Dual Citizenship in the USA: Rules, Benefits, and Limitations (Expert 2025 Update)
Dual citizenship (dual nationality) means you are considered a national of two countries at the same time. This 2025 guide explains the U.S. stance, how dual nationality is obtained, benefits and risks, FATCA/FBAR tax thresholds, and notable country rules (Germany’s 2024 reform, Japan’s “choice of nationality,” India’s OCI limits).
Key takeaways
Does the U.S. allow dual citizenship?
Yes. U.S. law recognizes that a citizen may also hold another nationality. U.S. citizens (including dual nationals) must enter and leave the United States on a valid U.S. passport (INA §215(b)). The State Department also cautions that assistance in the other country of your nationality can be limited.
- Afroyim v. Rusk (1967): citizenship cannot be taken away without the citizen’s consent/assent.
- Vance v. Terrazas (1980): government must prove intent to relinquish; voluntary act alone is not enough.
How to obtain dual citizenship with the U.S.
- Birth in the U.S. (jus soli): 14th Amendment confers U.S. citizenship; a second nationality may come via descent.
- Birth abroad to U.S. parent(s): INA §301 transmission rules (residence/physical-presence tests) apply.
- Typical residence: 5 years as an LPR (3 if married to a U.S. citizen), plus English/civics and GMC requirements.
- U.S. naturalization does not require renouncing your other nationality—whether you end up dual depends on the other country’s law.
- Scale: USCIS welcomed 818,500 new citizens in FY2024.
Benefits
Challenges & legal implications
- U.S. taxes citizens on worldwide income (file Form 1040 annually, even if abroad).
- FBAR if foreign accounts aggregate > $10,000 at any time.
- FATCA / Form 8938 if specified foreign assets exceed thresholds (see next block).
- Mandatory service (e.g., some countries conscript dual nationals).
- Foreign public office/military roles may have consequences if tied to intent to relinquish U.S. citizenship.
- Consular limits: In your other country of nationality, U.S. assistance may be restricted.
- Exit/entry: Some states impose exit bans or special screening during crises. Carry both passports; use each country’s passport at its border.
Global policy snapshot (illustrative)
Illustrative distribution for layout clarity. For specific countries, confirm the current official guidance in the Sources block.
Tax challenges for dual citizens (FATCA & FBAR)
FBAR — FinCEN Form 114
- Required if the aggregate value of foreign accounts exceeds $10,000 at any time in the calendar year.
- Includes bank, brokerage, and certain other foreign financial accounts; filed electronically to FinCEN.
FATCA — Form 8938 (IRS)
- Living in the U.S.: Single ≥ $50k (end of year) or $75k (any time); Married filing jointly ≥ $100k / $150k.
- Living abroad: Single ≥ $200k / $300k; Married filing jointly ≥ $400k / $600k.
Penalties can be significant; consider a U.S. tax professional familiar with cross-border reporting.
These reporting rules are separate from normal income tax filing (Form 1040). Thresholds and definitions are fixed by statute/regulation; always check the current IRS/FinCEN instructions.
Compliance checklist
- Use your U.S. passport when entering/leaving the United States (INA §215(b)).
- File a U.S. tax return annually reporting worldwide income; determine whether FBAR and Form 8938 apply.
- Confirm the other country’s rules (military service, voting, public office, exit bans, tax residency).
- Register the birth of U.S. children abroad with a U.S. consulate if applicable.
- Keep both passports valid and, where feasible, use each country’s passport at its own border.
FAQ
Is dual citizenship legal for Americans?
Yes. The State Department recognizes dual nationality. Involuntary loss requires intent; see Afroyim and Terrazas.
Do I have to use a U.S. passport?
Yes. U.S. citizens must use a U.S. passport to enter and leave the United States (INA §215(b)).
Did Germany change its dual citizenship law?
Yes. Since June 27, 2024, Germany broadly permits multiple nationality.
What about Japan or India?
Japan generally requires adults with dual nationality to choose one by age 22; India does not allow dual citizenship (OCI is not citizenship).
How many people naturalized recently?
USCIS welcomed about 818,500 new citizens in FY2024.
Conclusion
Dual citizenship remains legal and practical for many Americans. It unlocks mobility and economic opportunities but also creates year-round compliance duties. Verify country-specific rules before applying and keep both passports up to date.
