Can U.S. Citizens Collect Social Security in Spain?

Can U.S. citizens collect Social Security in Spain?

Many people dream of spending their retirement years overseas, and one of the most popular destinations for this is Spain. Which is hardly surprising, considering its warm climate, vibrant culture, excellent healthcare, and relatively low cost of living. If you are a U.S. citizen considering moving to Spain or are already living there, you might be asking yourself the question: Can I still collect Social Security while abroad? The good news is yes, but there are numerous—and important—things to bear in mind, such as laws, tax regulations, and healthcare considerations. The following information will help you understand how to apply for Social Security from abroad, how the U.S.–Spain tax treaties affect your benefits, and what happens to Medicare coverage following your move to Spain.

Eligibility for Social Security benefits while living in Spain

Under the terms of the Social Security Administration (SSA), eligible U.S. citizens are permitted to collect retirement, disability, or survivor benefits even if they no longer live in the U.S. The SSA sends payments to most countries around the world – and Spain is on the approved list.

In order to collect U.S. Social Security benefits while living in Spain, you must:

• Be a U.S. citizen or national.
• Have earned enough “credits” during your working years (this is generally 40 credits, or around 10 years of work).
• Be eligible for retirement benefits (age 62 or older), disability benefits, or survivor benefits.

Provided you meet the above requirements and continue to report your address and status accurately to the SSA, there will be no restrictions on receiving your benefits in Spain.

How to apply for Social Security while living in Spain

If you are already living in Spain and want to apply for your American Social Security benefits, it is not necessary for you to return to the U.S. to do so. The following options are available:

1. Apply online (if possible)
U.S. citizens can apply online via the SSA website (ssa.gov – see links at the bottom of this article). However, accessing the website from Spain might result in some online features being unavailable as a result of IP restrictions or verification issues. If this is the case, you can use the second option:

2. Apply through the U.S. Embassy
The U.S. Embassy in Madrid can assist you with processing your Social Security application. You will need to contact the Federal Benefits Unit at the U.S. Embassy in Madrid (their telephone number: 91-587-2261) in order to file for U.S. benefits.

If you have worked in Spain, you will have collected Spanish credits and may be entitled to benefits under Spanish law. This depends on the length of time you have lived in Spain and how long you worked there. You can contact any Spanish Social Security office in order to file for Spanish benefits.

It is important to note that you can apply to one country and ask to have your application considered as a claim for benefits from the other country. The information contained in your application will then be sent to the other country. Each country will process the claim under its own laws—taking into account credits from the other country when appropriate—and will then notify you of its decision.

Necessary documentation

In order to apply for U.S. Social Security benefits while living in Spain, you will need to be able to provide the following information and documentation:

• U.S. passport or proof of citizenship
• Social Security number
• Birth certificate
• Marriage certificate (if applying for spousal benefits)
• Banking information (for direct deposit in Spain or the U.S.)
• Spanish residence documentation (NIE number)

Direct payment into a Spanish bank account

Via the International Direct Deposit (IDD) program (see link below), it is possible for your U.S. Social Security payments to be paid directly into a Spanish bank account in euros. The conversion is based on the U.S. Treasury’s exchange rate at the time of transfer. It is important to check with both your bank and the SSA to ensure that your account is eligible for this.

Taxation rules under the U.S.–Spain Agreement

Spain may be a long way from the U.S., but U.S. taxes can still apply, as the U.S. taxes its citizens on worldwide income, regardless of where they are living. As a result, your Social Security benefits may still be subject to U.S. tax, depending on your total income and filing status. However, a bilateral tax treaty between the U.S. and Spain helps to prevent double taxation. (For further details, please refer to our article U.S. taxes while living in Spain.)

Other U.S. income

The rules vary depending on the type of U.S.-based income (e.g., pensions, dividends, rental income, etc.). You will probably have to report that income to both countries but can often avoid double taxation through tax credits or exemptions. It is therefore advisable to consult an expert on international tax laws, in order to avoid problems.

Filing obligations

• You must still file an annual U.S. tax return (Form 1040) – even if you live abroad.
• You may also have to file a Spanish tax return if you spend more than 183 days per year in Spain or have income from a Spanish source.
• If you have foreign bank accounts exceeding $10,000, you must file a Foreign Bank Account Report (FBAR) with the U.S. Treasury.

Foreign Earned Income Exclusion (FEIE)

This exclusion does not apply to Social Security benefits. However, if you work in Spain, you may be able to exclude a certain amount of earned income using Form 2555.

What happens to Medicare?

One of the biggest drawbacks of retiring abroad is that Medicare generally does not cover medical expenses outside the United States. This means that even if you are enrolled in Medicare, your coverage will not help you in Spain. Many Spanish hospitals require payment upfront before treating non-residents. Access to the Spanish healthcare system depends on your residency status. For working expats contributing to social security, public healthcare is available. For U.S. citizens wishing to retire to Spain—and in order to apply for residency in Spain—proof of existing medical insurance is absolutely necessary.

Private health insurance

Many expats purchase private health insurance plans that cover doctor visits, hospital stays, and emergencies. These plans often cost less than American insurance and provide you with quality care. We at healthplanspain.com will be delighted to arrange the obligatory health insurance for you!

The Spanish public healthcare system

After a legal residency period (often one year), U.S. expats living in Spain who are not working—and, therefore, not contributing to the Spanish welfare system—can generally apply for access to the Convenio Especial, a public health insurance program that costs around €60–€157 per month, depending on age. Whilst the program provides access to many medical services offered through the Spanish healthcare system, some—such as prescriptions and dental care—are not covered. Furthermore, each family member must pay for individual cover.

Retaining Medicare for visits to the U.S.

Some expats choose to continue paying for Medicare Part B premiums (around $185/month in 2025) even if they are living abroad, just in case they return to the U.S. for any length of time. It is advisable to weigh up the pros and cons of continuing with payments for Medicare Part B when living abroad.

In a nutshell: Social Security tips for U.S. retirees in Spain:

• Keep the SSA informed: Always be sure to update your address, marital status, and banking information with the SSA. This helps avoid disruptions to payments.
• Use my Social Security account: You can create an online SSA account before leaving the U.S. in order to monitor your benefits – even from Spain.
• Work with a tax advisor: International taxation is a very complex subject and it is easy to make costly mistakes. It is therefore advisable to work with a tax professional who has extensive experience with both U.S. and Spanish tax laws.
• Double-check visa requirements: Spain does not offer a specific retirement visa, but the non-lucrative visa (see link below) is a common option for U.S. retirees. It requires proof of sufficient income – and Social Security benefits often qualify for this.

As a summary of all this information and to answer the question at the beginning of the article: Yes, U.S. citizens can collect Social Security while living in Spain – and a large number do so successfully. The procedure for applying from abroad is not particularly complicated and can be carried out via the SSA and U.S. consulates. Thanks to the U.S.–Spain tax treaty, you can avoid double taxation on your benefits, and by investing some time in obtaining information and planning your healthcare and residency, your retirement in Spain can reward you both personally and financially. But despite the relaxed lifestyle in Spain, it is important to remember your roots, as failure to comply with U.S. tax regulations could not only cost you dearly financially but also cast a cloud over your Mediterranean sun. Stay informed and submit the necessary documents to the U.S. authorities—by their respective deadlines—in order to make the most of your expat retirement in Spain.

References:
SSA, general information: https://www.ssa.gov
SSA, agreement between U.S. and Spain: https://tinyurl.com/SSA-agreement
SSA, payments outside the United States: https://tinyurl.com/payments-outside-US
SSA, my Social Security account: https://www.ssa.gov/myaccount/
Consult Immigration, payment via IDD: https://tinyurl.com/consult-immigration-IDD
US Embassy Spain, Medicare: https://tinyurl.com/US-embassy-medicare
US Embassy Spain, Social Security: https://tinyurl.com/US-Embassy-SocSec
Movingtospain.com, Convenio Especial: https://tinyurl.com/convenio-esp
Spanish government, non-lucrative residence visa: https://tinyurl.com/non-luc-res-visa