Receiving Freelance Euro Payments

For freelancers, receiving a euro payment is the most satisfying moment of the job — until you notice that the amount credited to your account is less than what was sent. This difference stems from a few deduction items and especially the exchange-rate margin. In this guide we explain how freelancers receiving euro payments from Europe can protect their earnings from hidden costs.

The freelancer's cost table

The items that can reduce the incoming euros on a freelance payment are: the intermediary (correspondent) bank charge in the SWIFT chain, the Turkish recipient bank's incoming transfer fee, and (if your account is in TRY) the exchange-rate margin in converting the euros into TRY. The largest of these items is often the exchange-rate margin; because it recurs on every payment and is proportional. For a freelancer receiving dozens of payments over the year, the sum of these margins can reach a serious amount.

Ways to protect your earnings

• Hold a euro account. Receive the euros as euros, and convert to TRY only when you need to and at a suitable rate. This largely reduces the recurring margin cost.
• Convert in bulk. Instead of many small conversions, accumulating and converting a smaller number of times can reduce the effect of fixed costs.
• Estimate the incoming amount. Calculate the net amount before each payment; see the Incoming EUR transfer calculator.
• Give correct information. Deliver your IBAN and name completely; an error leads to a return and an extra cost.
• Compare alternatives. Compare the bank, fintech and euro account options on "the amount you receive".

Small and frequent payments

In freelance work, payments are often small and frequent. In this case fixed fees can weigh more heavily in proportion; a €3 deduction on a €50 payment is 6%. That is why, on small payments, accumulating in a euro account and converting in bulk, or using a low-fixed-fee method, can be sensible. On large payments, the main decisive item is the exchange-rate margin and comparing providers comes to the fore. To see which item is dominant for your amount, use our tools.

Summary

As a freelancer receiving euro payments from Europe, the biggest hidden cost is usually the exchange-rate margin; to this are added intermediary and recipient bank deductions. The most effective ways to protect your earnings are to hold a euro account, to time the conversion, and to estimate the incoming amount before each payment. This page explains the payment dimension; for your tax obligations, consult a qualified accountant.