Social Security for Expats: Benefits, Taxes, and Working Abroad

Can you collect Social Security while living abroad? Will you still build credits while working overseas? Here's everything expats need to know about Social Security benefits when living and working in foreign countries.

Receiving Social Security Abroad

The good news: Yes, you can receive Social Security benefits while living abroad in most countries. The Social Security Administration (SSA) sends payments to beneficiaries in over 180 countries.

Countries Where You CAN Receive Benefits

Most countries allow full benefits, including:

• All of Western Europe
• Canada, Mexico, Australia
• Japan, South Korea, Philippines
• Most of Central and South America

Countries With Restrictions

Some countries have payment restrictions:

• Cuba, North Korea: No payments
• Azerbaijan, Belarus, Kazakhstan, etc.: Restrictions for non-citizens
• Moldova, Tajikistan, Turkmenistan, Uzbekistan: Limited payments

💡 Pro Tip: Even if you're in a restricted country, you can often collect accumulated payments by traveling to an unrestricted country and contacting the SSA.

Payment Methods for Expats

Direct Deposit

The SSA offers international direct deposit to bank accounts in many countries. This is the most reliable method. Supported countries include:

• Most of Europe, including UK and EU countries
• Canada, Australia, New Zealand
• Japan, Philippines, and others

U.S. Bank Account

You can have benefits deposited to a U.S. bank account and access funds abroad via ATM or wire transfer.

Direct Express Card

A prepaid debit card that works at ATMs worldwide.

Building Social Security Credits Abroad

For U.S. Employers

If you work abroad for a U.S. employer, you generally continue to pay Social Security taxes and earn credits, just like working in the U.S.

For Foreign Employers

Working for a foreign employer abroad typically means:

• No U.S. Social Security taxes
• No U.S. credits earned
• You pay into the foreign country's system instead

Totalization Agreements

The U.S. has Totalization Agreements with 30 countries that:

1. Prevent double Social Security taxation
2. Allow you to combine work credits from both countries

Countries With Totalization Agreements

Region	Countries
Europe	UK, Germany, France, Italy, Spain, Netherlands, Belgium, Sweden, Norway, Denmark, Finland, Austria, Ireland, Switzerland, Portugal, Greece, Czech Republic, Poland, Hungary, Slovak Republic, Slovenia, Iceland, Luxembourg
Americas	Canada, Chile, Uruguay, Brazil
Asia-Pacific	Japan, South Korea, Australia

How Totalization Works

If you've worked in both the U.S. and a treaty country, you can combine credits to qualify for benefits from either system. For example:

• 15 years of U.S. work + 5 years in Germany = qualify using combined credits
• You'd receive proportional benefits from each country

Taxation of Social Security Abroad

U.S. Taxation

Social Security benefits may be taxable in the U.S.:

• Up to 85% of benefits can be taxed depending on income
• The FEIE does NOT exclude Social Security from taxation
• This can result in unexpected tax bills for expats

Foreign Taxation

Your country of residence may also tax Social Security. However, many U.S. tax treaties provide that Social Security is only taxable in the U.S.

Self-Employed Abroad: The SE Tax Dilemma

Self-employed Americans abroad face a tough situation:

• The FEIE excludes income from federal income tax
• But it does NOT exclude self-employment tax (Social Security + Medicare)
• You'll owe 15.3% on net self-employment income

Potential Relief

• Totalization Agreements: If you're covered by the foreign system, you may be exempt from U.S. SE tax
• Certificate of Coverage: Proof that you're in the foreign system

Medicare Considerations

Eligibility

You remain eligible for Medicare if you have 40 quarters of U.S. work history, even if you live abroad.

The Catch

Medicare generally doesn't cover healthcare outside the U.S., except:

• Emergency situations near U.S. borders
• On a cruise within 6 hours of a U.S. port

Options for Expats

• Keep Medicare Part A (it's free) as backup
• Consider delaying Part B enrollment (but watch for penalties)
• Use local healthcare or international health insurance abroad

Notifying Social Security

If you move abroad while receiving benefits:

1. Notify the SSA of your new address
2. Set up international direct deposit if available
3. Complete the annual foreign residence questionnaire
4. Respond promptly to any SSA correspondence

📌 Bottom Line

Social Security benefits follow you almost anywhere in the world. If you're working abroad, understand how Totalization Agreements affect your coverage. If you're self-employed, budget for SE tax even with the FEIE. And if you're collecting benefits abroad, set up reliable payment methods and keep the SSA informed of your address.