Exciting New Update: Dual Citizenship in Germany and USA (2023)
One of the most frequent questions we are asked in the comment’s section of our channel is “are you going to become German citizens?” …..and, well….. We’re actually considering it; especially if Germany’s new coalition government passes proposed regulations reinstating dual citizenship. This potential game changer for expats and immigrants living in Germany would be a huge development for our family. So we did our research and shared below the current regulations on becoming a German citizen and what we know so far about the plans for reinstating dual citizenship in Germany.
In this article, we’ll be covering:
What the current regulations are on becoming a German Citizen and restrictions on holding Dual Citizenship
What the New German Government has announced that would change these regulations and reinstate dual citizenship.
And what it would be the benefits of dual citizenship for our family if we were able to get it.
Current Regulations on Becoming a German Citizen
Generally speaking (because, of course, there are some very unique exceptions) a foreign national would have to give up their previous citizenship to become a German citizen - called ‘naturalization’.
To be eligible for naturalization:
a person has to have lived legally in Germany for at least eight years and possess the appropriate residence permit (Niederlassungserlaubnis)
Unless you complete an integration course, which shortens the time to seven years.
Or if you are a spouse of a German citizen, this is shortened to 3 years.
must also declare their allegiance to the German constitution
have a sufficient command of the German language
Must be familiar with the legal system, society and living conditions in the Federal Republic of Germany (naturalization test)
33 questions, including three questions which apply only to the German state where the applicant lives. Applicants must choose the correct answer from four possible responses. To pass, applicants must answer 17 questions correctly. In recent years, more than 90% of applicants have passed the test.
Persons under age 16 and those who do not meet the testing requirements due to illness, disability or age do not have to take the test.
And anyone who has graduated from a German school or from German higher education in law or social, political or administrative sciences does not have to take the test.
Be able to support themselves without recourse to social assistance
Have a clean criminal record.
As you’ve probably noticed from our blog and YouTube channel, Jonathan has been living in Germany since 2013. So he actually currently qualifies for the residence requirement to get German citizenship. And interestingly, as his spouse, I also qualify for German citizenship.
According to Section 10, para. 2 of the Nationality Act:
“Spouses who are not yet eligible for naturalization and minor children may apply for naturalization along with their eligible spouse or parent”
This essentially allows families of foreigners the possibility of acquiring German citizenship together. Now, granted, I would still need to meet all of the other requirements, like language proficiency and passing the naturalization test, but I wouldn’t necessarily need to wait another four and a half years because Jonathan has been here for so long.
Current Exemptions which allow you to hold Dual Citizenship in Germany
As we mentioned above, according to the current German law on citizenship, those who meet the criteria to become German nationals must renounce their previous citizenship.
However, there are some exceptions. Here are the three most frequent:
Are born with dual citizenship, i.e. to one German and one non-German parent
EU or Swiss Citizens
Citizens of a Country that does not permit its citizens to renounce citizenship.
There are 17 in total, but a few of them are Morocco, Argentina, Costa Rica, Dominican Republic…. It’s a significant list, but the US is not one of them.
Interestingly, there is also a less talked about loophole for dual citizenship that Jack actually qualifies for.
Children born in or after the year 2000 to long-term residents of Germany could or can under certain circumstances receive German citizenship. As of December 20th 2014, children who gain citizenship under section 4 (3) no longer have to declare a choice of citizenship when they’re older provided they meet some requirements.
Also interesting, is if our son was to decide to enlist in the US or German military, he would automatically need to renounce citizenship to the other country. You can’t fight for one country, but still hold allegiance to the other.
Similarly, those who come to Germany under US military or DOD contracts also don’t generally qualify for dual citizenship. This is because you have to work in Germany, pay German taxes and social contributions, and hold a German residence permit. Most of the time - that isn’t the case because you will still report and pay American taxes on your income. As a government employee, you will not be eligible for the Foreign Earned Income Exclusion (FEIE). Furthermore, as a US government employee you will not be subject to foreign taxation and will not claim the Foreign Tax Credit.
Dual Citizenship in Germany: New German Coalition Government’s Plan
Presenting its plans on the governing of Germany, the coalition of center-left Social Democrat party, the environmentalist Green party and the pro-business Free Democrat party announced that they were planning to drop the requirement of giving up the previous citizenship in order for one to become a German citizen.
Important: This has not been passed YET, but based on their plans we have a general idea of how this would work and what changes we could anticipate:
Immigrants to the country may have to wait for a shorter period of time before applying for German citizenship, as the new government is also looking into the possibility of enabling them to apply for citizenship after only five years in the country.
The agreement between the three coalition parties also foresees speeding up and simplifying asylum and residency applications.
What the second implication ultimately means, we don’t know - it may allow for shorter waiting times for those who have graduated from a German University and are gainfully employed by a German employer. But at this time we can only speculate.
As of 2023, this discussion is still ongoing and it is looking likely that something will be passed to allow dual citizenship.
Advantages of Dual Citizenship with Germany for our Family
Speaking candidly, as an immigrant family, our families are split. We live in Germany, and the rest of our loved ones live halfway across the globe. While both of our families are happy and healthy, being geographically separated may not always be so easy in the future.
We have to consider the possibility of needing to go home for long periods of time if our families needed us. And with dual citizenship, we could move back to the US when needed, and still keep the opportunity to return to Germany open (without the need to apply for a new job with an employer who would sponsor a German Work Visa or German Residence Permit).
Additionally, we want to keep ties to Germany for retirement. The longer we continue to live in Germany and build a life in the Black Forest, the more likely it becomes that Germany will be the country that we also retire in. Although we do have a permanent residence permit in Germany, having dual citizenship would make this process much easier once we finish working.
Furthermore, if Jack is German, but we are not, it is important that we ask ourselves rhetorically: ‘what does that mean for our family ties down the road?’ Someday we might have more children, and years down the road, grandchildren. It is possible that our family line will continue in Germany. And having German citizenship could be an important asset to have in order to keep our family together.
Lastly, and probably the most obvious reasoning for acquiring dual citizenship in Germany is our house. If you have checked out our YouTube Channel, you know that we have just bought a house. And as property owners, it becomes even more important that we are able to participate in civic processes in our local municipality.
Disadvantages of Dual Citizenship in Germany
However, if we are going to be fair and balanced, we should also mention that having dual citizenship in Germany still has a few notable drawbacks.
First, we will be required to always file taxes in both countries. The United States is one of the few countries in the world that requires expats to file taxes, regardless of where they are residing. Of course, we do that now because we are Americans living abroad. However, if we renounced our American citizenship, we would save ourselves the yearly headache of filing for the foreign earned income exclusion.
In addition, there are other small but notable reasons why having dual citizenship could be considered a negative for US citizens. Holding dual citizenship (in contrast to holding only German citizenship) would not preclude us from fulfilling our duties as US citizens. For example, you may still be contacted and asked to serve on a jury, maintain your voter registration, and communicate with the social security office. Although, to be fair, you are likely to get an exemption because of your location for many of these items.
And last but not least, having dual citizenship can be a lot of work. After all, you will be required to maintain and manage two passports, two social security numbers, two of everything… and multiply this by your partner, expat children, etc…. You catch what I’m saying.
