Terrific/Terrible News: US - Brazil Social Security Agreement Now in Force

[ferrar]

- In effect since October 1, although has received very little press coverage in the States, or even here in Brazil.

For proof: see the USA Social Security website.

A surprise:  since there is still no overall Tax Treaty between the two countries. 

Why "Terrific"?  

It's clearly a major bilateral commercial development between the countries:

-  improves eligibility and potential benefits for anyone who may have worked  in both countries

- No more  double social security tax payments to both countries on the same earnings - by you and your employer;  or self-employment taxes if that is your case.

- Potential Spousal and Survivor benefits    

This last item would have been the case had there been no agreement, but the hurdle would have been far higher.  Without the agreement, the Brazilian spouse would have been required to have physically resided in the US with his/her partner for a period of at least five years.   That is a fairly steep requirement for folks who don't otherwise intend on making a life there.  There are less than two dozen countries that have signed onto such an agreement with the US - so now Brazil and all Brazilians are on that "coveted" list.    

So that is potentially great news indeed if you happen to be in a committed relationship with a Brazilian, in being able to provide otherwise unattainable spousal or survivor beneifts.

Why "Terrible"?

Admittedly, this was somewhat tongue in cheek.  But frankly,  given certain stories now circulating or that have circulated, on this board, a warning note needs at least to have been sounded.  There have been, and will always will be, potential suckers here, that think with their little heads.  No one likes to think that that is going to be him.   OK, end of sermon LOL.

So I can tell you that this news tidbit has already started to circulate in certain circles here, and just wanted fellow board members to be aware of it.  In a sense, it places more of a potential "target" on Americans - which can clearly be managed.  But US folks here should know that they are potentially now more of a "catch" - for reasons other than they might like to believe - than they were two weeks ago.

From what I have gathered (I happen to be quite a few years away from social security myself, so if other folks have more experience here, please feel free to correct me with the following statement):  "Even divorced spouses can qualify for social security spousal benefits, in addition to social security survival benefits, so it may pay to be cautious."

Anyway, this is just an FYI, since the local guys here seem to be slowly but increasingly aware of it.   

[SolaceSoul]

7 hours ago, ferrar said:

So I can tell you that this news tidbit has already started to circulate in certain circles here, and just wanted fellow board members to be aware of it.  In a sense, it places more of a potential "target" on Americans - which can clearly be managed.  But US folks here should know that they are potentially now more of a "catch" - for reasons other than they might like to believe - than they were two weeks ago.

 From what I have gathered (I happen to be quite a few years away from social security myself, so if other folks have more experience here, please feel free to correct me with the following statement):  "Even divorced spouses can qualify for social security spousal benefits, in addition to social security survival benefits, so it may pay to be cautious."

Anyway, this is just an FYI, since the local guys here seem to be slowly but increasingly aware of it.   

I love your generous and kind writing style. Other posters here might word what you are really saying here in a more blunt or even a more mean-spirited way. Your point was (hopefully) made well to your intended audience without having to go there.