As the global economy continues to thrive, it is becoming increasingly common for individuals to work and live in multiple countries throughout their careers. Many countries have entered into totalization agreements to ensure that individuals who work and pay into multiple social security systems can receive benefits from those systems. In this article, we will take a closer look at the list of countries with totalization agreements.
First, what is a totalization agreement? Essentially, it is an agreement between two countries that eliminates the need for individuals to pay social security taxes in both countries for the same work. Instead, there is an agreement to assign coverage to one country`s social security system. This can help avoid double taxation and ensure that individuals receive the benefits they are entitled to.
As of 2021, the United States has totalization agreements with 30 countries. These include:
1. Australia
2. Austria
3. Belgium
4. Canada
5. Chile
6. Czech Republic
7. Denmark
8. Finland
9. France
10. Germany
11. Greece
12. Hungary
13. Ireland
14. Italy
15. Japan
16. South Korea
17. Luxembourg
18. Netherlands
19. Norway
20. Poland
21. Portugal
22. Slovakia
23. Spain
24. Sweden
25. Switzerland
26. United Kingdom
27. Uruguay
28. Denmark/Greenland (separate agreement)
29. France/French Guiana (separate agreement)
30. Netherlands/Antilles (separate agreement)
It is worth noting that some totalization agreements cover only certain types of U.S. social security benefits, such as retirement or disability benefits. Additionally, the terms of the agreements can vary between countries, so it is important to understand the specific provisions of each agreement.
For individuals who work and live in multiple countries, totalization agreements can provide important protections and ensure that they are able to receive the benefits they are entitled to. If you are planning to work abroad or are already doing so, it is a good idea to familiarize yourself with the terms of totalization agreements between your home country and any countries you will be working in.
In summary, there are currently 30 countries with totalization agreements with the United States. These agreements are designed to prevent double taxation and ensure that individuals who work in multiple countries are able to receive the benefits they are entitled to from the appropriate social security system. Understanding the specifics of these agreements can be a valuable tool for those who work and live internationally.
