Dual vs Second Passport: Differences in Statuses

Dual citizenship implies that a person has passports of two countries, and both states recognize the rights and obligations of a person in relation to each country at the official level.

People with dual citizenship can choose in which country to serve in the military, and their children receive two passports at birth.

Dual citizenship is based on bilateral agreements between states. For example, such agreements exist between Spain and its former colonies: Peru, Chile, Paraguay, Nicaragua, Guatemala, Bolivia, Ecuador, Costa Rica, Honduras, the Dominican Republic, Argentina, and Colombia.

To obtain dual citizenship, certain conditions are to be met. For example:

• child’s parents have citizenship of different countries;

• the state border of the country has changed;

• a child is adopted by a foreigner;

• a person received citizenship by naturalization or repatriation.

Second citizenship implies that a person has passports of different countries. At the same time, countries do not recognize the rights and obligations of a bipatride in relation to other states. Each country considers a bipatride only as its own subject.

Public authorities may not be aware of a person’s second citizenship if the law does not require notification of its existence. If there is such a legal requirement, a fine or criminal liability could be imposed for failing to notify the government about a second citizenship.

In most cases, citizenship of any other country will be considered the second. A passport can be obtained in different ways: for example, by participating in investment programs, naturalization or marriage.

A person with dual citizenship has all the rights of citizens of both states, but he cannot use them at the same time: they work only in the country where he lives. For example, a bipatride will not enjoy benefits in Spain if he lives in Argentina.

The advantages of being a bipatride include the right to travel between the two countries without visas, the ability to do business in both countries. A person with dual citizenship can apply for diplomatic assistance to the missions of both countries while in a third country.

Civil obligations remain in relation to both states and take effect in the country of residence. For example, a citizen is obliged to pay taxes and serve on conscription in the army of the country where he lives. However, some responsibilities do not need to be fulfilled in both countries.

A man with dual citizenship of Spain and Argentina lived in Spain, therefore he served in the Spanish army and paid taxes to the budget of this country. Having moved to Argentina, he begins to pay taxes there, but his military service no longer needs to be served.

A second citizenship can give advantages that bipatrides with dual citizenship do not have. For example, travel without a visa to the Schengen countries, the UK and the USA, or choose one of the EU countries for life.

Cosmopolitans receive a second citizenship in order to:

• travel freely around the world;

• to work abroad;

• have a "plan B" in case of instability in the country of residence;

• provide children with quality education and the opportunity to get a job in another country;

• enjoy social guarantees in both countries;

• open accounts and business abroad;

• optimise taxes.

The disadvantages of second citizenship are due to the fact that each of the countries recognizes bipatride only as its own citizen. So, in some cases, a person with a second citizenship will have to serve in the army in both countries.

A person with a second citizenship will not be able to hold high government posts. For example, they are usually not allowed to work for the prosecutor’s office, be members of the Government, or gain access to state secrets.

Many countries around the world allow multiple citizenship. But in some states it is not possible to have several passports: for example, in Germany, in most cases, you will have to renounce all other citizenships in order to obtain a German passport.

Duties. Countries that grant citizenship usually do not report this to the authorities of other countries. If a person decides to hide the fact of having a second passport, then the executive bodies may not find out about it. But if they find out, the citizen faces criminal liability if it is prescribed by law of the country.

If a citizen has acquired a second citizenship, he is obliged to maintain the status of a citizen of both countries and comply with their laws, e.g. pay taxes.

By itself, a second citizenship does not lead to an obligation to pay taxes in both countries. Taxation depends on the country of tax residence and source of income. For example, if a French citizen moved to a country of second citizenship and became a tax resident there, but continues to receive income from sources in France, he may have an obligation to pay taxes in both countries.

Rights. Bipatrides have practically all the rights and obligations of citizens of both countries. They can live there, work, be treated, and educate children. A second passport can expand travel opportunities, e.g. cosmopolitans with Caribbean citizenship visit the Schengen countries without a visa.

Legal residence on the territory of the country for several years, marriage with its citizen, the desire to return to the historical homeland can be the basis for obtaining a second citizenship. The methods of obtaining status and the requirements for applicants depend on the laws of the state.

Some countries issue citizenship by investment in the economy, e.g. a non-refundable contribution to a government fund, purchase of real estate or bonds, investment in business.

It is easier for investors to obtain citizenship than for other applicants: there is no need to pass exams on knowledge of the language or social structure of the country, and in some cases even to come there. Relatives of investors can also participate in the programs and get a second passport.

A number of requirements are imposed on participants in investment programs: have no criminal record, no visa or citizenship denials, a clean reputation, legally earned money for investment. To make sure that the applicant meets the requirements, a Due Diligence check is carried out.

Investors can get second citizenship in many countries of the world. Let’s talk about popular options.

Citizenship of the Caribbean countries, such as Antigua and Barbuda, Grenada, Dominica, St Lucia, and St Kitts and Nevis. Investors receive a passport remotely, the procedure takes several months.

Cosmopolitans acquire Caribbean citizenship in order to:

• increase global mobility and travel without visas to 140+ countries of the world;

• get B‑1/B‑2 visas in the United States for 10 years;

• open accounts with European banks for a second passport;

• optimise taxation by opening a company and changing the country of tax residence;

• be able to go on vacation even if the borders are closed.

Additional opportunities are provided by Grenadian citizenship. Investors with a passport of this country can visit China without a visa and obtain an E‑2 business visa in the United States.

The minimum investment amount depends on the program. The lowest amount is provided for options with a contribution to the state fund:

• $200,000 in Dominica;

• $230,000 in Antigua and Barbuda;

• $235,000 in Grenada;

• $240,000 in St Lucia;

• $250,000 in St Kitts and Nevis.

Options allowing to return the investment are available for all Caribbean programs. For example, an investor can buy a share in a hotel on the islands and sell it in 5—7 years.

Individual cost calculation for Caribbean citizenship

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Vanuatu citizenship is the fastest way to get a second passport in the world. Investors become citizens of the country in one to two months.

Visa-free travel to the Schengen countries, the ability to obtain a tourist visa to the United States for 5 years are the advantages available to investors with a Vanuatu passport.

The program provides a contribution to the state fund as an investment option. The amount of investment under the program depends on the composition of the family, the minimum is $130,000.

Vanuatu is an island nation in the Pacific Ocean bordering Australia, New Caledonia, the Solomon Islands and Fiji. An investor does not need to fly there to obtain citizenship. The procedure includes taking an oath, for which the commissioner and the employee of the migration service are invited to a place convenient for investors.

Individual cost calculation for Vanuatu citizenship

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Maltese citizenship can be obtained for exceptional services by direct investment. Investors go through the naturalisation procedure: first, they receive a residence permit, and after one or three years they apply for citizenship.

Malta is part of the European Union and the Schengen area. A residence permit allows you to live in this country and travel without a visa within the Schengen area. Maltese citizenship gives you even more opportunities:

• travel without visas to 185 countries, including the Schengen states, Great Britain, USA, Canada, and Australia;

• living in Malta;

• moving to any EU country under a simplified procedure;

• education of children in European schools and universities;

• registration of a company in the European Union;

• treatment in European clinics;

• change of country of tax residence.

Investments for obtaining Maltese citizenship start from €690,000. Investors make a contribution to the National Development Fund and a charitable donation, buy real estate or rent it for five years. The amount of investment depends on the composition of the investor’s family and the period for applying for citizenship.

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Citizenship of the EU countries by naturalisation. An investor can obtain a residence permit in Portugal, Greece, Austria or Switzerland, permanent residence in Malta or Cyprus. After several years of residence in the country, he is eligible to apply for citizenship.

A residence permit in Portugal by investment allows you to apply for citizenship after five years. At the same time, you do not need to live in the country as it is enough to come for seven days a year. In other countries, you need to permanently reside for a certain period in order to be eligible to apply for citizenship.

Spain also offers residence by investment. But this country is not suitable for obtaining a second passport, because it does not allow its citizens to have multiple citizenships. It is impossible to keep the first passport: if the Spanish authorities find that the investor has not renounced his first citizenship, they will take the Spanish passport and ban the entry into the country for several years.