Can Americans Earn US Social Security Credits While Working Abroad?

All Americans living overseas are subject to file a US tax return each year if they earn over $14,600 (2024), or just $400 of self-employment income, regardless of where they live or where their income is from. While filing an annual tax return is one of the downsides of holding a US passport, you may wonder if by filing you’ll earn credits towards the US Social Security system while working abroad, just like you would back home.

Here’s some good news: American expats can earn U.S. Social Security credits while working abroad, but whether they do depends on who employs them, where they work, and whether they pay U.S. Social Security taxes. Below, we explain how expats can accumulate Social Security credits, how Totalization Agreements affect benefits, and what to consider when planning for retirement abroad.

How Do You Earn US Social Security Credits?

To qualify for U.S. Social Security benefits, you must accumulate 40 Social Security credits, which typically takes 10 years of work. In 2025, you earn one credit per $1,730 of earnings, up to four credits per year (requiring at least $6,920 in covered earnings annually).

However, earning Social Security credits while abroad depends on whether you are paying into the U.S. Social Security system:

You Will Earn U.S. Social Security Credits If:

1. You Work for a U.S. Employer While Abroad

If your employer is based in the U.S., they must withhold U.S. Social Security and Medicare taxes from your paycheck.

Example: A U.S. citizen working remotely as a W-2 employee for a U.S.-based company while living in New Zealand will continue to earn credits as long as Social Security taxes are withheld.

2. You Are Self-Employed While Living Abroad

U.S. citizens living overseas who are self-employed must pay U.S. self-employment tax (SE tax) on their net earnings (unless exempt under a Totalization Agreement). SE tax includes 15.3% for Social Security and Medicare (12.4% Social Security + 2.9% Medicare).

Example: A digital nomad working as a freelance consultant in Mexico must still file a U.S. tax return and pay SE tax, which earns them Social Security credits.

You Will Not Earn U.S. Social Security Credits If:

1. You Work for a Foreign Employer Without a U.S. Payroll

If you are employed by a foreign company, you generally do not pay U.S. Social Security taxes and, therefore, do not earn Social Security credits.

Example: A U.S. citizen working for an Argentinean company does not automatically contribute to the U.S. Social Security system.

2. You Work in a Country With a Totalization Agreement and Pay Foreign Social Security Taxes

The U.S. has Totalization Agreements with 30+ countries to avoid double taxation of Social Security.

If you pay into a foreign Social Security system under an agreement, you may not be required to pay U.S. Social Security taxes and will not earn U.S. credits for that work. That said, the Totalization Agreement may still help you to accrue future Social Security Benefits. More on how below.

What is a Totalization Agreement?

A Totalization Agreement is a bilateral treaty between the United States and another country that helps prevent double taxation of Social Security for individuals who work in both countries. These agreements determine which country’s Social Security system applies to a worker, ensuring they do not have to pay Social Security taxes to both countries on the same income.

In short, if you live and work in a country with a Totalization Agreement you can use it to eliminate social taxes based on factors such as where you live, how long you intend to live there, and the nature of your work (ex. employed, self-employed).

What countries have Totalization Agreements with the US?

As of February 2025 the US has Totalization Agreements in force with the following 30 countries:

Italy
Germany
Switzerland
Belgium
Norway
Canada
United Kingdom
Sweden
Spain
France
Portugal
Netherlands
Austria
Finland
Ireland
Luxembourg
Greece
South Korea
Chile
Australia
Japan
Denmark
Czech Republic
Poland
Slovak Republic
Hungary
Brazil
Uruguay
Slovenia
Iceland

A current list, including links to the agreements can be found on the Social Security Administration website.

Final Thoughts: Social Security for Americans Working Abroad

For Americans working overseas, earning U.S. Social Security credits depends on who they work for, where they live, and whether they are paying into the U.S. Social Security system. If you are employed by a U.S. company or self-employed and paying U.S. self-employment tax, you will continue accumulating credits just as you would in the U.S. However, if you work for a foreign employer or contribute exclusively to a foreign Social Security system under a Totalization Agreement, you may not earn U.S. Social Security credits—though the agreement may still help you qualify for benefits.

If you plan to retire abroad, understanding your Social Security eligibility is essential. Totalization Agreements can be particularly useful, allowing you to combine work credits from different countries to qualify for benefits. However, every expat’s situation is different, and tax treaties, Social Security rules, and future policy changes could impact your long-term planning.

If you’re unsure how your work abroad affects your Social Security eligibility, or if you want to optimize your retirement strategy, consulting with a U.S. expat tax professional can help ensure you’re maximizing your benefits while remaining compliant with IRS regulations.

Would you like personalized guidance on your U.S. Social Security and tax obligations while living abroad? Contact us today for expert assistance!