Dual Citizenship & Renunciation

The United States permits dual citizenship but, in the State Department's own words, does not endorse it as a matter of policy. A US citizen who naturalizes elsewhere, or who acquires a second nationality at birth, does not automatically lose US citizenship — loss occurs only through a voluntary expatriating act performed with intent to relinquish (INA Section 349). Dual nationals must enter and leave the US on a US passport and remain subject to US taxation on worldwide income regardless of where they live, which is a defining feature of the US system and a common motivation for eventual renunciation. The landscape has shifted notably in 2024–2026. Germany began allowing dual citizenship for naturalizing citizens on June 27, 2024, removing a longstanding barrier for Americans. Italy sharply restricted its famous citizenship-by-descent pathway with Law 74/2025 (effective for applications after March 27, 2025), generally limiting eligibility to those with an Italian parent or grandparent — a change upheld by Italy's Constitutional Court in March 2026. The EU Court of Justice struck down Malta's citizenship-by-investment program on April 29, 2025, ending the last direct 'golden passport' route to EU citizenship, while Caribbean investment programs (St. Kitts and Nevis, Dominica, Grenada, Antigua and Barbuda, St. Lucia) continue from roughly $200,000–$250,000. Meanwhile, the State Department cut the renunciation fee from $2,350 to $450 effective April 13, 2026. Renouncing US citizenship is a serious, irrevocable step: it must be done in person before a consular officer abroad, it does not erase prior tax or military obligations, and higher-net-worth individuals may owe a mark-to-market 'exit tax' under IRC Section 877A. This overview presents factual requirements only and is not legal or tax advice — anyone considering a second citizenship or renunciation should consult a qualified immigration attorney and a cross-border tax professional.

Key Points

• 1US law permits dual nationality and does not require choosing one citizenship, but the State Department does not endorse it; dual nationals must use their US passport to enter and leave the United States and owe US tax on worldwide income wherever they live.
• 2Popular destinations that allow dual citizenship with the US include Canada, Mexico, the UK, Ireland, France, Italy, Portugal, Australia, New Zealand, and Israel — and Germany since June 27, 2024, when its citizenship modernization law (StARModG) abolished the renunciation requirement and allows naturalization after five years' residence.
• 3Countries that prohibit or heavily restrict dual citizenship include China, India (which offers Overseas Citizen of India status instead), Singapore, Japan (which requires choosing a single nationality in early adulthood), Austria, and the UAE — naturalizing there generally requires giving up US citizenship.
• 4Citizenship by descent remains a low-cost pathway: Ireland grants citizenship through an Irish-born grandparent via the Foreign Births Register, while Italy's Law 74/2025 (effective for applications after March 27, 2025, and upheld by the Constitutional Court on March 12, 2026) now generally limits jure sanguinis to applicants with an Italian parent or grandparent.
• 5Citizenship by investment contracted in 2025: the EU Court of Justice ruled Malta's program contrary to EU law on April 29, 2025, ending direct EU citizenship purchases, while Caribbean programs in St. Kitts and Nevis, Dominica, Grenada, Antigua and Barbuda, and St. Lucia remain operational with minimum investments of roughly $200,000–$250,000.
• 6Renunciation under INA Section 349(a)(5) requires appearing in person before a US consular officer abroad and taking a formal oath; the fee dropped from $2,350 to $450 effective April 13, 2026. The act is irrevocable (with a narrow exception for those who renounced before age 18), and the State Department warns applicants can become stateless if they hold no other nationality.
• 7Under IRC Section 877A, a 'covered expatriate' — net worth of $2 million or more, average annual net income tax liability above $206,000 (2025 figure, inflation-adjusted), or failure to certify five years of tax compliance on Form 8854 — is treated as having sold all worldwide assets the day before expatriation, with the first $890,000 of gain excluded (2025); failure to file Form 8854 carries a $10,000 penalty.
• 8After renunciation, former citizens need a visa or ESTA approval to visit the US like any other foreign national and can be denied entry; renunciation does not affect accrued Social Security benefits (payable abroad in many countries) but also provides no escape from pre-expatriation tax liabilities or obligations.