Reply to: Dual Citizenship, US/UK. Read our community guidelines. A financial drawback of dual citizenship is the potential for double taxation, a situation in which you owe income taxes to two countries. The U.K. does not accept applications for dual citizenship for children.
Individual residency is on a case-by-case basis, and there are no strict rules. Instead, they pay in one country and receive credit in the other for the taxes paid.There is no application process to be classified as a dual citizen in Canada or any formal acknowledgement. Dual Citizenship and Taxes for Residential Tax Countries. Whether or not dual citizenship has the potential to lower your taxes depends on your country of citizenship’s tax system. Also, they don’t pay any school, county, township, real estate Tax for life, including free hunting and fishing license. Cutting corners here just won’t work.Additionally, while the name “citizenship-based taxation” implies that the US only taxes its citizens, that’s simply not true.I then asked him why he thought he needed dual citizenship to get out of Australia’s tax net.“I’m tired of paying Australian tax – it’s suffocating me!” he blurted.US citizens, however, must obtain dual citizenship and then renounce their US passport to escape the US tax net.It won’t immediately fix your tax woes – you have to become a tax non-resident first – but it may come in handy in the future.For Australians or Canadians, that’s not the case. Determine whether or not you are eligible to apply for U.K. citizenship.
Air Travel forums . Even British nationals who have a dual nationality with the US should be aware that they may also have tax obligations with the United States. In that case, the individual must file Canadian and U.S. tax returns. Preview. As always, the answer is that it depends.While nothing is set in stone yet, a second passport from somewhere with a less-aggressive tax system can come in handy if your country of citizenship’s tax system becomes unwieldy.Outside of the US, the majority of countries around the world use what’s known as a residential tax system.However, a second passport can be advantageous for a number of other reasons, and it’s a good insurance policy to have in case you need to get out.Join our email list and we’ll send our best articles, videos and exclusive content right to your inbox.You don’t necessarily need dual citizenship to leave Australia’s tax system, and you certainly don’t need to renounce your Australian citizenship, either.So, in order to renounce your US citizenship, you’ll generally need to get dual citizenship elsewhere first.Technically, you can become stateless, and people like Glen Lee Roberts have done so successfully.However, if you want to lower your tax bill more substantially, it becomes more complicated.What about U.S. Vets who are 100% disabled and the VA check is about $3100 monthly tax-free.