Dual citizenship might seem attractive as more countries embrace it. Today, 76% of nations allow multiple passports, up from 45% in 1990. This rising trend creates a misleading picture that multiple passports always benefit the holder, but the truth reveals serious hidden risks.
The drawbacks of dual citizenship go way beyond the original application fees. U.S. citizenship costs between $380 to $760, and applicants wait five to seven months on average. Dual citizens must deal with double taxation, especially in countries like the United States that tax worldwide income whatever your residence. You might face military service duties in both countries, get limited embassy help during crises, and find yourself blocked from sensitive government roles. Anyone considering this path should weigh these benefits against the legal, financial, and personal complications that come with it.
What is dual citizenship and why do people want it?
Dual citizenship lets someone be a citizen of two countries at once. This concept has grown substantially over recent decades. The numbers tell the story – 76% of nations now allow it, up from just 33% in 1960. Each country’s laws about dual nationality are different, which makes the digital world complex for anyone who wants to pursue it.
Definition and legal meaning
A person with dual nationality (also called dual citizenship) is legally recognized as a citizen of two countries simultaneously. International law recognizes the idea of “dominant and effective nationality” to resolve international disputes. Each nation creates its own citizenship laws, so valid dual citizenship depends on both countries’ specific rules.
The U.S. allows dual citizenship by default without explicitly mentioning it in immigration law. The U.S. Supreme Court made it clear that “a person may have and exercise rights of nationality in two countries and be subject to the responsibilities of both”. Countries like Austria, India, Japan, and Norway don’t allow dual nationality at all. This makes it impossible to keep citizenship in these places while holding another one.
Common ways people acquire it
People usually get dual citizenship through these well-laid-out paths:
- Birth and Descent: Many people become dual citizens at birth – either by being born somewhere that gives citizenship based on location (jus soli) or through parents who are citizens of another country (jus sanguinis). A child born in America to foreign parents typically gets U.S. citizenship and might inherit citizenship from their parents’ home country.
- Naturalization: This happens when someone becomes a citizen of another country while keeping their original citizenship. U.S. applicants need to be lawful permanent residents for at least five years (or three years if they’re married to a U.S. citizen).
- Marriage: Some countries give citizenship to people who marry their citizens, sometimes faster than usual. Argentina offers citizenship after just eight months of marriage without language requirements.
- Ancestry: About 50 countries let people claim citizenship through family ties. Americans can apply in places like Ireland and Spain if they can prove they have parents or grandparents from those countries.
- Investment: Some countries offer citizenship through “Golden Visa” programs. These usually cost between $10,000 and $1 million and take 12-16 months to process.
Why dual citizenship is appealing
Dual citizenship comes with its challenges, but people love its benefits. It gives you more freedom to travel globally – something that proved valuable when recent global events limited travel options. A second passport, especially from Europe, can let you visit many places without visas, including the entire Schengen Zone.
Dual citizenship works like an insurance policy during tough times. Legal status in two countries means you have somewhere else to go if things get bad where you live.
Money matters play a big role too. Some countries offer better tax deals, stronger banking privacy, or investment options that single-country citizens can’t access. Dual citizens can also do business more easily, work without visas, and tap into markets in both countries.
Families see dual citizenship as a gift that keeps giving. It opens doors to education and healthcare in both countries, often at local rather than international rates. Students who are citizens don’t need visas and avoid paying extra international tuition.
These perks explain why dual citizenship has changed from a luxury item to “part of a well-rounded financial and personal strategy”. Notwithstanding that, you need to balance these benefits against some serious drawbacks we’ll explore next.
The legal risks of dual citizenship
The glamor of multiple passports hides a maze of legal complications that can trap dual citizens who aren’t paying attention. These legal risks stay hidden until they pop up and create major personal and professional hurdles.
Conflicting laws between countries
Dual citizens must follow the rules, laws, and duties of both countries – even when they clash head-on. This creates a tricky legal dance that affects many parts of life. Legal battles often start in family law, criminal law, and inheritance cases, which leads to confusion and possible disputes.
Something perfectly legal in one country might land you in trouble in your other country of citizenship. This goes way beyond small issues and affects basic rights, property ownership, and family matters.
Each country’s authority to enforce its laws puts dual citizens in tough spots where they must follow opposing rules at once. You might not notice these conflicts until you face specific situations like divorce or inheritance where different legal systems bump heads.
U.S. diplomatic protection becomes limited when you travel in your “other” country of citizenship. Local officials might ignore your U.S. nationality if you’re also their citizen, especially if you didn’t show your U.S. passport at entry. This opens up a risky gap in consular protection. Even if you ask police or jail officials to call the U.S. embassy, they might refuse, and U.S. consular staff could be stopped from helping you.
Military service obligations
Military service ranks among the riskiest legal issues. Some countries make their citizens serve in the military whether they have another citizenship or not. This requirement can put dual citizens in impossible situations when both nations want them to serve.
The problem gets worse when one country requires military service while the other bans serving in foreign armies. To cite an instance, the U.S. doesn’t let its citizens join foreign militaries in certain cases, but skipping another country’s mandatory service could mean penalties there.
Military service risks include:
- Getting drafted in both countries
- Legal trouble for not serving in either country
- Jail time when returning to countries where you dodged service
- Serving in armies that might fight each other
Loss of citizenship due to foreign service
Serving in foreign governments or militaries might cost you your original citizenship. U.S. law says you can lose your nationality for:
- Serving in foreign armed forces fighting against the United States
- Working as an officer in foreign armed forces
- Taking government jobs after getting that country’s nationality
The U.S. Supreme Court ruled that citizenship loss must be voluntary and intentional, but certain government positions suggest such intent. Foreign military service raises red flags – especially in countries hostile to the United States.
Losing citizenship could leave you stateless, which creates huge problems. Without citizenship, you can’t own property, work legally, get married, receive medical care, or go to school. This stands out as one of dual citizenship’s worst downsides that people realize too late.
Financial and tax complications
The biggest problem with dual citizenship lies in its financial burden. You’ll face more than just upfront costs. The tax implications create a complex maze that can drain your finances and peace of mind.
Double taxation risks
The United States and Eritrea are all but one of these countries that tax citizens based on nationality instead of residency. U.S. dual citizens must file taxes no matter where they live. This creates a high risk of paying taxes twice on the same income. The original setup might seem manageable, but these financial effects add up over time.
The situation becomes worse when countries don’t have tax treaties. Dual citizens then face both tax systems at full force. Yes, it is even more complicated because some countries have estate or inheritance taxes. This means your beneficiaries could face unexpected tax bills in both nations. These rules affect not just your income but also your assets, investments, and inheritance plans.
These mechanisms help you alleviate these risks:
- Tax treaties between countries (the U.S. has agreements with over 50 nations)
- Foreign Earned Income Exclusion (FEIE), allowing exclusion of up to $126,500 in 2024
- Foreign Tax Credit (FTC), providing dollar-for-dollar credit for taxes paid abroad
Complex reporting requirements
Dual citizens often feel overwhelmed by reporting obligations. You must file tax returns in both countries, each with unique deadlines, formats, and requirements. U.S. citizens must also report foreign financial accounts over $10,000 through the Foreign Bank Account Report (FBAR).
Dual-status taxpayers face extra restrictions. They can’t use standard deductions, file joint returns, or claim head of household status. This complexity means you’ll need professional tax help, which adds many more yearly costs to your dual citizenship.
Penalties for non-compliance
Missing tax filings can lead to harsh consequences. In fact, not filing U.S. returns carries a 5% penalty of unpaid taxes each month, up to 25%. The failure-to-pay penalties add another 0.5% monthly, up to 25%, plus interest.
FBAR violations come with particularly steep penalties. Non-willful failures start at $10,000 per unfiled year. Willful violations can reach $100,000 or 50% of account balances. Form 8938 (FATCA) violations begin at $10,000 and can increase by $10,000 monthly up to $50,000.
These financial complications are a major drawback of dual citizenship that many people overlook. You should carefully weigh these ongoing financial obligations and risks against dual citizenship’s benefits and drawbacks.
Political and career limitations
Career limitations stand out as one of the least discussed drawbacks that can affect a dual citizen’s professional growth. Legal and financial complications aside, dual nationality creates unexpected barriers in several professional sectors.
Restricted access to government jobs
Dual citizenship makes people ineligible for specific government positions. Many governments have strict nationality requirements for roles that deal with national security or public trust. These rules affect positions in defense, intelligence, and high-level government roles where single allegiance remains essential.
Several countries don’t allow dual citizens to work as judges, ministers, elected officials, or military personnel. This helps avoid potential conflicts of interest. The restriction cuts down career opportunities by a lot for those who want to work in public service.
Security clearance issues
U.S. citizenship serves as a simple requirement to access classified information, but it doesn’t guarantee security clearance eligibility. Therefore, dual citizenship creates complications during security clearance applications:
- Security officials must review whether granting access “clearly aligns with national security”
- Each application goes through assessment under government-wide adjudicative guidelines
- Officials look for signs that might show “preference for a foreign country over the United States”
The process has become less restrictive due to recent guideline changes. Since 2017, having dual citizenship alone won’t disqualify you. Yet, applicants must prove their “unquestioned allegiance to the United States”, which might delay clearance approval.
Diplomatic conflicts between countries
Dual citizens often find themselves in tough spots during diplomatic tensions between their countries of citizenship. History shows that strained relations between nations have created serious problems for dual nationals, sometimes leading to mistreatment or suspicion.
Dual citizens also get limited consular protection when traveling in their “other” country. The Vienna Convention on Consular Relations doesn’t mention how dual nationality affects protection. The country where a dual citizen lives usually has the main claim without interference from the other.
This becomes crucial during emergencies, as shown by many cases where dual citizens got no diplomatic help when detained in their second country of citizenship. You lose the protection of your other citizenship once you enter your other country of nationality.
Personal and identity challenges
Dual citizenship brings more than just practical issues. People with two citizenships face deep personal and identity challenges every day. These internal battles affect a person’s sense of self, yet discussions about dual citizenship’s drawbacks rarely address them.
Confusion over national loyalty
The question of true allegiance creates a basic identity crisis for dual citizens. A person’s divided loyalty presents a natural conflict. As one expert puts it, “Is it possible to have equally full, deep, and enduring relationships with two spouses? I doubt it”. This marriage analogy shows why dual citizenship causes loyalty problems.
Political tensions between their countries put dual nationals in tough spots. They must choose sides or risk becoming suspects in both nations. The pressure builds up, especially during diplomatic conflicts between their countries.
Cultural identity conflicts
Having multiple citizenships splits cultural identities and breaks down a person’s sense of belonging. Many dual citizens say they feel like “two completely different persons” based on which country they’re in. They adapt to different social and cultural norms. This identity split causes problems that people rarely talk about.
Dual nationals face pressure in their new home country. They must either give up their original culture or embrace it fully. This all-or-nothing choice creates constant inner turmoil about values, beliefs, and self-image.
Limited embassy protection in crisis
The most real personal risk comes from limited diplomatic protection. Your second nationality offers no protection at the time you travel to your “other” country. Local officials might not accept your U.S. nationality if you’re also their citizen, especially if you entered with their passport.
Host countries might do these things if they detain you and you ask for help:
- Refuse to notify your embassy
- Deny access to consular officials
- Treat you exclusively as their own citizen
This lack of protection explains why the U.S. government “recognizes that dual nationality exists but does not encourage it as a matter of policy”.
The Reality Behind Dual Citizenship’s Façade
Dual citizenship isn’t just about the thrill of having multiple passports. Our analysis reveals several hidden drawbacks you should review before taking this path.
Legal complications are the biggest problem dual citizens face. Laws that conflict between countries can put people in impossible situations. Your duties to one nation might break another country’s laws. This becomes clear when you have mandatory military service requirements. You might need to pick between two competing national obligations.
The financial strain can create lasting stress. Double taxation risk, especially for U.S. citizens, means you’ll file taxes in multiple systems forever. The cost of getting it wrong can ruin your financial stability. FBAR violations alone could cost you $100,000 for each unfiled year.
Your career options might shrink too. Security concerns keep dual citizens out of many government jobs. Recent policy changes haven’t helped much. Security clearance takes longer and faces extra scrutiny that can stop your career progress.
Identity issues affect dual nationals’ daily lives in ways that are harder to measure. Questions about where you belong and who you really are don’t go away. Embassy protection limits during emergencies create real risks that most people don’t think about until it’s too late.
You need to weigh the good and bad of dual citizenship against your specific situation. While it works for some people, others might do better with different options. Residence permits, long-term visas, or investment choices could give you similar benefits without all the complications.
Therefore, you should learn about specific country requirements, talk to immigration lawyers, and connect with current dual citizens first. The downsides are serious enough that you shouldn’t rush into it just because the benefits look good on paper.
Here are some FAQs about why dual citizenship is bad:
What are the negative effects of dual citizenship?
Dual citizenship can create complex legal obligations, including potential double taxation (why dual citizenship is bad). Some countries restrict government jobs or security clearances for dual citizens due to perceived divided loyalties (why is dual citizenship bad). Military service requirements in multiple nations may also conflict, creating legal dilemmas (why dual citizenship is bad?).
Is Mexican dual citizenship worth it?
Mexican dual citizenship offers benefits like property rights and voting privileges in both countries (why dual citizenship is bad). However, it requires navigating tax obligations and military service requirements carefully (why is dual citizenship bad). The value depends on individual circumstances and how often you visit/live in Mexico (why dual citizenship is bad?).
Why does Germany not allow dual citizenship?
Germany traditionally opposed dual citizenship to prevent divided national allegiances (why dual citizenship is bad). The policy aims to ensure full integration and avoid conflicts of interest (why is dual citizenship bad). However, Germany has recently relaxed some restrictions, especially for EU citizens and children of immigrants (why dual citizenship is bad?).
Can I have three citizenships in the USA?
Yes, the US permits multiple citizenships without limit, though other countries may restrict this (why dual citizenship is bad). Managing three citizenships amplifies complications like tax filings and travel document requirements (why is dual citizenship bad). Each additional citizenship increases potential legal conflicts and bureaucratic challenges (why dual citizenship is bad?).
Do dual citizens pay taxes in both countries, Mexico and the USA?
US-Mexico dual citizens must file US taxes regardless of residence, but Mexico taxes only residents (why dual citizenship is bad). The US-Mexico tax treaty helps prevent double taxation on income (why is dual citizenship bad). However, filing requirements create significant paperwork burdens for dual citizens (why dual citizenship is bad?).
What are the benefits of being a Mexican citizen?
Mexican citizenship provides property ownership rights, voting privileges, and unrestricted residency (why dual citizenship is bad). It offers easier access to Latin American markets and cultural connections (why is dual citizenship bad). However, these benefits must be weighed against potential tax and legal complications (why dual citizenship is bad?).
Can you have three citizenships in Mexico?
Mexico allows multiple citizenships, but other countries’ laws may limit this possibility (why dual citizenship is bad). Managing three passports requires careful attention to each nation’s tax and military service laws (why is dual citizenship bad). The administrative burden increases exponentially with each additional citizenship (why dual citizenship is bad?).
Do I lose my Mexican citizenship when I become a US citizen?
No, Mexico permits dual citizenship, so acquiring US citizenship won’t revoke Mexican status (why dual citizenship is bad). However, you must formally declare Mexican nationality within five years of naturalizing elsewhere (why is dual citizenship bad). Failure to declare could complicate property and inheritance rights in Mexico (why dual citizenship is bad?).
Does Mexico allow dual citizenship?
Yes, Mexico explicitly allows dual citizenship since 1998 constitutional reforms (why dual citizenship is bad). Dual nationals enjoy full rights except running for certain political offices (why is dual citizenship bad). They must always enter/exit Mexico using Mexican documents despite holding other passports (why dual citizenship is bad?).
