There are two sides to every coin, and while dual citizenship is growing worldwide and praised for its benefits, it also has a few downfalls.
As a reputable consultancy that aids its clients in getting the best options to citizenship by investment, we understand the importance of being transparent about the pros and cons of dual citizenship.
In this guide, we will explain the difference between dual citizenship and a second passport and provide a list of the pros and cons of obtaining an additional passport.
Dual Citizenship vs Second Passport
Dual citizenship and a second passport can be used interchangeably, but there are distinct differences in some of the privileges that each one comes with.
Briefly, dual Citizenship involves legal recognition of citizenship in two countries, granting the associated rights and responsibilities. A second passport is a travel document that allows for more effortless movement and access to certain countries but does not provide additional citizenship rights.
Here is a more detailed overview of the distinctions based on different aspects:
Aspect | Dual Citizenship | Second Passport |
Definition | The status of being a citizen of two countries simultaneously. | A passport issued by a country to an individual who already holds a valid passport. |
Legal Status | Legally recognized citizenship in both countries, granting rights and responsibilities in each. | Not a separate citizenship; it does not confer additional rights or citizenship status. |
Rights and Responsibilities | Dual citizens have the rights and obligations (like voting, taxes, etc.) in both countries. | Holders of a second passport do not gain rights in the issuing country; it is primarily for travel purposes. |
Reasons for Obtaining | Commonly sought for reasons like immigration, family ties, or investment opportunities. | Obtained for reasons such as ease of travel, visa access, or safety (e.g., avoiding political issues in one country). |
Restrictions | Some countries do not allow dual citizenship, requiring individuals to renounce one citizenship. | Most countries allow individuals to hold multiple passports; however, there may be restrictions on travel. |
Application Process | Involves a complex legal process, often including residency requirements and various forms of documentation. | Generally simpler and may only require a valid reason for issuance, such as business travel or frequent travel to specific regions. |
Impact on Travel | Dual citizens can enter both countries as citizens, enjoying the rights of each. | A second passport may allow entry into countries that may restrict entry based on the passport of the holder’s primary nationality. |
Advantages of Dual Citizenship
Citizens enjoy full political rights, regardless of holding multiple passports. They have the right to vote, participate in the politics of both countries and enter their country of citizenship unconditionally. Multiple citizenship holders can work, own properties, and access social benefits in their respective countries.
1. Expanded travel
When comparing the advantages and disadvantages of dual citizenship, the biggest benefit for dual citizens is the second passport.
This allows them to travel to more countries visa-free or get a visa on arrival. Sometimes, it also lets them clear customs and immigration checkpoints faster. For example, a citizen of the United States who also holds a Grenada passport can enter New Zealand and Japan without a visa.
On the other hand, their Grenada passport would provide visa-free access to China. Dual passport holders can leverage their passports’ strengths for international travel when necessary.
2. Business opportunities
Multiple citizenship allows individuals to conduct business activities across several countries, allowing them to select the nation that aligns best with their financial objectives or offers a more favorable environment for investments and business operations. This can include economic stability, a lenient taxation system, and governmental support for new enterprises.
3. Civil liberties
Civil liberties encompass a variety of rights and assurances that governments pledge to uphold, whether through constitutional provisions, legislation, or judicial interpretation. As a result, dual citizenship grants extensive political rights and protections regardless of the passports of other countries the dual citizen might possess.
Dual citizens can vote in federal and local elections and participate in the civil and political life of both countries of citizenship. They are free to enter their country of citizenship at any given time without a re-entry permit or other conditions and limitations that governments impose on foreign citizens.
While a permanent resident and a dual national both enjoy the right to reside in a country indefinitely, in some countries, the legal citizen may also have the right to unrestricted property ownership that a resident may not.
4. Healthcare options
A dual citizen has access to two healthcare systems and can choose the most advanced or specialized system for their needs. For instance, a US citizen who has US dual citizenship with Ireland can take advantage of Ireland’s free healthcare system instead of paying for comprehensive medical coverage in the United States.
5. Higher education
The advantage dual citizens and their families possess regarding higher education is two-fold: Citizenship in two countries expands the options for universities and other types of advanced education, such as apprenticeships and special learning programs.
Additionally, studying in a foreign country as a foreign national includes higher tuition. Dual citizens pay the lowest tuition fees for education and can access national grants and funding schemes.
6. Reducing taxes
Depending on the countries involved, dual citizenship is often advantageous for tax purposes. For many foreign investors seeking alternative citizenship, the country’s income tax laws are a primary consideration when choosing a citizenship-by-investment program.
Some jurisdictions, such as the United Arab Emirates, Vanuatu, and St. Kitts and Nevis, impose no income taxes or exempt income tax on citizens earning income overseas. A common strategy expats use to lower income taxes is to get citizenship from a tax-friendly country where they are not required to pay taxes and benefit from tax exemptions provided to citizens with a second residence living outside their country of original citizenship.
7. Security and stability
Individuals with multiple citizenships have access to a broader range of resources, legal protections, and diplomatic support, which can enhance their safety and well-being in various situations.
Dual citizens benefit from the consular assistance and representation provided by both countries, ensuring they receive support during emergencies, legal issues, or when facing discrimination abroad.
This added layer of security enables dual citizens to navigate uncertain circumstances with greater confidence, knowing they have access to assistance, protection, and stability from multiple sources.
Why Dual Citizenship is Bad
While the advantages of dual citizenship are appealing overall, there are some reasons why dual citizenship is bad. There are ways to optimize taxes with two passports; it just requires an investment strategy. Therefore, these reasons might not apply to everybody, but they should still be considered if you want to be a citizen of two countries.
1. Tax burden
Weighing the benefits of dual citizenship, the risk of double taxation is on the other side of the opportunity to reduce taxes for dual citizens. Without a double taxation agreement, dual citizens will owe taxes to two jurisdictions, leading to potential financial complexities from overlapping tax obligations. Citizenship-based taxation, where a country taxes its citizens regardless of residency status, is usually surrounded by double taxation concerns.
2. Career restrictions
While dual citizens have more employment opportunities, they may not be eligible to take up specific jobs and positions in government. In some cases, holding dual citizenship can affect your ability to engage in political activities in one or both of your countries. Some nations prevent dual citizens from government roles or positions like judges, ministers, or deputies.
3. Military obligation
Most countries that formally recognize dual citizenship don’t impose mandatory military service on their citizens; however, plenty of countries have established compulsory national service once citizens reach the age of maturity.
A dual citizen holding two citizenships in countries with mandatory military service may encounter complications regarding their obligations to both countries of citizenship. This can be further complicated when one country doesn’t allow you to serve in a foreign military.
4. Legal complexity
Dual citizenship can lead to legal complexities, especially if the two countries have different laws regarding citizenship and other obligations. In some situations, the laws of one country may conflict with the laws of the other. This can create confusion or legal challenges, particularly in areas like taxation, military service, and immigration.
5. Immigration procedures
If you decide to move permanently to one of your countries of citizenship, the immigration process can be more complex for dual citizens. This can involve renouncing one of your citizenships. Some countries may also have restrictions on dual citizens entering or leaving their home country. For example, a dual citizen might need to use a specific passport to enter or leave a particular country.
6. Cultural considerations and Government assistance
Having dual citizenship may also raise questions about cultural identity and where you feel most connected. This can be a personal challenge for some individuals, especially when the two countries are at odds with each other. In certain countries, dual citizens may not be eligible for the same level of government assistance as single citizens, such as certain social benefits or subsidies. Even if the countries allow dual citizenship, the diplomatic ties could complicate the matter.
How to Get Dual Citizenship
Citizenship by birthright
The most common route to dual citizenship is citizenship by birthright.
This is when children are automatically granted citizenship in two countries at birth based on their respective immigration laws.
Birthright citizenship is typically determined by jus soli (based on the place of birth) or jus sanguinis (based on blood relatives).
A child born to a foreign-citizen parent may acquire citizenship from their birth country and the other citizenship from their parent. Although this may seem straightforward, some countries with birthright citizenship have a few conditions.
Citizenship by descent
Although typically considered birthright citizenship, those who receive citizenship by birthright generally do so by submitting a citizenship application after birth. Citizenship by descent involves proving one’s ties to a country through one’s family history in a direct line. In many countries, like Bulgaria, Finland, Poland, and Italy, family members include grandparents and great-grandparents.
Citizenship by naturalization
The citizenship by naturalization process is the primary way foreign nationals gain citizenship in other countries they have no familial ties. The eligibility requirements generally involve living in the country for a minimum period and can include proving language proficiency and knowledge of the country’s history and customs.
Citizenship by marriage
Citizenship by marriage is another common and easy route to dual nationality. Marriage to a citizen often excludes the requirements for typical naturalization, such as the length of residence, language proficiency, and merits based on other point-scoring factors like paid taxes and employment.
Through citizenship by investment
Citizenship by investment (CBI) is a legal pathway allowing foreigners to acquire dual citizenship in a foreign country by contributing to its economy or image. This form of migration has become increasingly popular for those seeking dual citizenship.
The specialized legal processes of economic citizenship revolve around investing in real estate, government bonds, businesses, or other qualifying investments, depending on the country’s specific needs. Upon meeting the investment criteria and passing due diligence checks, applicants and their family members can gain citizenship and second passports, allowing them to enjoy the rights and freedoms of being dual citizens.
How can Global Citizen Solutions help me?
Investors can encounter many difficulties when seeking dual citizenship, so it is beneficial to have experts on hand to provide personalized assistance throughout the complicated process.
A migration specialist and an immigration lawyer can help you with the following:
- Minimize the visits you have to make to the designated country
- Have someone who works solely on your behalf
- Reduce the hassle associated with putting your citizenship application together
- Acquire insider knowledge from someone with years of experience in the market
Let’s get you moving forward in your quest to becoming a dual citizen. Contact us by filling out the contact form below.
Frequently Asked Questions About the Pros and Cons of Dual Citizenship
Does dual citizenship mean more taxes?
Downsides to holding dual citizenship include the risk of double taxation, the lengthy and costly procedures involved in acquiring dual citizenship, and the legal obligations imposed by two separate nations.
Whether or not dual citizenship means more taxes depends on the tax laws of the countries of citizenship and whether or not both countries have a double taxation agreement.
Do countries disallow dual citizenship?
A primary concern for governments with reservations about their citizens pursuing dual citizenship is the potential conflict of loyalty that dual citizens might face when having ties to multiple nations.
Governments worry that individuals with dual citizenship may prioritize the other nation’s interests over their own, especially during times of national crisis or conflict. Additionally, dual citizenship may create complexities in enforcing laws and regulations, as individuals may take advantage of differing legal systems to evade responsibilities or legal consequences.
Can I lose my dual citizenship?
Whether or not you can lose your citizenship after you obtain second citizenship depends on your home country’s laws around alternative citizenship. If you are a national of a country that does not allow dual citizenship, you may be forced to renounce your new citizenship or risk losing your current citizenship.
Can I pass on dual citizenship?
Concerning the good and bad of dual citizenship, one advantage is that in many countries, you can pass citizenship on to your children through citizenship by descent. For instance, a child is eligible for an Australian passport through Australian-citizen parents, while a child can receive citizenship from their parents and grandparents in Mexico.
Can you have triple citizenship?
Yes, it is possible to hold three citizenships if the laws of your country of residence and other countries involved allow multiple passports.
What are the benefits of multiple citizenships?
Dual citizens enjoy benefits like the opportunity to live and work freely in two countries, own property in both countries and travel between the countries with relative ease.
Are there reasons why dual citizenship is bad?
Yes, potential downsides of dual citizenship can include complexities in taxation, military service obligations, and conflicts between the laws of the two countries
Why does the US not encourage dual citizenship?
The United States does not explicitly encourage multiple citizenship primarily because it can create complexities in matters such as taxation, military service obligations, and conflicting allegiances. Additionally, the U.S. historically emphasized a strong sense of national identity and loyalty to the country.
