Knowledge base / Sole proprietor
Getting paid by foreign clients, Upwork and Deel as a sole proprietor (IE) in Armenia
Three ways to work
- Direct contract. Your client is a foreign company. You sign a contract and get paid by SWIFT transfer to your IE account.
- Freelance marketplace (Upwork and similar). The platform's terms and the in-platform contract are your paperwork. You withdraw from your platform balance.
- Contractor platform (Deel and similar). The platform pays you on the client's behalf and generates the contract and invoices.
In every case, you should be the party as a business. Put your IE details and taxpayer ID (TIN) in your profile and contracts. Withdrawal options vary by platform and country, so check the platform's help pages before you start.
Setting up payments
- Open an IE business account with a foreign-currency sub-account.
Ask the bank for USD or EUR details and its correspondent bank. See Business bank account in Armenia. - Sign a contract with direct clients.
E-signatures via DocuSign or similar tools are fine. - Invoice every payment.
Number, date, contract reference, services and period, amount, currency, bank details. - Withdraw to the IE account, not a personal card.
The income shows up in your records straight away, and the bank can see where it comes from. - Download platform statements and invoices every month.
You need them for tax and for bank questions. Recovering them for past years is painful.
What the contract should cover
- Full details of both parties, including your IE name and TIN.
- A clear scope: which services and what deliverables.
- Price or rate, currency, payment terms and who pays bank fees.
- How acceptance is confirmed: a sign-off, a report or an email.
- Governing law and dispute resolution.
Tax on exported services
VAT. Exported services are generally zero-rated in Armenia. Consulting, marketing, design, engineering, legal, accounting and data processing services count as supplied abroad when the recipient is outside Armenia. On turnover tax or the micro-business regime you normally don't deal with VAT at all. Clients in other EAEU countries follow their own place-of-supply rules, so check those separately.
Income tax. Zero VAT does not mean zero tax. On turnover tax you pay a percentage of revenue, 10% for most services. The regime is open if last year's turnover was up to AMD 115 million. You file quarterly and pay within 20 days after the quarter ends. The micro-business regime (up to AMD 24 million a year) excludes consulting, legal, accounting and several other services. More in Sole proprietor taxes in Armenia.
Foreign-currency income is converted to drams for tax. Whether you must issue an Armenian electronic invoice for a payment from abroad depends on your regime. The e-invoicing timing rules changed in 2026, so confirm this with an accountant.
Currency rules and bank checks
Armenia's currency law does not restrict payments for services between a resident and a non-resident. There is no rule forcing you to sell foreign currency or bring it back within a set time. Banks still check who is paying and why. Keep the contract, invoice, a screenshot of the platform contract and the payout statement ready. If the bank holds your payments, read Bank account blocked in Armenia.
Common mistakes
- Working with a direct client without a signed contract.
- Withdrawing to a personal card and not treating it as IE income.
- Assuming zero VAT means no tax at all.
- Not checking whether your service is allowed under your tax regime.
- Payments coming from someone other than the contract party. Ask the client to pay from its own account or sign an addendum.
- A vague payment reference like "payment" or "transfer".
Frequently asked questions
Can an Armenian sole proprietor get paid through Upwork or Deel?
Yes. An Armenian IE can legally receive foreign currency from overseas companies and platforms. On Upwork the platform's terms and in-platform contract are your paperwork, while Deel generates the contract and invoices.
Do I charge VAT on services to foreign clients from Armenia?
Exported services are generally zero-rated in Armenia. On turnover tax or the micro-business regime you normally don't deal with VAT at all, but you still pay the tax your regime requires, such as 10% turnover tax for most services.
What should an invoice to a foreign client include for an Armenian IE?
Include a number, date, contract reference, services and period, amount, currency and bank details. Issue an invoice for every payment.
Do I have to convert foreign currency earned in Armenia within a set time?
No. Armenia's currency law does not restrict service payments between residents and non-residents, and there is no rule forcing you to sell foreign currency or bring it back within a set time. Banks still check who pays and why.
Let's set up your foreign client payments
We'll pick a regime for your services, prepare an English contract and invoice template, and help with bank questions.
Sources: PwC — VAT and turnover tax in Armenia; Law "On Currency Regulation and Currency Control" — arlis.am; Tax Code of Armenia — arlis.am; State Revenue Committee — src.am.