Benefits of Dual Citizenship in 2025
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Contents
- Dual Citizenship vs. Second Citizenship vs. Second Passport
- Benefit #1: More Travel Opportunities
- Benefit #2: Better Residency Opportunities
- Benefit #3: More Business Opportunities
- Benefit #4: More Real Estate Investment Opportunities
- Benefit #5: Free University
- Benefit #6: Access to Free Healthcare
- Benefit #7: An Insurance Policy for the Future
- Benefit #8: Path to Expatriation
- Benefit #9: Political Rights
- The Drawbacks to Dual Citizenship
- How to Get Dual Citizenship
- Frequently Asked Questions
- What's the "Best" Second Citizenship?
Just a few decades ago, dual citizenship—being a citizen of more than one country—wasn’t that common. It wasn’t yet legal in many countries. And its benefits weren’t that well-known.
Yet, at least among our clientele, dual citizenship can often be a big part of their planning.
Unfortunately, unless you were born with it, getting another citizenship can be a big undertaking. Is it worth your time and money? In this article, I’ll share the benefits of dual citizenship as shared by our clients… and the drawbacks too.
Dual Citizenship vs. Second Citizenship vs. Second Passport
First, before we get into the benefits, let’s define a couple of key terms:
Dual Citizenship: Holding legal citizenship in two (or more) countries simultaneously, with the associated rights and responsibilities in both.
Second Citizenship: Holding citizenship in a country other than your primary one.
Second Passport: A travel document issued by your second country of citizenship.
Generally, when someone gets a second citizenship and keeps their original one, they are considered to have dual citizenship.
With a second citizenship, you’ll be eligible for a second passport.
Does the United States Recognize Dual Citizenship?
Yes, the United States recognizes dual citizenship. However, this was not always the case. For many years, US citizens who voluntarily obtained another nationality risked losing their American citizenship. This changed with the 1967 Supreme Court ruling in Afroyim v. Rusk. The decision established that Americans could hold multiple citizenships without automatically forfeiting their US nationality.
Benefit #1: More Travel Opportunities
Dual citizenship can greatly enhance your travel options. Although a US passport provides visa-free or visa-on-arrival access to over 180 countries, some destinations still require visas for Americans, such as Brazil.
A second passport can help you access additional countries with fewer restrictions. For example, an Argentine passport offers visa-free access to countries like Brazil, as well as Cuba and Bolivia—all countries where US passport holders need a visa. Having a second passport here makes travel to certain parts of Central and South America more convenient for dual citizens.
If you’re interested in more than a European vacation, a second citizenship in a European Union country will allow you to live, work, and travel freely across the region.
Benefit #2: Better Residency Opportunities
Some citizenships grant you the right to live and work in other countries. The EU is most well known for this — citizenship in one grants you the right to live in any other member nation.
But there are other options as well. A citizen of any full member of the Organization of Eastern Caribbean States—a group that includes Antigua and Barbuda, Dominica, Grenada, Montserrat, Saint Kitts and Nevis, Saint Lucia, and Saint Vincent and the Grenadines—can live and work in any other member state.
Australia and New Zealand are another example. Being a citizen of one gives you the right to live in the other, thanks to the Trans-Tasman Travel Arrangement.
Benefit #3: More Business Opportunities
Some countries make it difficult for non-residents or non-citizens to invest in certain types of business and industries. A few such places include Bolivia, Costa Rica, Poland, Norway, and even Canada.
There are sometimes ways around these rules, but they can be a barrier to investment.
And remember, those are just the official rules. Unofficially, US passport holders aren’t terribly well-received in many situations. We’ve had many clients get stonewalled when trying to do business overseas. Even members of our broad professional network that don’t face any technical rules will sometimes ask us not to send US business their way.
Everyone’s afraid of the long arm of Uncle Sam.
Benefit #4: More Real Estate Investment Opportunities
You might have heard of Mexico’s “Restricted Zone” that prohibits foreigners from owning property within 50 km (31 miles) of the coast or 100 km (62 miles) of a border — at least without using a Mexican structure called a Fideicomiso or “Mexican Trust.”
But the truth is, plenty of countries restrict non-residents and non-citizens from owning certain types of real estate and/or real estate located in certain areas. New Zealand, the Philippines, Denmark, and Switzerland are all places that either restrict or do not allow real estate ownership by foreigners at all.
Dual citizenship in one of these countries solves this problem.
Benefit #5: Free University
You might not be surprised to learn that foreigners pay higher fees than citizens when it comes to university education. But did you know there are certain countries that offer free or nearly free university education to their passport holders?
Germany, Norway, and Austria all offer such opportunities to their citizens and citizens of the EU and a looser confederation of European countries called the European Economic Area (i.e. Iceland, Liechtenstein, and Norway).
Benefit #6: Access to Free Healthcare
Most countries these days have national health care systems with free or very low-cost care available. With a second citizenship in one of those countries, you have access to these public health care systems if you live there.
In some countries, the standard of care can be quite high. But in recent years, many countries have seen that standard slip.
For our clients, it’s usually better to go private. But it’s still nice to know you have the option.
Benefit #7: An Insurance Policy for the Future
Dual citizenship serves as an insurance policy if you lose the use of your US passport. And there are quite a few ways to have your travel document taken away. That includes:
- Unpaid child support: US citizens who owe more than $2,500 in unpaid child support can have passport applications denied or existing passports revoked until the debt is paid.
- Tax Delinquency: The IRS can ask the State Department to deny or revoke passports for individuals with seriously delinquent tax debt (as of 2024, over $62,000, including penalties and interest).
- National Security or Foreign Policy Reasons: The US government may revoke your passport if they think you’re a threat to national security or foreign policy interests.
Now you might be thinking to yourself, “well, if they’ve done something wrong, they should lose the use of their passport.” And in some cases, I would agree with you.
But you might (or might not) be surprised at how often the government messes up and adds someone to the list when they shouldn’t.
We’ve seen this especially when it comes to tax issues. Clients come to us because the IRS claims they owe money. In some cases, the right hand is coming after them while the left hand says they haven’t done anything wrong. It can take years to resolve and, in the meantime, they’ve lost the use of their passports.
Having dual citizenship frees you of this potential threat. Although it’s not ideal to lose the use of a valuable passport like the US one, at least you have a backup. And that can give you the ability to continue traveling outside the US.
Technically, it’s illegal for US citizens to enter or leave the US without a valid US passport. But there’s no criminal penalty for failing to do so. And as I mentioned earlier, it’s 100% legal for a US citizen to acquire a second citizenship and passport.
More than that, though, we’ve seen the value of the US passport drop. At the height of COVID restrictions, the US passport only gave easy access to 25 to 30 countries. Other citizens were hit as well, but not as hard, especially citizens of countries that are part of larger travel blocs like the EU or OECS.
Benefit #8: Path to Expatriation
As a US citizen, the only way to fully break free of Uncle Sam is to give up your US citizenship and passport. The only way to do that is to have a second citizenship.
Dual citizenship is thus part of the process. Without it, you can’t properly expatriate.
Recommended Reading
How to Stop Paying Taxes Legally (8 Ways from Easiest to Hardest)
How to Move out of the US Permanently… from Start to Finish.
Benefit #9: Political Rights
In most countries, citizens have additional rights to vote and seek help at the local embassy if they have a problem while visiting another country.
Not only that but, unlike residency, it’s much more difficult for citizenship to be revoked. Once you’re a citizen, only you can decide whether or not to leave. For clients looking for a “forever home” offshore, this can give great peace of mind.
The Drawbacks to Dual Citizenship
Risk #1: Double Taxation
While some countries have tax treaties with the US to reduce double taxation, managing obligations in two countries can still be complex. This isn’t generally a problem if you continue living in the US once you have dual citizenship. But if you live in the country from which you obtained dual citizenship, you’ll likely need to file two tax returns each year – one to that country and one to Uncle Sam.
Risk #2: Mandatory Military Service
Some countries still require their (usually male) citizens to serve in the military. Although in practice, this is usually tied to residency, it’s not guaranteed.
Risk #3: You may be denied jobs that require top-secret clearance
Dual citizenship may hold you back from jobs that need top-secret or security clearance. That’s because either or both countries may see you as a security risk.
I can tell you from personal experience that this can be an issue. We’ve had plenty of people from the military and/or with security clearances ask about our services, only to find out that they could potentially lose their jobs.
How to Get Dual Citizenship
There are plenty of ways to get a second citizenship. Some are easier than others, and some are harder. Others apply only in very specific circumstances. They include:
Citizenship by Descent: If you have parents, grandparents, or in some cases, even great-grandparents from another country, you may qualify for citizenship through ancestry. This path often requires gathering a lot of documentation but can be relatively inexpensive.
Naturalization: This process typically involves residing in the second country for several years, passing language or civics exams, and meeting other legal requirements.
Citizenship by Marriage: Many countries allow the spouse of a citizen to apply for citizenship after marriage, often with a shortened residency or processing time.
Citizenship by Military Service: Some countries offer citizenship in exchange for military service, especially during times of conflict. But note that if a US citizen voluntarily enlists in a foreign military force, they can potentially lose their US citizenship.
Citizenship by Religion: Certain countries grant citizenship based on religious affiliation or conversion. Israel’s Law of Return, for example, offers citizenship to Jews and converts.
Citizenship by Birth: Some countries automatically grant citizenship to children born on their soil, regardless of their parents’ nationality. Brazil and Mexico not only grant citizenship to children born in their territory but also offer residency and faster paths to citizenship for the parents.
Citizenship by Investment: Countries like St. Kitts & Nevis or Dominica offer fast-track citizenship programs in exchange for a financial contribution. These are more expensive but offer quicker results.
Recommended Reading
How to Get a Second Passport: 7 Legal Ways
Cheapest Citizenship by Investment Programs Right Now
How Many Passports Do You Need?
For most people, two passports are sufficient. However, some frequent travelers and global entrepreneurs carry three or more to maximize travel flexibility, avoid visa restrictions, and protect their assets.
Frequently Asked Questions
What's the difference between a second citizenship and a second passport?
Dual Citizenship: This means being a legal citizen of two countries at the same time, with the rights and obligations of both. As a dual citizen, you are recognized by both countries as a full citizen, which includes responsibilities like taxes or military service, depending on the countries’ laws.
Second Citizenship: This is when someone acquires citizenship in a country other than their original one. It doesn’t necessarily mean “dual citizenship,” as some countries may not recognize multiple nationalities. However, in practice, a second citizenship can function similarly if both countries allow it.
Second Passport: A passport is a travel document issued by a country to its citizens. A second passport allows you to travel as a citizen of the second country. While it is linked to having second citizenship, it’s not the same thing—citizenship refers to legal status, while a passport is a document that enables international travel.
Do I really need dual citizenship?
To decide if you really need dual citizenship, think about your lifestyle and goals. Here are some points to consider:
- Travel Freedom: If you travel often, dual citizenship can make it easier. Some passports give you visa-free access to countries that US passports don’t.
- Living or Working Abroad: Planning to live, work, or retire abroad? Dual citizenship can simplify the process, allowing you to avoid complicated visa and residency requirements.
- Tax Matters: Be aware that dual citizenship can impact your tax situation. You might face taxes in both countries, so plan accordingly.
- Family Connections: If you have family ties or heritage in another country, dual citizenship can help you reconnect and make things like inheritance and education easier.
- Security and Stability: It can be a good backup plan. If political or economic issues arise in one country, dual citizenship lets you get out of dodge faster.
- Investment Opportunities: If you want to invest in a specific country, having citizenship may open doors to local investments, real estate, or business options that non-citizens can’t access.
Weigh these benefits against any potential downsides, like extra legal obligations or taxes. Dual citizenship isn’t necessary for everyone, but it can offer valuable benefits depending on your situation.
What's the "Best" Second Citizenship?
Long-time readers will know there’s no such thing… there’s only the best second citizenship for you. That will depend on your mid- to long-term goals and the options available within your time frame and financial budget. It also depends on whether you plan to live in another country and how you intend to use your second citizenship.
What I can say, however, is that dual citizenship opens many doors. If you plan to leave the US, or even want to know how you can if you need to, it’s well worth considering.
Yes, there is a cost, whether you pay to qualify under investment or go through the more traditional naturalization process that can take years. You just need to weigh those costs against the benefits of having one.
Adding a second citizenship isn’t just about the present—it’s about having more freedom, security, and options for the future.
We’re here to help, of course. Simply request a free consultation with one of our Associates to discuss further.
About The Author
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We have 40+ years experience helping Americans move, live and invest internationally…
Need Help?
We have 40+ years experience helping Americans move, live and invest internationally…
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