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CitizenshipDual Citizens Like Elon Musk and Peter Thiel Rule the World: Why and How to Get Dual Citizenship The following international business magnates and multi-billionaires are all dual citizens: Elon Musk – Canada, South Africa, and US citizen Roger Ver – Antigua and St. Kitts and Nevis citizen Peter Thiel – Germany, New Zealand, Malta, and U.S citizen George Soros – U.S and Hungary citizen Sir James Dyson – United Kingdom and Singapore citizen But why? Why have these entrepreneurs invested their time, money, and effort to obtain dual citizenship and a second passport? The short answer is – Global mobility is a prized asset, and wealth protection is increasingly difficult. So, a second citizenship is more than just a smart, forward-thinking investment. Dual citizenship gives you optionality and freedom in a world that demonizes it. In the next few minutes, I'll break down what dual citizenship is, why it’s worth the "hassle," and how people worldwide – from US naturalized citizens to those from emerging countries – are securing their future. The dual citizenship process isn’t always easy. But neither is building a million-dollar crypto portfolio or creating a billion-dollar business, right? Yet, here we are. What Are Second Citizenship, Alternative Citizenship, and Dual Citizenship? All these terms mean the same thing. In simple terms, dual citizenship is your legal right (in most cases) to hold citizenship in two countries or more. Why would someone want dual citizenship or even multiple citizenships? With citizenship rights in each country, you enjoy exactly that – all the rights, benefits, and also, the obligations of citizens in each country you have citizenship. In practice, this could mean holding Filipino citizens holding a Canadian passport at the same time. Or, a U.S. citizen with dual citizenship in Portugal. Thus, those individuals enjoy all the rights afforded to them by the nationality or nationalities that they hold. For billions, the nationality donned upon them when they were born may be restrictive on their global rights. Let's use a contemporary example: By no fault of their own, Russian citizens – no matter where they live – face restrictions worldwide. Some countries have restricted Russian citizens from opening bank accounts or even outright banned Russian citizens from entering their country. If those same Russian citizens obtain dual citizenship in a foreign country like St. Kitts and Nevis, they may regain a lot of the global investment rights and travel freedoms they once had. Dual citizenship isn't just about the travel perks. Picture it: Two passports, two sets of rights, two “homes” you can claim. You’re not bound by the political and economic policies of just one government. Sounds liberating, right? But, not all countries recognize dual citizenship. Some nations, like Japan, frown upon it and may even strip you of your original citizenship if you want to become a citizen of their country. Others like Spain have recognized dual citizenship only in former colonies (e.g. Colombia and Argentina). On the flip side, countries like both the United States and Canada not only recognize dual nationality but also encourage it, welcoming those who diversify their options. Just one nationality is, therefore, a constraint. A passport portfolio gives you multiple options when you need them most. Is Dual Citizenship Worth the Hassle? Now, you're probably thinking: Is it really worth the time, money, and paperwork to become a dual national? Absolutely. Here's why (then I'll explain in 5 ways, how to get dual citizenship). Travel Freedom Dual citizenship can unlock a new level of personal freedom with two levers of visa-free access. With a second passport, the world suddenly opens up for you. If you play your cards right, your visa-free travel freedom with two passports should expand significantly. No more lengthy visa applications, no more restrictive travel bans. Just the freedom to move and conduct business as you please. Here's an example: You're a US citizen. Therefore, based solely on your U.S. citizenship, you have pretty good travel rights around the world. However, you still have citizenship-based taxation and no residency rights in other countries. And your global citizenship and immigration services are not as extensive as some make them out to be. With dual citizenship from a European country like Portugal, not only do you get visa-free access to more countries like Russia, Belarus, Venezuela, and Bolivia, but you also gain the right to live, work, and study anywhere within the EU. Because of these additional benefits, a passport from a European Union member state is like 27 different passports in your backpocket. Or, by decree of just a birth certificate in the developing world, many are not born with the same rights and privileges as we are. Take, for example, Indian citizens. With the original citizenship of their native country, they have visa-free access to only 73 countries, compared to the US citizenship, which affords visa-free travel to 172 countries. But, of course, it’s not just about where you can travel. It's about where you can live. Plan B and Risk Minimization A second citizenship is the ultimate Plan B. If your “home country” becomes politically unstable, geopolitically risky, or economically unviable, dual citizens have another country to which to escape. For investors and entrepreneurs, this freedom is invaluable. At the drop of a hat, you can operate in a more favorable environment, away from overreaching regulations, punitive tax policies, or even war. In an unpredictable world, dual nationality is your insurance policy against political and economic turbulence. For instance, during the 2020 global pandemic, millions of Canadian citizens suffered. Those who disagreed with their government had their bank accounts closed, their assets frozen, and their borders shut. But, but those with Canadian citizenship and citizenship in another country had more options. While others were stuck within their borders, they had the opportunity to relocate and access a better life. Dual nationality is about securing your assets, too. Let’s say you’re a US citizen exploring residency by investment in a foreign country. Obtaining dual citizenship through a golden visa investment in Portugal, for example, grants you access to another jurisdiction, citizenship in just five years, potentially lower tax rates, and investment privileges in a whole other country and continent. Just as it's wise to minimize your financial risk by diversifying your portfolio, you should also minimize your geopolitical risk by diversifying your identity and nationality geographically. Economic Diversification Speaking of diversification, dual citizenship can broaden your economic prospects too. Each country in which you have citizenship has its own set of rules, investment opportunities, and tax advantages. Therefore, with more citizenship rights in your portfolio, you also have access to more business opportunities and financial privileges only citizens of those territories have. Why limit yourself to just one? For instance, consider natural-born Filipinos who obtain a second passport in a country like St. Kitts and Nevis. With their new immigration status, they can suddenly invest in real estate in the Caribbean, open a bank account, and even start a business without the usual red tape and security clearance a foreign person would face. Having two nationalities lets you access markets and investment opportunities that may have been off-limits with just one nationality. Why bet on just one government (and their rule of law) and put all your eggs in one basket when you can spread your metaphorical eggs across multiple jurisdictions? Optimizing Tax Obligations Tax is probably the first thing you either think or worry about when you hear “dual citizenship" – and for good reason. Tax obligations can get complicated when you pledge allegiance to one country and become a citizen of another country. However, smart planning can turn dual nationality into a significant tax advantage. That is, unless you hold US citizenship, which requires you file a tax return (not necessarily owe taxes) in the United States no matter where you live in the world. Some countries have double taxation treaties, designed to prevent you from being taxed on the same income in both places. For instance, the United States has agreements with many governments to avoid double taxation for its citizens abroad. Meanwhile, countries like Portugal have a favorable tax regime for crypto investors (i.e. zero capital gains tax on crypto holdings of more than one year), making it attractive for those looking to optimize their personal situation. Or, consider St. Kitts and Nevis, which has zero personal income tax and zero capital gains tax. On a normal tourist visa, you cannot live in the country for more than six months a year and, therefore, cannot establish tax residency in the country. So, if you invest in citizenship in the Caribbean island country, you can access their tax benefits. It’s all about understanding your current tax and immigration status, the rules of other countries, and finding the best path to minimize your tax burden while maximizing your wealth. How Do You Acquire Dual Citizenship in Another Country? How does one actually go about obtaining dual citizenship in two countries or more? Good news – There are several ways to acquire another citizenship. Here are some of the five most common methods: Normal Naturalization This is the traditional path to citizenship of which you're most likely aware. Most jurisdictions require a prospective citizen to spend a certain amount of time in the country to acquire citizenship. Each country will have its own eligibility requirements, often involving residency, language proficiency, and passing a citizenship test. So, do your own research. While this route requires a longer-term commitment, it’s ideal for those who wish to integrate fully into a new country, create ties with that territory, and reap the benefits of dual citizenship. Consider Canada, where one may not qualify immediately for citizenship by investing in the country or donating to the government. Prospective nationals must first become permanent residents in Canada, then spend at least three years in the country to qualify for naturalization and a Canadian passport. Residency by Investment and Naturalization Similar to straightforward naturalization, many countries offer residency by investment programs (i.e. golden visas). Through these programs, third country nationals have to invest in the country to qualify for temporary or permanent residency. Then, they must meet the stay requirements to qualify for naturalization. Via Portugal's golden visa program, you have to invest at least €500,000 in a local business, scientific research, or investment funds. Then, to qualify for citizenship in Portugal and residency rights in the European Union, you must spend on average at least seven days a year in the country for five years, renew your visa when necessary, and maintain your original investment. In most cases, I'd recommend consulting an immigration attorney to make sure you complete all requirements laid out by the local government's citizenship and immigration services and the citizenship application. Birth Tourism and Dual Citizenship by Birth Not all countries practice the same naturalization law either. When it comes to citizenship at birth, a country may deploy either jus soli (also known as birthright citizenship) or jus sanguinis law. The former means that a child born in the legal territory of the country automatically qualifies for citizenship, regardless of the parents' nationality. For instance, even if their parents do not hold US citizenship, a child born in the United States is an automatic U.S citizen. Similarly, any child born in Canada will be eligible for Canadian citizenship. As you can see in the map below, most jurisdictions in the Americas have few constraints when it comes to birthright citizenship. In the case of Argentina, Brazil, and a few other countries, if two non-citizen parents have a child born in a country that practices jus soli law, the parents of the child may also qualify for citizenship after a short period of residency. This is one of the simplest ways to secure dual citizenship in another country, especially for those with internationally mobile lifestyles. Dual Citizenship by Descent On the other hand, a government that exercises jus sanguinis law grants citizenship based on blood and descent. Most governments in the European Union practice citizenship by descent, whereas you can become a dual citizen by rights of your ancestors up to four generations in the past. Dual Citizenship by Investment A popular route among high-net-worth individuals, citizenship by investment allows you to obtain citizenship and a legal passport in exchange for a non-refundable contribution to, investment bond purchase, business capital infusion, or real estate acquisition in a country. Malta, Turkey, and several Caribbean island jurisdictions offer such programs. Roger Ver, an early Bitcoin investor known colloquially as Bitcoin Jesus, first invested in citizenship in the Caribbean in 2014 before renouncing his American citizenship. Then, in 2020, he purchased citizenship in Antigua & Barbuda to further diversify his portfolio, which just a decade ago, looked completely different. Dual Citizenship by Marriage Marrying a citizen of another country, depending on the nation’s laws, is another way to acquire dual citizenship. Some countries make this pathway relatively straightforward, while others have more stringent requirements, such as proof of a legitimate relationship or residency obligations. Dual Citizenship by Exception Although the cases are rare, most governments worldwide grant citizenship to individuals who contribute massive contributions to their economies or population. This could be through sports, science, business, or other fields. Although he didn't meet any residency requirements, Peter Thiel was granted citizenship in New Zealand for this reason. While not a common route, it's worth mentioning as another option for those with unique societal achievements. Things to Consider Before Getting Dual Citizenship Before investing time or money in the process, you should weigh all the potential consequences – positive and negative – of dual citizenship. Recognized Dual Citizenship Remember – Not every country recognizes dual citizenship. Some may require you to renounce your original citizenship before obtaining dual nationality there. So, before you prove the lineage of your ancestors in another country (which is often all it requires to be eligible for citizenship by descent), invest in a foreign country, or marry someone from a third-party jurisdiction, make sure you can hold citizenship there and in your native country. Restrictions apply. Tax Implications Tax obligations can get complicated when you’re a dual citizen. You might be subject to tax in both countries, depending on each nation's laws. For example, regardless of where they live, a US citizen and green card holder (i.e. permanent residents) must pay US tax on worldwide income. So, do not expect to get off scot-free with the IRS just because you're a citizen of another country and don't spend any time in America. On the contrary, most other governments practice residency-based taxation, meaning that if you live there for more than six months a year or establish strong economic ties there (e.g. property, family, memberships, etc.), you may be on the hook for taxes there as well. It's possible for Canadian citizens to acquire citizenship in an other country with favorable tax laws, spend fewer than six months in Canada, cut economic ties with the country, and never pay tax again. Legal and Political Rights Becoming a dual citizen means you’ll be subject to the legal systems of both countries. This can be both a positive or negative consequence, depending on the favorability of the laws in the countries where you hold citizenship and nationality. Upon swearing allegiance to both countries, this could include military service obligations, jury duty, tax obligations, voting rights, or other civic responsibilities. Dual citizenship could be your route to more secure and diversified freedom. More economic opportunities, reduction of tax burden, more travel rights – holding dual nationality can offer unparalleled advantages in 2025. Build a world where you're not reliant on a single government – rather where you increase your optionality to invest, travel, live, work, and study wherever you want. This world could be yours with two or more passports.14 MIN READ
13 Nov 2024
