Why Dual Citizenship Is The New American Dream

The American dream that once fueled immigration is dying. Many Americans now believe that other countries can offer them better opportunities. 

A lack of freedom, affordable housing and economic challenges have sparked a growing interest in US dual citizenship.

This trend in dual citizenship extends beyond the United States, as individuals around the world seek the security and opportunities that come with holding a second passport. 

As Republican lawmakers aim to end birthright citizenship for children of undocumented immigrants, dual citizenship has also become a focal point of Trump’s immigration agenda. 

Recently, the issue has arisen alongside efforts by Republicans to impose restrictions on dual citizenship for members of Congress. 

Republican Congressman Thomas Massie stated, ’Dual citizens elected to the United States Congress should renounce citizenship in all other countries.’ 

This statement, along with rumours of a controversial plan to reshape US dual citizenship, has caused concern among immigrant communities in America. 

The internet recently erupted with a viral hoax: an image falsely attributed to Trump suggested he planned to strip dual citizens of their American nationality. 

While such rumours circulated, it is evident that Trump’s focus is on immigrants in the United States – specifically, those considered ‘not true Americans’ because they were not born there. 

Current sentiments suggest that even individuals who have gone through the naturalisation process could have their citizenship revoked. 

A Global Crackdown on Dual Citizenship?

The details of Trump’s dual citizenship proposals are not fully known. 

Some sources suggest the proposal aims to make acquiring dual citizenship more difficult, while others hint at stricter requirements for maintaining it.

However, these remain mere whispers in the corridors of power without official confirmation. The lack of transparency is concerning. It has left millions of US dual citizens in limbo, uncertain about their future in their home country.

This situation isn’t unique to the United States – fears of a crackdown on dual citizenship are surfacing globally. 

In Australia, opposition leader Peter Dutton has proposed a restoration of powers that allow ministers to strip Australian citizenship from dual nationals who commit certain crimes. 

This would change current laws, under which courts decide on citizenship during sentencing for serious offences like treason. 

Furthermore, there are growing calls for the removal of Elon Musk’s Canadian citizenship due to allegations that he undermines the nation’s sovereignty, given Trump’s comment about Canada potentially becoming the ’51st state’ of the US. 

In Hungary, Prime Minister Viktor Orbán is advocating for the stripping of citizenship from individuals deemed a threat to public order as part of a broader anti-immigration campaign.

New security screening has been mooted in Germany and France for dual citizens leaving and exiting the Schengen zone, amid concerns about espionage and divided loyalty to the European Union. 

Across the board, governments are treating dual citizens as if they occupy a kind of legal grey zone. 

In recent years, more Americans have been seeking a second passport, whether to escape their home country, embark on a new adventure abroad, or connect with their heritage.

But that goes against Trump’s ‘America First’ strategy. He wants to recoup the lost dollars he believes are being hidden overseas. The US is among the top 20 countries with the highest debt-to-GDP ratio. It wants that cash back from its citizens. 

The United States already has citizenship-based taxation that follows US citizens wherever they live, but limiting US dual citizenship is another way to balance the books.

Of course, the stated reason the Trump administration wants stricter immigration controls and travel bans is national security. 

In the age of war, terrorism and digital espionage, the US government wants to know who you stand with and having dual citizenship could be seen as a threat. 

More broadly, in global terms, power is shifting away from legacy countries like the United States. The US is losing its grip as the world’s superpower and wants to reestablish that by having more control over its borders, trade and citizens.

Pros and Cons of US Dual Citizenship​

Considering all this, it’s best to also consider the benefits and drawbacks of US dual citizenship.

Pros of Dual US Citizenship:

Reduce Your Taxes: Citizenship of another country grants you the right to work and reside permanently in that country. If you stay long enough to unlock tax residency in a low- or zero-tax country, you could say goodbye to income, corporate, capital gains and wealth taxes.

Travel and Global Mobility: Those who hold dual nationality have easier access to travel between countries, including visa-free entry or visa-on-arrival in many nations. 

Security and Stability: Holding citizenship in multiple countries can create a safety net in times of political or economic instability in one’s primary country.

Financial Opportunities: Dual citizenship helps entrepreneurs and investors access international markets and opportunities.

Cons of Dual US Citizenship:

Tax Obligations: US citizens are required to file taxes on their worldwide income, regardless of where they reside, which can lead to potential double taxation if another country also taxes their income. 

Military Obligations: Dual citizenship can sometimes lead to conflicting military obligations, particularly if one country requires military service. 

Expatriation/Exit Tax: If a dual American citizen chooses to renounce their US citizenship, they may be subject to an expatriation tax, which could potentially impact their financial planning. 

Global Bias Towards the United States: Due to their US citizenship, dual citizens may face certain biases or scrutiny in some countries. 

Complex Processes: Dealing with the laws and regulations of two countries can be complex, requiring careful attention to detail. 

How Does This Affect Expats? 

The shifting global landscape around dual citizenship directly impacts the lives of US expats. 

As this issue is scrutinised more than ever, you can expect increased scrutiny from the governments of all your citizenships. 

Among these factors, the most persistent and significant is your tax obligation.

If you’re a US citizen living abroad, you must always file US taxes unless you renounce US citizenship.

Because the US taxes you on citizenship, not residency, moving to another country doesn’t mean you’re exempt from the US tax system. 

You don’t always have to pay much tax, but ensure you always file, even if you benefit under the foreign earned income exclusion. 

As dual citizenship is under the microscope more than ever, you may face increased scrutiny from the governments of all your citizenships. 

The United States could flag your foreign bank accounts, so you must continue following FATCA guidelines when banking overseas. 

If you want to get a second passport, many countries around the world are reconsidering their citizenship by investment programs. Processing times are becoming slower, and the due diligence is getting more onerous than ever.

Generally speaking, governments are becoming more selective about who they help defend and even recognise, and in many cases, you won’t realise you’re the target until it’s too late. 

Even if you become a naturalised citizen or you weren’t born in one country and obtained citizenship in another, you can have your citizenship revoked.

Even if dual citizenship became harder, the bottom line is that you don’t need to give up your expat life. Instead, you have to plan smarter. 

Applying for a second passport is no longer a do-it-yourself process, whether through descent, investment or marriage. 

You really should hire an immigration attorney. Better still, why not work with the world’s leading second citizenship service at Nomad Capitalist? 

US Dual Citizenship: FAQs

Dual Citizenship: A Lifeline in a Turbulent World 

The controversy surrounding Trump’s immigration proposals has highlighted the importance of dual citizenship in an increasingly uncertain world.

These measures were met with widespread criticism and legal challenges, yet they underscored a significant shift in US immigration policy. 

Immigration lawyers and consultants have reported a spike in inquiries as people seek to secure their mobility and safeguard their futures. Dual citizenship is increasingly seen as a safeguard against political volatility. 

Dual nationality offers a Plan B in turbulent times. The Trump era, marked by travel bans and tighter border controls, has only amplified this desire. 

Whether for better economic prospects, political stability or simply the freedom to travel without restrictions, the allure of a second passport is undeniable. 

People increasingly recognise the value of having options and the ability to make choices that best suit their personal and family needs. 

Many Americans feel heightened uncertainty and fear about the future, prompting them to explore options for securing their safety and well-being. 

While the specifics of Trump’s plan remain unclear, one thing is sure: the desire for dual citizenship is stronger than ever. 

The motivations are diverse. 

It could be people looking for a retirement plan, a cheaper cost of living, better investment prospects or better healthcare access. 

It could be to escape whatever’s going on in your home country and the desire to find a safe place to land.

There are various avenues to obtaining a second passport, including citizenship by descent, investment, marriage or naturalisation. 

Whatever route you choose, it will take planning. 

That’s where Nomad Capitalist comes in.

We help seven- and eight-figure entrepreneurs and investors create bespoke strategies using our uniquely successful methods. These strategies allow you to keep more money, make new wealth faster and be protected from whatever happens in three steps. 

At Nomad Capitalist, we have a network of lawyers, estate agents, accountants and tax and company formation specialists worldwide. All that expertise and real-world experience come together when we advise your holistic, bespoke action plan. Discover how we do things here.