You can be both a citizen of the US and a citizen of another nation—but is that a good idea? Bottom Line Personal asked Kathleen Peddicord and Lief Simon of LiveAndInvestOverseas.com to discuss the pros and cons of dual citizenship.
Why Dual Citizenship Is Good
There are huge upsides to being a US citizen. Americans enjoy access to a strong economy, a wide range of rights and freedoms, safety and stability by global standards, plus one of the world’s most widely accepted passports. Obtaining dual citizenship doesn’t cost Americans any of that—it simply gives them the flexibility to enjoy the advantages of being the citizen of another nation as well.
Dual citizenship benefits can include…
Expanded options during difficult times
COVID called attention to the major role that government policies can play in people’s lives—some countries locked down more rigidly and for far longer than others. National borders largely closed to foreigners during the pandemic, but people who held citizenship in two or more countries often had the flexibility to live in whichever of those countries enacted policies closer to what they considered appropriate.
Easier international travel
The US passport is among the most widely accepted in the world, but some countries require Americans to obtain visas to visit, a hassle that sometimes can be avoided through dual citizenship. Example: People traveling on Irish passports don’t need a visa to travel to Brazil, while those traveling on American passports currently do.
Carrying another nation’s passport also can reduce tensions at hotels and if you are stopped by police when visiting countries where America is unpopular. And while tourist visas typically allow entry to a country for only a limited time, people can visit nations for which they have citizenship for as long as they like.
Career options
People who have dual citizenship can earn a living in either country—no work visas required. If one of their citizenships is a European Union nation, they can work anywhere in the EU.
Affordable college tuition and health care
Being a country’s citizen often allows you to enroll in college there for a fraction of the tuition charged by US colleges. It also can provide access to a national health-care system that might be more affordable than US health care. But: The quality of foreign health-care and education systems vary dramatically, as do rules about who can access them and what they must pay to do so. Some national health-care systems have such long wait times or are so low quality that they’re of limited value despite low prices.
Why Dual Citizenship Is Bad
There are some potential downsides to dual citizenship, too, though most are minor or uncommon…
Paperwork hassles and other assorted hurdles and fees
Some people are born with dual citizenship because they were born in the US to a foreign parent. But for everyone else, obtaining dual citizenship typically involves a lot of paperwork and bureaucracy. Example: Many nations allow people to apply for citizenship based on their ancestry—having a parent or grandparent who was an Irish means their descendants are eligible for citizenship in Ireland, for example—but doing so requires tracking down birth records and more for not only the applicant but also the applicant’s ancestors.
Another option: Most nations also allow people to become eligible for citizenship if they live in the country as a legal resident—meaning that you applied for residency—for an extended time, often five years. But this path to citizenship could require passing a language or local knowledge exam, among other requirements.
Each step of the citizenship application process tends to involve paying fees…and holding two passports means paying two sets of passport application and renewal fees.
Tax complications
Obtaining dual citizenship is not a way to avoid US taxes. US citizens are legally required to pay US taxes even if they hold a second citizenship and live abroad. In fact, US citizens who live abroad often must file tax returns in both countries, creating additional tax headaches.
Military service
Some countries, including Austria, Greece, Israel and South Korea, require young men to serve in the military, or some alternative service organization. In Israel, women must serve, too. These service rules generally apply to people who obtain dual citizenship just as they do to people born there. Due to age limits, this usually isn’t a problem for people seeking dual citizenship later in life—Greek military service obligations end at age 45, for example—but it’s worth investigating before obtaining dual citizenship.
Security-clearance concerns
Dual citizenship can make it more difficult to obtain a security clearance in the US, a concern for anyone who has or might apply for a job that requires one.
