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Book a call ↗Form W-8BEN is the IRS form a non-US individual gives to a US payer to certify that they are not a US person and are the beneficial owner of the income. Where a tax treaty applies, it is also how they claim a reduced rate of, or exemption from, US withholding.
For a US company paying an independent contractor in Europe, it is the standard document to collect before the first invoice is paid. Individuals use the W-8BEN; foreign companies use the W-8BEN-E; US persons, including US citizens living abroad, use the W-9 (IRS instructions).
W-8BEN at a glance
| Question | Answer |
|---|---|
| Who signs it | A nonresident alien individual (a person, not a company) |
| Who keeps it | The payer. Do not send it to the IRS (IRS) |
| How long it lasts | Generally to the end of the third calendar year after signing |
| If details change | The signer must tell the payer within 30 days and give a new form |
| Company contractors | Use Form W-8BEN-E instead |
Why it matters for withholding and 1099s
The IRS sources pay for personal services where the services are performed (IRS), and withholding on payments to foreign persons applies to US-source income (IRS). Taken together, pay for work done entirely outside the US is generally foreign-source and outside US withholding. The W-8BEN documents that the payee is foreign.
It also affects reporting. The IRS instructions for requesters say a payer holding a valid W-8 that it can associate with the payment is exempt from Form 1099 reporting and backup withholding on that payment. In practice: generally no 1099-NEC for a non-US contractor who has given you a valid W-8BEN.
What it means when you hire in Europe
- Sign the contractor agreement.
- Ask for a W-8BEN (or W-8BEN-E if they invoice through a company) before paying.
- Check the name and country match the invoices.
- Diarize the expiry date and ask for a fresh form before it lapses.
The contractor still owes tax in their own country, and their invoice may need specific content under EU rules: see independent contractor and contractor agreement. If the person works in the US for part of the year, or the contract is with an entity, the answer can change. A W-8BEN does not decide whether the person is a contractor or an employee; that is a separate test, covered in employee misclassification.
This is general information, not legal or tax advice. Rules differ by country and change, so confirm your case with a local lawyer or accountant.
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