If my country has no U.S. totalization agreement, do I owe Social Security taxes in both countries?

Yes. If your country of residence does not have a totalization agreement with the United States, you will likely owe Social Security tax to both countries on the same income. The U.S. does not give a credit or deduction for foreign social security contributions.

The double-tax scenario typically applies to self-employed Americans in countries like the UAE, Singapore, Thailand, Mexico, Hong Kong, Taiwan, New Zealand, Indonesia, and most of Africa. W-2 employees of truly foreign employers usually avoid the U.S. side because they are not subject to U.S. FICA, but self-employed workers owe the full 15.3% U.S. SE tax.

The practical cost stack:

• U.S. SE tax: 15.3% on net earnings up to the wage base, 2.9% above
• Foreign social security: variable, often 8% to 25% of earnings
• Combined: can exceed 25% of gross self-employment income before income tax

Ways to reduce the pain:

• Deduct half the U.S. SE tax as an adjustment to income on Form 1040
• Claim foreign social security as a foreign tax for Foreign Tax Credit purposes only if it qualifies as a compulsory income tax (most foreign SS payments do not qualify)
• Restructure through a foreign corporation that pays wages instead of distributions
• Consider whether partial-year status in a totalization-agreement country makes sense for high-earning years

Vested foreign contributions may still earn you a foreign retirement benefit, and the Social Security Fairness Act (enacted in 2025) repealed the WEP and GPO offsets, so foreign pensions no longer reduce your U.S. Social Security benefit at retirement.

For more strategy, see our Totalization Agreements Guide.