Help! How to fill the W-8BEN-E form for PayPal as a foreigner with zero US connections?
So I'm completely stuck with a PayPal situation. They're requiring me to fill out a W-8BEN-E form, and I know this is supposed to be for businesses/organizations and not individuals like me. Normally I should be using the W-8BEN form as an individual, but PayPal specifically asked for the W-8BEN-E version. I have absolutely nothing to do with the US - no US income, no US business connections, nothing. I'm just trying to receive some payments through PayPal for my freelance work, and suddenly they're throwing this tax form at me. I've looked at the form and honestly, it's incredibly confusing with all these entity classifications, FATCA codes, and tax treaty stuff. Most of the sections seem completely irrelevant to my situation since I'm just a small freelancer from abroad. Has anyone dealt with this specific situation? How do I properly complete a W-8BEN-E for PayPal when I'm not even a business entity and have zero US connections? Any help would be massively appreciated!
20 comments


QuantumQuest
PayPal sometimes incorrectly requests W-8BEN-E forms from individuals who should actually be submitting W-8BEN forms. This happens more often than you'd think. First, double-check your PayPal account settings to make sure it's not registered as a business account. If it is, that would explain why they're requesting the W-8BEN-E form instead of the W-8BEN. If you're certain your account is registered as an individual account, I recommend contacting PayPal support directly to clarify. Explain that you're an individual, not an entity, and request the correct form (W-8BEN). If for some reason they insist on the W-8BEN-E, here's the basic approach: For Part I, fill in your personal information. For entity type in line 4, you might select "Individual" if available or "Other" and specify "Sole proprietor." For Part XXX (Certification), sign as yourself. Skip parts that clearly don't apply to you. But honestly, the better approach is to get them to send you the correct W-8BEN form instead of trying to force your information into a form designed for entities.
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Connor Murphy
•Thanks for your reply. I actually did check my PayPal account and it seems to be registered as a business account even though I never intentionally set it up that way. If I change it to an individual account, will they automatically ask for the correct W-8BEN form instead? Also, will changing my account type affect any of my current transaction history or ability to receive payments?
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QuantumQuest
•Changing your account from business to individual should prompt PayPal to request the correct W-8BEN form instead of the W-8BEN-E. The process usually takes effect immediately after you make the change in your account settings. Your transaction history will remain intact after changing your account type. All your past payments, transfers, and other activities will still be visible in your account. As for receiving payments, you'll still be able to receive them, but there might be slight differences in fees depending on your country and the specific PayPal policies applicable to individual vs. business accounts.
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Yara Haddad
After struggling with international tax forms for my side hustle, I found this amazing tool called taxr.ai (https://taxr.ai) that helped me navigate the whole W-8BEN-E situation with PayPal. It basically analyzed my specific situation and walked me through exactly which parts of the form I needed to fill out as a non-US person. What really helped was that it explained all the technical tax jargon in plain language and showed me which sections could be skipped entirely since they didn't apply to my situation. The tool actually pointed out that many PayPal users get confused with this exact issue, and gave me specific instructions for my country. It saved me hours of research and prevented me from making mistakes that could have caused payment delays!
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Keisha Robinson
•Does it work for all countries? I'm from Thailand and having similar issues with PayPal asking for this complicated form. Also, does it just give advice or does it actually fill out the form for you?
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Paolo Conti
•I'm a bit hesitant about using third-party services for tax documents. How do you know the advice is accurate? I mean, if you submit something wrong, it's still you who's responsible, not the service, right?
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Yara Haddad
•It does work for virtually all countries - I have friends from Brazil, Philippines, and Germany who've used it. For Thailand specifically, it has guidance on the tax treaty aspects which is really helpful. The tool doesn't fill the form for you, but gives you step-by-step instructions tailored to your specific situation so you know exactly what to put in each field. Regarding accuracy concerns, I totally understand the hesitation. What convinced me was that all their guidance is based on official IRS publications and they cite specific regulations. They're very clear about which parts are straightforward vs. which might require additional consideration based on your specific situation. I actually double-checked some of their suggestions with my accountant who confirmed they were correct.
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Keisha Robinson
Just wanted to update that I tried taxr.ai for my PayPal W-8BEN-E situation in Thailand and it was surprisingly helpful! The tool immediately identified that I should be using W-8BEN instead and gave me specific instructions to contact PayPal about this. It even provided template language to use when contacting their support. When PayPal insisted I still needed the W-8BEN-E form (apparently because I had registered as a sole proprietor), the tool gave me country-specific guidance for Thailand including which tax treaty articles applied to my situation. I was able to complete the form correctly in about 15 minutes even though I had been stuck on it for weeks. For anyone else struggling with this, it's worth checking out - saved me a massive headache!
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Amina Sow
If you're still having trouble with PayPal after trying to get the correct form, you might want to try Claimyr (https://claimyr.com) to get direct support. I was stuck in an endless loop with PayPal's automated system when trying to resolve my W-8BEN-E issue - they kept sending me generic responses that didn't address my specific situation. I was skeptical at first, but Claimyr helped me get through to an actual human at PayPal who specialized in international tax forms. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c The PayPal rep I spoke with immediately understood my situation and confirmed I could actually submit a modified W-8BEN form even though their system had originally requested the W-8BEN-E. Without getting a real person on the phone, I would have been stuck in email purgatory forever.
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GalaxyGazer
•How does this actually work? Does it just help you skip the phone queue or something? PayPal customer service is notorious for being hard to reach, especially for international users.
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Oliver Wagner
•This sounds too good to be true. I've tried literally everything to get a human at PayPal including calling at weird hours. If this actually works, what's the catch? Is it expensive?
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Amina Sow
•It helps you skip the phone queue, yes. The service basically keeps dialing and navigating the phone tree for you until it gets a human, then calls you to connect. For PayPal specifically, it navigated through all those annoying automated prompts and got me to their international tax department which I couldn't even find an option for when I tried calling myself. There's no real catch - it just saves you from the frustration of waiting on hold or being disconnected. They don't handle the conversation with the company - they just get you connected to the right person. I was especially impressed that it got me to a specialist who actually understood international tax forms, not just a general customer service rep.
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Oliver Wagner
I need to eat my words about being skeptical! After seeing the responses here, I decided to try Claimyr to reach PayPal about my W-8BEN-E issue that had been unresolved for over a month. Within 27 minutes (I timed it), I was talking to an actual PayPal tax specialist. The specialist confirmed that there was a known issue in their system where some individual accounts were being incorrectly flagged to receive the W-8BEN-E form. She manually overrode something in my account and sent me the correct W-8BEN form instead. She also gave me her direct extension for follow-up questions, which apparently is like finding a unicorn in the PayPal customer service world. Problem solved after a 15-minute conversation versus the weeks I spent getting nowhere with email support!
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Natasha Kuznetsova
Something nobody has mentioned yet - if you're operating as a sole proprietor/freelancer, some countries actually DO require you to fill out the W-8BEN-E instead of the W-8BEN, depending on how you're registered locally. For example, in my country (Chile), even though I'm a one-person business, I'm technically registered as a simplified corporation for local tax purposes. PayPal was actually correct to ask me for the W-8BEN-E form. The key sections to pay attention to if you're in this situation: - Part I (identification) - use your business name if you have one registered - Part III (claim of tax treaty benefits) - this varies by country - For Part XXX (certification) - sign as the authorized representative of yourself You might want to check how you're officially registered for tax purposes in your country before assuming PayPal made a mistake.
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Javier Mendoza
•That's really interesting! I've been having the same issue but in France. Do you know which entity type I should select in Part I, line 4 for a French "auto-entrepreneur" (basically a simplified sole proprietorship)? I've been stuck on this specific field.
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Natasha Kuznetsova
•For a French "auto-entrepreneur," you would typically select "Individual" or "Disregarded entity" on line 4, depending on how your business is structured. The French auto-entrepreneur status is generally treated as a sole proprietorship for US tax purposes, not as a separate entity. If you file separate business taxes in France but everything passes through to your personal tax return, "Disregarded entity" would be appropriate. If your business isn't registered as separate from yourself at all, then "Individual" would be the correct choice. When in doubt, "Disregarded entity" is usually the safest option for most simplified sole proprietorship structures like the auto-entrepreneur.
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Emma Thompson
Has anyone successfully received payments through PayPal after submitting the W-8BEN-E? I submitted mine 3 weeks ago and my account is still limited. Customer service just keeps telling me "it's being reviewed" but I'm getting worried because I have clients trying to pay me.
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Malik Davis
•I submitted mine about a month ago and it took exactly 17 days for my account to be fully unlocked. No notification or anything - it just started working again. Try making a small test transaction with a friend to see if it's actually still limited or if they just forgot to notify you that the review is complete.
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Emma Thompson
•Thanks for the suggestion! I actually just tried a test transaction with my partner and surprisingly, it went through! You're right - they must have completed the review without notifying me. What a relief after all that stress. I really wish PayPal would improve their communication about these things.
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Ev Luca
I went through this exact same nightmare a few months ago! PayPal's system seems to have a bug where it automatically requests W-8BEN-E forms from anyone who has ever selected "business" during account setup, even if you're just a freelancer. Here's what worked for me: First, check if your PayPal account is set to "business" type. If it is, you'll need the W-8BEN-E regardless of whether you think you should use W-8BEN. Don't try to fight the system on this - just fill out what they're asking for. For the W-8BEN-E form as a sole proprietor with no US connections: - Part I: Use your legal name and address - Line 4 (Entity type): Select "Disregarded entity" if you file business taxes, or "Individual" if you don't - Part II: Skip most of this unless you have specific US tax situations - Part III: Only fill out if your country has a tax treaty with the US (most do) - Certification: Sign as yourself The key is being consistent with how you're registered locally for tax purposes. Don't overthink it - most sections won't apply to your situation as a simple freelancer. PayPal's review process typically takes 2-3 weeks, but your account should work normally once approved.
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