🗺️ Navigating Dual U.S.-EU Citizenship: An Information Guide

I. 🛑 CRITICAL LEGAL & PROFESSIONAL DISCLAIMER

THE FOLLOWING INFORMATION IS FOR EDUCATIONAL AND RESEARCH PURPOSES ONLY. THIS GUIDE IS NOT LEGAL, FINANCIAL, OR TAX ADVICE.

By accessing this material, the user acknowledges and agrees to the following:

Not Professional Advice: We are not licensed attorneys, tax professionals (CPAs/EAs), or financial advisors. You must consult with a qualified, licensed professional (e.g., an immigration lawyer for citizenship matters, or a tax professional specializing in expatriate tax) before making any decisions related to immigration status, taxes, or finance.
Public Domain Information: All facts, links, and general policy descriptions provided here are compiled from the public domain—specifically, official government sources like the U.S. Department of State, the Internal Revenue Service (IRS), and the European Commission.
Subject to Change: Citizenship, immigration, and tax laws are constantly changing, are retroactive in some cases, and are subject to complex interpretation. The information presented here may be outdated, incomplete, or inapplicable to your specific circumstances.
No Liability: We assume no liability for the use or misuse of this information. Relying on this guide without seeking individualized professional advice could result in adverse legal, financial, or immigration consequences, including fines, penalties, or loss of status.
Rigorous Due Diligence Required: This guide is intended only to augment your search, point you toward official sources, and highlight critical areas that demand further investigation.

II. Understanding U.S. Policy on Dual Nationality

The United States has a nuanced and often misunderstood policy regarding dual citizenship.

The Core Principle

Existence is Recognized: The U.S. Government recognizes that dual nationality exists and permits Americans to hold other nationalities.
Discouragement, Not Prohibition: The U.S. does not encourage dual nationality as a matter of policy, primarily because it can lead to conflicts of law (e.g., foreign military service, restricted consular access abroad) and competing allegiances.

Risk of Losing U.S. Citizenship

The fear of automatically losing U.S. citizenship upon naturalizing in a foreign country is largely unfounded for most individuals.

The Intent Requirement: Under Section 349 of the Immigration and Nationality Act (INA), a U.S. citizen only loses their nationality if they perform an "expatriating act" (such as naturalization in a foreign state) voluntarily AND with the intention of relinquishing U.S. citizenship.
The State Department Presumption: The U.S. Department of State generally presumes that a U.S. citizen who naturalizes in a foreign country does not have the intent to relinquish their U.S. citizenship unless they explicitly state otherwise or take clear, intentional actions to that effect.

Critical Travel Rule

U.S. dual nationals are legally required by U.S. law (8 U.S. Code § 1185) to enter and depart the United States using their valid U.S. Passport, regardless of what other passports they possess.

III. The EU Benefit: Freedom of Movement

The primary non-emotional benefit of acquiring the citizenship of any European Union (EU) member state is automatic EU Citizenship and the associated rights under EU law.

Benefit	Description
Freedom of Movement	The right to live, work, and reside in any of the 27 EU member states, plus Iceland, Liechtenstein, Norway, and Switzerland (with some formalities).
Right to Work	Access to the labor market of all EU countries without needing a work visa or sponsorship, and without discrimination based on nationality.
Consular Protection	The right to diplomatic and consular protection from the embassy or consulate of any EU country if your country of nationality (e.g., the U.S.) does not have a mission in the third country you are visiting.

Note on National Laws

The acquisition process (e.g., citizenship by descent, or jure sanguinis) is governed entirely by the national law of the specific EU member state you are applying to. You must consult the official ministry or embassy of that specific country (e.g., Italy, Ireland, Germany) for rules, documentation, and processing times.

IV. The Critical U.S. Tax Obligation

For U.S. citizens, the requirement to file U.S. income tax returns remains regardless of where they live. This is known as Citizenship-Based Taxation (CBT).

1. Income Tax Filing (IRS Form 1040)

Worldwide Income: U.S. citizens must report their worldwide income to the IRS annually.
Avoiding Double Taxation: The U.S. provides mechanisms to prevent you from paying tax to both the U.S. and your country of residence:
- Foreign Earned Income Exclusion (FEIE): Allows you to exclude a significant amount of foreign-earned income (this amount is indexed for inflation annually) from U.S. taxation.
- Foreign Tax Credit (FTC): Allows you to claim a credit for income taxes paid to a foreign government, reducing your U.S. tax liability dollar-for-dollar.

2. Mandatory Reporting of Foreign Assets

Regardless of whether you owe any U.S. tax, you may be required to file annual informational reports regarding foreign bank accounts and financial assets. Non-compliance carries extremely severe penalties.

FinCEN Form 114 (FBAR): Required if the aggregate highest value of all foreign financial accounts exceeds $10,000 at any point during the calendar year. This is filed with the Financial Crimes Enforcement Network, not the IRS.
IRS Form 8938 (FATCA): Required if the total value of your specified foreign financial assets exceeds specific reporting thresholds (which vary based on your tax filing status and whether you live in the U.S. or abroad).

V. Official Government References

Consult these links to conduct your independent research and verify all information:

Topic	Source	URL
U.S. Dual Nationality Policy	U.S. Department of State	travel.state.gov/en/international-travel/planning/personal-needs/dual-nationality.html
U.S. Expat Tax Guide	IRS Publication 54	irs.gov/publications/p54
Foreign Bank Account Reporting (FBAR)	IRS / FinCEN	irs.gov/businesses/small-businesses-self-employed/report-of-foreign-bank-and-financial-accounts-fbar
EU Freedom of Movement	European Commission	commission.europa.eu/strategy-and-policy/policies/justice-and-fundamental-rights/democracy-eu-citizenship-anti-corruption/free-movement-and-residence_en