Can an Individual possess More than One U.S. Nationality?

The United States requires its citizens to possess a valid US passport for entering and leaving the country, regardless of any additional citizenship held. This legal requirement is a fundamental fact for US citizens considering dual citizenship.

While it's extremely difficult for a US citizen to lose their citizenship involuntarily, the US State Department generally assumes that a citizen intends to retain their nationality, even when they naturalize elsewhere. However, potential conflicts can emerge if a citizen's other country of citizenship mandates military service or imposes obligations that directly contradict US law or foreign policy.

For those looking to broaden their horizons, various countries offer unique advantages. Italy, for instance, offers the opportunity for La Dolce Vita and full EU rights, though navigating Italian bureaucracy is a journey in itself. Ireland, being English-speaking, part of the EU, and sharing a common travel area with the UK, is another sought-after destination, especially for those with clear lineage.

Some countries, such as China, India, Japan, and the UAE, typically don't permit dual citizenship, imposing limitations or conditions on their citizens intending to acquire a non-EU/Swiss nationality. On the other hand, countries like Spain, Switzerland, Luxembourg, Belgium, Liechtenstein, Finland, and Grenada allow dual citizenship, making it an attractive option for US citizens.

One of the primary reasons US citizens seek additional nationalities is for the right to live, work, study, and retire in another jurisdiction. This can serve as a hedge against unforeseen political headwinds or policy shifts, provide business advantages or new investment opportunities, expand lifestyle choices, or reconnect with family heritage.

Strategically pairing another citizenship with citizenship outside the US can lead to what is called 'strategically lowered taxation'. The US taxes its citizens based on citizenship, not residency, and worldwide income is potentially subject to US taxation. However, the Foreign Earned Income Exclusion (FEIE) lets you exclude US$126,500 of your foreign earnings from US tax when you establish tax residency outside the United States. Foreign Tax Credits (FTCs) can also reduce your US tax bill by the amount of income tax you've already paid to your new home country.

Countries with zero or low-income tax, territorial tax systems, or special tax regimes for new residents, like Malta, can benefit from tools like the FEIE and FTCs. Malta offers citizenship through its Exceptional Investor Naturalisation (MEIN) program, with a requirement to invest over €750,000, including donations and property commitments.

Caribbean passports are another excellent option for visa-free travel (including access to the EU Schengen zone and the UK) and as a Plan B. Citizenship by investment programs in countries like St Kitts and Nevis, Grenada, Dominica, St Lucia, and Antigua and Barbuda can deliver a new passport in three to six months.

Portugal's Golden Visa program, while pivoting away from direct real estate investment as a qualifying route to residency, offers other forms of contribution. Portugal offers residency visas like the D7 (for passive incomes) and D8 (for digital nomads). Both of these visas can lead to citizenship after five years of legal residency. Portugal's Non-Habitual Resident (NHR) tax regime, while undergoing changes in 2024, continues to offer potentially advantageous tax residency conditions under successor schemes.

It's essential to understand the immigration law of the other country involved, as nations adopt vastly different policies on dual citizenship. The US government also monitors the intent behind actions, with a primary concern being whether a US citizen performs potentially 'expatriating' acts, such as getting a new citizenship or working in a foreign government with the goal of giving up their original citizenship.

In conclusion, exploring dual citizenship can offer numerous benefits for US citizens, from expanded travel opportunities and tax advantages to a hedge against potential political and economic instability. It's crucial to research and understand the implications and requirements of the chosen country's citizenship laws to make an informed decision.