Where you can collect
Social Security pays in almost every country. Excluded: Cuba, North Korea, and some Eastern European/former-Soviet countries with sanctions. Most popular expat destinations (Portugal, Spain, Mexico, Costa Rica, Thailand, Colombia, Panama, Malaysia) — payments continue normally.
If you're in an excluded country, payments are HELD (not lost) and resume when you return to the US or move to an eligible country.
Direct deposit options
SSA can deposit directly to many foreign banks. Check ssa.gov for the country list and banking instructions.
Best US-based option for expats: Wise (formerly TransferWise) — multi-currency account, low fees, fast transfers. Works as a US bank account for SSA deposit, then convert to local currency at near-spot rates.
Schwab Investor Checking and Fidelity Cash Management: fee-free international ATM withdrawals, no foreign transaction fees. Both work well as the US bank account where SSA deposits.
Taxation by country
Portugal NHR: 10% flat on foreign pensions including SS for 10 years of residency.
Costa Rica: territorial — foreign-sourced SS not taxed locally.
Spain: progressive tax rates with treaty offset. Net rate often 15-20%.
Mexico: treaty allocates taxing rights. SS may be partially taxable in Mexico.
Panama: territorial — foreign income not taxed.
France, Italy: tax SS as ordinary income, with treaty credit for US tax paid.
Always pay the US Social Security tax owed first; foreign credit follows.
Spousal and survivor benefits
Spousal benefits for foreign-born spouses depend on visa status, totalization agreements, and immigration history. If you married a non-US citizen and live in their country, your spouse may or may not qualify for survivor benefits.
Verify with SSA before retirement. Some countries have totalization agreements (US-Canada, US-UK, US-Germany, etc.) that let workers combine credits across countries — useful if your spouse worked in both.
If your foreign-born spouse hasn't lived in the US legally for 5+ years and isn't covered by a totalization agreement, survivor benefits may not be payable to them — even if they would have been to a US citizen spouse.
Reporting requirements
US citizens must file US tax returns regardless of residence. SSA-1099 is mailed to your US address (or US bank). Get a US mailing service if you've fully expatriated.
Some countries require declaring US SS income on local tax returns (informational only if treaty exempts). Local CPAs handle this.
FBAR and FATCA apply if you have foreign bank accounts. Don't skip — penalties are severe.