Glossary

People

Totalization agreement

A totalization agreement is a treaty between two countries coordinating social security coverage so that cross-border workers are not required to contribute to both systems on the same earnings. Totalization agreements are separate from income tax treaties.

In plain terms: An agreement stopping you paying social security twice on the same income.

Why it matters

Frequently missed because founders check for an income tax treaty and stop. The two are distinct: a country may have one and not the other, and social security contributions can exceed income tax for a self-employed founder.

Read the full guideInternational founders

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