Will Living Overseas Affect My VA Disability Benefits?

CCK Law: Our Vital Role in Veterans Law

Veterans living overseas can generally continue to receive benefits from the Department of Veterans Affairs (VA), including disability compensation, health care, and educational support.

However, these benefits might look different compared to veterans living in the U.S., with certain changes or restrictions in place that necessitate extra planning on the veteran’s part. In this article, you will learn all about these differences, along with tips and strategies to help you navigate these overseas benefits.

Key points of this article include:

• Veterans can file VA disability claims from almost anywhere in the world. They do not have to file claims while residing in the U.S.
• VA disability compensation is paid in U.S. dollars and must typically be routed through a U.S. bank account or the U.S. Treasury’s International Direct Deposit program for veterans living overseas.
• VA’s Foreign Medical Program (FMP) covers treatment for service-connected conditions
• VA home loan guarantees do not apply to properties outside the United States. However, veterans may still be able to use Special Adapted Housing (SAH) grants to modify overseas homes.

Can I File for VA Disability While Living Overseas?

Yes, veterans can file for VA disability benefits from outside the United States. VA accepts online submissions, which means just about any location with a reliable internet connection will work to submit a VA disability claim.

Veterans can file VA Form 21-526EZ — the standard application for disability compensation — through VA’s online portal at VA.gov. While paper submissions are also accepted by mail, overseas veterans should note that these may take longer to arrive than forms submitted digitally.

Overseas veterans who need assistance may be able to contact the nearest U.S. Embassy or consulate, which should be able to connect them with a VA representative (though accessibility may vary by country). VA also staffs Overseas Military Services Coordinators who help veterans stationed or residing abroad navigate benefits.

Can I Undergo a Compensation and Pension (C&P) Exam Overseas?

Yes, you should be able to. VA offers claim exam options for veterans who need a Compensation and Pension (C&P) exam but are living abroad:

• VA-contracted local provider—VA contracts with medical providers in many countries. VA will often schedule a C&P exam with one of these providers near the veteran’s place of residence.
• Military medical facility—Veterans may be able to have their C&P exam conducted at a U.S. military installation (e.g. a base clinic or hospital) if one is accessible in the region.
• Other exam solutions—In some circumstances, VA may arrange alternative exam solutions if no local providers are available.

Veterans should note, however, that C&P exams conducted overseas may take longer to schedule and complete than those in the U.S. To reduce potential delays, veterans should file claims as early as possible and stay in contact with VA about exam scheduling.

It is also important to keep in mind that VA will generally not reimburse veterans for travel to the United States to undergo a C&P exam. From a financial perspective, it might benefit veterans to work with VA to arrange an overseas option.

Want to know what to expect for your C&P exam? In the video below, CCK Law Founding Partner Robert Chisholm discusses the essentials:

Will Living Overseas Affect My Monthly Disability Compensation?

VA disability compensation rates themselves do not change based on where a veteran lives. However, the process by which veterans receive their payments may look different outside the U.S.:

• Differing tax laws—VA disability compensation is not subject to federal income tax in the United States. However, a veteran’s country of residence may have its own rules about whether to tax VA benefits received by residents. Veterans living abroad should consult a tax professional familiar with both U.S. and local tax law.
• Currency conversion—For veterans using a U.S. bank account, any currency conversion is handled by the foreign bank, which may charge fees. As such, veterans should review their bank’s international transfer policies to find a solution that works best for them. Alternatively, veterans can use the International Direct Deposit (IDD) program, which provides payments that are converted to local currency by the U.S. Treasury at the current exchange rate.
• Bank account requirements—VA does not make direct deposits into many foreign bank accounts. Therefore, veterans living abroad can either maintain a U.S. bank account and access their funds through international transfers or ATM withdrawals, or they can take advantage of the U.S. Treasury’s International Direct Deposit (IDD) program, which allows veterans in select countries to have their benefits deposited in local currency directly into a foreign bank account.

Will Living Overseas Impact My VA Health Care Benefits?

Yes, living overseas will substantially impact a veteran’s access to VA health care benefits.

This is partly because only one VA health care facility is operated overseas (the VA Manila Outpatient Clinic in the Philippines). This means veterans living overseas in any country except the Philippines will generally not be able to access VA health care facilities like they can in the U.S.

Instead, VA offers veterans living abroad access to the Foreign Medical Program (FMP). The FMP reimburses veterans living outside the United States for medical care related to their service-connected conditions. Veterans must be enrolled in the FMP and receive care from an authorized provider in their country of residence in order to receive these reimbursements.

Some key points about the FMP include:

• The FMP covers medical care, medications, and medical supplies for service-connected conditions only — not general health care.
• Veterans must generally register with the FMP before seeking reimbursement (though exceptions might exist for emergency care situations).
• Veterans will generally pay for their care upfront and submit claims to FMP for reimbursement.

Access to FMP is particularly relevant for overseas veterans with higher disability ratings, including those who are 100 percent disabled, are receiving Special Monthly Compensation (SMC), or are rated through Total Disability Based on Individual Unemployability (TDIU). These veterans often have more severe disabilities, for which regular health care treatment is essential.

Will Living Overseas Affect My Education Benefits?

While veterans living overseas will still have access to most of their GI Bill education benefits, they may have to take additional steps in order to adapt those benefits to enrollment at a foreign school. These benefits may also differ slightly from those available at U.S. institutions. For instance:

• Approved programs—Veterans must confirm their school or program is VA-approved before enrolling in order for their educational benefits to apply. VA’s GI Bill Comparison Tool can be used to search for approved foreign schools.
• Housing allowance—Post-9/11 GI Bill housing allowances are generally paid at a flat rate for students at foreign schools rather than based on local cost of living.
• Tuition and fees—VA will cover tuition and fees up to the foreign school’s actual costs, subject to program caps.

Veterans should consider contacting VA or their school’s certifying official to confirm benefit amounts and approval status before making enrollment decisions.

Will Living Overseas Affect My Housing Benefits?

Yes, moving overseas may affect certain VA housing benefits. For instance, VA home loan guarantees are limited to properties in the United States and its territories. Therefore, veterans cannot use a VA-backed loan to purchase a home in a foreign country.

Special Adapted Housing (SAH) grants are generally restricted to the U.S. or its territories (38 U.S.C. § 2101). Also, the grant is tied to veterans’ primary residence, which may also be a consideration. Veterans with questions about SAH assistance while living overseas should consult with VA directly about eligibility in their specific circumstances.

What Other Tips Are There for Veterans Living Overseas?

Additional tips for veterans looking to move or retire abroad include:

• Account for time zone differences—VA offices generally operate during U.S. business hours. This means veterans living in faraway time zones (e.g. in Asia or the Pacific) may need to plan calls to VA ahead of time.
• Opt in to electronic communications—Switching to email and online notifications reduces reliance on international mail, which can often be slow or unreliable. Veterans can typically update their communication preferences on their VA.gov profile.
• Translate documents when needed—If a veteran is seeing a local health care provider (e.g. for a C&P exam), medical records and other documentation may need to be translated into English before submission to VA. While VA can translate documents itself, this may lead to delays in the claim.
• Contact the nearest U.S. Embassy or consulate for assistance—Embassies and consulates can connect veterans with local VA representatives and provide country-specific information about how VA benefits are administered. VA’s Overseas Military Services Coordinators can also assist veterans living abroad.
• Consult with a tax professional—While S. tax law exempts VA disability compensation from federal income tax, local tax law in the veteran’s country of residence may differ. Consulting with a local tax professional can help clear up any misunderstandings an overseas veteran may have.

Have Additional Questions?

Frequently Asked Questions

Can I receive VA disability compensation if I live in another country?

Yes, VA disability compensation is not limited to veterans living in the United States.

Veterans abroad receive the same compensation rates as veterans living in the U.S. However, overseas veterans should make efforts to ensure payments are routed through a U.S. bank account or through the U.S. Treasury’s International Direct Deposit program, if their country of residence participates.

Note that this is different than VA Pension, which is limited to U.S. residents with some narrow exceptions.

Will moving overseas affect my VA disability rating?

No, it will not. VA disability ratings are based on the nature and severity of a veteran’s service-connected conditions, not where the veteran lives. A disability percentage rating will not decrease simply because a veteran moves abroad.

Can VA reduce my benefits if I move overseas?

No, VA cannot reduce a veteran’s disability rating solely because they have moved abroad.

However, veterans with ratings that are subject to future review (e.g., any rating that is not permanent) may still undergo re-evaluations regardless of where they live, and this could potentially lead to reductions.

What is VA’s Foreign Medical Program?

VA’s Foreign Medical Program (FMP) reimburses eligible veterans living outside the United States for medical care related to their service-connected conditions.

Veterans must typically register with the FMP and submit reimbursement claims after receiving care from an authorized provider in their country of residence.

Can I use my GI Bill benefits at a foreign school?

Yes, as long as the school and program are approved by VA. Veterans should consider verifying approval status using VA’s GI Bill Comparison Tool before enrolling.

However, veterans should keep in mind that housing allowances and benefit amounts for foreign schools may differ from those at U.S. institutions.

Does VA pay benefits in foreign currencies?

No, VA benefits are generally paid in U.S. dollars.

However, through the U.S. Treasury’s International Direct Deposit program, veterans in select countries can receive payments converted to local currency.

Otherwise, veterans receive payment in U.S. dollars and are responsible for any conversion through their bank.