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Expat Tip 12: Avoid Paying Double Social Security When Working Abroad

When expats move abroad for work, they often focus on income tax — but forget that social security (or its equivalent) can quietly eat into their pay twice.

 

That’s right — in some cases, you might be contributing to both your home country’s and host country’s systems at the same time, without getting any extra benefit in return.

 

🌍 Why Double Contributions Happen

 

Each country has its own payroll and social security rules.

  • Your home country might still see you as an employee covered under its pension or national insurance system.

  • Meanwhile, your host country automatically applies local social contributions to everyone working there.

The result? Two deductions, two systems, and one very confused expat.

 

🤝 Totalisation Agreements (Your Lifeline)

 

Many countries have signed social security agreements, also called totalisation agreements, to stop this double charge.

These agreements usually let you:

  • Stay covered in your home country for a limited period (often 5 years).

  • Avoid paying local contributions in the host country during that time.

  • Combine contribution periods across countries to qualify for future benefits.

Examples:

  • Australia has agreements with countries like the US, UK, Canada, and Japan.

  • Canada’s agreements cover over 50 countries.

  • The US Social Security Administration lists all partner countries here.

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🦊 Felix’s Quick Tips

 

✅ Ask before you move: Check if a totalisation or social security agreement exists between your home and host countries.

✅ Get a certificate of coverage: This document proves you’re still covered under your home country’s system — your employer can apply for it.

✅ Watch the clock: These agreements usually expire after a fixed number of years (often 5).

✅ Plan your retirement credits: Ensure contributions from both countries count toward your future pension.

✅ Freelancers beware: If you’re self-employed abroad, you might not qualify for treaty relief — talk to a local accountant before filing.

 

 

 

 

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