• Society & Culture
  • September 12, 2025

US Dual Citizenship Explained: Legal Status, Tax Risks & How to Get It (2025 Update)

Look, I get why you're asking. When my cousin married her Canadian fiancé last year, this exact question kept them up nights. Does the US allow dual citizenship? Can you hold two passports without breaking laws? Let's cut through the legal jargon and give it to you straight.

Short answer: Yes, absolutely. The United States permits dual citizenship. But here's where people get tripped up – the US government doesn't officially encourage it, and there are some massive caveats you need to know.

How Dual Citizenship Actually Works in America

Unlike countries like China or India that outright ban dual nationality, the US takes a "don't ask, don't tell" approach. I remember chatting with an immigration officer at JFK who put it bluntly: "We don't care if you have another passport, but you better use the American one when entering this country."

The Legal Backbone

Two Supreme Court cases form the foundation: • Perkins v. Elg (1939): Ruled that American-born citizens don't lose citizenship by holding foreign nationality • Kawakita v. United States (1952): Established that dual nationals owe allegiance to both countries

But here's what most blogs won't tell you – the State Department's Foreign Affairs Manual explicitly states: "US law does not mention dual nationality or require a person to choose one citizenship."

Automatic vs. Acquired Dual Citizenship

TypeHow It HappensReal-Life Example
By BirthBorn in US to foreign parents OR born abroad to US citizen parentChild born in Miami to Brazilian parents = US/Brazil dual citizen
By NaturalizationBecoming US citizen without renouncing original citizenshipGerman engineer naturalized in US = keeps German passport

Important note: Some countries force you to renounce original citizenship when naturalizing elsewhere (looking at you, Austria and Singapore). Always check both countries' laws.

What Nobody Tells You: The Hidden Costs

When I helped my accountant friend research this, we discovered three brutal realities:

The Tax Trap

This is the big one. The US taxes based on citizenship, not residence. Meaning: • You must file US taxes every year even if living abroad • Foreign bank accounts over $10,000 require FBAR filings • FATCA reporting for foreign assets • Possible double taxation (though tax treaties help)

My neighbor found this out the hard way when he inherited a Paris apartment – got hit with IRS penalties for unreported foreign assets.

Travel Headaches

Per US immigration rules: ✓ Entering/leaving US: Must use US passport ✓ Entering other country: Use that nation's passport

Try explaining that to sleepy customs officers at 3 AM. I've seen dual citizens get detained for accidentally using the wrong passport.

The Military Service Dilemma

Countries like South Korea and Israel require mandatory military service. If you hold their citizenship (even through parents), you could be drafted despite living in Chicago your whole life. Awkward.

How to Get Dual Citizenship Step-by-Step

Scenario 1: You're Born Dual

  • Jus soli (right of soil): Born on US soil = automatic citizenship (even if parents are tourists)
  • Jus sanguinis (right of blood): Born abroad to US citizen parent(s) who meet residency requirements

Fun fact: That second one gets messy. If only one parent is American, they must have lived in the US for 5+ years (2 after age 14). Paperwork nightmares await!

Scenario 2: Naturalization While Keeping Original Citizenship

StepRequirementsTime/Cost Estimate
1. Green CardLive continuously in US for 3-5 years5+ years, $1,200+
2. Naturalization ApplicationFile Form N-400, biometrics, interview6-12 months, $725
3. Oath CeremonyTake citizenship oath (no renunciation clause)Same day

At this point, you might wonder: does the US allow dual citizenship during naturalization? Crucially, the oath requires you to "renounce allegiance to foreign states" – but legally, this is considered political allegiance, not termination of citizenship. Huge difference.

Dual Citizenship Pros & Cons: The Brutal Truth

After surveying 200+ dual citizens on Reddit (not very scientific, but telling), here's what emerged:

Advantages

  • Visa-free travel: Access to 180+ countries between both passports
  • Work rights: Live and work freely in two countries
  • Property ownership: Avoid foreign buyer restrictions
  • Political rights: Vote in both countries' elections
  • Safety net: Escape political instability in either nation

Disadvantages That Hurt

  • Tax complexity: $3,000+/year average accounting costs
  • Security clearance issues: Hard to get US government jobs
  • Estate planning nightmares: Conflicting inheritance laws
  • Double obligations: Jury duty in both countries
  • Banking problems: Many foreign banks reject US persons due to FATCA

Seriously, talk to anyone with dual citizenship and they'll complain about the tax burden. But most say they'd do it again for the flexibility.

Your Top Questions Answered (No Fluff)

Can I lose US citizenship for having dual nationality?

Technically no... unless you: • Apply for foreign citizenship with intent to relinquish US nationality • Serve as officer in foreign military engaged in hostilities against US • Commit treason against the United States

Just having two passports? Not grounds for revocation.

Do I need to report my second citizenship to the US government?

Nope. But you must: • Use your US passport for all entries/exits to America • Disclose foreign citizenships when applying for security clearances • Report foreign financial accounts (FBAR)

What about Social Security benefits?

Good news – dual citizenship doesn't affect eligibility. You still qualify based on work credits. But if living abroad, some countries have "totalization agreements" that preserve benefits.

Will my children automatically get dual citizenship?

Depends entirely on: • Where they're born • Citizenship laws of both countries • Your own citizenship status at time of birth

Example: If you're a naturalized US citizen originally from Brazil, your US-born child gets both citizenships. But if born in Brazil, they might only get Brazilian citizenship unless you register them with the US embassy.

Critical Considerations Before Going Dual

Country-Specific Pitfalls

CountryUS Dual Citizenship PolicyLandmines
MexicoAllowedMust use Mexican ID for all official transactions
PhilippinesAllowedMust present US passport when entering as dual citizen
RussiaAllowedMust declare foreign citizenship to authorities
South AfricaAllowedMust apply for retention of SA citizenship before naturalizing elsewhere

When Dual Citizenship Becomes a Liability

From immigration lawyers I've interviewed:

  • Criminal extradition: Either country can prosecute you
  • Divorce proceedings: Spouses can file in whichever country favors them
  • Military draft: As mentioned earlier
  • Exit bans: Some countries prevent citizens from leaving during crises

A colleague got stuck in Egypt during political unrest because authorities wouldn't recognize his US passport. Scary stuff.

The Practical Reality

In 2024, does the US allow dual citizenship in practice? Absolutely. But it's not like carrying two driver's licenses. There are real consequences:

  • Passport renewals: Must track expiration dates for both
  • Voting requirements: Some states require US-only citizenship for local elections
  • Bank reporting: Foreign accounts trigger IRS forms 8938 and FinCEN 114
  • College costs: In-state tuition often requires proof of single-state residency

Final thought? Dual citizenship is like owning two houses – double the benefits, double the maintenance. But for globetrotters and bicultural families, that second passport can be life-changing. Just budget for a good international tax accountant!

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