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 with.

Country

Entry into Force

Italy November 1, 1978
Germany December 1, 1979
Switzerland November 1, 1980
Belgium July 1, 1984
Norway July 1, 1984
Canada August 1, 1984
United Kingdom January 1, 1985
Sweden January 1, 1987
Spain April 1, 1988
France July 1, 1988
Portugal August 1, 1989
Netherlands November 1, 1990
Austria November 1, 1991
Finland November 1, 1992
Ireland September 1, 1993
Luxembourg November 1, 1993
Greece September 1, 1994
South Korea April 1, 2001
Chile December 1, 2001
Australia October 1, 2002
Japan October 1, 2005
Denmark October 1, 2008
Czech Republic January 1, 2009
Poland March 1, 2009

© Copyright  2013 – Anthony N.  Verni, Attorney at Law, CPA, MBA