The decision to renounce U.S. citizenship comes with significant financial questions, including how the move will affect Social Security benefits. If you’ve paid into the U.S. system for years, you understandably don’t want to forfeit any benefits you’ve earned. Consider these critical issues to help evaluate your options and protect your benefits.

Why It Matters

Renouncing U.S. citizenship doesn’t erase your Social Security benefits, but it can change how much you receive and whether payments continue at all. Your choice of country, residency status, and tax treaty protections can significantly impact your long-term retirement income, making advance planning critical to avoid unexpected reductions or lost benefits.

Benefits Eligibility

Your eligibility for Social Security benefits is based on your U.S. earnings, not your U.S. citizenship, though there are instances in which income earned outside the US will also qualify. You will qualify for receipt of Social Security benefits beginning as early as age 62 once you’ve accumulated 40 Social Security credits. 

Since 1978, U.S. citizens have been able to earn up to four credits per year. The amount you must earn to qualify for a credit changes every year. (For example, in 2026, you’ll earn one credit for every $1,890 in covered earnings). Generally, most people can accrue 40 credits by working 10 years. 

Totalization Agreements with Your New Home Country

Social Security eligibility isn’t the only factor in whether you’ll receive your benefits after renunciation. The country to which you relocate, your residency status, and employment history there will also play a role.

The United States has Social Security Agreements (also known as Totalization Agreements) with 30 countries, with the intention to prevent dual contribution and/or dual coverage. For most of these countries, if you fully paid into US Social Security, you can receive your Social Security benefits if you’re a citizen of that country.

If you’re merely a resident of these countries (other than Austria, Belgium, Denmark, Germany, Sweden or Switzerland), the U.S. government will also make your Social Security payments. If you’re a resident (but not a citizen) of the six excluded countries, you can receive your benefits only if you’re a refugee or stateless person.

If you don’t have enough work credits solely under the U.S. system to qualify for benefits, you could be eligible for a partial benefit from the United States based on combined credits from the United States and a Totalization Agreement country.

If you plan to work abroad after renouncing or expect to receive a foreign pension, additional rules, including the Windfall Elimination Provision (WEP), may reduce U.S. Social Security benefits and require specialized planning.

Be aware that there are dozens of other countries where you’ll receive your benefits as long as you’re a citizen of that country, even though those countries don’t have Totalization Agreements with the United States. However, regardless of your citizenship status, you won’t receive benefits if you live in Cuba or North Korea. You’ll lose out on the payments for the months you lived in Cuba or North Korea even if you go to another country and satisfy all other requirements.

Income Tax Withholding

So you’ll likely be able to receive your Social Security benefits after renouncing U.S. citizenship. That’s not the end of the discussion, though, because you might not receive full benefits.

After you renounce, you’ll be treated as a nonresident alien for federal tax purposes. This shifts the character of your benefits to Fixed or Determinable, Annual or Periodic (FDAP) income, which is subject to flat tax, not the graduated, ordinary tax rates you would have enjoyed prior to renouncing.  The default flat rate at which the Social Security Administration will withhold is 30% (applied to the 85% maximum taxable amount of your monthly benefits).  Consequently, you’ll pay 25% of your benefits as tax, whereas citizens and residents may pay somewhat less on their benefits.

This is another area where the country you choose to relocate to can make a significant difference. Canada, Egypt, Germany, Ireland, Israel, Italy, Japan, Romania and the United Kingdom have income tax treaties that exempt Social Security benefits paid to their residents from nonresident alien tax withholding. Your benefits will also be exempt if you become both a national and a resident of India. Some income tax treaties reduce, rather than eliminate U.S. withholding on Social Security benefits, and the applicable rate and conditions vary by country. For instance, if you become a resident of Switzerland, your benefits will be taxed at a 15% rate.