Dual citizenship: 10 pros and cons of having two and more passports (2024)

Multiple citizenships offer travel freedom, better healthcare choices, and broader educational opportunities. Yet, there are drawbacks to possessing two passports. Let's explore the definitions and the pros and cons of it.

Difference between dual and second citizenship

Dual and second citizenship both involve holding two passports but with different conditions.

Dual citizenship arises from a bilateral agreement between two countries, where each recognises the dual citizens' rights and obligations. Therefore, dual citizens pay taxes and may have military duties in their residence country, with protections against double taxation.

Second citizenship means holding passports without such an agreement. Each country permits dual passport holding but doesn't recognise mutual rights or duties, meaning holders of a second passport could be taxed in both countries.

7 benefits of dual and second citizenship

  1. Travel: Dual citizens can use any passport for easier travel. For instance, an Algerian with a Portuguese passport can enter Schengen states hassle-free and quickly obtain a US eTA as a Portuguese citizen.
  2. Business: Dual and second citizenships enable choosing business-friendly countries. Economic stability, supportive tax systems, startup support, and educated workforces are vital conditions. Denmark, Germany, Australia, Canada, Switzerland, and the UAE are top business destinations.
  3. Citizens enjoy full political rights, regardless of multiple passports. They can vote, participate in both countries' politics, and enter their citizenship country unconditionally.
  4. Employment and life benefits: Multiple citizenship holders can work, own properties, and access social benefits in their countries.
  5. Healthcare: Dual citizens can opt for better healthcare. For example, a US citizen with a Maltese passport might use Malta's free insurance over US options.
  6. Education: Second passport holders can study in their chosen country without higher fees. For example, an EU passport holder can study anywhere in the EU at local tuition rates.
  7. Tax incentives: Multiple citizenships might lower tax burdens. Individuals can choose a country with favourable tax laws. Some nations, like Antigua and Barbuda, the UAE, and Vanuatu, have minimal taxes. After choosing, one typically stays in that country for half the year to qualify as a tax resident.

Dual citizenship: 10 pros and cons of having two and more passports (1)

Downsides of multiple citizenships

Taxation risk. While dual citizens might reduce taxes, they also face double taxation on foreign income or property, depending on national laws.

Career restrictions. Some nations prevent dual citizens from government roles or positions like judges, ministers, or deputies.

Military service. Rarely, serving in one country's military as a dual citizen might lead to losing the other citizenship, based on specific state laws.

How to get a second citizenship

Obtaining dual or second citizenship varies by country, usually categorised into descent, naturalisation, or investment.

Citizenship by descent caters to those with ancestral ties to a nation, typically children or further descendants of its citizens. Certain countries like Greece and Malta extend this to even younger lineages.

The descent-based process is relatively fast, often just a few months.

Naturalisation entails forging significant ties over several years, like living for work, study, business, or marriage.

This route often demands years and passing cultural and language tests. Naturalisation involves living in a country for about five years and establishing robust economic and cultural connections.

Some nations offer citizenship by investment, where one invests in the economy, like donating to a government fund, buying property, or supporting a business.

Obtaining citizenship by investment usually spans 6—8 months, and investors can include family in their applications.

Investors aren't required to showcase country ties or language proficiency. Key requirements often involve being above 18 and proving legal income sources.

The states offering citizenship by investment include, for example, Turkey, Antigua and Barbuda, Dominica, Grenada, St Kitts and Nevis, St Lucia, and Vanuatu.

However, applying for citizenship by investment is only possible through an agent accredited by the respective government. Immigrant Invest is a licensed agent entitled to guide wealthy people through the process of getting a second passport by investment.

_____________________________________________________________________

Alina Mishurenko is an Editor-in-chief and content creator at Immigrant Invest. Alina collaborates with investment migration experts and lawyers, guiding clients to choose the ideal passport or residence permit. Her legal expertise ensures accurate, trustworthy information, saving investors time on external verification.

Follow IMMIGRANT INVEST for insights on second citizenship and residency, legal advice, and the latest news from verified sources.

Dual citizenship: 10 pros and cons of having two and more passports (2024)

FAQs

What are the pros and cons of having two passports? ›

Dual citizens can travel freely in both countries, as well as work, do business, own land, and do other activities that may be restricted to foreigners. However, there are also disadvantages, as dual citizens may face extra taxes or even military service.

Can you travel with 2 passports if you have dual citizenship? ›

If you are a U.S. citizen with more than one passport, you must use your U.S. passport to enter and leave the United States—however, if you're traveling to another country, you may use whichever passport you prefer.

Does dual citizenship affect social security benefits? ›

The United States generally considers a person with dual U.S. and foreign citizenship a U.S. citizen for Social Security purposes. This does not apply if you are a U.S. citizen and a citizen of a country the United States has an international social security agreement with.

How many dual citizenships can a U.S. citizen have? ›

Certain countries have always had a favored position for dual citizenship. Most notably, US citizens have no restrictions on obtaining multiple citizenship unless the citizenship can cause significant harm to the country.

Is it illegal to have 2 US passports? ›

US citizens can legally possess two passports. Yes, you can have the normal 10-year passport plus a second, limited validity passport, normally valid for 4 years.

Is it rare to have 2 passports? ›

MOST countries allow their citizens to hold dual or multiple citizenship; therefore, one person can legitimately have 2, 3—or even more—passports. Some EU countries and over 95% of the Asian countries forbid it; if you become one of their citizens, you must renounce any prior citizenship(s).

Do dual citizens pay taxes in both countries? ›

As a US citizen living abroad, you will likely have to file taxes with both the US government (based on your citizenship) and your country of residence. And because the US taxes the worldwide income of its citizens—not just US-source income—many dual citizens are also at risk for double taxation.

What is the best dual citizenship for U.S. citizens? ›

Citizens of the United States may apply for dual citizenship with New Zealand. Dual citizenship with New Zealand is one of the best dual citizenship for US citizens. The process usually involves meeting residency requirements, filling out an application, maybe taking a citizenship exam, and paying related expenses.

How long can I stay outside the US as a citizen? ›

The general rule is that a naturalized citizen who voluntarily resides outside the US for an uninterrupted period of more than one year may be presumed to have abandoned their US citizenship. However, this presumption is rebuttable if the individual can provide evidence to the contrary.

Will I lose my US citizenship if I apply for dual citizenship? ›

U.S. law does not mention dual nationality or require a person to choose one citizenship or another. Also, a person who is automatically granted another citizenship does not risk losing U.S. citizenship. However, a person who acquires a foreign citizenship by applying for it may lose U.S. citizenship.

How long can a retired U.S. citizen stay out of the country? ›

There's No Time Limit For Receiving Social Security Benefits Abroad. Luckily, there is no time limit on how long you can live outside the U.S. and still receive monthly Social Security payments. As long as proof of life documents are signed and returned annually, you'll still get paid.

Is there a downside to dual citizenship with Mexico? ›

Some pension and social security benefits from the birth country may not be available to a dual-citizen living in the country of their second citizenship, or if they are not tax-resident in their birth country.

How long can a dual citizen stay out of US? ›

You can travel abroad for as long as you'd like without any risk of losing your U.S. citizenship. And if you plan to stay outside of the United States for longer than a year, you won't need a re-entry permit in order to return, as is the case for green card holders (permanent residents).

Which passport should dual citizens use? ›

Which passport should dual-citizens use? Reminder for Dual National U.S. Citizens: U.S. law requires all U.S. citizens, including dual-national citizens, to enter the United States using their U.S. passport. We urge all U.S. citizens to keep their U.S. passports current.

What is the easiest country to get dual citizenship? ›

Different countries have different rules, but the easiest countries to get dual citizenship are states like Turkey, Vanuatu, Grenada, and Dominica. They offer citizenship by investment that can be obtained in 1—10 months.

Is getting a second passport worth it? ›

Freedom of mobility: Having a second passport gives you more freedom to move around the globe. Depending on where you acquire your second citizenship, you and your family can enjoy visa-free or visa-on-arrival travel to numerous destinations.

What is the best dual citizenship for US citizens? ›

Citizens of the United States may apply for dual citizenship with New Zealand. Dual citizenship with New Zealand is one of the best dual citizenship for US citizens. The process usually involves meeting residency requirements, filling out an application, maybe taking a citizenship exam, and paying related expenses.

What is the best way to get a second passport? ›

If you don't hold the right to citizenship from another country through the naturalization process, descent, or marriage, citizenship by investment is the easiest way to get a second passport. Countries with easy second passport programs include St. Lucia, Grenada, Dominica, and Vanuatu.

What countries do not allow dual citizenship? ›

The countries that don't allow dual citizenship for adults as of this writing include:
  • Bahamas.
  • China.
  • Haiti.
  • Indonesia (except in certain circ*mstances)
  • Japan.
  • Kuwait.
  • Laos.
  • Malawi.

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