Pros and Cons of Dual Citizenship in 2025

As political uncertainty, inflation and wealth-targeting tax policies continue to plague even the world’s most ‘stable’ countries, it’s never been more vital to build an intelligent Plan B for your own peace of mind and financial security. 

More and more high-net-worth individuals (HWNIs) are turning to dual citizenship to secure personal and financial freedom.

There’s a growing recognition that second passports offer outstanding value either as an immediate option or as a ‘back pocket’ option in case conditions worsen in their home country.

An added bonus is that, depending on their choices, applicants may not even have to surrender their original passports. 

But it’s all about advance planning.

The world is becoming more chaotic by the day, so there’s never been a better time to arrange a second citizenship. After all, it’s better to be decades early than a day too late. 

Getting the right advice from the start can save you lots of time, effort and money. Rather than relying on local providers, it pays to have impartial advice from international experts with no specific allegiance to any one jurisdiction.

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’.

To help you mull over your options and understand which countries allow or forbid dual citizenship and why, the Nomad Capitalist team has put together this in-depth guide to the pros and cons of dual citizenship. 

The Pros and Cons of Dual Citizenship

Holding dual citizenship offers many advantages, but there are potential drawbacks to consider. Let’s break them down.

Pros of Dual Citizenship

Reduce Your Taxes

Being a citizen of a country doesn’t automatically make you a tax resident, except in the case of the United States (but we’ll talk more about that later).

With that said, citizenship grants you the ability to work and reside permanently in a country. So, you have the option to stay there long enough to develop the economic ties required to unlock tax residency.

If you’re an entrepreneur in Canada (for example) who’s tired of giving away so much of their hard-earned revenue in taxes, perhaps you’ll be attracted to pursuing Maltese citizenship. 

You could become a non-domiciled resident in Malta, allowing you to take advantage of its territorial tax system and pay no tax on your foreign-earned income. 

Don’t like the look of Malta? Perhaps you prefer to work toward citizenship by naturalisation in Paraguay, Uruguay or Malaysia, which also have territorial tax systems.

Beyond territorial tax countries, you could also get citizenship in a zero-tax country where you could simply say goodbye to income, corporate, capital gains and wealth taxes.

If you’re looking to reduce (or eliminate) your tax bill, there are many options available to suit your needs. And, if you’re a high-net-worth individual, the initial investment of citizenship can pay off quickly in scenarios like this. 

More Travel Options

Dual citizenship grants you a second passport with visa-free access to a host of new countries. If you’re strategic about your choice of citizenship, you can unlock hassle-free travel around the world to do business and explore new markets.

Many Chinese entrepreneurs pursue second citizenship to get visa-free access to the European Union or Latin America, for example. Some Caribbean programs offer access to countries that EU passports don’t. 

If you’re an American who does business overseas, there’s every chance you might be attracted to investing in Grenadian citizenship simply because that gets you visa-free access to China and Russia.

Take a look at our Nomad Passport Index for guidance on the world’s most powerful passports. 

More Residence Privileges

When you gain dual citizenship, it automatically grants you permanent residency in a country. This can unlock a host of privileges, including affordable higher education or free healthcare, depending on the country. 

Indeed, many US citizens obtain Canadian citizenship for those two reasons. 

Beyond that, many people seek EU citizenship, which grants them the right to live, work and study in any other EU nation.  

Secure a Plan B

A ‘Plan B’ citizenship can be a lifesaver when tax hikes are introduced or governments enforce draconian rules like lockdowns and travel bans. 

In many cases, those with a second citizenship are able to bypass travel restrictions and relocate to safer countries with more stable healthcare systems. 

As countries around the world raise taxes and enter new eras of political change, having an exit route when you need it makes sense.

Second Citizenship Cons

Potential Citizenship Obligations

Citizenship and dual nationality come with benefits, but certain countries also impose obligations. 

Perhaps the biggest example of this is the tax obligations that come with US citizenship. 

Even if you have a second passport and live outside the United States, you’ll still have to file taxes in the US each year and there’s every chance you’ll still owe money to the IRS. You’ll also have to continue following FATCA guidelines when banking overseas. 

Some countries like Turkey and Greece have compulsory military service for male citizens in certain age brackets.     

Thankfully, there are plenty of nations that don’t. For example, a key benefit of Caribbean citizenship is that these countries tend to leave you alone once you get your passport. 

Potential for Double Taxation

If you maintain economic ties to two countries, there’s potential for your income to be taxed twice. 

Nations establish double taxation treaties with each other to prevent this from happening, and these are fairly common. The United States and the United Kingdom each have more than 100 treaties with other countries, for example. 

Still, you’ll need to be strategic with your choice of citizenship to avoid being taxed twice on your hard-earned income.    

How to Get Dual Citizenship 

There are various ways to gain citizenship in a country. Depending on your goals, there are also second passports that can make more sense. There’s a lot to consider, and we can help.

The general steps to get dual citizenship include:

1. Finding the best place to go. Acquiring a second citizenship should be planned carefully. You might want to pay lower taxes, have more travel options, or live in a country with better business opportunities and quality of life. The Nomad Capitalist website is packed with information on what’s offered across various jurisdictions around the world. It’s what we call ‘going where you’re treated best’.
2. Seeing if you qualify. The criteria to qualify for citizenship differs depending on the country. The three main routes to qualify are citizenship by investment, citizenship by descent or citizenship by naturalisation. 
3. Applying. The application process for a second citizenship can be lengthy and complicated. You’ll need to provide a lot of personal and financial documents, as well as proof that you meet the citizenship criteria. 
4. Waiting. Some countries are far more efficient than others when it comes to processing citizenship applications. Often, it’s a long wait between applying and receiving your second passport. We highly rate Caribbean citizenship by investment because you can expect to complete the process within 3-6 months. In other countries, it could take several years.  

Ultimately, gaining a second citizenship comes down to your individual situation. For example, you might have an Irish or Italian grandparent. 

If that’s the case, you can (and should) apply for citizenship through descent. It’s a straightforward process that won’t require an investment, and you can get a relatively hassle-free second passport.

Alternatively, you might be looking to acquire a second citizenship through investment. If that’s the case, you can spend more time weighing up your options to see which program offers the most value.

Dual Citizenship in 2025: FAQs 

Be Prepared for Anything

When you invest in a second citizenship, you invest in options to escape deteriorating conditions in your home country. Just like a savvy investor diversifies their assets, diversifying your citizenships gives you long-term options and stability.

This isn’t about scaremongering. It’s about encouraging you to be prepared for anything. If you’ve worked hard to create a prosperous life for yourself and your family, it makes sense to protect yourself.

That’s what dual citizenship grants you, but getting it right takes planning.

That’s where Nomad Capitalist comes in. 

We’ve helped 2,000+ high-net-worth individuals to make use of offshore opportunities to create a better life. Our clients are paired with experts in tax, investment strategy, asset protection and immigration to create a holistic plan based on their unique goals. Get started here.