Understanding how to receive and manage your Social Security benefits while living abroad is essential for a successful overseas retirement. This guide covers everything you need to know.
As a U.S. citizen, you can receive your Social Security payments in most countries around the world. However, there are some restrictions and considerations:
The Social Security Administration (SSA) can send payments to beneficiaries in most foreign countries, with some exceptions.
The U.S. Treasury Department prohibits sending payments to beneficiaries in the following countries:
If you're living in one of these countries, you may be able to receive your withheld payments once you move to a country where payments can be sent.
If you're not a U.S. citizen, different rules may apply. Some non-citizens may continue receiving benefits abroad indefinitely, while others may be subject to additional restrictions.
There are several ways to receive your Social Security benefits while living abroad:
Recommended Method
The SSA can deposit your benefits directly into your bank account in the United States or in many foreign countries.
Advantages:
Alternative Method
If direct deposit is not available in your country of residence, the SSA can mail paper checks to your foreign address.
Disadvantages:
The SSA offers International Direct Deposit (IDD) to beneficiaries living in many countries around the world. This service deposits your benefits directly into your foreign bank account in the local currency.
To set up direct deposit for your Social Security benefits:
Another option is to have your benefits deposited into a U.S. bank account and then:
Understanding the tax implications of receiving Social Security benefits while living abroad is crucial for proper financial planning:
As a U.S. citizen, you're required to file a U.S. tax return regardless of where you live. However, there are several provisions that may reduce or eliminate your U.S. tax liability:
Allows you to exclude a certain amount of foreign earned income from U.S. taxation.
Note: This does not apply to Social Security benefits, which are considered unearned income.
Allows you to claim a credit for income taxes paid to a foreign country.
This can help prevent double taxation on your income, including Social Security benefits.
Up to 85% of your Social Security benefits may be subject to U.S. federal income tax, depending on your total income and filing status.
You may also be subject to income tax in your country of residence. The tax treatment of U.S. Social Security benefits varies by country:
The United States has established "totalization agreements" with many countries to coordinate Social Security coverage and benefits. These agreements serve two main purposes:
Prevent you from paying Social Security taxes to both the U.S. and your country of residence on the same earnings.
Allow workers to qualify for partial U.S. or foreign benefits based on combined work credits from both countries.
The U.S. currently has totalization agreements with the following countries popular among American retirees:
When receiving Social Security benefits abroad, you must comply with certain reporting requirements:
The SSA periodically sends questionnaires to beneficiaries living abroad to verify:
You must report the following changes to the SSA:
You can report changes to the SSA through:
No, your basic benefit amount will not change because you live outside the United States. However, certain supplemental benefits like Supplemental Security Income (SSI) cannot be received while living abroad.
Additionally, cost-of-living adjustments (COLAs) will still be applied to your benefits, just as they would if you were living in the U.S.
Generally, Medicare does not cover healthcare services you receive outside the United States, with very limited exceptions. However, you can still enroll in and maintain Medicare coverage while living abroad, which may be beneficial if you plan to return to the U.S. for medical treatment or eventually move back.
If you choose not to enroll in Medicare Part B when you're first eligible, you may have to pay a late enrollment penalty if you decide to enroll later, and you'll have to wait for the General Enrollment Period (January 1–March 31 each year).
If you use International Direct Deposit (IDD), your benefits will be automatically converted to the local currency at the current exchange rate on the day of the deposit. The conversion is typically handled by the receiving bank.
If you receive your benefits in a U.S. bank account and then transfer or withdraw the money, the currency conversion will be handled by your bank or the ATM network, often with additional fees. Some expats use specialized services like Wise (formerly TransferWise) or other money transfer services to get better exchange rates.
Yes, you can work while receiving Social Security retirement benefits, but your benefits may be reduced if you're under full retirement age and earn more than certain amounts.
For 2025, if you're under full retirement age for the entire year, $1 in benefits will be deducted for every $2 you earn above $22,320. In the year you reach full retirement age, $1 in benefits will be deducted for every $3 you earn above $59,520 (only earnings before the month you reach full retirement age count).
Once you reach full retirement age, your benefits are no longer reduced regardless of how much you earn.
Your Social Security benefits will continue without interruption if you return to the United States. However, you should notify the SSA of your change of address and any changes to your direct deposit information.
If you were unable to receive benefits in a restricted country and those benefits were withheld, you may be able to receive the withheld payments once you return to the U.S. or move to a country where payments can be sent.
If you have specific questions about your Social Security benefits while living abroad, you can contact:
Our team can help you navigate the complexities of receiving Social Security benefits abroad and planning your overseas retirement.