3/17/2016 International Programs - Totalization Agreement with Portugal

© Nature of self-employment activity;
© Dates the activity was or will be performed; and
© Name and address of your trade or business in both countries.

Effective Date Of Coverage Exemption

The certificate of coverage you receive from one country will show the effective date of your exemption from paying Social Security
taxes in the other country. Generally, this will be the date you began working in the other country.

Certificates of coverage issued by Portugal should be retained by the employer in the United States in case of an audit by the
Internal Revenue Service (IRS). No copies should be sent to IRS unless specifically requested by IRS. However, a self-employed
individual must attach a photocopy of the certificate to his or her income tax return each year as proof of the U.S. exemption.

Copies of certificates of coverage issued by the United States will be provided for both the employee and the employer. It will be
their responsibility to present the certificate to the Portuguese authorities when requested to do so. To avoid any difficulties, your
employer (or you, if you are self-employed) should request a certificate as early as possible, preferably before your work in the
other country begins.

If you or your employer request a certificate of coverage, you should read the Privacy Act and Paperwork Reduction Act Statements
below.

Authority to collect information for a certificate of coverage
Privacy Act

|The Privacy Act requires us to notify you that we are authorized to collect this information by section 233 of the Social Security Act.

hile it is not mandatory for you to furnish the information to the Social Security Administration (SSA), a certificate of coverage
cannot be issued unless a request has been received. The information is needed to enable SSA to determine if work should be
covered only under the U.S. Social Security system in accordance with an international agreement. Without the certificate, work
Imay be subject to taxation under both the U.S. and the foreign Social Security systems.

Paperwork Reduction Act Notice

This information collection meets the clearance requirements of 44 U.S.C. section 3507, as amended by section 2 of the Paperwork

Reduction Act of 1995. You are not required to answer these questions unless we display a valid Office of Management and Budget

(OMB) control number. We estimate that it will take you about 30 minutes to read the instructions, gather the necessary facts, and
rite down the information to request a certificate of coverage.

Monthly benefits

The following table shows the various types of Social Security benefits payable under the U.S. and Portuguese Social Security
systems and briefly describes the eligibility requirements that normally apply for each type of benefit. If you don't meet the normal
requirements for these benefits, the agreement may help you to qualify (see the section on "How benefits can be paid").

This table is only a general guide. You can get more specific information about U.S. benefits here on our web site or at any U.S.
Social Security office or by calling our toll-free number at 1-800-772-1213. You can get more detailed information about the
Portuguese system by writing to the Portuguese address in "For more information" section or by visiting the Portuguese Social
Security system's web site at www.seg-social.pt.

Under U.S. Social Security, you may earn up to four credits each year depending on the amount of your covered earnings. The
amount needed to earn a work credit goes up slightly each year. For more information, see How You Earn Credits (Publication No.

https:/www.ssa.gov/international/Agreement_Pamphlets/portugal.htm|

5/10


3/17/2016 International Programs - Totalization Agreement with Portugal

Social Security Administration
Office of International Programs
P.O. Box 17741

Baltimore, Maryland 21235-7741
USA.

For additional information visit our website: www.socialsecurity.gov/international.

https:/www.ssa.gov/international/Agreement_Pamphlets/portugal.htm| 10/10


3/17/2016 International Programs - Totalization Agreement with Portugal

disabled before age 22). Reduced benefit

as early as age 60 (or age 50 if disabled) if

not caring for child. Benefits may be

continued if remarriage occurs after age

60 (or age 50 if disabled).

Divorced widow-Same as widow if Divorced widow-Same as widow if

marriage lasted at least 10 years. entitled to court ordered alimony at time
of worker's death.

Divorced widower-Same as widower if | Divorced widower-No provision.

marriage lasted at least 10 years.

Children-Same as for children of retired Children-Up to age 18 (age 24 if full-time

or disabled worker. student) or any age if disabled. Benefit
doubled if both parents deceased.

Lump-Sum Death Benefit-A one-time | Lump-Sum Death Benefit-A flat-rate

payment not to exceed $255 payable on funeral grant is payable if worker was

the death of an insured worker. receiving a benefit or was covered at time
of death. In addition, a survivor's grant is
payable to surviving spouse and other
dependent survivors.

How Benefits Can Be Paid

If you have Social Security credits in both the United States and Portugal, you may be eligible for benefits from one or both
countries. If you meet all the basic requirements under one country’s system, you will get a regular benefit from that country. If you
don't meet the basic requirements, the agreement may help you qualify for a benefit as explained below.

© Benefits from the U.S—If you don't have enough work credits under the U.S. system to qualify for regular benefits, you may
be able to qualify for a partial benefit from the United States based on both U.S. and Portuguese credits. However, to be
eligible to have your Portuguese credits counted, you must have earned at least six credits (generally one and one-half years
of work) under the U.S. system. If you already have enough credits under the U.S. system to qualify for a benefit, the United
States cannot count your Portuguese credits.

© Benefits from Portugal—Social Security credits from both countries can also be counted, when necessary, to meet the
eligibility requirements for Portuguese benefits. To be eligible to have your U.S. and Portuguese credits counted, you must
have at least 12 months of coverage credited under the Portuguese system.

How Credits Get Counted

You don't have to do anything to have your credits in one country counted by the other country. If we need to count your credits
under the Portuguese system to help you qualify for a U.S. benefit, we will get a copy of your Portuguese record directly from
Portugal when you apply for benefits. If Portuguese officials need to count your U.S. credits to help you qualify for a Portuguese
benefit, they will get a copy of your U.S. record directly from the Social Security Administration when you apply for the Portuguese
benefit.

Although each country may count your credits in the other country, your credits are not actually transferred from one country to
the other. They remain on your record in the country where you earned them and can also be used to qualify for benefits there.

Computation Of U.S. Benefit Under The Agreement

When a U.S. benefit becomes payable as a result of counting both U.S. and Portuguese Social Security credits, an initial benefit is
determined based on your U.S. earnings as if your entire career had been completed under the U.S. system. This initial benefit is

https:/www.ssa.gov/international/Agreement_Pamphlets/portugal.htm|

7/0


3/17/2016 International Programs - Totalization Agreement with Portugal
05-10072).

Under the Portuguese system, credits are measured in months. To simplify the information in the table, requirements are shown in
years of credits.

Monthly Benefits And Eligibility Requirements

Retirement or old-age benefits
United States Portugal
Worker-Full benefit at full retirement age,
or reduced benefit as early as age 62.
Required work credits range from one and
one-half to 10 years (10 years if 62 in 1991
or later).

Worker-Benefits payable at age 65.
Fifteen years of coverage needed to
qualify. Possible earlier retirement age
under special occupational systems.

Disability benefits
United States Portugal
Worker-Under full retirement age can get Worker-Under retirement age can get
benefit if unable to do any substantial benefit if permanently unable to earn
gainful work for at least a year. One and more than one-third of prior earnings due
one-half to 10 years credit to non-work related injury or illness. Must

needed, depending on age at date of have at least five years of credits. No
‘onset. Some recent work credits also recent credits required.
needed unless worker is blind.

Family benefits to dependents of retired or disabled people

United States Portugal
Spouse-Full benefit at full retirement age Spouse-No provision. However, a
or at any age if caring for the worker's spouse’s supplement may be payable to
entitled child under age 16 (or disabled —_ an old-age or disabled worker with a
before age 22). Reduced benefit as early dependent spouse.
as age 62 if not caring for a child
Divorced Spouse-Full benefit at full Divorced Spouse-No provision.
retirement age. Reduced benefit as early
as age 62. Must be unmarried and have
been married to worker for at least 10
years.
Children-If unmarried, up to age 18 (age Children-No provision.
19 if in an elementary or secondary school
full time) or any age if disabled before age
22.

Survivors benefits

United States Portugal
Widow-Full benefit at full retirement age Widow-Benefit payable at any age.
or at any age if caring for the deceased's However, if under age 35, benefit is
entitled child under age 16 (or disabled _ payable only for five years unless disabled
before age 22). Reduced benefit as early or caring for dependent child.
as age 60 (or age 50 if disabled) if not
caring for child. Benefits may be
continued if remarriage occurs after age
60 (or age 50 if disabled).
Widower-Full benefit at full retirement | Widower-Must have been age 65 or
age or at any age if caring for the totally and permanently disabled at time
deceased's entitled child under age 16 (or of wife's death.

https:/www.ssa.gov/international/Agreement_Pamphlets/portugal.htm| 610


3/17/2016 International Programs - Totalization Agreement with Portugal

Payment Of Benefits

Each country pays its own benefit. U.S. payments are made by the U.S. Department of Treasury each month and cover benefits for
the preceding month. Payments under the Portuguese system are made early each month for the preceding month.

Absence From U.S. Territory

Normally, people who are not U.S. citizens may receive U.S. Social Security benefits while outside the U.S. only if they meet certain
requirements. Under the agreement, however, you may receive benefits as long as you reside in Portugal regardless of your
nationality. If you are not a U.S. or Portuguese citizen and live in another country, you may not be able to receive benefits. The
restrictions on U.S. benefits are explained in the publication, Your Payments While You Are Outside The United States (Publication
No. 05-10137).

Appeals

If you disagree with the decision made on your claim for benefits under the agreement, contact any U.S. or Portuguese Social
Security office. The people there can tell you what you need to do to appeal the decision.

The Portuguese Social Security authorities will review your appeal if it affects your rights under the Portuguese system, while U.S.

Social Security authorities will review your appeal if it affects your rights under the U.S. system. Since each country’s decisions are

made independently of the other, a decision by one country on a particular issue may not always conform with the decision made
by the other country on the same issue.

For more information

To file a claim for U.S. or Portuguese benefits under the agreement, follow the instructions in "Claims for benefits" section.

To find out more about U.S. Social Security benefits or for information about a claim for benefits, contact any U.S. Social Security
office or call our toll-free number at 1-800-772-1213. If you live outside the United States, write to:

Social Security Administration
O1O0—Totalization

P.O. Box 17769

Baltimore, Maryland 21235-7769
USA.

For more information about Portugal's Social Security programs, visit any Social Security office in Portugal. If you don't live in
Portugal, write to:

Instituto da Seguranga
Social, LP.

Rua Rosa Araujo, 43
1250-194 Lisboa
PORTUGAL

If you don't wish to file a claim for benefits, but would like more information about the agreement, write to:

https:/www.ssa.gov/international/Agreement_Pamphlets/portugal.htm|

9/10


3/17/2016 International Programs - Totalization Agreement with Portugal

Social Security

Official Social Security Website

International Programs

Totalization Agreement with Portugal
SSA Publication No. 05-10186, May 2009, ICN 469040 [OMB Approval Number: 0960-0554 Expires 12/31/2016]

Contents

Introduction

Coverage and Social Security taxes

Certificate of coverage

Monthly benefits

A Portuguese pension may affect your U.S. benefit
What you need to know about Medicare

Claims for benefits

For more information

Introduction

An agreement effective August 1, 1989, between the United States and Portugal improves Social Security protection for people who
work or have worked in both countries. It helps many people who, without the agreement, would not be eligible for monthly
retirement, disability or survivors benefits under the Social Security system of one or both countries. It also helps people who would
otherwise have to pay Social Security taxes to both countries on the same earnings.

The agreement covers Social Security taxes (including the U.S. Medicare portion) and Social Security retirement, disability and
survivors insurance benefits. It doesn't cover benefits under the U.S. Medicare program or the Supplemental Security Income (SSI)
program.

This document covers highlights of the agreement and explains how it may help you while you work and when you apply for
benefits.

The Agreement May Help You, Your Family And Your Employer

© While you work—If your work is covered by both the U.S. and Portuguese Social Security systems, you (and your employer, if
you are employed) would normally have to pay Social Security taxes to both countries for the same work. However, the
agreement eliminates this double coverage so you pay taxes to only one system (see the section on "Coverage and Social
Security taxes").

« When you apply for benefits—You may have some Social Security credits in both the U.S. and Portugal but not have
enough to be eligible for benefits in one country or the other. The agreement makes it easier to qualify for benefits by letting
you add together your Social Security credits in both countries. For more details, see the section on "Monthly benefits".

Coverage and Social Security taxes

Before the agreement, employees, employers and self-employed persons could, under certain circumstances, be required to pay
Social Security taxes to both the United States and Portugal for the same work.

Under the agreement, if you work as an employee in the United States, you normally will be covered by the United States, and you
and your employer will pay Social Security taxes only to the United States. If you work as an employee in Portugal, you normally will

https:/www.ssa.gov/international/Agreement_Pamphlets/portugal.htm| 410


3/17/2016 International Programs - Totalization Agreement with Portugal

then reduced to reflect the fact that Portuguese credits helped to make the benefit payable. The amount of the reduction will
depend on the number of U.S. credits: the more U.S. credits, the smaller the reduction; and the fewer U.S. credits, the larger the
reduction.

A Portuguese pension may affect your U.S. benefit

If you qualify for Social Security benefits from both the United States and Portugal and you didn’t need the agreement to qualify
for either benefit, the amount of your U.S. benefit may be reduced. This is a result of a provision in U.S. law which can affect the way
your benefit is figured if you also receive a pension based on work that was not covered by U.S. Social Security. For more
information, call our toll-free number, 1-800-772-1213, and get the publication, Windfall Elimination Provision (Publication No. 05-
10045). If you are outside the United States, you may write to us at the address in "For more information" section.

What you need to know about Medicare

Medicare is the U.S. national health insurance system for people age 65 or older or who are disabled. Medicare has two parts:
hospital insurance (also called "Part A" Medicare) and medical insurance (called "Part B" Medicare). You are eligible for free hospital
insurance at age 65 if you have worked long enough under U.S. Social Security to qualify for a retirement benefit. People born in
1929 or later need 40 credits (about 10 years of covered work) to qualify for retirement benefits.

Although the agreement between the United States and Portugal allows the Social Security Administration to count your
Portuguese credits to help you qualify for U.S. retirement, disability or survivor benefits, the agreement doesn’t cover Medicare
benefits. As a result, we cannot count your credits in Portugal to establish entitlement to free Medicare hospital insurance.

For more information about Medicare, call our toll-free number, 1-800-772-1213, and ask for the publication, Medicare
(Publication No. 05-10043) or visit Medicare's website at www.medicare.gov.

Claims for benefits

If you live in the United States and wish to apply for U.S. or Portuguese benefits:

Visit or write any U.S. Social Security office; or
© Phone our toll-free number, 1-800-772-1213, 7 a.m. to 7 p.m. any business day. People who are deaf or hard of hearing may
call our toll-free TTY number, 1-800-325-0778.

You can apply for Portuguese benefits at any U.S. Social Security office by completing an application form SSA-2490.
If you live in Portugal and wish to apply for U.S. or Portuguese benefits, contact:

© The Federal Benefits Unit at the U.S. Embassy in Lisbon (phone 21-770-2403) to file for U.S. benefits; or
© Any Portuguese Social Security office to file for Portuguese benefits.

You can apply with one country and ask to have your application considered as a claim for benefits from the other country.
Information from your application will then be sent to the other country. Each country will process the claim under its own laws—
counting credits from the other country when appropriate—and notify you of its decision.

If you haven't applied for benefits before, you may need to provide certain information and documents when you apply. These
include the worker's U.S. and Portuguese Social Security numbers, proof of age for all claimants, evidence of the worker's U.S.
earnings in the past 24 months and information about the worker's coverage under the Portuguese system. You may wish to call
the Social Security office before you go there to see if any other information is needed.

https:/www.ssa.gov/international/Agreement_Pamphlets/portugal.htm| 810


3/17/2016 International Programs - Totalization Agreement with Portugal

Social Security Administration
Office of International Programs
P.O. Box 17741

Baltimore, Maryland 21235-7741
USA.

If preferred, the request may be sent by FAX to (410) 966-1861. Please note this FAX number should only be used for requesting
certificates of coverage.

No special form is required to request a certificate, but, the request must be in writing and provide the following information:

¢ Full name of worker;

© Date and place of birth;

© Citizenship;

© Country of worker's permanent residence;

e US. Social Security number;

© Date of hire;

© Country of hire;

* Name and address of the employer in the U.S. and Portugal; and
© Date of transfer and anticipated date of return.

In addition, your employer must indicate if you remain an employee of the U.S. company while working in Portugal or if you
become an employee of the U.S. company's affiliate in Portugal. If you become an employee of an affiliate, your employer must
indicate if the U.S. company has an agreement with the Internal Revenue Service under section 3121(|) of the Internal Revenue
Code to pay U.S. Social Security taxes for U.S. citizens and residents employed by the affiliate and, if yes, the effective date of the
agreement.

Your employer can also request a certificate of U.S. coverage for you over the Internet using a special online request form available
at www.socialsecurity.gov/coc. Only an employer can use the online form to request a certificate of coverage. A self-employed
person must submit a request by mail or fax.

To establish your exemption from coverage under the U.S. Social Security system, your employer in Portugal must request a
certificate of coverage (form P/USA 1) from the regional center of the Social Security system in Portugal where you are registered.

The same information required for a certificate of coverage from the United States is needed to get a certificate from Portugal
except that you must show your Portuguese Social Security number rather than your U.S. Social Security number.

Certificates For Self-Employed People

If you are self-employed and would normally have to pay Social Security taxes to both the U.S. and Portuguese systems, you can
establish your exemption from one of the taxes by writing to:

If you reside in the United States, the U.S. Social Security Administration at the address in "Certificates for employees" above;
or

© If you reside in Portugal, the regional center of the Social Security system in Portugal where you are registered and to which
you normally pay your Social Security taxes.

Be sure to provide the following information in your letter:

© Full name;

© Date and place of birth;

© Citizenship;

© Country of permanent residence;

© U.S. and/or Portuguese Social Security number;

https:/www.ssa.gov/international/Agreement_Pamphlets/portugal.htm| 410


3/17/2016 International Programs - Totalization Agreement with Portugal

For an employer in Portugal who:

Portugal
© Sent you to work in the U.S. for five years
or less
U.S.
© Sent you to work in the U.S. for more than
five years
US.
© Hired you in the U.S.
For a non-Portuguese employer US.
For the Portuguese government and you are a:
Portugal
© Portuguese national
US.
¢ US. citizen
You are self-employed andyou:
U.S.
© Reside in the U.S.
Portugal

© Reside in Portugal

If this table doesn't seem to describe your situation and you are:

Write to the U.S. address in
"Certificates for employees" section
for further information.

© Working in the U.S.

Write to the Portuguese address in
"For more information" section for
further information.

© Working in Portugal

Note

As the table indicates, a U.S. worker employed in Portugal can be covered by U.S. Social Security only if he or she works for a U.S.
employer. A U.S. employer includes a corporation organized under the laws of the United States or any state, a partnership if at
least two-thirds of the partners are U.S. residents, an individual who is a resident of the U.S. or a trust if all the trustees are U.S.
residents. The term also includes a foreign affiliate of a U.S. employer if the U.S. employer has entered into an agreement with the
Internal Revenue Service under section 3121(l) of the Internal Revenue Code to pay Social Security taxes for U.S. citizens and
residents employed by the affiliate.

Certificate of coverage

A certificate of coverage issued by one country serves as proof of exemption from Social Security taxes on the same earnings in the
other country.

Certificates For Employees

To establish an exemption from compulsory coverage and taxes under the Portuguese system, your employer must request a
certificate of coverage (form USA/P1) from the U.S. at this address:

https:/www.ssa.gov/international/Agreement_Pamphlets/portugal.htm| 310


3/17/2016 International Programs - Totalization Agreement with Portugal

be covered by Portugal, and you and your employer pay Social Security taxes only to Portugal.

On the other hand, if your employer sends you from one country to work for that employer or an affiliate in the other country for
five years or less, you will continue to be covered by your home country and you will be exempt form coverage in the other

country. For example, if a U.S. company sends an employee to work for that employer or an affiliate in Portugal for no more than
five years, the employer and the employee will continue to pay only U.S. Social Security taxes and will not have to pay in Portugal.

If you are self-employed and reside in the United States or Portugal, you generally will be covered and taxed only by the country
where you reside.

Note

In addition to retirement, survivors and disability benefits, Portuguese Social Security taxes cover several other programs including
sickness (temporary disability), maternity, occupational injury and disease, unemployment and family allowances. As a result,
workers exempted from Portuguese Social Security coverage by the agreement pay no Social Security taxes for these programs
and generally cannot receive benefits from them. If the agreement exempts you from Portuguese coverage, you and your
employer may wish to arrange for alternative benefit protection.

Summary Of Agreement Rules

The following table shows whether your work is covered under the U.S. or Portuguese Social Security system. If you are covered
under U.S. Social Security, you and your employer (if you are an employee) must pay U.S. Social Security taxes. If you are covered
under the Portuguese system, you and your employer (if you are an employee) must pay Portuguese Social Security taxes.
“Certificate of coverage" section explains how to get a form from the country where you are covered that will prove you are exempt
in the other country.

Your work status Coverage and taxes

You are working in Portugal:
For a U.S. employer who:

US.
Sent you to work in Portugal for five years
or less
Portugal
© Sent you to work in Portugal for more
than five years
Portugal
© Hired you in Portugal
For a non-U.S. employer Portugal

For the U.S. government and you are a:

USS. (either Social Security or federal

e U.S. national retirement program

Portugal
¢ Portuguese national

You are working in the U.S.:

https:/www.ssa.gov/international/Agreement_Pamphlets/portugal.htm| 210