Your Social Security Benefits Don't Stop at the Border, But They Do Require Attention
While Portugal is a mostly straightforward jurisdiction from SSA's perspective—there are no country-specific restrictions affecting U.S. citizens here, unlike a handful of other countries where payments are blocked or conditioned—U.S. citizens receiving retirement, disability, or survivor benefits who live in Portugal need to take affirmative steps and meet certain conditions to continue receiving payments without interruption.
These obligations are easy to overlook. The consequences of missing them (suspended payments, disrupted tax documents, administrative backlogs) are genuinely inconvenient.
Here is what clients should be aware of and act on.
Switch to Electronic Direct Deposit
This is the first item to address, and the most practical. Receiving Social Security by international mail is strongly discouraged by the SSA. Checks can be delayed, lost, or stolen, and replacement takes considerable time.
Clients have two options. The first is International Direct Deposit to a Portuguese bank account. Portugal participates in the SSA's IDD program, which allows payments to arrive in euros at the daily exchange rate. Enrollment requires completing Form SSA-1199 with the bank's details; the bank will need to fill out a portion of the form as well.
The second option is to maintain a U.S. bank account and receive payments there. This is simpler for clients who are already maintaining a U.S. banking relationship, and it means payments arrive in dollars without requiring any new account setup.
Either approach works. The key is moving off paper checks before problems arise.
Update the SSA Address and Set Up Online Access
Even for clients receiving direct deposit who do not expect paper mail from SSA, the address on file matters. It is where the SSA will send the annual Form SSA-1099 and, more importantly, the periodic questionnaires that determine whether benefits continue.
Clients should update their address through the SSA's my Social Security portal at ssa.gov/myaccount. One practical note: logging in from an international address requires an ID.me credential rather than Login.gov. Clients should set this up before they need it. Creating the account from abroad without the correct credential is a common source of frustration.
Respond to Eligibility Questionnaires, Every Time
This is the obligation most clients are unaware of until they miss it.
The SSA sends Form SSA-7162 with a return envelope to certain overseas beneficiaries each year to confirm their circumstances have not materially changed. The forms are mailed in May and follow-up notices are sent in October and December if the SSA has not received the completed questionnaire. If the completed form is not returned, payments will be suspended.
The form itself is not complicated. But it arrives by mail and requires a response by mail., Beneficiaries who have moved without updating their SSA address sometimes never receive it. They likely won’t understand why payments have stopped. Keeping the address current and watching for this form is genuinely important.
For elderly clients — particularly those dealing with memory decline — who may not recognize the form or understand its urgency, Form SSA-7162 creates a practical problem. If a durable power of attorney or a representative payee arrangement isn't already in place, a missed SSA-7162 is exactly the kind of administrative failure that can cascade.
Report Life Changes as They Occur
The SSA requires prompt notice of a defined set of changes. The most common ones for Americans in Portugal:
A new address. Required even when payments come by direct deposit.
Marriage, divorce, or annulment. Each of these can affect benefit eligibility and amounts, including for dependents or survivors receiving benefits on the worker's record.
Death of a beneficiary. Required immediately. Continuing to receive benefits after a beneficiary's death creates an overpayment obligation.
A return to work. Particularly relevant for clients under full retirement age or receiving disability benefits.
Eligibility for a foreign pension. If a client becomes eligible for a Portuguese social security benefit or private pension, this must be reported to the SSA. It is worth noting that both the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO), which previously reduced U.S. Social Security benefits for individuals also receiving a pension from work not covered by U.S. Social Security taxes (including foreign pensions), were repealed by the Social Security Fairness Act, signed into law on January 5, 2025. The repeal is effective retroactively to January 2024, and affected beneficiaries have been receiving adjusted monthly payments and retroactive lump sums from SSA since February 2025. Clients who were previously subject to WEP and GPO reductions due to a Portuguese or other foreign pension, or who expected WEP or GPO to apply when they became eligible, should verify whether their benefit has been adjusted and consider the tax and income planning implications of receiving higher monthly benefits going forward.
Know the Local Contact Point
For anything that cannot be handled through the SSA portal, the primary contact is the Federal Benefits Unit (FBU) at the U.S. Embassy in Lisbon. FBUs handle benefit applications, eligibility verification, and documentation questions for Americans living in their region. Contact information is available at https://pt.usembassy.gov/social-security/
For matters requiring direct contact with the SSA's central international office, the Office of Earnings and International Operations (OEIO) in Baltimore can be reached at +1 410-965-0160, Monday through Friday, 9:00 a.m. to 4:00 p.m. ET.
A Note on Taxes
This article focuses on the steps required to keep benefits flowing, not on how those benefits are taxed once they arrive. That is a separate and genuinely complex question. Up to 85% of U.S. Social Security income received by U.S. citizens abroad remains subject to U.S. income tax, depending on provisional income. How Portugal may also tax U.S. Social Security income depends on the recipient’s residency status and their applicable tax regime. The U.S.-Portugal tax treaty allocates taxing rights in ways that warrant careful analysis on both sides.
One additional wrinkle worth flagging for 2025 and 2026: clients who received retroactive benefit payments as a result of the WEP and GPO repeal, or who are now receiving a meaningfully higher monthly benefit than in prior years, may find that their combined income has shifted into a higher bracket for Social Security taxation purposes, or has crossed a Medicare premium threshold, in ways that were not anticipated. Because 2025 included both benefit increases and, in some cases, lump-sum retroactive payments, it may not be a reliable baseline for future planning. Clients in this situation should consider reviewing their withholding and estimated tax payments before year-end.
Clients who are unsure how their Social Security income is being handled on their Portuguese return, or whether their U.S. and Portuguese preparers are working from consistent positions, should consider a coordinated review.
This communication is for informational purposes only and does not constitute legal, tax, or investment advice. Areia Global is a U.S.-based law firm providing U.S. federal tax advice and does not provide Portuguese legal or tax advice. Any references to Portuguese law are based on guidance received from local counsel. Individuals should consult with qualified advisors in each relevant jurisdiction before making any decisions.