Dual Citizenship Advantages and Disadvantages (2024)

A person with dual citizenship is a citizen of two countries at thesame 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; however, a potential drawback is the possibility of double taxation.

Key Takeaways

  • Dual citizens enjoy certain benefits, such as the ability to live and work freely in two countries, own property in both countries, and travel between the countries with relative ease.
  • Not every country recognizes dual citizenship, and you may need to renounce your birth citizenship to become a citizen of a new country.
  • Drawbacks of being a dual citizen include the potential for double taxation, the long and expensive process for obtaining dual citizenship, and the fact that you become bound by the laws of two nations.
  • The easiest way to become a dual citizen is by birth, although many migrants can become naturalized citizens when they move to a new country or marry a foreign spouse.
  • Applying for dual citizenship is a complicated and typically expensive process that may require the assistance of an immigration lawyer.

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Advantages And Disadvantages Of Dual Citizenship

What Is Dual Citizenship?

Not all countries allow dual citizenship, but the United States does. Dual citizenship happens automatically in some situations, such as when a child is born in the U.S. to parents who are residents of a foreign country. Unless the parents are foreign diplomats, the child generally becomes a citizen of the U.S., in addition to any citizenship they inherit from their parents.

Similarly, if a child of U.S. citizens is born overseas, they may automatically become a citizen of both the U.S. and their country of birth (although this is situational because it depends on that specific country’s laws).

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.

In order 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.

Advantages of Dual Citizenship

Political Rights

Dual citizens can participate fully in the political life of every country where they have citizenship. This includes the right to vote and stand in elections, and the right to make donations to political candidates.

Work and Travel

Unlike foreigners, dual citizens do not require 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 a lengthy process to get a work permit. They are also exempt from any restrictions on foreign businesspeople.

Social Services

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 of their citizenship. They can also receive an education at the same price as domestic students.

Two Passports

As a dual citizen, you are allowed to carry passports from both countries. For example, if you are a U.S. citizen and also a citizen of 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 questioning about the purpose of your trip during the customs process.

It also guarantees the individual in possession of two passports the right of entry to both the U.S. and New Zealand; this can be especially beneficial if you have family to visit in both countries, or if you are a student or a businessperson that either studies or conducts affairs in both countries.

Property Ownership

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.

Cultural Education

As a dual citizen, you'll reapthe benefits of being immersed in the culture of the two countries. Some government officials are also fondof dual citizenship and 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.

Disadvantages ofDual Citizenship

Dual Obligations

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 circ*mstances, such as if you serve as an officer in a foreign military that is 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.

Double Taxation

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 are living 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 in order 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 $112,000 of foreign-earned income from their taxes in 2022 ($120,000 in 2023).

Barriers to Some Forms of Employment

Depending on your career path, dual citizenship can be a disadvantage. If you are seeking a position 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.

Complicated Process

Sometimes dual citizenship happens automatically (for example, when a child is born in the U.S. to foreign parents). Other times, however, the process can take many years and can be extremely expensive and complicated. This can deter some people from pursuing dual citizenship.

Process for Gaining Dual Citizenship in the United States

If you were not born in the U.S. and you want to become a U.S. citizen, there are many requirements for gaining dual citizenship. In addition, the requirements for gaining citizenship in the U.S. may be different for individuals based on their circ*mstances and their other country (or countries) of residence.

In general, to apply for U.S. citizenship, you must have lived in the U.S. as a permanent resident–and have a permanent resident (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 also pay a fee to apply for permanent residency and then another fee to file an application for citizenship. The amount of 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 1-485, Application to Register Permanent Residence or Adjust Status. To apply for naturalization, most individuals file form N-400, the application for naturalization.

How Do You Become a Dual Citizen?

The shortest path to becoming a dual citizen is through birth, either by having parents with dual citizenship or by 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.

How Do You Become a Dual Citizen of Canada?

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 live 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.

Which Passport Should Dual Citizens Use?

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.

The Bottom Line

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.

Dual Citizenship Advantages and Disadvantages (2024)

FAQs

What is the advantages and disadvantages of dual citizenship? ›

The Bottom Line

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.

What are the disadvantages of dual citizenship? ›

The major drawbacks of dual nationality are the potential of double taxation and getting bound by the laws of the two countries. Furthermore, becoming a dual US citizen can be a long and expensive process, especially if you don't have an immigration lawyer to guide you.

Is dual citizenship good or bad? ›

While dual citizenship gives its holder more freedom in terms of taxes and other obligations, the majority of the benefits of the two statuses overlap. Travel opportunities. A dual citizen can use either of their passports to travel to their desired destination with simplified or no visa requirements.

What are disadvantages of citizenship? ›

The Application process is not easy and often can be sometimes lengthy if not all the documents are submitted. Many papers require apostille or legalization to be accepted. Criminal record, health certificate and references take a lot of time. All in all the whole process for citizenship approval takes 2-4 months.

Can you collect Social Security with dual citizenship? ›

The United States generally considers a person with dual U.S. and foreign citizenship a U.S. citizen for Social Security purposes. This does not apply if you are a U.S. citizen and a citizen of a country the United States has an international social security agreement with. This excludes Canada and Italy.

Does dual citizenship affect taxes? ›

Yes, if you are a citizen or resident alien of the United States, you have a U.S. tax obligation, even if you're a dual citizen of the U.S. and Canada. The U.S. is one of two countries in the world that taxes based on citizenship, not place of residency.

Does dual citizenship lower taxes? ›

It excludes some or all of your foreign earned income on your tax return, therefore lowering (or completely eliminating) your U.S. tax obligation. If you qualify, you're able to exclude up to $107,600 of foreign earned income in 2020.

What are the disadvantages of not having citizenship? ›

What Are the Consequences That Stateless People Encounter? Without citizenship, stateless people have no legal protection and no right to vote, and they often lack access to education, employment, health care, registration of birth, marriage or death, and property rights.

Can you live in the US and have dual citizenship? ›

Dual citizenship if you are a citizen of another country

If you qualify for dual citizenship, you must first immigrate to the U.S. Then you must become a permanent U.S. resident before being eligible for U.S. citizenship. Learn more about immigrating to the U.S. And find out how to become a permanent resident.

Which dual citizenship is best? ›

The 5 best countries for dual citizenship
  • New Zealand. New Zealand is a member of the Trans-Tasman agreement that allows freedom of movement to and fro Australia. ...
  • Portugal. You get to enjoy a warm climate, delectable cuisine, and a safe environment. ...
  • Malta. ...
  • Grenada. ...
  • St.
Jan 13, 2022

What happens if you have dual citizenship? ›

Dual nationals owe allegiance to both the United States and the foreign country. They are required to obey the laws of both countries, and either country has the right to enforce its laws. It is important to note the problems attendant to dual nationality.

What are 3 disadvantages of immigration? ›

However, immigration is also controversial. It is argued immigration can cause issues of overcrowding, congestion, and extra pressure on public services. There is also a debate about whether immigration of unskilled workers leads to downward pressure on wages and even unemployment of native workers.

Does dual citizenship expire? ›

Therefore, if there are any modifications in the laws, the citizens get enough time to take the required action to remain the citizens of the country. Hence, dual citizenship never expires.

Can a dual citizen use either passport? ›

Most U.S. citizens, including dual nationals, must use a U.S. passport to enter and leave the United States. Dual nationals may also be required by the foreign country to use its passport to enter and leave that country. Use of the foreign passport does not endanger U.S. citizenship.

How do I get the $16728 Social Security bonus? ›

To acquire the full amount, you need to maximize your working life and begin collecting your check until age 70. Another way to maximize your check is by asking for a raise every two or three years. Moving companies throughout your career is another way to prove your worth, and generate more money.

How long can you live outside the U.S. without losing Social Security? ›

If you leave the U.S., we will stop your benefits the month after the sixth calendar month in a row that you are outside the country. You can make visits to the United States for specific periods of time, depending on how long you've been outside, to continue receiving your benefits.

What are the rules for dual citizenship? ›

As far as the U.S. is concerned, there is no “dual citizenship” status. To become a dual citizen of the U.S. or another country, all you need to do is obtain a second citizenship. There is no specific application or form in the U.S. for dual citizens, you simply need to file for naturalization.

Does the U.S. recognize dual citizenship? ›

Does the United States allow dual citizenship? Yes, the U.S. allows dual citizenship by default. The government does not require naturalized U.S. citizens to give up their citizenship in their country of origin.

How long can a U.S. citizen live abroad? ›

Absences of more than 365 consecutive days

You must apply for a re-entry permit (Form I-131) before you leave the United States, or your permanent residence status will be considered abandoned. A re-entry permit enables you to be abroad for up to two years. Apply for a re-entry permit.

Can a 65 year old immigrant get Social Security? ›

Can a Green Card Holder Apply for Social Security Benefits? Like anyone, you must have 40 qualifying credits, approximately 10 years, to earn Social Security benefits. 1 Green card holders who pay into the system may qualify for their benefits, just like anyone else.

Why does Bank of America ask about dual citizenship? ›

Under a separate law, foreign banks must collect citizenship information from Americans, ostensibly in order to track down potential tax-dodgers. But domestically, they are not required to collect customer citizenship information. In fact, Social Security numbers aren't even required to open an account.

Do U.S. citizens pay taxes in both countries? ›

Do I still need to file a U.S. tax return? Yes, if you are a U.S. citizen or a resident alien living outside the United States, your worldwide income is subject to U.S. income tax, regardless of where you live.

Where is the best place to get dual citizenship? ›

You might need to fulfil certain requirements depending on the way of obtaining the citizenship you choose. Different countries have different rules, but the easiest countries to get dual citizenship are states like Turkey, Vanuatu, Grenada, and Dominica.

Is the U.S. getting rid of dual citizenship? ›

Yes, the United States allows dual citizenship. If you are a naturalized citizen, you don't have to give up citizenship from your country of origin. U.S. immigration law does not prohibit dual nationality.

How many years of taxes do you need to get citizenship? ›

Your tax returns are very important proof that you are eligible for naturalization. On the day of your interview, bring certified tax returns for the last 5 years (3 years if you are married to a U.S. citizen).

Which countries tax based on citizenship? ›

Eritrea is notable as the only country in the world, besides the United States, to tax its citizens on the basis of their citizenship. Yep, Eritrea and the United States are the only nations on planet earth to have citizenship-based taxation. If you're a US citizen living abroad, you're still on the hook to Uncle Sam.

Does staying outside US affect citizenship? ›

Immigration law allows lawful permanent residents to travel abroad freely and re-enter the United States with a valid green card. But extensive travel may affect permanent resident status as well as eligibility for U.S. citizenship.

What can make you lose your citizenship? ›

How you may lose your U.S. citizenship
  • Run for public office in a foreign country (under certain conditions)
  • Enter military service in a foreign country (under certain conditions)
  • Apply for citizenship in a foreign country with the intention of giving up U.S. citizenship.

What are the pros and cons of citizenship? ›

There are several advantages to naturalization, including protection from deportation and the right to vote. Disadvantages exist as well, particularly if your current country of citizenship will make you give up your rights of citizenship there.

Where is dual citizenship not allowed? ›

List of countries that do not allow dual citizenship
AfghanistanIranMaldives
AndorraJapanMarshall Islands
AustriaKazakhstanMauritania
AzerbaijanKiribatiMicronesia
BahrainNorth KoreaMonaco
10 more rows

How many passports can you have as a U.S. citizen? ›

The answer is you can have as many as you want, depending on your original citizenship. While some countries allow dual citizenship or many citizenships at the same time, others do not and require you to renounce your previous citizenship.

What is the strongest passport in the world? ›

Japan (193 countries) If you're looking for a country with great travel options, then you can't go wrong with Japan. The Japanese passport is ranked as the most powerful in the world, allow visa-free access to 193 countries.

How much does a dual citizenship cost? ›

You will need to pay a total of $725 for these two services – $640 for the N-400 form and $85 for the biometric services fee. The whole payment can be made at once through different means, which include money order, cashier's check, or personal check.

What are the biggest immigration problems? ›

The social problems of immigrants and migrants include 1) poverty, 2) acculturation, 3) education, 4) housing, 5) employment, and 6) social functionality.

What are the negatives of immigration in the US? ›

But high levels of immigration can put stress on the budgets of state and local governments. States and cities with large numbers of immigrants often have to invest more money in public education and other services immigrants receive than they collect in taxes from those populations.

Can a U.S. citizen enter the US without a passport? ›

The American Citizen Services Section wants to remind all U.S. citizens not to travel outside the United States without a valid U.S. passport. While dual citizens may be able to travel abroad with alternative documentation, all U.S. citizens are required to present a U.S. passport to re-enter the United States.

When did US allow dual citizenship? ›

Dual nationality

The Supreme Court ruled in Kawakita v. United States, 343 U.S. 717 (1952) that dual nationality is a long-recognized status in the law and that "a person may have and exercise rights of nationality in two countries and be subject to the responsibilities of both.

Where can U.S. citizens travel without a passport? ›

U.S. citizens do not need a passport to travel between the U.S. and these territories:
  • Commonwealth of the Northern Mariana Islands.
  • Puerto Rico.
  • U.S. Virgin Islands.

Can a dual citizen lose their citizenship? ›

A U.S. citizen may naturalize in a foreign state without any risk to his or her U.S. citizenship. However, persons who acquire a foreign nationality after age 18 by applying for it may relinquish their U.S. nationality if they wish to do so.

Can you live in the U.S. and have dual citizenship? ›

Dual citizenship if you are a citizen of another country

If you qualify for dual citizenship, you must first immigrate to the U.S. Then you must become a permanent U.S. resident before being eligible for U.S. citizenship. Learn more about immigrating to the U.S. And find out how to become a permanent resident.

Is dual citizenship not allowed in USA? ›

Does the United States allow dual citizenship? Yes, the U.S. allows dual citizenship by default. The government does not require naturalized U.S. citizens to give up their citizenship in their country of origin.

Which country is best for dual citizenship for taxes? ›

#1 St Kitts and Nevis

Established since 1984, the St Kitts citizenship program is the oldest such program in the world. As a result, it is well known worldwide and highly sought after. St Kitts citizenship and the absence of income tax could make St Kitts and Nevis the world's best offshore tax haven.

How long can a US citizen live outside the country? ›

Absences of more than 365 consecutive days

You must apply for a re-entry permit (Form I-131) before you leave the United States, or your permanent residence status will be considered abandoned. A re-entry permit enables you to be abroad for up to two years. Apply for a re-entry permit.

When did US stop dual citizenship? ›

Dual citizenship had previously been banned in the United States, but in 1967 the US Supreme Court struck down most laws forbidding dual citizenship.

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