Understanding Dual Citizenship: Pros and Cons

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The concept of dual citizenship has become much more prevalent in our modern world. Even the understanding of citizenship and what it means has evolved alongside the rapid globalization of the world. But as the global geopolitical environment continues to change, gaining higher tensions, it becomes more imperative than ever to understand how dual citizenship fits within the equation and what pros and cons it may bring with it.

What is citizenship?

The definition of citizenship is a complex one that includes quantitative and qualitative aspects. It can be bound to sovereignty, laws, identity, responsibility, rights, or more. However, Dimitry Kochenov, a professor of legal studies at the Central European University, simplifies the matter by defining citizenship as a legal status that comes with a set of obligations and civil rights. The definition of dual citizenship is even simpler; fundamentally, it is holding two citizenships of two different sovereign nations. The idea of dual citizenship has grown in the post-World War Two era, and it is encapsulated in the overall global acceptance of the concept. In 1990, only 45% of countries allowed dual citizenship. Fast forward thirty years to 2020, and a whopping 76% of 200 countries now accept dual citizenship for their nationals.

How do you become a dual citizen?

Becoming a dual citizen is easier than ever. There are various routes, the most common being naturalization through years of residence in a foreign country. Marriage, parenthood, and birth can all lead to obtaining dual nationality, but the easiest way of all is through obtaining citizenship by investment, a matter that only takes a couple of months, is highly affordable, and does not require any prior residence. There are a lot of citizenship by investment programs throughout the world, giving interested investors a wide array of options and channels to obtain dual citizenship, and they are becoming extremely popular. St Lucia has naturalized over 1,300 investors since its launch in 2014, and Grenada has over 2,800 approvals. The numbers show the growing awareness regarding obtaining a second citizenship, highlighted by the staggering 5586% increase in the number of applications to Grenada's program between the years 2014 and 2022. Evaluate the pros and cons, as it is critical to understand the rights, benefits, and obligations that one may face before acquiring dual citizenship.

The Pros

There are various benefits once you obtain dual citizenship. Dual citizenship advantages include:

  • Enhanced global mobility: A second citizenship means a second passport, which will open more hassle-free travel destinations, and make you a legal citizen. Two passports can drastically increase your travel flexability.
  • Enhanced safety & security: Obtaining dual citizenship is the optimal way to hedge against political and economic instability in one's country of origin. By having a second home, a person can safeguard their family and wealth from risks. It is savvy for foreign nationals to obtain a second citizenship from a country on the other end of the geopolitical spectrum to ensure a higher safety level and more options in time of need.
  • Taxation and wealth management: By having two citizenships, a person will have access to two taxation frameworks that allow them to structure their tax burden more efficiently in line with favourable tax laws. Foreign nationals can also use this as a route to setting up a solid international wealth management structure that safeguards their wealth and helps them enhance it.
  • Access to different regulations: Dual citizens have the benefit of being able to access different legal and regulatory systems. This enables them to choose which regulatory system, be it financial or otherwise, they prefer to work under for different matters. For example, if cryptocurrency is banned in one country, it may be accessible in the other.
  • Privacy and personal freedom: For those seeking individual sovereignty, the best way to do so is by becoming a dual or multi-national, removing the risk of being controlled by one government and dispersing sensitive information throughout various parts of the globe.
  • Greater opportunities: Whether it is immediate business or investment opportunities, access to better healthcare or education, or just opening the doors wide open for future generations, dual citizenship is a master key to the world's playing field.

The cons

Why dual citizenship is bad; Becoming a dual citizenship can have its cons, especially if it isn't properly considered or thoroughly researched, here are some of the most common cons that usually go overlooked:

  • Tax burden: While getting a second citizenship can help with a person's tax burden, it can also exasperate it. An individual needs to understand a country's tax system, income tax treaties and their obligations as citizens before naturalization. This is especially crucial for those obtaining a US citizenship, which creates a tax liability that follows them wherever they may go. Its important to speak to a professional to avoid double taxation.

  • Political obligations and conflict: It is also paramount to understand any political obligations that may have large effects, such as mandatory military service. But understanding the law also extends to ensuring that your new home country's laws don't conflict with those of your country of origin, especially in matters that are a significant part of your life.

  • Elevated scrutiny: A few governments don't like dual citizenship, and they may increase the level of scrutiny, be it financial or political, of a dual citizen. Understanding how to manage being a dual citizen (i.e.. what citizenship to use and when) is crucial. This is also be the case when some countries are on bad terms; imagine a dual citizen of two superpowers who have placed sanctions on each other.

Managing dual citizenship

The best way to get the most of the boundless benefits of being a dual citizen without having to endure any of the drawbacks is to plan it out correctly, and that is what the team at NTL Trust will help you do. By setting out a proper roadmap and choosing the right citizenship by investment program, a person can obtain all the benefits of dual nationality and avoid all the disadvantages. This is especially evident in the Caribbean, where the right choice of program can ensure beneficial tax policies under robust bilateral agreements with most of the world’s countries who formally recognize dual citizenship. Understanding the program and what it can offer is key to getting the best out of it, and the process is extremely simple. All you need to do to is contact us to book a comprehensive meeting with one of our experts, and the team will analyze your case and provide you with the best solution that helps you become a dual national and elevate your life. Acquire dual citizenship now by booking a call.