Best Bank Accounts for Independent Contractors in 2023

If you are an independent contractor (or a freelancer), you can have clients from different countries of the world. Some popular freelance professions do not even require the knowledge of a foreign language. These include photography, video production, software development, and so on. However, you need to be paid and if your customer is located in a foreign country, getting paid may become an issue.

If a freelancer has a bank account that his/ her international clients can transfer money to, the choice of contracts can be extended significantly. On the other hand, if you are a skilled professional and your potential client does not have an opportunity to transfer payments to you, you won’t be able to cooperate with the client and, consequently, you won’t be able to earn money. What are the best banks for freelancers? The answer to this question will depend on several factors and below we point out a couple of financial institutions that you can use for international banking if you are a freelancer.

Without doubt, you have to familiarize yourself with your home country’s legislation that governs work contracts with foreigners before you start working as a freelancer for a foreign employer. We do not dwell on the legislation of any particular country below. Rather, we discuss the general factors that are of importance for independent contractors/ freelancers working for foreign nationals or foreign companies.  

What is the best bank account for a self-employed individual/ freelancer?

What do you expect from the foreign bank when you open an account there? In general terms, you want its services to be flexible, transparent, readily accessible, and inexpensive. If you are a freelancer and you would like to set up a bank account where your international clients could send money to, you are probably looking for the following positive characteristics that your foreign bank account should have:

• An opportunity to make bank transfers regardless of the bank jurisdiction;
• Fair currency exchange rates;
• An opportunity to make transboundary transactions at acceptable prices;
• An opportunity to make internal transactions at no (or low) charge;
• An opportunity to withdraw cash from ATMs in any country of the world;
• An opportunity to spend money both in the real world and in the virtual world;
• An opportunity to order a bankcard that can be used internationally;
• Zero or low commissions on cash withdrawal;
• An opportunity to keep the money in different currencies.

Depending on your occupation, several other factors can also play a role. In any case, a freelancer working for international clients needs a foreign bank account that is easily accessible at any time and that doesn’t require paying too much in fees and commissions.

Freelance legally!

Some freelancers working only for clients from their home country do not bother to legalize their business activities. They simply make personal arrangements with customers, do the job, and get paid. Probably in cash. This allows the freelancer to save on taxes but this method of operations will not work if you want to provide services to international clients.

Many potential clients from Europe or the USA, for example, will be reluctant to send money to your personal bank account. This means that you have to legalize your freelance job and open a business bank account that you can use for payments.

Most countries allow registering sole proprietorships. Sole proprietors are usually taxed at the lowest rates. Besides, legislations of several countries offer an opportunity to register as a self-employed individual. The self-employed also have to pay rather little in taxes.

Thus, the first thing that you have to do if you would like to work for foreign persons and companies as an independent contractor/ freelancer is legalize your business activities. After you have acquired an official legal status, you can look into opening a business account with a foreign bank.

Foreign bank accounts for freelancers

What country should you choose to open a bank account and work for international customers as an independent contractor/ freelancer? Naturally, the choice will depend very much on the country where your customers are located. The key requirement is as follows: your clients have to be able to make payments to your foreign bank account, and you have to be able to retrieve the payments from the account.

Let us assume, however, that you want to extend your clients’ geography as much as possible. In other words, let’s suppose that you would like to work for people and companies from different countries. This means that you need a foreign bank account that is a universal one. It should be able to accept payments from various destinations. Besides, it should be usable for several different purposes, not only for withdrawing cash. For example, you may want to use it to transfer payments to your subcontractors, to pay the taxes, to make recurring payments, and so on.

One more important function that your foreign bank account has to perform is improve your image in the eyes of potential clients. The most important quality that your customers are after is your high level of professionalism. But if they see that you have an international business account with a reputable financial institution, they will have more trust in you and they will probably be inclined to hire you as a freelancer.

Here we would like to draw your attention to three financial institutions that you may want to use if you are a freelancer working for clients from different countries.

A bank account for a freelancer in Montenegro

Offshore Pro Group is in close cooperation with a bank in Montenegro that provides services to international clients. The bank offers a wide range of financial services to its customers. It exercises an individual approach to every customer and the service conditions can be adjusted to your needs if you are a freelancer working internationally. 

Services that the Montenegrin bank provides to international clients:

• Personal and corporate bank accounts including accounts for freelancers/ self-employed individuals;
• Deposit programs;
• Electronic banking opportunities;
• Multicurrency pay cards – MasterCard (USD/EUR);
• Forfeiting (debt reassignment operations);
• Financial leasing;
• Favorable currency exchange rates;
• Banking services for trusts;
• Bank guarantees and many other things.

If you are a foreign sole proprietor, a freelancer, or a self-employed individual, you have to complete the application form if you would like to set up an account with the Montenegrin bank. The form has to be submitted to the Compliance Department together with your CV and a bank statement for the last 12 months.

If the bank administration gives a provisional approval to your application for services, you will have to submit the following documents (that also have to be translated into English, if necessary, notarized, and apostilled): 

• Your passport;
• A proof of address;
• A document legalizing your business activities as a sole proprietor, a freelancer, or a self-employed person;
• Bank statements for the last 12 months;
• A detailed CV.

Freelancers from most countries (with only a few exceptions) are eligible to apply for account opening to the Montenegrin bank.

A business account for a freelancer with a payment system

Payment systems (aka Payment Service Providers, PSPs) can serve as a healthy alternative to traditional banks. The range of the banking services that these modern financial institutions provide is comparable to the range of services found in traditional banks. However, setting up an account with a payment system is much faster and simpler than setting one up with a bank. This would really be the right choice for a freelancer! 

A Lithuanian payment system

The Lithuanian payment system that we are promoting here makes it possible to open a European bank account no matter what your country of residence is. If you are a freelancer working for foreign clients, you should certainly consider the opportunity of opening an account with this PSP. You will find the following main advantages if you do so: 

• A personal European IBAN, which will make your international transactions seamless;  
• Multicurrency transactions all over the world;
• Instant payments within SEPA;
• Debit cards that can be used for covering the cost of products and services and withdrawing cash in a great number of countries;
• An opportunity to integrate your current account with your accounting software;
• Wide billing opportunities;
• Transparent tariff policies.

The Lithuanian payment system is a financial institution holding a license from the Bank of Lithuania. If you have an account with the PSP, you can easily make and receive payments in different currencies within the SEPA or outside. An independent contractor/ freelancer will have no payment-related problems if he or she sets up an account with the Lithuanian PSP. 

A British payment system

Setting up an account with a British payment system is another viable option to consider if you are a freelancer providing services to international customers. There you will find the following main opportunities:

• To make transactions to over 100 countries and receive money from there;
• To make transactions in more than 30 national currencies;
• To order personal/ corporate bankcards and make cashless financial operations;
• To make SWIFT and  SEPA transactions;
• To use an API;
• To sign up for a payroll project;
• To earn an interest on your deposit.

With our professional support, you can set up an account with the British payment system without leaving the comfort of your home. This is the most affordable option for a freelancer. 

The account can be opened within 7 to 14 business days. The bankcard will be delivered to you by regular mail or with a courier.

Best business bank accounts for freelancers in 2023: make a choice and avoid stress when setting one up

The procedure of setting up an account with a foreign financial institution is simple if you request our professional support in the matter. Take the following three steps and you will be able to provide freelance services to customers from all over the world:

1. We highly recommend that you should use our PREAPPROVAL service before actually submitting the application documents to the bank. When you have a provisional approval of your application for banking services, your chances of setting up a foreign bank account become much greater.
2. When you have the preapproval, you need to collect all the required application documents and send them to Offshore Pro Group experts using a safe mail delivery system.
3. We will submit the application documents on your behalf to the financial institution of your choice and you will have access to all the services that it provides after a short while.

A large number of people unexpectedly discovered some exciting new opportunities in the aftermath of the COVID-19 pandemic. It suddenly turned out that many jobs could actually be done from home! The pandemic was a global disaster, of course, but it kicked off new tendencies in the labor market. In view of this fact, the number of freelancers has been steadily growing lately and this is true for many countries.

If you are a freelancer wishing to enter the international market, please let us help you open a foreign bank account. This instrument will greatly extend your horizons and let you make more money!