1. Most Expats Can Receive Social Security Benefits Abroad

The Social Security Administration will send benefits to qualifying expats around the world (except for residents of a few countries, see below). Receiving Social Security benefits as an expat is much like receiving them in the U.S.

2. Expats in Certain Countries Can’t Receive Social Security Benefits

There are certain countries where the Social Security Administration cannot send payments: Azerbaijan, Belarus, Cuba, Kazakhstan, Kyrgyzstan, Moldova, North Korea, Tajikistan, Turkmenistan, Ukraine, and Uzbekistan. If you live in one of these countries, they will withhold your payments and send them to you once you move to an authorized country. If you cannot wait to receive your benefits, it may be possible to receive an exception by contacting the Social Security Administration directly (except if you live in Cuba or North Korea where exceptions are not possible).

3. Social Security Benefits Can Be Paid into A Foreign Bank Account

As an expat, you can choose to have your monthly benefit paid into a U.S. or foreign bank account. While having it deposited into a foreign account may be convenient, there could be additional costs. Your benefit will always be calculated and sent in U.S. dollars. Therefore, a foreign bank may charge fees and/or give you a poor exchange rate when converting your dollars to the local currency.

4. Medicare Does Not Provide Benefits Abroad

If you are living outside of the U.S. and have no intention to return: It may make sense to turn down Medicare Part B enrollment or cancel your coverage. Most people are not required to pay a monthly premium for Medicare Part A (hospital coverage), but they are for Part B (medical insurance). Therefore paying for Medicare Part B coverage as an expat, when you can’t receive any benefits abroad, may be an unnecessary expense. If you have Medicare Part B coverage and you want to cancel it, notify the Social Security Administration.

If you are living outside of the U.S. but may return: Your decision is much more complicated. Delaying enrollment or re-enrolling after a gap in coverage could subject you to a penalty that increases your required premium for the rest of your life. Therefore, you must choose between paying for coverage you’re not using while abroad or paying a penalty when you return to the U.S. because of a coverage gap.

The coverage gap penalty increases your premiums by 10% for each 12-month period that you could have been enrolled but were not.

5. Time Abroad May Count Toward Your Social Security Work Requirement

To qualify for Social Security benefits, you must have 40 qualifying quarters (10 years) paying into the system. Many expats may find themselves short of 40 qualifying quarters based on their U.S. record alone, but may qualify when including their foreign work record.

Payments into a foreign social security system may count as qualified quarters if that country and the U.S. maintain a Social Security Totalization Agreement. If you qualify for benefits because of a Totalization Agreement each country will pay a proportionate amount to you based the number of qualifying quarters that you paid into their respective system. The U.S. currently has Social Security Totalization Agreements with 27 countries (you can see the full list on the IRS website).

6. The Windfall Elimination Provision Could Reduce Your Social Security Benefits

The Windfall Elimination Provision reduces Social Security benefits for people receiving pension payments from an employer that did not withhold Social Security taxes from their salary. This typically applies to former employees of state or local governments or non-U.S. employers. Expats that split their career between a U.S. and non-U.S. employer that offers pension benefits often find their Social Security benefits reduced by the Windfall Elimination Provision.

Any reduction in benefits due to the Windfall Elimination Provision won’t appear on your Social Security statement. If you believe that your benefit could be reduced, you’ll need to calculate your monthly benefit manually using a calculator on the Social Security Administration website.

7. Non-Citizen Spouses Can Receive Spousal Social Security Benefits

There are three ways that a non-citizen, non-green-card holding spouse can receive Social Security benefits.

If you lived together in the U.S. while married for a least five years, your spouse may qualify to receive Social Security benefits. While the five years of residency do not necessarily need to be continuous, the evidence “must support an enduring and close attachment to the U.S.” for at least five years.

If they are a citizen of certain countries: If your spouse is a citizen of Germany, Greece, Ireland, Israel, Italy, Japan, or the Netherlands, they may qualify for spousal benefits through their country’s treaty with the U.S.

If they are resident of certain countries: If your spouse is a resident of a country with a Social Security Totalization agreement (although some countries with agreements are specifically excluded – Australia and Denmark) they may qualify for spousal benefits.