9 pros and cons of dual citizenship in 2024

Dual citizenship and second citizenship are not interchangeable terms. Both of them imply having passports of two different states, but the conditions are not the same.

Dual citizenship means being a citizen of two countries that have entered a bilateral agreement. Both states in that agreement recognise the rights and obligations of dual citizens in the other country.

People with dual citizenship pay taxes and perform military duty in their country of residence. They are protected from double taxation.

Second citizenship implies holding passports of two countries that do not have any agreements on that matter.

In this case, each country allows its citizens to hold passports of other states but does not recognise their rights and obligations in relation to those states. For example, a person with a second passport might have to pay taxes in both countries.

People usually get second citizenship by naturalisation, descent, birth, or marriage. High-net-worth individuals can also obtain second passports by investment.

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.

1. Travel opportunities. A dual citizen can use either of their passports to travel to their desired destination with simplified or no visa requirements.

For example, a citizen of Algeria who also holds a passport of Portugal can enter the Schengen states with their Portuguese passport to skip all the visa hassle. Likewise, when planning to travel to the USA, they can get an eTA in 30 minutes as a citizen of Portugal instead of going through a complex visa application process.

2. Business opportunities. Both dual and second citizenship statuses allow for the choice of a country with a more favourable environment for starting a business.

Business-friendly conditions can include a stable economy, a beneficial taxation system, government support for startups, the percentage of employees with higher education, etc.

The best countries for business are Denmark, Germany, Australia, Canada, Switzerland, Hungary, and the UAE, according to Ceoworld Magazine.

3. Political rights. Citizens of a country have full political rights regardless of the passports of other countries they might hold. Multiple passport holders can vote and participate in the civil and political life of both states of their citizenship. They can enter their country of citizenship at any given time with no conditions.

People with dual or multiple citizenship can work in their countries, own property, and benefit from social benefits.

4. More options for education. A second passport allows its holder and their children to choose the country for education and study at local universities without paying increased tuition fees.

In some cases, second citizenship opens up opportunities not in one but in several countries. For instance, a citizen of any EU state can study at universities all over the Union without having to pay foreign student tuition fees.

5. Possibility to lighten the tax burden. In many cases, multiple citizenships provide its holder with an option to cut their tax payments. The person can pick the country with a more beneficial taxation regime to become a tax resident.

Some countries don’t oblige their citizens to pay income taxes; others don’t charge income earned abroad or income on wealth, inheritance or gift. Some countries that allow their citizens to minimise the tax burden are Antigua and Barbuda, the UAE, and Vanuatu.

After comparing the options and choosing the more beneficial state in terms of taxes, a person with multiple citizenships needs to become a tax resident of a chosen country. Usually, this requires residing in that country for at least six months per year.

6. Ability to choose a better healthcare system. A person with two citizenships can choose the country with a more advanced healthcare system to get medical help.

For instance, a citizen of the USA with a Malta passport can take advantage of their free medical insurance in Malta instead of paying for one in the USA.

There are some drawbacks to holding multiple citizenships, too. Most of them are potential risks, not inevitable.

Potential of double taxation. The risk of double taxation is the flip side of the opportunity to reduce taxes for dual citizens. Depending on the country and its laws, this risk appears for foreign income or property tax.

Exempt from some career paths. Another reason dual citizenship might be bad is that in some countries, dual-nationals cannot work in government bodies and won’t have the opportunity to become judges, ministers, or deputies.

Military obligation. If a person with multiple citizenships serves in the military in one of their states, they might lose their other passports. This, however, is a very rare situation and depends on the laws of each particular state.

Each country defines its rules for granting citizenship to foreign nationals. Usually, all the ways can be divided into three categories: descent, naturalisation, and investment.

Investment. Many countries offer foreign nationals citizenship-by-investment programs. Applicants must invest in the country’s economy—for example, contribute to a governmental fund, purchase real estate or fund a business. After that, investors are granted citizenship.

The process usually takes 6—8 months. The investor can add family members to the application and provide them with passports, too.

The investor does not have to prove their ties with the country or learn the national language to be granted citizenship. The main requirements for investors usually include being over 18 years old and providing proof that their income is legal.

Descent. Citizenship by descent is available to foreign nationals who have direct ascendants among another state’s citizens. This usually applies to the children, grandchildren, and great-grandchildren of a country’s nationals.

Some countries, like Greece and Malta, grant citizenship by descent to younger generations too.

The process of obtaining citizenship by descent is usually relatively quick and takes up to several months.

Naturalisation is the process of a person making strong connections in a country over many years. People can reside in foreign countries for work, studies, business purposes, or after marrying a citizen of that state.

Usually, this path takes many years and requires candidates for naturalisation to pass language and culture exams. Basically, being a naturalized citizen means having spent over five years in a country and built strong economic and cultural ties with it.

According to the official website of the US Department of State, American citizens do not have to choose one nationality over the other if they are to obtain second or dual citizenship. They can also naturalise in another country without risking a US passport to enjoy the perks of dual citizenship.

Nevertheless, individuals with dual nationality bear allegiance to the United States and the foreign nation. They are obligated to adhere to the legal frameworks of both nations. Each country possesses the authority to enforce its laws, especially if the individual travels there a lot.

Most US citizens, encompassing dual nationals, must utilise a US passport for their travels to and from the United States. Additionally, dual nationals might be compelled by the foreign nation to employ their passports for entry and exit. The utilisation of a foreign passport does not jeopardise US citizenship.

1. Dual citizenship entails being a citizen of two countries bound by a bilateral agreement wherein both states recognise the rights and duties of dual citizens within each other’s borders.

2. Dual citizens pay taxes, fulfil military obligations in their country of residence, and are safeguarded from double taxation. Conversely, second citizenship involves holding passports of two countries lacking any agreements regarding citizenship matters.

3. The pros and cons of dual citizenship vary. Dual citizens significantly increase their global mobility, business, and education opportunities. Besides, dual citizenship may be a solution to a tax burden. At the same time, dual citizenship might sometimes imply double taxation.

4. American citizens do not have to choose one nationality over the other if they are to obtain second or dual citizenship.

5. Dual citizenship can be obtained by investment. This way, investors are not required to reside permanently in the country they get a second passport.