Right here’s a enjoyable truth nobody tells you earlier than transferring overseas: you would possibly find yourself paying into two social safety techniques without delay—your host nation and the U.S. Discuss double the paperwork, not one of the enjoyable.
That’s the place totalization agreements (a.ok.a. worldwide Social Safety agreements) are available in. These bilateral offers coordinate the U.S. system with applications in locations like Spain, Italy, and the U.Okay., so that you aren’t charged twice on the identical wages.
Even higher, they allow you to mix protection durations throughout nations that will help you qualify for advantages you would possibly in any other case miss. For self-employed Individuals and workers posted abroad, that’s the distinction between clear, single-system protection and an costly double-pay scenario.
📋 Key Updates for 2025
- As of Oct 2, 2025, SSA nonetheless lists 30 totalization agreements in drive; no new agreements entered into drive in 2025.
- The brand new U.S.–Spain Social Safety settlement signed on Apr 8, 2024 to switch the 1986 pact continues to be pending and never but in drive.
- The U.S.–Romania settlement signed Mar 23, 2023—transmitted to Congress on Sept 12, 2024—has not but taken impact.
What are totalization agreements?
Consider totalization agreements because the peace treaties of the Social Safety world. Licensed underneath Part 233 of the Social Safety Act, these bilateral agreements ensure you’re solely paying into one system at a time—often the nation the place you’re working. The massive concept: no twin contributions, and you’ll mix protection durations that will help you qualify for advantages later.
Right here’s how they usually work:
- Indifferent staff (short-term assignments): In the event you’re overseas quickly (often as much as 5 years), you possibly can keep coated underneath your own home nation’s system and skip paying into the host system—supplied you get a certificates of protection.
- Lengthy-term assignments: When you’re previous that five-year mark, the host nation often takes over—until there’s a particular exception.
- Protection credit: In the event you’ve cut up your profession between nations, these agreements may allow you to “mix” protection durations that will help you qualify for retirement advantages you wouldn’t in any other case attain.
In brief, these agreements don’t simply forestall double taxation—they guarantee your social safety protection stays constant whether or not you’re on a two-year challenge in Paris or a ten-year task in Rome.
Who advantages from totalization agreements?
Not each expat has to fret about U.S. Social Safety taxes piling up on high of international contributions—however for many who do, totalization agreements is usually a lifesaver. Right here’s who stands to achieve essentially the most:
- U.S. residents and residents overseas: In the event you’re working in an settlement nation like the UK, Germany, or Spain, you received’t get caught paying into each techniques without delay.
- Self-employed people: With out an settlement, you would owe Medicare taxes within the U.S. and obligatory contributions in your host nation. With one, you usually pay into only one system.
- Overseas nationals within the U.S.: In the event that they’re working for a U.S. firm however coated by their house nation’s program, an settlement can exempt them from U.S. contributions.
- Relations and dependents: In some circumstances, spouses and kids could qualify for coordinated protection, defending future advantages.
💡 Professional Tip:
Totalization agreements aren’t computerized—you often want a certificates of protection from both the U.S. or your host nation to show which system you’re paying into.
Totalization agreements vs. tax treaties
It’s simple to confuse tax treaties with totalization agreements—each are worldwide offers, however they serve very totally different functions.
- Tax treaties: These govern earnings tax. They decide which nation has the suitable to tax sure forms of earnings and assist forestall double taxation while you file your IRS tax return.
- Totalization agreements: These focus solely on social safety taxation and protection, deciding whether or not you pay into the U.S. system, your host nation’s, or simply one in every of them.
Instance: A U.S. expat in Sweden could depend on the tax treaty to keep away from double taxation on their wage earnings, whereas utilizing the totalization settlement to ensure their social safety contributions depend towards U.S. pension rights.
💡 Professional Tip:
Don’t assume your host nation has each—many countries have a tax treaty with the U.S. however no totalization settlement. All the time verify which agreements apply earlier than you propose your tax technique.
International locations with U.S. totalization agreements
The U.S. at the moment has 30 totalization agreements in drive, protecting a lot of Europe and several other main economies worldwide.
- Europe: Austria, Denmark, Eire, Italy, Netherlands, Norway, Poland, Spain, Sweden, Switzerland, and the UK.
- Different areas: Canada, Australia, South Korea, Japan, and Chile.
- Not coated: Fashionable expat locations like Singapore and Israel nonetheless lack an settlement—which means staff there could face double social safety taxation.
It’s vital to notice that protection guidelines differ by nation. Some agreements prioritize residency, whereas others have a look at whether or not you’re a indifferent employee on a brief task.
💡 Professional Tip:
Simply because a rustic doesn’t have a totalization settlement doesn’t imply you’re out of choices—generally native tax planning, employer preparations, or treaty provisions can soften the influence of double contributions. A seasoned tax skilled can spot alternatives you would possibly miss.
Certificates of Protection
A Certificates of Protection is your golden ticket for avoiding double contributions. It’s official proof that you simply’re paying into one system—such because the U.S. Social Safety program—and due to this fact exempt from contributions in your host nation.
Key factors to know:
- Certificates are issued by the Social Safety Administration (SSA) while you’re coated underneath U.S. guidelines.
- They’re important for each U.S. employers sending employees overseas and self-employed people working abroad.
- With out one, you could end up caught paying into two techniques—one thing totalization agreements are designed to forestall.
💡 Professional Tip:
Apply in your certificates earlier than your task begins; processing occasions differ, and exhibiting up in a brand new nation with out one can result in messy (and costly) payroll surprises.
Impression on Social Safety advantages for expats
Totalization agreements be certain that years spent working overseas nonetheless depend towards your retirement and associated advantages. As an alternative of shedding credit when your profession is split between techniques, you possibly can mix work historical past in each the U.S. and an settlement nation.
- Credit score safety: In the event you don’t meet the minimal in both nation alone, combining credit could make you eligible. As an illustration, somebody with 10 years within the U.S. and 15 within the Netherlands could qualify for advantages underneath each techniques, with every paying its share.
- Proportional advantages: Every nation solely pays for the years you labored there—you received’t double your pension, however you additionally received’t lose contributions.
- Expanded protection: Some agreements coordinate retirement, survivors, and incapacity advantages and contribution guidelines.
💡 Professional Tip:
Even a long time later, you’ll want proof of yearly labored overseas—hold contracts, payslips, or employer data useful for when retirement rolls round.
Making social safety work throughout borders
Totalization agreements aren’t simply authorized fantastic print—they’re what hold expats from paying into two techniques without delay whereas ensuring yearly you’re employed nonetheless counts towards retirement. Whether or not you’re posted in Spain, freelancing in Sweden, or constructing a profession throughout a number of nations, these agreements flip a possible headache into a security internet.At Brilliant!Tax, we focus on serving to Individuals overseas navigate the overlap between U.S. tax guidelines, Social Safety, and worldwide agreements. Get in contact at present, and let’s be certain that your international profession interprets into the retirement safety you’ve earned.
Often Requested Questions
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What’s a totalization settlement?
A totalization settlement, additionally known as a global social safety settlement, is a bilateral settlement between the U.S. and a international nation that forestalls staff from paying social safety contributions into each techniques on the similar time.
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How do totalization agreements have an effect on U.S. Social Safety taxes?
They decide whether or not you proceed paying U.S. Social Safety taxes or change to your host nation’s system, relying on the phrases of the settlement and your nation of residence.
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Which nations have totalization agreements with the U.S.?
The U.S. at the moment has agreements with 30 nations, together with the UK, Italy, Spain, Germany, and Japan. International locations like Singapore and Israel do not need agreements.
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Do self-employed people profit from totalization agreements?
Sure. With out an settlement, self-employed expats would possibly owe each U.S. Medicare taxes and host nation contributions. With one, they usually pay right into a single system.
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What’s a certificates of protection?
It’s official proof that you simply’re coated underneath one system (just like the U.S.) and exempt from the opposite. Certificates are issued by the Social Safety Administration (SSA) or a number nation’s authority.
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Can totalization agreements assist with retirement advantages?
Sure. Agreements assist you to mix work credit from each techniques to qualify for advantages. For instance, somebody with years cut up between the U.S. and Eire should still meet eligibility thresholds.
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Are totalization agreements the identical as tax treaties?
No. Tax treaties take care of earnings taxes, whereas totalization agreements cowl solely social safety contributions and advantages.
