Social Security Administration Totalization Agreement

Normally, people who are not U.S. citizens can only receive U.S. Social Security benefits outside the U.S. if they meet certain requirements. However, under the agreement, you can receive benefits as long as you reside in Spain, regardless of your nationality. If you are not a U.S. or Spanish citizen and live in another country, you may not be eligible to receive benefits. The restrictions imposed in the United States are presented in the booklet Social Security – Your Payments While You Are Outside The United States (Publication No. 05-10137). The labor shortage in Europe immediately after World War II led to a period of unprecedented labor immigration. As a result, many workers have found themselves in an unusual situation of splitting their careers between two countries, often with ambiguous tax rules.

In many cases, workers and their employers have been forced to pay double social security taxes in order to avoid gaps in coverage that would otherwise prevent these displaced workers from receiving benefits if they retired. As a result, Western European countries have begun to conclude bilateral agreements to clarify the tax obligation of social security and to protect workers` rights to benefits. This table is just a general guide. For more information about U.S. benefits, click here on our website or from a U.S. Social Security service. You can obtain more detailed information about the Spanish system by writing to the Spanish address in “For more information” or by visiting the website of the Spanish social security system in www.seg-social.es. Aggregation agreements, also known as bilateral agreements, eliminate dual social security (a situation that occurs when a person from one country works in another country and is required to pay social security taxes to both countries with equal income). Any aggregation agreement contains rules to allocate a worker`s coverage to the country where the worker has a greater economic connection. Generally speaking, the agreements ensure that the worker pays social security taxes to only one country, provided that the worker and the employer comply with the procedural requirements laid down in the agreement in order to obtain an exemption from the social security taxes of the other country. In addition, the self-employed are exempted from double taxation by two social security schemes. .

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