How to Keep Your Citizenship, Avoid Losing It, and Handle Taxes While Living Abroad

Living abroad is an incredible experience. You get to explore new cultures, build a life in a new country, and sometimes even grow your career in exciting ways. But if you’re living overseas for a long time, you may start to wonder:

“Am I still keeping my citizenship?”

“Do I have to pay taxes back home?”

“What if I want to have dual citizenship?”

Don’t worry. In this guide, I’ll break down exactly how to maintain your citizenship status, stay on top of your tax responsibilities, and understand the basics of dual citizenship—all in one place.

Can You Lose Your Citizenship While Living Abroad?

Good news: In most cases, simply moving abroad won’t make you lose your citizenship. For example, U.S. citizens can live overseas for decades and still keep their citizenship without any problem.

But there are a few things to watch out for:

• a. Taking another country’s citizenship (in some countries) can sometimes cause issues.
• b. Failing to renew your passport.
• c. Renouncing your citizenship on purpose (this is official and comes with paperwork).

As long as you’re following the rules, you’re safe. But it’s important to keep your status active.

How to Maintain Your Citizenship Status

If you’re living abroad long-term, here are a few smart things to do to keep your citizenship in good standing:

✅ Renew Your Passport On Time
Don’t let your passport expire. It’s your most important proof of citizenship.

✅ Stay Connected With Your Embassy
Register with your home country’s embassy in your new country. They can help with emergencies, voting, and keeping your records updated.

✅ Participate in Elections
Many countries allow overseas citizens to vote. Staying active in civic duties helps prove your ongoing connection.

✅ Keep Your Documents Safe
Save copies of your birth certificate, passport, and any legal documents. You never know when you might need them.

Understanding Dual Citizenship Rules

So what happens if you want to become a citizen of the country you’re living in?

This is where dual citizenship comes in.

What is dual citizenship?
It means you are officially a citizen of two countries at the same time. For example, you could be a citizen of both the U.S. and France.

Pros of dual citizenship:

• a. You can live, work, and own property in both countries.
• b. You have access to social services and benefits from both.

Cons:

• a. You might have to pay taxes in both countries.
• b. Traveling can be more complicated with two passports.

Before applying, always check if both countries allow dual citizenship—some don’t.

Taxes for Citizens Living Abroad

Now, here’s the part that surprises a lot of people. Just because you’re living overseas doesn’t mean you stop paying taxes back home.

For example, U.S. citizens are required to file taxes no matter where they live. Even if you’re earning money in another country, you still have to file a tax return with the U.S. government.

But there’s help available!

The Foreign Earned Income Exclusion (FEIE) allows you to exclude up to a certain amount of your foreign earnings from U.S. taxes (this was over $120,000 recently, but the amount changes).

You can also use tax treaties to avoid being taxed twice on the same income.

Bottom line: Don’t skip your tax paperwork just because you’re living abroad!

What Happens If You Renounce Your Citizenship?

Some people decide they no longer want to keep their original citizenship. Maybe they don’t want to deal with taxes anymore, or they feel more connected to their new home country.

If you renounce your citizenship:

• You must go through an official process at an embassy.
• You may have to pay an Exit Tax (this is especially common for U.S. citizens with large assets).
• You lose your passport and the right to live and work in your original country unless you get a visa.

Warning: Once you give it up, getting it back is extremely difficult, sometimes impossible.

Final Tips for Expats

✈️ Stay informed: Laws change. Keep an eye on citizenship and tax updates for your home country.

✈️ Stay organized: Keep digital copies of your important documents.

✈️ Get professional help: Tax advisors and immigration lawyers can save you from big mistakes.

Living abroad is a dream, but forgetting about your citizenship status or taxes can turn it into a nightmare. Stay ahead of the game, and you can enjoy your global lifestyle without stress.

FAQs

Q: Do I have to pay taxes if I live abroad?

A: Most likely yes, depending on your home country. For example, U.S. citizens must file taxes no matter where they live.

Q: How do I keep my citizenship active?

A: Renew your passport, stay in contact with your embassy, vote if you can, and keep up with any legal obligations.

Q: Can I have dual citizenship?

A: It depends on the laws of both countries. Many allow it, but some don’t.