Social Security: What Happens When You Move to the NL
This is not tax advice. Consult a qualified tax professional for your specific situation.
Before we moved to the Netherlands under the Dutch-American Friendship Treaty (DAFT), we had a lot of questions about Social Security. Would we lose what we'd earned? Could we still collect someday? Would we owe into two systems at once?
Turns out, this is one of the more straightforward parts of the move. Here's what we've learned.
The Short Answer
Do you keep your US Social Security credits? Yes. Everything you've earned stays earned.
Can you collect Social Security while living abroad? Yes. The US pays Social Security to eligible citizens in the Netherlands without restriction.
Does your benefit amount change? No. Same calculation based on your highest 35 earning years, same cost-of-living adjustments (COLA), same claiming age options (62 early, 67 full, 70 delayed).
Do you keep earning US credits as self-employed abroad? It depends on whether you pay US self-employment tax.
Your Existing Credits Are Safe
If you've worked in the US and paid into Social Security, those credits don't disappear when you move. You need 40 credits (roughly 10 years of work) to qualify for retirement benefits.
If you already have 40 credits: You're fully vested. You'll receive benefits at retirement regardless of where you live.
If you have fewer than 40 credits: Your credits remain. You may be able to earn additional credits through self-employment abroad, or the US-Netherlands totalization agreement may help (more on that below).
What We Wish We Knew: We had about 15 years of US work history each before moving. Our credits are safe. We were worried for nothing.
Earning Credits While Abroad
Here's where it gets interesting for DAFT entrepreneurs.
If you pay US self-employment tax: You continue earning Social Security credits. Self-employment tax (Schedule SE) is how self-employed people pay into Social Security and Medicare.
If you use FEIE and eliminate your US tax liability: You may still owe self-employment tax. FEIE excludes income from income tax but does NOT exclude it from self-employment tax.
What this means: Most DAFT entrepreneurs continue paying into US Social Security even while living abroad, because self-employment tax applies regardless of FEIE.
For the details on how US taxes work from abroad, see our complete US taxes guide.
The US-Netherlands Totalization Agreement
The US and the Netherlands have a totalization agreement. This does two important things:
1. Prevents double Social Security taxation. Without this agreement, you might owe into both the US system (Social Security) and the Dutch system (AOW/volksverzekeringen) simultaneously. The totalization agreement ensures you only pay into one system at a time.
2. Combines credits from both countries. If you don't have enough credits in either country alone to qualify for benefits, the agreement lets you combine credits earned in both countries.
How it works for DAFT entrepreneurs: Generally, if you're self-employed in the Netherlands and your business is based there, you pay into the Dutch social system, not the US one. But this depends on your specific situation and how long you've been abroad.
Pro Tip: Request a Social Security Statement from ssa.gov to see exactly how many credits you have and your estimated benefits. Do this before you move and periodically after. It's free and takes five minutes.
The Dutch System (AOW)
While you live in the Netherlands, you're building up entitlement to AOW (Algemene Ouderdomswet), which is the Dutch state pension.
How it works: You accrue 2% per year of residence (ages 15-67). After 50 years, you'd receive the full AOW amount (roughly EUR 1,300-1,900/month depending on your situation). After 25 years, you'd have 50% of the full Dutch pension.
For DAFT entrepreneurs: You'll likely live in the Netherlands for some years, building partial AOW entitlement. Combined with your US Social Security, you'll have income from both systems in retirement.
AOW age: Currently 67 years and 3 months, gradually increasing.
The WEP catch: The Windfall Elimination Provision (WEP) may reduce your US Social Security benefit if you also receive a Dutch AOW pension. This is worth factoring into your retirement planning.
Collecting US Social Security from the Netherlands
When you reach retirement age, you can collect US Social Security while living in the Netherlands.
No reductions: Unlike some countries, the Netherlands doesn't cause any reduction in US Social Security benefits (though WEP may apply if you also receive Dutch AOW).
Payment methods:
- Direct deposit to a US bank account
- Direct deposit to a Dutch bank account (international direct deposit)
- Check (not recommended, slow and unreliable)
Our recommendation: Have payments sent to a US bank account (we use a Schwab checking account) and transfer funds yourself. You'll get better exchange rates through services like Wise.
For more on the tax treaty implications, see our US-Netherlands tax treaty guide.
Go at Your Own Pace
Templates, checklists, and a step-by-step timeline for your entire DAFT move—the practical toolkit we built from our own experience.
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Book a CallTax Treatment of Social Security Benefits
US taxation: Social Security benefits may be partially taxable on your US return, depending on your total income.
Dutch taxation: Under the US-Netherlands tax treaty, US Social Security benefits paid to a US citizen living in the Netherlands are generally taxable only in the US, not in the Netherlands.
This is one area where the tax treaty really works in your favor. Your Social Security won't be taxed by both countries. This saves significant money compared to paying Dutch income tax rates.
Medicare Considerations
Medicare Part A (hospital insurance): If you've earned 40 credits, you're entitled to premium-free Part A. You can enroll even while abroad, but it only covers treatment in the US.
Medicare Part B (medical insurance): You can delay enrollment without penalty while you have credible coverage abroad. Dutch health insurance counts as credible coverage.
When you return to the US: You'll have a Special Enrollment Period to sign up for Part B without late penalties, as long as you had coverage abroad.
Reality Check: Medicare doesn't cover healthcare in the Netherlands. You need Dutch health insurance (zorgverzekering), which is mandatory for residents. Don't count on Medicare while living abroad.
What We're Actually Doing
Here's our approach for the long term:
- Keeping US Social Security credits active (through self-employment tax)
- Building Dutch AOW credits (2% per year of residence)
- Planning for WEP reduction in our projections
- Saving in taxable accounts for flexibility
- Not counting on full benefits from either system
For broader retirement planning, see our retirement planning guide for American expats.
Common Questions
Will my Social Security benefit be reduced? No. Living in the Netherlands does not reduce your US Social Security benefit. You receive the same amount you'd get living in the US (WEP adjustments aside if you also receive Dutch AOW).
Do I need to notify Social Security that I moved? Yes. Update your address with the Social Security Administration. You can do this online at ssa.gov or by contacting the Federal Benefits Unit at the US Embassy.
What about my spouse's benefits? Spousal and survivor benefits work the same way abroad as they do domestically, with some exceptions. Both spouses should check their individual benefit estimates.
Can I collect both US Social Security and Dutch AOW? Yes. They're separate systems. You can receive benefits from both. The totalization agreement ensures you don't pay double contributions, but it doesn't prevent collecting from both systems.
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We're not immigration lawyers or tax advisors--just Americans who did this. Requirements change, so verify with official sources.