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Updated June 05, 2024 Reviewed by Reviewed by Charlene RhinehartCharlene Rhinehart is a CPA , CFE, chair of an Illinois CPA Society committee, and has a degree in accounting and finance from DePaul University.
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A person with dual citizenship is a citizen of two countries at the same time, which has both advantages and disadvantages because it is a complex legal status. One benefit of dual citizenship that is often cited is the ability of an individual to possess two passports. But one potential drawback is the possibility of double taxation. Below, we explore these and other pros and cons of being a citizen of two countries at once.
Dual citizenship, which is also called dual nationality, means holding citizenship of two countries at the same time. This means you can have citizenship through birth in one country and be naturalized in another. For instance, you may be a citizen of the United States and become a citizen of another country. This may happen automatically. For instance:
Dual citizenship can also be achieved through specialized legal processes, such as when a foreign national is naturalized as a U.S. citizen. In this case, that person would become a citizen of both countries, unless their home country does not allow dual citizenship.
Some countries also allow people to become naturalized through investment. This means contributing to another country's economy or cultural development. For instance, you can secure citizenship in Saint Kitts and Nevis by making a minimum investment of $250,000 in the country.
Keep in mind that not every country recognizes dual citizenship. For instance, Austria, India, Japan, and Norway are some of the countries that prohibit holding two passports. As such, you may need to renounce your birth citizenship to become a citizen of a new country.
To become naturalized as a U.S. citizen, a foreign national must be a permanent resident for several years, pass a U.S. citizenship test, and meet certain other eligibility requirements.
Dual citizens can participate fully in the political life of every country where they have citizenship. This includes the right to vote and make donations to political candidates.
Unlike foreigners, dual citizens do not need a visa or permit to visit the countries where they have citizenship, and they can stay for as long as they like. They also have the right to seek work in both countries, while foreigners must pass through an at-times lengthy process to get a work permit. They are also exempt from any restrictions on foreign businesspeople.
Dual citizens can receive the benefits and privileges offered by each country where they are a citizen. For example, they may travel to receive medical treatment or procedures that are not available in the other country where they are a citizen. They can also receive an education at the same price as domestic students.
As a dual citizen, you are allowed to carry passports from both countries. For example, if you are a citizen of the U.S. and New Zealand, you can travel more easily between these two countries. Having a citizen's passport eliminates the need for long-stay visas and any questions about the purpose of your trip during the customs process.
Holding two passports also guarantees the individual the right to enter both countries, which can be beneficial if you have family members to visit in both countries or if you are a student or a businessperson who studies or conducts affairs in both countries.
It's important to note that people who are dual citizens of the U.S. and another country must use a U.S. passport when traveling to and from the United States. This is often the case with many other countries.
Another benefit of dual citizenship is the ability to own property in either country. Some countries restrict land ownership to citizens only. As a legal citizen of two countries, you would be able to purchase property in either or both countries.
If you travel frequently between the two countries, this might be especially useful, since property ownership might offer a more economical way to live in two places.
As a dual citizen, you'll reap the benefits of being immersed in the culture of two countries. Some government officials tend to be fond of dual citizenship because they see it as a way to promote the country's image as a prime destination for tourists.
Dual citizenship offers individuals the opportunity to learn about the history of both countries, learn two or more languages, and experience a different way of life.
Because dual citizenship is complex and the rules and laws regarding citizenship vary between different countries, it may be in your best interest to consult with qualified experts, including accountants and lawyers, about certain purchases or decisions related to employment and your finances in both countries.
As a dual citizen, you are bound by the laws of both countries. For example, if you are a citizen of the U.S. and a country with mandatory military service, you can lose your U.S. citizenship under certain circumstances. This includes serving as an officer in a foreign military engaged in a war against the U.S.
In general, U.S. policy recognizes that dual citizens might be legally obligated to fulfill military obligations abroad, and many can do so without jeopardizing their U.S. citizen status, but it is important to research each situation carefully.
For individuals who are dual citizens of the U.S. and another country, the U.S. imposes taxes on its citizens for income earned anywhere in the world. If you live in your country of dual residence that is not the U.S., you may owe taxes both to the U.S. government and to the country where the income was earned.
However, income tax treaties between the U.S. and other countries serve to effectively reduce or eliminate an individual's tax liability to avoid double taxation.
For example, a treaty between the U.S. and New Zealand overrides the income tax laws of each country to avoid double taxation. Even so, dual citizens may be required to file U.S. tax returns even if they are living and earning income in New Zealand.
Because tax laws are complicated and can change from year to year, it's important for individuals facing this situation to consult with a qualified tax accountant.
U.S. citizens are required to report their overseas income, even if it is earned as a foreign citizen. The Foreign Earned Income Exclusion allows U.S. citizens to exclude up to $126,500 in 2024. For married couples filing jointly, it's $253,000.
Depending on your career path, dual citizenship can be a disadvantage. If you want to work with the U.S. government or your job requires access to information that is considered classified by the U.S. government, having dual citizenship may bar you from gaining the security clearance you need for this type of employment. Those born into dual citizenship may encounter fewer problems than those who actively sought it out.
Sometimes dual citizenship happens automatically, such as when a child is born in the U.S. to foreign parents. In other cases, the process can take many years and can be extremely expensive and complicated. This can deter some people from pursuing dual citizenship.
There are many requirements for gaining dual citizenship if you were not born in the U.S. and want to become a U.S. citizen. In addition, the requirements for gaining citizenship in the U.S. may be different for individuals based on their circumstances and their other country (or countries) of residence.
To apply for U.S. citizenship, you must generally have lived in the U.S. as a permanent resident and have a green card continuously for five years (or three years if you are filing as the spouse of a U.S. citizen). Other eligibility requirements include being at least 18 years old when you apply and being able to read, write, and speak basic English.
You must pay a fee to apply for permanent residency and then another fee to file a citizenship application. The fee depends on what application you use and your filing category. This fee is set by the U.S. Department of Homeland Security.
For most people, the complicated process of gaining citizenship requires the help of an immigration lawyer. Immigration lawyers can help individuals achieve citizenship, although they also require fees for their services. To apply for permanent residency, most individuals file form I-485, Application to Register Permanent Residence or Adjust Status. To apply for naturalization, most individuals file form N-400, the application for naturalization.
The shortest path to becoming a dual citizen is through birth, having parents with dual citizenship, or being born in a country with birthright citizenship. Otherwise, you can obtain dual citizenship by marrying someone who is a citizen of a different country than yourself, or by being naturalized as a citizen in a different country. Some countries also offer citizenship based on ancestry.
Note that not all countries recognize dual citizenship, and in some cases, you might be forced to give up your original citizenship to become naturalized.
Canadian citizenship is increasingly attractive to prospective migrants, due to the attractive social programs and advanced economy. In order to qualify for Canadian citizenship, you must be a permanent resident in Canada and have lived there for three of the past five years, as well as file taxes as required. You also have to pass a test to show an understanding of citizenship rights and responsibilities, and demonstrate language skills in English or French.
Each country has its own laws and restrictions about who can enter its borders, and dual citizens should consider the advantages of both passports when crossing customs. For example, if a certain destination offers visa-free travel to country A and strict visa requirements for country B, it makes sense for a dual national to use country A's passport rather than country B's. Conversely, some countries may require you to use a specific passport, if you have it. The United States requires all dual citizens to enter on their U.S. passport.
Dual citizenship is when a person is a citizen of two countries at the same time, with all the rights and privileges that come with it. Dual citizens can travel freely in both countries, as well as work, do business, own land, and do other activities that may be restricted to foreigners. However, there are also disadvantages, as dual citizens may face extra taxes or even military service. If you're considering pursuing dual citizenship, it may be wise to seek out the guidance of an immigration attorney who can tailor advice to your personal situation.
