Can an American Become a Citizen of Another Country?

It was a humid evening in Costa Rica when Emily, a tech entrepreneur from Seattle, found herself holding a new passport. It wasn’t blue with an eagle embossed on the cover, but red with a coat of arms she had only briefly studied before. She was now a citizen of Costa Rica. Just a few years ago, this would have seemed an impossible dream. How did she get here, and more importantly, could any American achieve the same?

The idea of dual or second citizenship isn't just reserved for jet-setting billionaires anymore. Increasingly, everyday Americans are seeking citizenship in other countries for reasons ranging from better tax regimes to retirement in exotic locales. But can an American really become a citizen of another country? The answer is yes, and it’s happening more than ever before.

Why Americans Are Seeking Dual Citizenship

There are multiple reasons why U.S. citizens would want to obtain another passport. For some, it's a way to diversify their political and economic options. Owning assets abroad, or simply having the option to live elsewhere, can be a powerful tool in uncertain times. Others are driven by family connections, heritage, or just the desire for a change of scenery.

For example, take the story of James, a digital nomad who had spent most of his twenties hopping between Southeast Asia and Europe. His work required nothing more than a laptop and stable Wi-Fi. Tired of the limitations of tourist visas and extended stays, he applied for citizenship in Portugal through a residency-by-investment program. Now, James can live and work freely in the European Union. In addition, as a dual citizen of the U.S. and Portugal, he enjoys the benefits of both worlds, without having to renounce his American nationality.

Legal Paths to Citizenship for Americans

So, what are the legal ways for an American to become a citizen of another country? Surprisingly, there are many avenues. These generally fall into three categories:

1. Citizenship by Descent: If you have parents or grandparents from certain countries, you may qualify for citizenship through ancestry. Countries like Ireland, Italy, and Poland are known for their accommodating policies.

2. Naturalization: This process involves living in another country for a certain number of years and meeting specific requirements, such as language proficiency or civic knowledge. For example, an American who spends several years living in Spain may eventually qualify for Spanish citizenship.

3. Investment Programs: Some countries offer citizenship through significant financial investments, known as "Golden Visa" or "Citizenship by Investment" programs. Portugal, Malta, and Cyprus are just a few nations where, for a price, you can fast-track your path to becoming a citizen.

The Challenges of Dual Citizenship

But it's not always straightforward. While the U.S. allows dual citizenship, not every country does. Nations like China and India require individuals to renounce their prior nationality before acquiring new citizenship. Other countries, such as Japan, maintain stricter guidelines on maintaining multiple citizenships, especially if you are born with dual status.

In some cases, even if a country allows dual citizenship, there are complications. For example, dual citizens may be subject to double taxation—one of the biggest drawbacks. Although the U.S. has tax treaties with many nations, U.S. citizens are taxed on their worldwide income, regardless of where they live or hold other citizenships. For those thinking of moving abroad primarily for tax purposes, this can be a critical factor to weigh.

American Expats and the Trend Toward Global Citizenship

Americans seeking citizenship abroad aren't just doing so for economic or lifestyle benefits. Some are doing it as a political or social statement. Following political changes in the U.S., especially during election years, interest in second passports often spikes. A survey in 2020 found that 30% of Americans considered moving abroad due to political reasons. For many, obtaining citizenship in another country is the ultimate manifestation of that desire.

Consider the example of Alex, a New York-based lawyer who moved to New Zealand in search of a slower pace of life. After a few years living there under a work visa, Alex applied for and obtained permanent residency, the first step toward citizenship. Now, as a citizen of both the U.S. and New Zealand, Alex can live in either country but enjoys the security and peace of mind that comes with his new status.

The Process of Renouncing U.S. Citizenship

While many Americans happily hold dual citizenship, some take it a step further by renouncing their U.S. citizenship altogether. In 2022, more than 6,000 Americans gave up their citizenship—a figure that had been steadily climbing for years. Why would someone take such a drastic step? For many, it comes down to the U.S. tax system.

Renouncing U.S. citizenship is a complex process that involves paying an exit tax on worldwide assets. Despite the financial burden, some Americans see this as the only way to escape the IRS’s reach, particularly for those who live abroad permanently and want to avoid U.S. tax obligations on foreign income.

Case Study: The Digital Nomads and Global Citizens

In a world where remote work is increasingly becoming the norm, the idea of being tethered to a single nation seems outdated. Digital nomads, individuals who work remotely while traveling, are increasingly looking for second citizenships. These individuals are not bound by traditional borders and see the entire world as their home.

Take Chloe, a graphic designer who spent years freelancing from her Brooklyn apartment. The pandemic changed her perspective on work and life, prompting her to apply for Estonian e-residency. While not full citizenship, it allows her to establish a company and bank account within the European Union, making it easier to conduct business globally. Chloe now spends half the year in Estonia and the rest hopping between Asia and South America.

How to Get Started: Steps for Americans Interested in Dual Citizenship

For any American contemplating dual citizenship, the first step is research. Understand the specific requirements of the country you're interested in and consider whether dual citizenship is allowed. Some important steps to follow include:

1. Investigating your ancestry: If your family has roots in Europe or other parts of the world, you might already qualify for citizenship by descent.

2. Learning the language and culture: Many countries require proof of language proficiency or integration into local society as part of the naturalization process.

3. Assessing tax implications: Consult a tax advisor to understand how your income, assets, and tax obligations will be affected by dual citizenship.

4. Exploring investment programs: If you have the means, consider countries that offer citizenship through financial investment.

Conclusion: The Future of Global Citizenship

As the world becomes more interconnected, the concept of citizenship is evolving. For Americans, becoming a citizen of another country is no longer a distant dream but a tangible reality. Whether for personal, professional, or political reasons, more Americans are choosing to diversify their citizenship portfolio, embracing the freedoms and opportunities that come with it.

Could you be next? The journey may be complex, but the rewards of holding multiple passports in a globalized world are undeniably compelling. Whether you are drawn by financial incentives, political motivations, or the simple desire for a change of scenery, the doors to global citizenship are more open than ever.