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Social security contributions can become, depending on the country of origin and the host country, a very expensive aspect of an allowance abroad. Due to a large number of totalisation agreements that set specific conditions, confusion over social security contributions and benefit rights has gradually subsided – with the costs of employers – but the subject still often requires the advice of experts with expertise in this area. Each totalization agreement has an exception for international staff. Under this exception, a person temporarily transferred to the service for the same employer in another county is covered only by the national form he or she received. Workers and employers continue to pay contributions to the national social security system. Spain and the United States have entered into a social security totalization agreement. This agreement defines the country to be paid by a person subject to social security tax based on residency status, the time spent by the taxpayer in the United States or Spain, and whether the taxpayer was hired abroad or at home by a Spanish or American company. Set up a consultation with one of our experienced expatriate accountants. The Data Protection Act requires us to inform you that we are entitled to collect this information until Section 233 of the Social Security Act. Although it is not mandatory for you to provide the information to the Social Security Administration (SSA), a coverage certificate can only be issued if an application has been received. The information is necessary to enable the SSA to determine whether, in accordance with an international agreement, the work should only be covered by the U.S. social security system. Without the certificate, work can be taxed in both the United States and foreign social security schemes.

There is a tax agreement between the United States and Spain that helps determine in which country different types of U.S. taxes should be paid for expats and when they should be paid. The purpose of the contract is to ensure that taxes are paid to the right country. Navigating the contract can be a bit complicated, so it`s a good idea to consult an expat tax professional if you`re not sure what the requirements of your situation are. These documents are very complex and technical. This is why it is particularly important to work with an American accountant who is well aware of the challenges faced by expatriates in Spain. If you have any questions about international social security agreements, please contact the Office of International Social Security Programs at 410-965-3322 or 410-965-7306. However, do not call these numbers if you want to inquire about a right to an individual benefit. The Spanish fiscal year reflects the U.S. fiscal year from January 1 to December 31. Tax returns must be filed between May 1 and June 30.

There is no option for an extension of time. Tax payments can be made with the tax return, i.e. they can be paid at 60% at the time of submission and 40% before November 30. If you do not wish to be entitled to benefits, but want more information about the agreement, write: A separate agreement, called a totalization agreement, helps American emigrants in Spain not to pay social security taxes to both the US and Spanish governments. The contributions of expatriates made during their stay in Spain can be credited to these two systems. The country they pay depends on the length of their life in Spain. Despite these tax advantages for expatriates, there are additional obligations related to the fact that he is a U.S. citizen and Spanish resident.

Both governments require the reporting of certain assets. Normally, people who are not U.S. citizens can receive U.S. Social Security benefits when they are outside the U.S., only if they meet certain requirements. However, according to the agreement, you can receive benefits as long as you reside in Spain, regardless of your nationality.