What Do Expats Choose? Home or Host Social Security System?

Explore the factors that determine whether an expat stays in their home country’s social security system or joins their host country’s system.

Key Factors Influencing the Decision

  • Duration of Stay: Short-term expats on temporary assignments usually remain in their home country’s system.
  • Bilateral Agreements: Countries with social security agreements, such as those within the EU, allow for transferable benefits and coverage.
  • Employment Type: Employees sent abroad by international companies often stay in their home system, while independent relocators typically enroll in the host country’s local system.
  • Insurance and Benefits: Special international health insurance or tax benefits can provide alternatives to traditional social security.
  • Future Plans: Expats who intend to return home often prefer their home system to ensure uninterrupted access to pensions and healthcare.

The article also announces a weekly series providing insights into various EU social security systems.  Follow the United Tax Network in LinkedIn to see articles for specific countries.