Totalization Agreements for Self Employed Expats

Some Information That Self-Employed Expats Living Abroad Need to Consider:

The United States has entered into numerous bilateral Social Security agreements with foreign countries. These agreements commonly referred to as “Totalization Agreements,” coordinate the U.S. Social Security program with the comparable programs of those countries that are party to such agreements. Totalization agreements are designed to eliminate dual Social Security taxation when a worker from one country works in another country and is required to pay Social Security taxes to both countries on the same earnings. The foregoing has particular relevance to self-employed individuals who, as a result of the foreign earned income exclusion, are immune from income tax, yet may liable for social security tax in situations where the country they are working in is not a party to a Totalization agreement with the United States.

Following is a list of countries that the United States has entered into Totalization Agreements (Social Security agreements) with.