The US–France Totalization Agreement
The US–France Agreement on Social Security entered into force on July 1, 1988. A protocol amending the agreement was signed on September 14, 2009. The agreement is a bilateral social security coordination instrument, entirely separate from the income tax treaty.
Its purpose is to prevent dual social security liability: without the agreement, a worker active in both countries could owe contributions to both the US Social Security system and the French social security system on the same earnings. The totalization agreement eliminates this double-contribution burden by assigning each worker exclusively to one country’s system.
The agreement also enables workers who have contributed to both systems, but not long enough to qualify for benefits in either, to combine their contribution periods for purposes of qualifying for retirement, disability, or survivors’ benefits.
What the Agreement Covers
Coverage Scope
The totalization agreement coordinates coverage for:
- Old-age insurance (retirement benefits)
- Disability insurance
- Survivors’ benefits
The agreement covers the French general regime (régime général) and certain special regimes. It also covers US Social Security under Title II of the Social Security Act.
What the Agreement Does Not Cover
| Outside the Agreement | Reason |
|---|---|
| French prélèvements sociaux (CSG, CRDS, solidarity levy) on investment income | These levies fund general social protection, not specific insurance schemes covered by the agreement |
| French health insurance contributions | Health coverage is administered separately |
| French family benefit contributions (allocations familiales) | Outside the bilateral coordination scope |
| US Medicare contributions | Medicare is not a covered program under the agreement |
For self-employed US persons in France: earning no certificate of coverage means French cotisations (retirement and disability) are owed to France. But prélèvements sociaux on investment income are owed to France regardless, whether or not a certificate of coverage applies. Rates vary by income type (see De Ruyter section below for the rate structure).
Coverage Determination Rules
The General Rule: Country of Employment
For employees, the general rule is that coverage follows employment: a worker is covered by the system of the country where the work is performed. A US employee working in France is covered by the French system, not the US system.
For self-employed persons, the general rule is that coverage follows residence: a self-employed person is covered by the system of the country where they reside and principally carry on their activity.
The Detachment Exception
A significant exception applies to temporary assignments. An employee sent by a US employer to work in France for a period of up to five years may remain covered by the US system if a certificate of coverage is obtained. This exception is called the detachment rule.
Conditions for detachment:
- The worker must have been employed by the sending employer before the assignment
- The worker must be sent to France to perform work for the same employer
- The expected duration of the assignment must be five years or less
- A certificate of coverage must be obtained from the US Social Security Administration before or at the start of the assignment
If the assignment extends beyond five years, coverage transitions to the French system unless both competent authorities agree to extend the certificate.
Self-Employed Persons
The standard coverage rule for self-employed persons is the country of residence and principal activity. A US citizen who is self-employed in France as a resident is covered by the French system.
A self-employed US person who was US-based and temporarily relocates to France may qualify for the detachment exception if they meet the applicable conditions, including the five-year duration limit. A certificate of coverage extending US self-employment tax coverage can be obtained.
| Situation | Covered By | Social Security Obligation |
|---|---|---|
| Employed by US company, working in France (short-term, certificate obtained) | United States | US Social Security and Medicare; exempt from French cotisations |
| Employed by US company, working in France long-term (>5 years, no certificate) | France | French cotisations; exempt from US SE tax on French earnings |
| Self-employed, residing in France | France | French cotisations; exempt from US SE tax on French earnings |
| Self-employed, residing in US, temporarily in France (certificate obtained) | United States | US self-employment tax; exempt from French cotisations |
The Certificate of Coverage
For Employees Sent to France
To establish US coverage for an employee sent to work in France, the US employer submits a request to the US Social Security Administration. The SSA issues a certificate addressed to URSSAF (the French social security collection authority). The certificate confirms that the employee is covered by US Social Security for the assignment period.
For Self-Employed Persons
A self-employed US person seeking to maintain US social security coverage during a period in France completes SSA Form SSA-2490-BK (Application for Certificate of Coverage Under a Totalization Agreement) and submits it to the SSA.
Verify before filing: Confirm the current SSA form number and process at ssa.gov. The form referenced here was current as of the context file’s last verification date.
Consequence of obtaining a certificate:
- The self-employed person pays US self-employment tax (Schedule SE) on net earnings
- The self-employed person is exempt from French cotisations sociales on earned income
- French prélèvements sociaux on investment income still apply at the standard rate
Presenting the Certificate to French Authorities
The certificate must be presented to URSSAF to establish exemption from French mandatory contributions. Without the certificate, URSSAF will assert contribution obligations. The certificate does not apply retroactively to periods before the assignment began.
Interaction with US Self-Employment Tax
The Double-Liability Risk Without the Agreement
Without the totalization agreement, a US self-employed person in France would face:
- US self-employment tax (Schedule SE): 15.3% on net self-employment income up to the Social Security wage base, then 2.9% Medicare on all net earnings
- French cotisations sociales: rates significantly higher for most regimes (artisans, libéraux, commerçants), potentially exceeding 40% of net professional income in some categories
The totalization agreement prevents this double-contribution burden by assigning the worker to one system.
When French Cotisations Apply
A US citizen permanently resident in France as a self-employed person, without a certificate of coverage, owes French cotisations and does not owe US self-employment tax on French-source earnings. French cotisations are not deductible as a foreign tax credit on the US return because the treaty does not cover social charges and the FTC applies only to income taxes.
Note on income tax deductibility: The one-half self-employment tax deduction available under US domestic law (IRC section 164(f)) applies only when the US is the covered system. A US person covered by the French system and paying French cotisations cannot claim the section 164(f) deduction because they owe no US self-employment tax on those earnings.
The De Ruyter Issue: Investment Income
Why Investment Income Is Treated Differently
The European Court of Justice ruled in 2015 (de Ruyter, Case C-623/13) that France could not impose prélèvements sociaux on investment income of persons insured under another EU member state’s social security system, because those levies constitute social security contributions subject to EU coordination rules.
France responded by exempting EU/EEA-insured persons from most prélèvements sociaux on investment income, leaving only the solidarity levy (7.5%) instead of the full standard rate.
US Persons Are Not Covered
The de Ruyter exemption applies only to persons covered by an EU or EEA social security system. The US is not an EU member state. The US–France totalization agreement is a bilateral arrangement, not an EU coordination instrument.
A US person who obtains a certificate of coverage and is covered by the US Social Security system is not exempt from French prélèvements sociaux on investment income under the de Ruyter rule. The applicable rates as of 2026 are:
| Income Type | Rate |
|---|---|
| Rental income (revenus fonciers) | 17.2% |
| Real estate capital gains (plus-values immobilières) | 17.2% |
| Assurance-vie withdrawals | 17.2% |
| General investment income, dividends, interest (revenus du patrimoine / revenus de placements) | 18.6% |
The 18.6% rate for general investment income reflects an increase in the CSG rate (from 9.2% to 10.6%) that took effect for 2026 income under the French budget law (LOI n°2026-103). The 17.2% rate remains applicable to rental income, real estate capital gains, and assurance-vie.
Legal Framework
The US–France Agreement on Social Security was concluded pursuant to the US Social Security Act and corresponding French legislation. The SSA administers the US side of the agreement. The CLEISS (Centre des Liaisons Européennes et Internationales de Sécurité Sociale) administers the French side.
The agreement’s text and explanatory materials are available from the SSA at its international agreements section. The 2009 Protocol amended specific coverage rules to reflect changes in the French social security system structure.
The totalization agreement is distinct from the income tax treaty in a fundamental sense: it governs contributions, not taxes. Social contributions paid to France under the totalization agreement are not income taxes. They are not creditable on the US return under IRC section 901. They may, however, be deductible as business expenses in certain circumstances under IRC section 162 if they are compulsory business costs. The deductibility analysis is separate from the FTC analysis.
Frequently Asked Questions
Is the totalization agreement the same as the income tax treaty?
No. The US–France Agreement on Social Security (the totalization agreement) is a separate bilateral instrument from the income tax treaty. It coordinates social security coverage and prevents dual social security liability. It does not govern income tax obligations. The two agreements operate independently under different rules.
Who does the totalization agreement cover?
The agreement covers workers who would otherwise owe social security contributions in both countries simultaneously. It applies to employees sent by US employers to work in France, self-employed persons working across both countries, and French nationals working in the US. It covers retirement, disability, and survivors’ benefits.
Which country’s social security system applies to a self-employed US citizen living and working in France?
Generally France. The general rule under the totalization agreement is that self-employed persons are covered by the system of the country where they reside and principally work. A US citizen who is self-employed and resident in France is ordinarily covered by the French system and owes French cotisations sociales, not US self-employment tax.
What is a certificate of coverage and when is it used?
A certificate of coverage is a document issued by the home country’s social security authority confirming that a worker is covered by the home country’s system, exempting them from contributions to the host country’s system. An employer sending a US employee to France for up to five years can obtain a certificate from the US Social Security Administration, exempting the employee and employer from French social contributions during that period.
Does the totalization agreement cover French social charges (CSG, CRDS) on investment income?
No. The totalization agreement covers retirement, disability, and survivors’ insurance contributions. French prélèvements sociaux (CSG, CRDS, solidarity levy) on investment income are outside the agreement’s scope. US persons covered by the totalization agreement still owe French prélèvements sociaux on investment income.
Does a certificate of coverage exempt a US worker from all French social contributions?
Not entirely. A certificate of coverage exempts the worker from French cotisations sociales on earned income (the contributions that fund retirement and disability). It does not exempt the worker from French prélèvements sociaux on investment income. Social charges on investment income are outside the totalization agreement’s scope. As of 2026, the rate is 17.2% on rental income and real estate capital gains, and 18.6% on general investment income (dividends, interest, and similar).