# Abillio vs Upwork: marketplace fees vs a payment layer

Upwork is a freelance marketplace. Abillio is a payment and compliance layer for freelancers and the businesses that pay them. They do different jobs, but the comparison comes up all the time: freelancers want to declare their Upwork income properly, and clients wonder whether to keep paying a regular through Upwork.

**Quick answer:** use Upwork to find work or freelancers. Use Abillio to invoice clients and get paid without a company: 5% of each paid invoice for freelancers, 4% when a business pays contractors (3% above €50k a month). Freelancers in Latvia and Estonia can also run their Upwork income through Abillio so the income tax is withheld and paid.

## Upwork vs Abillio at a glance

Upwork

Abillio

What it is

Freelance marketplace

Invoicing and payment layer for freelancers and businesses

Fees

Fees on both sides of each contract; rates vary by plan and contract

3% to 5% depending on volume, custom pricing available

Invoices and taxes

Platform invoices; freelancers handle their own taxes

Invoice in the freelancer’s name, DAC7 reporting, income tax withheld for LV and EE residents

Best for

Finding work and freelancers

Getting paid, and paying long-term freelancers

Prices as of November 2026. Upwork’s rates change by plan and contract; check its own pricing page (checked 12 November 2026).

## What Upwork does

Upwork is a self-serve marketplace: clients post jobs, freelancers send proposals, and the two agree a contract and get paid on the platform. Upwork charges fees on both sides of each contract, and the rates depend on the plan and the contract. Its current rates are on [Upwork’s pricing page](https://www.upwork.com/pricing).

**Price: 3% to 5% depending on volume, custom pricing available.** A freelancer who invoices their own client pays 5% of each paid invoice, with no subscription. When a business pays contractors it is 4% of each paid invoice, paid by the business or by the freelancer, their choice, and 3% above €50k a month. Above that, pricing is custom. There is no setup fee and no per-seat fee.

## For freelancers in Latvia and Estonia: declaring Upwork income without a company

Upwork pays you, but it does not pay your taxes. Under the EU’s [DAC7 rules](https://taxation-customs.ec.europa.eu/taxation/tax-transparency-cooperation/administrative-co-operation-and-mutual-assistance/dac7_en), online platforms report what they pay sellers to the tax authority in the seller’s country of residence. If that income was never declared, your tax office can ask you to settle it, often with back taxes on top.

If you are a tax resident of **Latvia or Estonia**, there is a simpler route:

1.  Set **Abillio’s bank account as your payout account** in Upwork.
2.  When the payment arrives, **create the matching invoice to Upwork in Abillio**.
3.  Abillio **withholds and pays your income tax** and sends the rest to your own bank account.

No company or VAT number of your own is needed. In Latvia this runs through the Abillio Services cooperative, in Estonia through Abillio Services OÜ. Step by step: [our Upwork guide](/lv/blog/upwork-ienakumu-deklaresana-un-nodoklu-nomaksa-ar-abillio/) (in Latvian) and [our complete DAC7 guide](/en/blog/a-complete-guide-all-you-need-to-know-about-dac7-reporting/).

## For your own clients: invoice without a company

Clients you find outside Upwork can pay you through Abillio too. You send the invoice through Abillio, the client pays, and you get your money within 1 working day of their payment, for 5% of each paid invoice and no subscription. If a business pays you through its own Abillio account, the 4% fee is paid by the business or by you, as you agree.

## For businesses: when to use Upwork and when to use Abillio

Use Upwork to find someone for a defined piece of work, especially when you do not know who should do it yet. Use Abillio for freelancers you found elsewhere and pay every month: one place for invoices, payouts and reporting, for 4% of each paid invoice (3% above €50k a month). Before moving a relationship that started on Upwork, read Upwork’s terms of service on paying people off the platform, and never move someone in breach of them.

**Ready to invoice your first client?** [Create a free account](https://app.abill.io/auth/signup/) in about 5 minutes.

## Frequently asked questions

### Is Upwork free for freelancers?

No. Upwork charges freelancers a service fee on what they earn, and the rate depends on the contract. Check [Upwork’s pricing page](https://www.upwork.com/pricing) for the current rates.

### How do I declare Upwork income in Latvia or Estonia without a company?

Set Abillio’s bank account as your Upwork payout account, then create the matching invoice to Upwork in Abillio when the money arrives. Abillio withholds and pays your income tax and sends the rest to your bank account.

### How much does Abillio cost?

3% to 5% depending on volume, with custom pricing available. Freelancers invoicing their own clients pay 5% of each paid invoice; when a business pays contractors it is 4%, and 3% above €50k a month. No subscription.

### Can I move an Upwork client to Abillio?

Only in line with Upwork’s terms of service. Read the rules on paying people off the platform first. Clients you found outside Upwork can pay you through Abillio at any time.

Source: https://abill.io/en/compare/upwork/