How I Receive International Payments as a Freelance Developer in Nepal: A Complete Guide

If you're a freelance developer in Nepal trying to figure out how to get paid by international clients, I feel your pain. I've spent years navigating this maze, and I'm going to share everything I've learned.

This isn't theoretical advice from someone who read about it online. This is from someone who's actually done it, made mistakes, and figured out what works.

The Problem

Nepal has strict foreign exchange regulations. The Nepal Rastra Bank (NRB) controls how foreign currency enters and exits the country. This creates several challenges:

• PayPal doesn't fully work for receiving payments
• Many international payment platforms aren't available
• Banks are suspicious of "software income" and may freeze accounts
• Documentation requirements are extensive

But it's not impossible. Here's how I do it.

Option 1: Payoneer (My Primary Method)

Payoneer is the most reliable option for Nepali freelancers. Here's how to set it up:

Getting Started

• Sign up at payoneer.com with your Nepali address
• Complete KYC with your citizenship/passport
• Get approved (usually takes a few days)
• You'll receive USD, EUR, and GBP receiving accounts

Receiving Payments

Clients can pay you via:

• Direct bank transfer to your Payoneer receiving accounts
• Payoneer request payment feature
• Platform integrations (Upwork, Fiverr, etc. pay directly to Payoneer)

Withdrawing to Nepal

This is where it gets interesting:

Payoneer Balance → Withdraw to Local Bank → NPR in your account

Payoneer converts USD to NPR and sends it to your Nepali bank account. The rates are decent, though not the best.

Important: Make sure your bank knows you're receiving freelance income. I recommend:

• Opening an account specifically for this purpose
• Informing the branch manager about your work
• Keeping invoices and contracts ready

Fees

• Receiving payments: Free (for bank transfers)
• Withdrawal to local bank: 2% of the amount
• Currency conversion: Built into the exchange rate (typically 1-2% spread)

Option 2: Wise (TransferWise)

Wise works in Nepal but with limitations.

What Works

• Receiving payments via Wise (you get account details)
• Holding multiple currencies
• Converting between currencies

What Doesn't Work Well

• Direct withdrawal to Nepali banks is not available
• You'll need to transfer to Payoneer or use the Wise card abroad

My Workaround

I use Wise as a secondary holding account:

• Receive payment in Wise
• Transfer to Payoneer (Wise → Payoneer USD account)
• Withdraw from Payoneer to Nepal

This costs extra in fees but gives me flexibility.

Option 3: Direct Bank Transfer (SWIFT)

For larger clients or ongoing contracts, direct bank transfers can work.

Process

• Provide client with your bank's SWIFT code and account details
• Client initiates international wire transfer
• Money arrives in 3-5 business days
• Bank credits NPR equivalent to your account

The Catch

Banks will ask questions. You'll need:

• Invoice for the specific payment
• Contract or agreement with the client
• Tax registration (PAN) documents
• Sometimes, a letter explaining the nature of work

Banks That Work Better

From my experience and talking to other freelancers:

• Nabil Bank - Generally smooth process
• Standard Chartered - Professional, but higher fees
• NIC Asia - Mixed experiences

Avoid smaller banks unless you have a personal relationship with the branch.

Option 4: Cryptocurrency (The Gray Area)

I need to mention this because many developers use it, but with caveats.

Nepal's stance on cryptocurrency is unclear. It's not explicitly legal for transactions, but many developers receive USDT or USDC and convert through peer-to-peer methods.

My stance: I don't recommend this as a primary method. The legal risk isn't worth it for me. But I understand why some choose this route when other options fail.

Tax Implications

This is important and often ignored.

As a freelancer earning from abroad, you need to:

• Register for PAN (Permanent Account Number)
• Pay income tax on your earnings
• Keep records of all invoices and payments

The tax rate depends on your total income, but roughly:

• Up to NPR 500,000: 1%
• NPR 500,000 - 700,000: 10%
• Above NPR 700,000: 20-30%

I highly recommend getting a CA (Chartered Accountant) to handle this. It costs around NPR 10,000-20,000 per year and saves countless headaches.

Common Mistakes to Avoid

1. Not Informing Your Bank

I've heard horror stories of accounts being frozen because the bank flagged "suspicious international transfers." Be proactive. Tell them what you do.

2. Mixing Personal and Business Accounts

Keep a separate account for freelance income. It makes accounting easier and looks more professional to banks.

3. Not Keeping Invoices

Every payment should have a corresponding invoice. When the bank asks (and they will), you need documentation.

4. Ignoring Taxes

It might seem like easy money to skip taxes, but it catches up. Plus, having clean tax records helps when you need bank loans or visa applications.

5. Relying on One Method

Always have a backup. Payoneer could change their policies. Banks could update their requirements. Diversify.

My Current Setup

Here's exactly what I use:

• Primary: Payoneer for most client payments
• Secondary: Wise for holding USD and EUR
• Bank: Nabil Bank account dedicated to freelance income
• Accounting: Local CA who understands tech freelancing

It took me years to optimize this, but it works smoothly now.

Final Thoughts

Getting paid as a Nepali freelancer is harder than it should be. The system isn't designed for the global digital economy we now live in.

But it's not impossible. With the right setup and some patience, you can build a sustainable international freelance career from Nepal.

If you're just starting out, begin with Payoneer. It's the path of least resistance. As you grow, you can optimize and diversify.

Good luck, and feel free to reach out if you have questions. We Nepali developers need to help each other navigate this.