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High Upwork Taxes Cutting Into Your Earnings?
If you’re freelancing on Upwork, Fiverr, Toptal, or Freelancer. com, you’ve probably asked yourself: «Do I have to pay taxes on Upwork?» The answer is yes. Freelancers are required to declare their income in most countries, and unfortunately, that usually means facing steep tax bills.
Upwork and taxes go hand in hand with complicated reporting, double taxation risks, and income tax rates that can eat up 20–35% of your revenue in the U. S., Europe, and many other regions. For independent professionals, it often feels like working for the tax office instead of yourself.
However, a more innovative, legal way to reduce your burden is to register your freelance business in Armenia.
Armenia has positioned itself as one of the best countries for digital entrepreneurs, offering low taxes, easy compliance, and global payment access. By registering as an Individual Entrepreneur (IE) or forming a Limited Liability Company (LLC) in Armenia, freelancers on Upwork and other platforms can benefit from:
Lower Upwork taxes — as little as 0% (Edu), 1% (IT), 10% (others) turnover tax, depending on your activities.
Simple reporting — lightweight accounting with minimal bureaucracy.
Banking access — open international accounts that connect directly to Payoneer, Wise, and Upwork payout systems.
Global reach — no restrictions on receiving income from abroad.
Residency opportunities — business registration can help you apply for a residence permit in Armenia. No obligation to live in Armenia.
Unlike many countries, where freelancers are trapped in complex tax systems, Armenia gives you a clear, straightforward path to keeping more of what you earn.
Business Registration — We guide you through registering an IE or LLC in Armenia. Upwork and other freelance platforms accept both.
Bank Account Setup — Your Armenian business gets a multi-currency account with SWIFT and SEPA access.
Platform Integration — Connect your Upwork account, Fiverr profile, or Payoneer wallet directly to your Armenian bank.
Tax Compliance — Pay only a small, predictable tax on your income instead of facing high rates at home.
Residency Options — If desired, use your Armenian business as a base for applying for residency.
Yes. Upwork reports earnings to freelancers; most countries require you to declare freelance income. However, registering a business in Armenia can shift your tax obligations to a more favorable system and lower your overall tax rate.
Don’t let high taxes stop your freelance growth. Whether you’re on Upwork, Fiverr, or Toptal, Armenia allows you to legally lower your tax burden, simplify compliance, and access secure international banking.
and we’ll help you set up your Armenian business.
