Germany–U.S. · Social Security
Germany–U.S. Social Security Agreement
Which social-security system applies when a person works in Germany or the United States for an employer based in the other country? The Germany–U.S. Social Security Agreement coordinates the two systems, prevents duplicate contributions in many cases and allows certain periods of coverage to be combined for benefit entitlement.
Basic Rule
As a Starting Point, the Social-Security System of the Work Country Applies
Under the Germany–U.S. Social Security Agreement, an employed person is generally subject to the social-security legislation of the country in whose territory the employment is actually performed. The employer's location and the employee's residence are not decisive for this basic rule.
A person who works permanently in Germany is therefore generally covered by the German system. A person who works permanently in the United States is generally covered by the U.S. Social Security system.
The agreement contains important exceptions, however, particularly for temporary assignments, certain self-employed individuals and special categories of workers.
Framework
Three Steps Determine Social-Security Coverage
Where Is the Work Performed?
The starting point is generally the country where the employment or self-employment activity is actually carried out.
Does an Exception Apply?
A temporary assignment in particular can allow the existing home-country social-security system to continue.
How Is Coverage Documented?
A Certificate of Coverage documents which country's legislation applies and serves as evidence for the authorities of the other country.
Temporary Assignment
Home-Country Coverage Can Continue for Up to Five Years
If an employee is temporarily assigned by an employer from Germany to the United States, the employment may continue to be subject exclusively to German social-security legislation. The same principle applies in reverse to an assignment from the United States to Germany.
A key requirement is that the work in the other country takes place within an existing employment relationship and is expected not to exceed five years.
- temporary work in the other country
- existing employment relationship before the assignment
- expected duration generally no more than five years
- home-country social-security coverage can continue
- duplicate contributions in the work country can be avoided for covered branches
- documentation through a Certificate of Coverage
More Than Five Years
If a Longer Assignment Is Planned From the Beginning, the Normal Assignment Rule Generally Does Not Apply
More Than Five Years From the Start
If it is already clear at the beginning that the employment in the other country will last more than five years, the legislation of the work country generally applies immediately. The assignment rule does not simply apply for the first five years.
Exception Agreement
In appropriate cases, the competent authorities may agree to an exception allowing continued coverage under the home-country system despite the normal rules.
Extension During the Assignment
If the originally planned duration changes, the continued application of the assignment rule or the need for an exception agreement should be reviewed early.
New Assignment
Successive assignments do not automatically each generate a new five-year period. The administrative arrangements contain rules for subsequent employment periods.
Certificate of Coverage
D/USA 101 Documents Continued German Coverage
If a person works in the United States while German social-security legislation continues to apply under the agreement, this is documented with form D/USA 101. It serves as evidence to German and U.S. authorities that German social-security law applies exclusively for the branches covered by the agreement.
For assigned employees, D/USA 101 is generally requested from the statutory health-insurance fund to which pension-insurance contributions are paid. Where no pension contributions are remitted through a statutory health-insurance fund, the DVKA is the competent authority in the relevant cases from 2026.
Applications for employed persons are generally submitted electronically to the competent authority. Since 2026, applications for self-employed individuals are also submitted electronically to the DVKA.
United States → Germany
The United States Issues the Certificate of Coverage
If a person is assigned from the United States to Germany and remains subject to the U.S. system under the agreement, the Social Security Administration issues the U.S. Certificate of Coverage.
The certificate serves as evidence to the German authorities that no German social-security contributions are due for the branches covered by the agreement.
- issuing authority in the United States: Social Security Administration
- evidence of continued U.S. coverage
- relief from parallel German contributions for covered branches
- relevant for assignments and certain other treaty cases
- retain the certificate for employer records and audits
Self-Employed Individuals
Cross-Border Self-Employment Is Also Coordinated
Self-Employed Only in Germany
A person carrying out self-employment exclusively in Germany is generally assigned to the German system under the agreement.
Self-Employed Only in the United States
If the self-employment activity is carried out exclusively in the United States, the U.S. system generally applies, including the relevant Self-Employment Tax rules.
Temporary Transfer of Activity
A person who normally carries out self-employment in one country and temporarily transfers that activity to the other country for no more than five years may generally remain covered by the original system.
Documentation Is Required
Self-employed individuals also need documentation of the applicable legislation if they claim relief from parallel contributions in the other country.
Remote Work & Local Employment
Not Every Cross-Border Work Arrangement Is an Assignment
Local Hire in Germany
If a person is hired directly by a U.S. employer to work in Germany, German social-security law generally applies. The U.S. location of the employer does not change that result.
Local Hire in the United States
If a person is hired for permanent work in the United States, the U.S. system generally applies. A previous connection to Germany is not sufficient for assignment treatment.
Employee Relocates on Their Own Initiative
A permanent move to the other country while continuing to work remotely is not automatically an assignment. The actual treaty requirements must be satisfied.
Hybrid Work in Both Countries
Regular work in both countries cannot simply be analyzed using the EU multi-state rules. The specific Germany–U.S. agreement and, where appropriate, an exception agreement must be considered.
Totalization
Coverage Periods From Both Countries Can Be Combined for Benefit Entitlement
The agreement does more than prevent duplicate contributions. It can also allow certain periods of coverage in Germany and the United States to be combined if an individual does not meet the minimum eligibility requirements for a pension benefit based solely on periods in one country.
Each country generally calculates and pays its own benefit under its own rules. Totalization therefore does not create a single combined German–U.S. pension.
- German and U.S. coverage periods can be combined for eligibility purposes
- duplicate credit for overlapping periods is avoided
- each country calculates its own benefit amount
- old-age, survivor and disability benefits may be affected
- benefit entitlement is separate from current contribution coverage
Important
The Agreement Does Not Automatically Cover Every Branch of Both Social-Security Systems in the Same Way
The Germany–U.S. agreement coordinates specific statutory social-security branches. Which German contributions are actually covered by a certificate must be reviewed based on the individual's insurance status and the particular activity.
In particular, German health insurance, long-term-care insurance, accident insurance and unemployment insurance should not simply be equated with U.S. Social Security Tax. Depending on the case, additional domestic rules outside the agreement may apply.
Typical Situations
Germany–U.S. Social Security in Practice
German Employee Assigned to the U.S. for Three Years
For a qualifying assignment, German coverage can continue. D/USA 101 documents relief from parallel U.S. Social Security contributions.
Six-Year U.S. Assignment Planned From the Beginning
Because the assignment is expected from the outset to exceed five years, the normal assignment rule generally does not apply. An exception agreement may be considered.
U.S. Employee Assigned to Germany
For an assignment of no more than five years, U.S. coverage can continue; the SSA Certificate of Coverage documents the applicable system.
U.S. Employer Hires an Employee in Germany
For local work in Germany, German social-security law generally applies even if the employer has no German entity.
Self-Employed Individual Temporarily Moves Activity to the U.S.
For a temporary transfer of no more than five years, German coverage can generally continue if the agreement requirements are satisfied.
U.S. Citizen Works Permanently From Germany
Citizenship does not determine the basic coverage rule. If the employment is actually exercised in Germany, German law generally applies unless an exception is available.
Related Guidance
Related Topics
Frequently Asked Questions
Germany–U.S. Social Security Agreement
Which social-security system generally applies?
How long can home-country coverage continue during an assignment?
What is D/USA 101?
Must D/USA 101 be requested electronically?
Does the five-year rule also apply to self-employed individuals?
Can German and U.S. coverage periods be combined?
Germany–U.S. Tax & Social Security Advice
Do You Work or Assign Employees Between Germany and the United States?
We analyze social-security coverage under the Germany–U.S. agreement, assignments and the five-year rule, D/USA 101 and U.S. Certificates of Coverage, and coordinate the result with employment income, payroll and tax returns in both countries.
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