PayPal or Wise: Getting Paid by a Client in Spain Without Losing Money to Fees
- Author:
- Manoj Sharma
- Verified by:
- Editorial team
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Short answer
When a client in Spain pays an Indian exporter through PayPal or Wise in 2026, the payment for services falls under the RBI's FEMA Regulations 2026. You file an EDF and realise payment within nine months. Your AD bank reports a purpose code. A FIRC or FIRA records the credit. With a GST LUT you supply without paying IGST.
| Applies to | Rules involved | Platforms compared | Last verified |
|---|---|---|---|
| Indian freelancers, agencies and companies that export services to clients in Spain and are paid in EUR or another currency through PayPal, Wise or a bank transfer. | FEMA Export and Import Regulations 2026, FEMA Manner of Receipt and Payment Regulations 2023, IGST Act s.2(6) and s.16, CGST Rule 96A and Rule 89(2)(c), FETERS purpose codes, Spanish VAT Law 37/1992 arts. 69 and 84 | Skydo, Razorpay, Wise Business, PayPal | 6 Oct 2026 |
How do PayPal and Wise compare for Indian exporters paid by clients in Spain?
Platforms named in the question are shown alongside the 2 highest payouts among the platforms this site covers, ranked by the INR received on a $5,000 invoice. Fees were checked on 30 Sept 2026.
| Platform | Best for | Fee | FX markup | Settlement | FIRA | RBI PA-CB status | INR on $5,000 | Source |
|---|---|---|---|---|---|---|---|---|
| Skydo | Indian freelancers and exporters receiving mid to large B2B invoices | $19 up to $2,000, $29 to $10,000, 0.3% above + GST | States zero FX margin at live rate | States under 24 hours; FAQ timelines vary by rail | States instant, free FIRA per payment | RBI authorised PA-CB Inward and Outward; on RBI list | ₹4,70,098 | Skydo pricing (checked 6 Oct 2026) |
| Razorpay | Indian businesses and freelancers on Razorpay invoicing foreign clients | 1% per bank transfer (Rs 1,000 flat below Rs 1,00,000) + GST | States 0% markup on MoneySaver at live rate | States 1 day (T+1 after invoice shared) | FIRS within 24 hours of settlement; no charge listed | RBI authorised PA-CB inward and outward, plus PA-O | ₹4,67,752 | Razorpay pricing (checked 6 Oct 2026) |
| Wise Business | Freelancers and small exporters wanting multi-currency local accounts and eFIRC | Calculator: 1.6% + $2 per payment + 18% GST | Mid-market rate; cost is the 1.6% conversion fee | States under 90 minutes in business hours | eFIRC per transfer, 2 USD + 18% GST | States in-principle PA-CB approval; not found on RBI page | ₹4,64,350 | Wise Business pricing (checked 6 Oct 2026) |
| PayPal | Card and PayPal-wallet payments from overseas PayPal buyers | 4.40% + USD 0.30 per international payment; fixed fee varies | 3.0% above PayPal's base rate on conversion | Not confirmed | Free weekly FIRA; custom Rs 100 + 18% GST each | PA-CB in-principle authorisation granted; final not confirmed | ₹4,35,154 | PayPal pricing (checked 6 Oct 2026) |
Which RBI rule governs money from Spain?
Money from a Spanish client for services is governed by the FEMA (Export and Import of Goods and Services) Regulations, 2026, in force from 1 October 2026, and by the FEMA (Manner of Receipt and Payment) Regulations, 2023. Spain is outside the Asian Clearing Union, so payment may be received in Indian Rupees or any foreign currency, including EUR, through an authorised bank or authorised person. The same rules apply whether the money arrives through PayPal, Wise or a bank transfer.
| Rule | Source | Clause | Plain meaning | Best for |
|---|---|---|---|---|
| Currency and channel | FEMA Manner of Receipt and Payment Regulations 2023 | Reg 3(2)(I)(a)(iii) | From countries outside the ACU, such as Spain, receipts can be in INR or any foreign currency, routed through an authorised bank or authorised person. | Exporters invoicing a Spanish client in EUR |
| Export Declaration Form | FEMA Regulations 2026 | Reg 3(2) | File an EDF for the full export value within 30 days from the end of the invoice month. | Every service exporter, including software exporters |
| Realisation period | FEMA Regulations 2026 | Reg 5 | Realise the full value within nine months from the invoice date, or twelve months if invoiced or settled in INR. The AD bank may extend the period on request. | Spanish clients on long payment terms |
| EDPMS closure | FEMA Regulations 2026 | Reg 4(2) | For invoices up to ₹10 lakh, the EDPMS entry can be closed on the exporter's declaration, also in bulk each quarter. | Freelancers with smaller invoices |
| Purpose code reporting | FEMA Regulations 2026; A.P. (DIR Series) Circular No. 84 | Reg 18(2); FETERS purpose code list | The AD bank reports each foreign trade transaction in FETERS, using a purpose code that describes the receipt. | Choosing the code with your bank |
| FIRC for GST refunds | CGST Rule 89 | Rule 89(2)(c) | A refund claim on export of services needs a statement of invoices with the relevant Bank Realisation Certificates or Foreign Inward Remittance Certificates. | Exporters claiming unused input tax credit |
Which option leaves the most rupees when a client in Spain pays $500, $2,000 or $5,000?
Each row applies the platform's published fee, FX markup and 18% GST on the fee to the XE mid-market rate for 3 Nov 2026. Platforms without full published pricing are not included.
| Platform and invoice | Fee | FX markup | GST | INR received | Cost | Best for |
|---|---|---|---|---|---|---|
| Skydo, $500 | ₹1,799 | ₹0 | ₹324 | ₹45,211 | 4.48% | Indian freelancers and exporters receiving mid to large B2B invoices |
| Skydo, $2,000 | ₹1,799 | ₹0 | ₹324 | ₹1,87,213 | 1.12% | Indian freelancers and exporters receiving mid to large B2B invoices |
| Skydo, $5,000 | ₹2,745 | ₹0 | ₹494 | ₹4,70,098 | 0.68% | Indian freelancers and exporters receiving mid to large B2B invoices |
| Razorpay, $500 | ₹1,000 | ₹0 | ₹180 | ₹46,154 | 2.49% | Indian businesses and freelancers on Razorpay invoicing foreign clients |
| Razorpay, $2,000 | ₹1,893 | ₹0 | ₹341 | ₹1,87,101 | 1.18% | Indian businesses and freelancers on Razorpay invoicing foreign clients |
| Razorpay, $5,000 | ₹4,733 | ₹0 | ₹852 | ₹4,67,752 | 1.18% | Indian businesses and freelancers on Razorpay invoicing foreign clients |
| Wise Business, $500 | ₹929 | ₹0 | ₹167 | ₹46,238 | 2.32% | Freelancers and small exporters wanting multi-currency local accounts and eFIRC |
| Wise Business, $2,000 | ₹3,158 | ₹0 | ₹568 | ₹1,85,608 | 1.97% | Freelancers and small exporters wanting multi-currency local accounts and eFIRC |
| Wise Business, $5,000 | ₹7,617 | ₹0 | ₹1,371 | ₹4,64,350 | 1.90% | Freelancers and small exporters wanting multi-currency local accounts and eFIRC |
| PayPal, $500 | ₹2,111 | ₹1,357 | ₹380 | ₹43,486 | 8.13% | Card and PayPal-wallet payments from overseas PayPal buyers |
| PayPal, $2,000 | ₹8,359 | ₹5,429 | ₹1,505 | ₹1,74,042 | 8.08% | Card and PayPal-wallet payments from overseas PayPal buyers |
| PayPal, $5,000 | ₹20,855 | ₹13,574 | ₹3,754 | ₹4,35,154 | 8.07% | Card and PayPal-wallet payments from overseas PayPal buyers |
For example, on a $2,000 invoice Skydo pays about ₹1,87,213 and PayPal about ₹1,74,042 at today's reference rate, a difference of ₹13,171.
What documents and GST apply to Spain payments?
A payment from Spain needs an export invoice, an EDF, a bank inward remittance record such as a FIRC or FIRA and, for GST, an LUT or IGST payment. Services to a client in Spain count as an export of services when all five conditions are met, including a place of supply outside India and payment in convertible foreign exchange, or in INR where the RBI permits. Export of services is a zero-rated supply, and an LUT in FORM GST RFD-11 lets you supply without paying IGST. On the Spanish side, Law 37/1992 (arts. 69 and 84) generally makes a Spanish business client account for Spanish VAT on services bought from a supplier not established in Spain.
| Document | Who issues it | When needed | Best for |
|---|---|---|---|
| Export invoice | You, the exporter | For every supply; its date starts the EDF and realisation clocks | All exporters |
| EDF | You file it with the AD bank, or STPI for software (Reg 2(1)(f)) | Within 30 days from the end of the invoice month (Reg 3(2)) | Service and software exporters |
| FIRC or FIRA | The bank that credits the rupees in India | After each credit; Rule 89(2)(c) names BRCs or FIRCs for export of services refund claims | GST records and refund claims |
| e-BRC | DGFT, generated by the exporter with an IEC from the bank's inward remittance message | After payment is received | Exporters who need DGFT confirmation that payment was received |
| LUT (FORM GST RFD-11) | You file it with the jurisdictional Commissioner (CGST Rule 96A) | Before export, to supply without paying IGST | GST-registered exporters |
What changed in the rules this year?
The main change in 2026 is that the FEMA Export and Import Regulations 2026 took effect on 1 October 2026. A.P. (DIR Series) Circular No. 20 supersedes the Master Direction on Export of Goods and Services and the listed circulars, including the SOFTEX circulars, from the same date.
- New regulations: The 2026 Regulations came into force on 1 October 2026 and were amended on 22 September 2026.
- SOFTEX: The SOFTEX circulars are listed as superseded in Circular No. 20, and software exports now use the EDF.
- Realisation: The 22 September 2026 amendment set nine months, replacing fifteen, and twelve months for INR invoices, replacing eighteen (Reg 5).
- Small invoices: Invoices up to ₹10 lakh can close in EDPMS on the exporter's declaration (Reg 4(2)).
- Unrealised exports: Exports unrealised one year past the due date limit further exports to full advance or an irrevocable letter of credit (Reg 13).
How did we verify this?
Every rule is linked to its official source below with the date it was checked. Platform figures come from each platform's own pages; the full method is on the methodology page.
- Foreign Exchange Management (Export and Import of Goods and Services) Regulations, 2026 (Notification FEMA 23(R)/2026-RB, amended up to 22 September 2026), Reg 2(1)(f), 3(2), 4(2), 5, 13, 18(2) (checked 6 Oct 2026)
- RBI A.P. (DIR Series) Circular No. 20 dated 16 January 2026: Export and Import of Goods and Services, Supersession of Master Direction and Annex circulars (checked 6 Oct 2026)
- Foreign Exchange Management (Manner of Receipt and Payment) Regulations, 2023, Reg 3(2)(I)(a)(iii) (checked 6 Oct 2026)
- RBI A.P. (DIR Series) Circular No. 84 dated 29 February 2012: Compilation of R-Returns, Reporting under FETERS, Purpose codes for reporting (checked 6 Oct 2026)
- IGST Act, 2017, Section 2 (Definitions), s.2(6) export of services (checked 6 Oct 2026)
- IGST Act, 2017, Section 16 (Zero rated supply), s.16(1) and 16(3) (checked 6 Oct 2026)
- CGST Rules, 2017, Rule 96A (Export under bond or Letter of Undertaking), Rule 96A(1)(b) (checked 6 Oct 2026)
- CGST Rules, 2017, Rule 89 (Application for refund), Rule 89(2)(c) (checked 6 Oct 2026)
- European Central Bank: Single Euro Payments Area (SEPA), SEPA countries (checked 6 Oct 2026)
- DGFT FAQs on Self-Generation of eBRC, FAQ 1, 2, 10 and 20 (checked 6 Oct 2026)
- Spain, Ley 37/1992 del Impuesto sobre el Valor Añadido (consolidated text, BOE), Art. 69.Uno.1º and art. 84.Uno.2º a) (checked 6 Oct 2026)
- Skydo homepage (pricing and fee calculator), Know what you pay; calculator showing GST 18% of transaction fee (checked 6 Oct 2026)
- Razorpay MoneySaver Export Account (International Bank Transfers) pricing, Standard Plan: 0% FX markup, 1% fee, FlashLinks 2%, GST applicable, flat fee of INR 1,000 on transactions below INR 1,00,000, setup and AMC INR 0 (checked 6 Oct 2026)
- Wise India: Fees for receiving money (Business), Conversion fee depends on the currency; eFIRC for every transfer; GST 18% of (conversion fee + eFIRC fee); calculator (checked 6 Oct 2026)
- PayPal India Merchant Fees, Receiving international transactions; Currency Conversions (3.0% converting balance and payments received; 4.00% all other cases); Withdrawals Out of PayPal; Dispute Fees; Other Fees (Last Updated 28 March 2024) (checked 6 Oct 2026)
Frequently asked questions
Do I need a FIRC from the RBI for every EUR payment from a client in Spain?
The FEMA Regulations 2026 do not name the FIRC as a required document, and the RBI does not issue it. Your bank does. The rules require an EDF, realisation within nine months and purpose code reporting. A FIRC or FIRA still matters for GST, since Rule 89(2)(c) asks for BRCs or FIRCs in export of services refund claims.
Can a Spanish client pay by SEPA bank transfer straight into an Indian bank account?
No. Spain is one of the 41 SEPA countries, and India is not. A euro transfer to an Indian bank account therefore travels outside the SEPA scheme, usually as an international transfer. A SEPA payment works only into a euro account held in a SEPA country, and money that reaches India still follows FEMA export rules.
Which RBI purpose code applies to a payment from a client in Spain for export services?
The purpose code comes from the RBI's FETERS purpose code list and must match the service you invoiced, such as software, consultancy or design. The client's country does not change the code. Your AD bank reports it with the inward remittance. Check our purpose codes list and confirm the code with your bank.
Does a GST LUT mean no IGST on an export of services invoice to Spain in 2026?
Yes. With an LUT in FORM GST RFD-11 you supply without paying IGST. If payment is not received within one year or the FEMA period from the invoice date, whichever is later, the tax with interest is due fifteen days after that period ends. See our LUT filing guide for the portal steps.
Should my invoice to a Spanish business client include Spanish VAT (IVA)?
Usually no. Under Spain's VAT Law 37/1992, article 69 places most business-to-business services where the client is established, and article 84 makes the Spanish business client the taxpayer when the supplier is not established in Spain. Exceptions exist for some services, so the client's tax adviser should confirm the treatment.
How long can a Spanish client take to pay under the RBI export realisation rule?
Under Reg 5 of the FEMA Regulations 2026, you must realise the full export value within nine months from the invoice date, or twelve months if invoiced or settled in INR. Your AD bank may extend the period if you give reasons. Use the export realisation period guide for details.
Do PayPal and Wise receipts from Spain follow the same RBI rules as a bank transfer?
Yes. The FEMA Regulations 2026 apply to the export itself, whichever channel the Spanish client uses. The money must reach you through an authorised bank or authorised person under the Manner of Receipt and Payment Regulations. The comparison table on this page shows each provider's verified fees and remittance document.
Is a FIRA the same as an e-BRC for money received from Spain?
No. A FIRC or FIRA comes from the bank that credits the money in India. An e-BRC is generated on the DGFT system by an exporter with an IEC, using the inward remittance details the bank reports. See FIRC vs FIRA vs e-BRC and the Spain receiving guide.