Does the US Allow Multiple Citizenships?

Thinking of adding another passport to your collection but worried Uncle Sam will demand you surrender your United States citizenship to do it? 

It’s a common fear, fuelled by the dramatic language in the US Oath of Allegiance, which appears to demand exclusive loyalty to one nation – the United States of America.

That wording has led many Americans to wrongly assume that acquiring a second nationality automatically results in the loss of their US passport.

The reality, however, is much more nuanced.

While historically viewed with some suspicion, dual nationality is now widely accepted – and explicitly recognised by the US State Department. In practice, millions of Americans legally hold second and even third passports without jeopardising their US status.

Still, you need to bear in mind that just because something is allowed doesn’t mean it’s simple or without consequences.

The US remains one of the few countries in the world that taxes its citizens based on nationality, not residency. That means no matter where you live or how many other passports you carry, you’re still subject to US tax and reporting obligations.

That’s where second citizenship becomes complicated.

While it offers greater freedom of movement, wealth planning advantages and superb lifestyle choices, it doesn’t automatically free you from the US tax net. In fact, in some cases, it can even draw additional scrutiny, especially if financial structuring is involved.

Before you pursue a second passport strategy – whether through ancestry, investment or naturalisation – it’s essential to understand the legal and financial implications.

That includes the risks, responsibilities, nuances and what it really takes to renounce US citizenship should you eventually decide to make that ultimate move.

Below, the Nomad Capitalist team unpacks the US government’s attitude to dual nationality – the official stance versus the practical reality – and explains how best to navigate the treacherous waters of securing second citizenship without perishing on bureaucratic rocks.

Does the US Allow Multiple Citizenships?

The US generally permits its citizens to hold citizenship in multiple countries simultaneously, though the official position could be best described as one of passive acceptance than enthusiastic endorsement. 

The US government does monitor the intent behind certain actions. Its primary concern isn’t the mere possession of a foreign passport, but whether a US citizen performs potentially ‘expatriating’ acts. 

For example, this could be getting a new citizenship or working in a new government of a foreign country, with the goal of giving up your original citizenship. 

Aside from renouncing your US passport, or as a result of key Supreme Court decisions, it’s extremely difficult to lose your US citizenship involuntarily. 

The US State Department generally operates under the presumption that a US citizen intends to retain their citizenship, even when they naturalise elsewhere. 

In terms of how to get a second citizenship, common pathways include through birth or descent – perhaps being born in the US to parents who are citizens of another country or being born abroad to US citizen parents. 

Furthermore, many acquire multiple citizenships through naturalisation. These scenarios often arise from long-term residency, ancestry claims or, increasingly, investment migration programs.

Obligations and Potential Conflicts for Dual Nationals 

While the freedom to hold multiple passports opens doors, it’s wise to remember that this path isn’t entirely without its challenges. 

Being a citizen of the US and another nation at the same time brings distinct responsibilities and, occasionally, competing demands. 

Undivided Allegiance

American citizens owe their primary allegiance to the United States. Although this concept rarely escalates into confrontation, potential conflicts can emerge. 

For instance, if your other country of citizenship mandates military service or imposes obligations that directly contradict US law or foreign policy, you could find yourself in a tight spot.

Worldwide Tax Obligations

And now, for everyone’s favourite topic: US taxes. 

This is arguably the biggest ongoing obligation for US citizens abroad. Uniquely, the US taxes its citizens based on citizenship, not residency. 

Regardless of where you live or whether you hold other nationalities, your worldwide income is potentially subject to US taxation. It requires filing taxes each year and reporting foreign financial accounts carefully under rules like FBAR and FATCA. 

Holding another passport offers no exemption – your US tax duties remain firmly in place.

Consular Protection Abroad

The US government usually helps its citizens in other countries. However, this protection can be limited when you are in a country where you have citizenship. 

That country sees you as its own citizen, which could make it harder for US consular officials to help you if you have a problem.

US Passport Requirement

All US citizens are required by law to possess a valid US passport in order to enter and leave the country. Holding citizenship elsewhere doesn’t alter this fact. 

The Role of Other Countries’ Laws

In relation to citizenship, the immigration law of the other country involved is equally, if not more, important to understand. 

Nations adopt vastly different policies on this front. 

Many countries, including the United Kingdom, Canada, Australia, Ireland, Italy and most other European countries, generally allow their citizens to hold other nationalities without significant restrictions. 

Conversely, some countries impose limitations or conditions. For instance, Germany often requires its citizens intending to acquire a non-EU/Swiss nationality to obtain a specific retention permit beforehand to avoid automatic loss of German citizenship. 

Other nations, such as China, India, Japan and the UAE, typically don’t permit dual citizenship.

These laws can change each year, so check out our regularly updated dual citizenship list here.

The Benefits of Multiple Citizenships for US Citizens

Given the enduring US tax obligations and potential complexities, why do US citizens seek additional nationalities? 

The reasons are broad, typically coming from a blend of strategic benefits and personal aspirations. 

A primary reason is the right to live, work, study and retire in another jurisdiction, perhaps gaining access to the entire European Union with an EU passport. 

Second or third citizenship also acts as a powerful hedge against unforeseen political headwinds or policy shifts in any single nation. It’s a genuine Plan B for residence and wealth preservation. 

For business, it can lead to specific trade advantages or new investment opportunities. 

Beyond the practical, it offers broader lifestyle choices for education, healthcare and cultural experiences, and it serves to reconnect family heritage. 

While it doesn’t negate US worldwide taxation, strategically pairing another citizenship with citizenship outside the US can lead to what we call ‘strategically lowered taxation’. 

Good Second Citizenships for US Citizens to Acquire

A valuable second citizenship complements a US one by providing tangible advantages. Key among these is more global mobility. 

It should also represent a credible ‘Plan B’.

Critically, the chosen country must permit dual nationality.

With all this in mind, several pathways stand out for Americans. 

Chief among these are countries within the European Union, because they give you unrestricted access across all 27 member states. 

Portugal is a prime example of ‌a good second citizenship because you get one of the strongest passports in the world. 

While its popular Golden Visa program recently pivoted away from direct real estate investment as a qualifying route to residency, other forms of contribution exist. 

Portugal also offers residency visas like the D7 (for passive incomes) and D8 (for digital nomads). Both of these visas can lead to citizenship after five years of legal residency. 

Though its Non-Habitual Resident (NHR) tax regime underwent a lot of changes in 2024, Portugal continues to offer potentially advantageous tax residency conditions under successor schemes, making it hard to ignore.

If your family history includes recent European emigrants, you might have a more direct route. 

Ireland and Italy, in particular, offer citizenship based on ancestry, often going back to grandparents. The best part is that millions of Americans have potential claims. 

Ireland is especially sought-after – it’s English-speaking, is in the EU and shares a common travel area with the UK. The process can be relatively straightforward if your lineage is clear. 

Italy opens the door to La Dolce Vita and full EU rights, though be prepared for a journey through Italian bureaucracy.

For those seeking an EU passport by direct investment, Malta offers citizenship through its Exceptional Investor Naturalisation (MEIN) program. 

You must invest over €750,000, including donations and property commitments. You must also show real residency ties over a period of 12 or 36 months. 

It’s a high bar, but the reward is citizenship in an English-speaking EU country with a favourable environment for business.

You also have the Caribbean options, which are often the fastest citizenship routes. 

Caribbean citizenship by investment programs in countries like St Kitts and Nevis, Grenada, Dominica, St Lucia and Antigua and Barbuda can deliver a new passport in three to six months. 

They typically require either a donation to the government or buying approved real estate. 

Caribbean passports are excellent options for visa-free travel (including access to the EU Schengen zone and the UK) and as a Plan B.  

Tax Planning for US Dual Citizenship

Getting another passport, no matter how impressive, won’t magically make your US tax obligations disappear.

As a US citizen, you’re generally required to report your worldwide income to the IRS, period. 

However, things can be more efficient if you use that second citizenship to establish tax residency outside the United States. 

Doing so means you can benefit from tools like the Foreign Earned Income Exclusion (FEIE).  This lets you exclude US$126,500 of your foreign earnings from US tax. 

Foreign Tax Credits (FTCs) reduce your US tax bill by the amount of income tax you’ve already paid to your new home country. 

Tax treaties between the US and many countries also help prevent being taxed twice on the same income. 

Some people, therefore, look towards:

• Countries with zero or low-income tax (like the UAE or Monaco) 
• Territorial tax systems (where foreign income might not be taxed locally) 
• Special tax regimes for new residents (as seen in places like Italy or Greece). 

But tread carefully here. It’s about smart planning, not dodging your obligations.

Does the US Allow Multiple Citizenships: FAQs

Get the Right Second Citizenship

For US citizens, the world of second citizenship requires careful planning. 

Unlike nationals of nearly every other country, the far-reaching grasp of the US’ worldwide taxation system makes things more complicated, requiring a more strategic approach from the start. 

A second citizenship strategy needs to be integrated intelligently within a larger plan that fully accounts for your ongoing US reporting and tax obligations.

Trying to juggle all this yourself – the citizenship laws of another country, its tax rules and how they interact with US taxes, the residency requirements and investment options – can quickly become complicated. 

It’s easy to overlook something important or choose a path that doesn’t quite deliver what you expected. 

Getting the right advice from the start can save you lots of time, effort and money. That’s just one of the reasons people choose Nomad Capitalist – we have direct experience across multiple jurisdictions and will help you weigh up the pros and cons of each. 

So, remove all the guesswork, skip past the gatekeepers and speed up the entire process by reaching out and letting us help you go where you’re treated best.