions and traditional banks. This means that by the time you convert your hard-earned dollars into local currency, a significant portion of your income has vanished.
Hidden charges such as “processing fees” or “international transfer costs” further eat into your income. For freelancers and small business owners, especially, these costs can quickly add up and erode profit margins. To mitigate against this, Grey is a freelancer-friendly payment option that offers you transparent and affordable charges with competitive exchange rates.
Your conventional bank account may not be able to accept USD payments. Many local banks can’t handle international payments, and it will be a good idea to figure that out before you provide your account details to a client. Many other banks offer high transaction charges, unfavourable exchange rates, and frustratingly slow transaction processing. In some settings, your account may even be flagged due to suspicion and might take some time to resolve the dispute.
To be safe, you should receive your payment in a USD account where you can hold funds or spend in USD and convert to your local currency at will. Grey offers multi-currency accounts that enable users to transact in USD, EUR, GBP, USDC, and numerous other local currencies with ease.
Earning in USD and spending a relatively volatile local currency means you cannot be certain of your take-home monthly, even if your pay in USD remains the same. If the dollar strengthens, your purchasing power increases. But when it weakens, your income may feel much smaller in the local economy.
These fluctuations can disrupt budgeting, savings plans, and even investment strategies. Many professionals underestimate the stress of planning long-term financial goals when their effective income fluctuates from month to month.
Read our freelancer's guide to handling currency fluctuations to learn more.
You may be subject to taxes in both your country of residence and the country where your dollar income originates. Understanding and navigating these tax obligations can be complex. Without clear guidance, it is easy to fall into the trap of double taxation. Some countries have arrangements to avoid this, but others don’t. You must keep detailed records, consult tax professionals where necessary, and ensure compliance with both local and international regulations if you are earning in USD.
Clients abroad may operate in different time zones, banking systems, or legal frameworks, leading to payment delays. Freelancers and contractors often complain about not receiving money on time, sometimes waiting weeks beyond the agreed payment day.
This unpredictability makes it difficult to maintain a consistent cash flow, particularly if you rely solely on international income. Without a reliable payment structure, even the most lucrative contracts can become frustrating.
There is a lot you find out when you start earning in USD. While it is a dream, earning in USD is also not always a walk in the park. Between navigating payment delays, exchange fluctuations, and transaction charges, you require a reliable payment solution.
Grey offers multi-currency accounts and supports USD transactions. With Grey’s USD accounts, you can receive USD payments swiftly and convert at competitive rates.
Get started with Grey today to manage your USD payments hassle-free.
.svg)
Back to top
