Does the US allow Dual Citizenship?
The simple (and short) answer is YES!
In actual fact, the US has allowed dual citizenship since Lyndon Johnson was in the White House; (if you’re interested as to how and why this came about read all about it here!)
So why do some people think that the US do not allow dual citizenship?
The fact of permissible dual citizenship is often confused by the reality that non-US citizenship isn’t taken into account when you are either entering or within US territory. In other words, if you were a dual US/UK citizen and you arrested on US soil, you wouldn’t have the right to access UK diplomatic services. You would simply be treated as a US citizen.
Why stop at two?
Whilst we’re discussing dual citizenship we should also point out that the term itself is a bit of a misnomer. It is often used because in most circumstances an individual possesses only two citizenships. However, the correct term is “multiple citizenships”.
The US allows for multiple citizenships which means you can positively fill your boots with alternative passports! There is no limit, so long as the other countries in your portfolio have similar open legislation. In fact, I once had a client with EIGHT citizenships.
Why multiple citizenships may be right for you.
Now we’ve established that dual/multiple citizenships are accessible to you as a US citizen, you can now consider whether your personal situation dictates that they are worth pursuing.
There are innumerable lifestyle perks that become more accessible with access to alternative citizenships. Greater freedom of movement, the ability to live and work abroad, greater access to a broad array of education for your children; the list goes on.
However the major motivation behind many Americans that I am currently working with is their desire for ongoing security, and tax planning optionality.
Multiple Citizenships as part of a Backup Plan
The ‘interesting’ times we are living through have made America an increasingly turbulent homeland. The prudent are spending time and money putting together a Backup plan of alternative citizneships and residences to ensure that, should the worst happen, they have a clear exit route. The recent Pandemic and prevalent civil unrest have only added to this unease.
Planning for your financial future
Another accelerating factor for many of my recent clients is the growing popularity of ‘Tax the Rich’ policies. The much talked of ‘Wealth Tax’ threatens increased destabilisation of how the wealthy are able to control their money. As such, many are planning to relocate and renounce US citizenship in order to preserve their control of their family’s wealth for generations to come.
If you would like to know more about Backup Planning, then get in touch for a confidential, no-obligation chat.