Dual Nationality or Citizenship: Advantages and Disadvantages

“Dual national” or “dual citizen” means that a person is a citizen of two countries at the same time. You will have legal rights and obligations with both countries. While dual citizenship provides certain advantages, other legal considerations can make residency and travel more challenging.

For example, citizens with dual nationality may have income tax obligations in more than one country. A dual citizen may have obligations in both countries, but residency requirements are typically separate from citizenship status. Read on for a discussion of dual citizenship and related legal issues. For legal advice about the pros and cons of dual citizenship, talk to an immigration law attorney.

Advantages and Benefits of Dual Citizenship

• Residence in several countries: You can get residency in the national territory of the different countries in which you are a national.
• Access to government programs: Many people choose to obtain a second citizenship to access better or free healthcare, education, or social services.
• Greater possibility of investments: Some countries limit real estate investment, business opportunities, and property ownership to their citizens.
• Avoiding deportation: As a general rule, those with U.S. citizenship cannot face deportation.
• You have a plan B: Suppose the conditions in your country of residence are not ideal. This could include a political conflict, a natural disaster, or economic hardship. In that case, multiple citizenship gives you the option of residing in either country.
• Ease of travel: Many Latin Americans can obtain nationality in Spain through an expedited path, requiring only two years of legal residency instead of the standard ten years. Other passports allow visitors to travel with fewer complications or visa-free access when entering other countries with their European passports instead of their U.S. passports.
• Taxes: This issue has advantages and disadvantages for dual citizenship. Living in another country for most of the year may mean not paying taxes in that country or paying less. For example, the U.S. provides tax exemptions for Americans with foreign income, such as IRS Forms 1116 Foreign Tax Credit and Foreign Earned Income Exclusion (FEIE).
• Possibility of voting or holding public office: This privilege, in many cases, is exclusive to nationals of a country. With dual citizenship, there is the possibility of voting in two countries.

Disadvantages of Dual Citizenship

• Tax obligations in more than one country. Dual citizens may face double taxation. U.S. citizens, even if they are outside the country, must continue to file taxes with the U.S. government. U.S. citizens are generally required to file taxes, but there are exclusions and credits that can reduce tax liability. Fortunately, there are tax law treaties with some countries to avoid the double tax burden.
• Complying with the residency requirements in two countries. For example, voting (in some countries it is an obligation) or fulfilling mandatory military service at 18 years of age can be a consequence of dual citizenship.
• The process of obtaining another citizenship can be difficult: Perhaps you will have to deal with immigration, the Civil Registry, the general consulate, or the authentication of documents to obtain dual citizenship. Some procedures take years and a lot of money. Before seeking a second passport, evaluate whether obtaining dual citizenship is really worth the time, effort, and expense.

How to Acquire Dual Citizenship

A person in the United States can acquire dual citizenship in many ways, including:

• Be born outside of the United States but have a parent who is a U.S. citizen
• Become a naturalized U.S. citizen while maintaining citizenship in another country
• Regain citizenship in a country of origin after you have become a naturalized U.S. citizen

Recognition of Dual Citizenship in the United States

According to the U.S. Department of State, you may become a dual national of the United States and another country. You must still follow the legal obligations of U.S. citizenship, including tax obligations, and use your U.S. passport to enter and leave the U.S.

Which Passport to Use When Traveling for Dual Nationals

When you have two passports from two different countries, you may not know which one to use when entering and leaving different nations. You can use one passport to leave a country and your other passport to enter another country.

According to the State Department, if you are a dual national of the U.S., you must use your U.S. passport when entering the U.S. Many other countries have similar laws requiring you to present your national passport when entering (or exiting) that country. Check with your other home country to find out about the requirements for entering and leaving customs and immigration.

When traveling outside of either of your dual passport countries, you can generally use the passport you prefer. Some countries may offer visa-free entry to one country but not the other. If you are concerned about which passport to use, check your country’s travel information or talk to an immigration attorney.

Loss of Citizenship Due to Dual Nationality

Loss of U.S. citizenship can occur through various actions, including those that demonstrate an intention to renounce citizenship. Such actions can include:

• Serving in the armed forces or serving in the military in a country participating in hostilities against the U.S.
• Formally renouncing U.S. citizenship to an authorized U.S. official
• Committing an act of treason against the U.S. or attempting or conspiring to overthrow the U.S. government

Although rare, some countries will revoke the citizenship of one country when citizenship is acquired elsewhere. Other countries require giving up any previous citizenship as a condition of obtaining the certificate of naturalization.

It is important to study the nationality law of each country to see the consequences of dual citizenship before making a decision.

Challenges When Seeking Dual Nationality or Residency

Many Americans have sought out dual nationality or residency options in foreign countries in recent years. So-called golden visas offer a path to citizenship by investment. Purchasing property or investing in another country offers an entry to lawful permanent residency and eventual citizenship.

European residency gives individuals access to more flexible travel within the E.U. Popular European countries for dual nationality include Portugal, Italy, Greece, and Malta. Americans may seek out these countries for a better quality of life, lower-cost healthcare systems, or better weather.
However, in recent years, these countries have made it more difficult for foreign nationals to get lawful residency. To understand how you can benefit from dual nationality, talk to a citizenship immigration lawyer for legal advice.