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Which Countries For Dual-Citizenship with United States
Which Countries For Dual-Citizenship with the US
Dual citizenship can be a complex issue depending on which country a US person has their original citizenship from and which country they are seeking dual citizenship. For example, the United States allows dual citizenship, and just because a person is a dual citizen does not impact their US Tax liability. Conversely, some countries such as Singapore strictly forbid becoming a dual citizen. This can lead to additional and unwanted complexities for US Citizens seeking dual citizenship — and especially taxpayers who are considering expatriation in order to formally give up their US citizenship. For taxpayers seeking expatriation, they must obtain second citizenship first –– otherwise they are considered an ‘orphan’ and the IRS will reject their expatriation application. While each individual taxpayer will have their own set of priorities when it comes to obtaining citizenship, let’s take a look at some of the preferred countries that may be a good choice for US citizens considering dual citizenship.
Preferred Countries that Allow Dual-Citizenship
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Hong Kong
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Macau
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Argentina
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Brazil
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Costa Rica
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Czech Republic
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Denmark
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Ireland
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Malta
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Portugal
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Saint Lucia
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Kitts*
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Dominica*
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Montenegro*
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Lucia*
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Turkey*
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Antigua and Barbuda*
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*Citizenship-by-Investment Programs and some may allow for limited dual citizenship such as Austria.
Investment Visas and Citizenships
The reason why these countries were selected to consider dual citizenship is because of the overall quality of life they can offer. When a person is considering investing in a second passport and already has US citizenship, they have to consider whether or not the benefits outweigh the costs. For taxpayers who are seeking to renounce their U.S. Citizenship — but need to acquire foreign citizenship — they will oftentimes look to the Citizenship-by-Investment Programs to obtain a fast path to dual citizenship — but it is important to properly research each option first.
US Tax on Worldwide Income Until Expatriation
It is important to note that until a person formally relinquishes their US Person status, they are still considered a US person for tax purposes. That means that they are still taxed on their worldwide income – whether they reside in the United States or abroad and/or earn money sourced in the U.S. or abroad. Depending on the specific type of taxes the foreign country has, it may result in a much more complex and intrusive tax impact than anticipated.
Golding & Golding: About our International Tax Law Firm
Golding & Golding specializes exclusively in international tax, and specifically IRS offshore disclosure and compliance, including taxes for expats.
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