Legalities And Practical Considerations Of Dual Citizenship
Dual citizenship can be a very liberating privilege. It is great for international mobility and permanent residence. However, the legalities can be quite tricky to understand and execute.
It has its fair share of pros and cons, as not all countries worldwide acknowledge dual citizenship. Therefore, you will need thorough professional guidance to help you make well-informed decisions.
This article will help you understand the key practical and legal considerations of dual citizenship.
What Is Dual Citizenship Exactly?
This section of the article will help you understand the basics of dual citizenship.
Dual citizenship is a type of special citizenship that allows you to be a citizen of two nations at the same time. This way, you and your immediate family members can enjoy the freedom of residing, investing, traveling, working, and owning property in both countries.
However, dual citizenship is not permitted in many countries to prevent complications and deal with conflicting laws and rights. Most developed economies support multiple citizenship, but there are exceptions, such as India, China, Malaysia, Japan, Austria, Singapore, and the Netherlands. Germany also does not accept dual citizenship if you belong to a non-EU country.
In South Africa, Turkey, and Thailand, dual citizenship is not entirely restricted. But, you will need to get permission in advance to legally hold two passports in these countries.
Dual citizenship is a bane as well as a boon, depending on how the laws are bypassed. It is beneficial for traveling and exploring business or investment opportunities in the destination or second country.
However, some immigrants from underdeveloped home countries may travel to developed nations for birth tourism and take undue advantage of the system for automatic sponsorship of parents, better healthcare, standard of living, and schooling.
It is important to note that after observing this trend, many developed countries have altered their citizenship laws to prevent birth tourism.
Important Legal Considerations Of Dual Citizenship
In this section of the article, we will explore the legality and practical aspects of dual citizenship in general.
You should keep these in mind if you ever plan to apply for dual citizenship. Also, you will need highly specialized advice to avoid legal blunders. Competent professionals from Global Residence Index – Residence and Citizenship Consultancy can always guide you through the cumbersome procedures, including complex paperwork for dual citizenship in golden visa countries.
You will be liable to follow the laws, pay taxes, and strictly comply with other taxation rules in both countries. To take your citizenship a few notches higher, you can even opt for golden visas to unlock citizenship, access financial markets, and many other lucrative commercial opportunities in EU countries such as Portugal, Greece, Spain, and Cyprus.
If you are looking to get a golden visa via investments, the Global Residence Index can help you navigate all the legalities.
Before you plan to permanently reside and invest in the financial markets of a particular country, make sure to confirm that it legalizes dual citizenship. Additionally, you must also check with your country of origin’s laws about dual/multiple citizenship.
Next, if dual citizenship is permissible in both home and destination nations, familiarize yourself with the law of the land. You will have to swear allegiance to the rules and laws of the new country, so it is crucial you know them well. You want to be a true law-abiding citizen not only in your home country but also in your destination country.
For example, if you become a citizen of the US, you will be liable to their taxation laws even if you are no longer residing in the country.
Also, make sure to verify the economic and social benefits you will be getting for being a citizen and investing in your second country. The application process will be different for different countries and must be thoroughly researched as well.
A good investment migration advisory firm will help you with pre-screening before you start applying. This is effective in ensuring error-free applications. Last but not least, all your bonafide documentation must be available and up-to-date.
The process of getting dual citizenship can get much smoother if you are informed about the complex paperwork that needs to be kept ready before you apply.
How frequently you will need to travel will also determine which country you want to reside in permanently. Countries are offering visa-free travel in more than 180 countries. So, if you think you need this perk, check the details of the destination country’s overseas investment program.
Also, you must understand that to receive a host of travel and tax benefits through permanent citizenship in another country, you must donate or invest a minimum amount. Check the minimum limits of such donations to the state fund along with the minimum real estate investment required for dual citizenship.
Next, you need to check the due diligence fees that are payable upon submission of your application. This depends on the total number of members in your family, and you will have to pay additional fees for any additional members depending on the destination country’s rules.
The administrative fees, also payable on submission of your application, will be determined based on your family size with a single investor. The more members or dependents, the more administrative charges you will be paying.
Multiple options and fees are depending on the dual citizenship program you are opting for. So, we would advise you to verify all the available options during your application process. Your advisor will assist you till you receive your visa, and a long time will come after that.
Finally, do consider the visa timeline, as it will help you schedule your travel and work accordingly. Your advisor will help you throughout the process. Once you have checked all the above boxes, you are good to go!
Pros And Cons Of Dual Citizenship
We will discuss the major advantages and disadvantages of dual citizenship in this part of the article. This will help you know if dual citizenship is right for you.
Pros Of Dual Citizenship
Owning real estate in both countries is one of the best perks of dual citizenship, given how rigid this market is. You can legally purchase land or property and save costs when it comes to residence in both countries. If you are someone who regularly travels between the two countries, your property in these nations can be your second home – a haven, essentially.
With dual citizenship, you are legally authorized to own two passports. So, traveling and staying for longer periods get much easier. Your reason for the journey is hardly investigated by the customs officials.
This is great for expediting check-ups at the airports. Also, you have the freedom to travel for work or vacation whenever and wherever you want for an unlimited duration without requiring a visa. The regulations generally applicable to other international businesses will not need your compliance at all.
Moreover, students with educational interests in both countries can also benefit from dual citizenship. This also applies to entrepreneurs with global business requirements. Dual citizenship will simplify entry and exit in both countries, helping with smooth business trips.
As a dual citizen, you have the complete freedom to be a part of the political landscape in your country as well as the second country. This means you have the right to vote, participate in political events, donate to political causes/campaigns, and hold public offices in both countries.
Dual citizenship also provides you with a wide range of social assistance and privileges. This includes access to superior medical care and educational programs in both countries. You have the option to pick the better social benefits.
Cons Of Dual Citizenship
Full compliance with the taxation rules and procedures of both countries is non-negotiable when it comes to dual citizenship. You cannot evade tax obligations irrespective of where in the world you make money as a dual citizen.
However, taxes can be reduced or tweaked by special investments that can provide tax-saving benefits. To avoid paying taxes twice, you can check for double taxation treaties signed between your home country and the destination country. This is also one of the reasons why you must consult an investment migration advisor, as they will help you understand complex taxation laws and share tax-saving tips.
You are subject to the jurisdiction of both countries, so you are expected to obey law and order in both countries. Being responsible for two sets of duties from two countries can be overwhelming. So, it is advisable to be well versed with the different laws and government policies of the dual citizenship countries.
Non-compliance can lead to revocation of your dual citizenship rights. Therefore, you must seek advice from the right professionals to understand the intricacies of these cumbersome tax regulations.
Also, the process of obtaining dual citizenship is costly and takes some time, so it is easy to get discouraged. This is why choosing the right attorney or advisory firm can make a world of difference to your application and its outcome.
Investment migration guarantees financial benefits, security, and safety for your entire family. The procedure and paperwork might be a bit extensive. However, with the right guidance and tailored advice from investor migration specialists at Global Residence Index, you can be sure of living the best life in the country of your choice as long as it accepts dual citizenship.