About renouncing existing citizenship, Spain can cancel your citizenship if there is evidence you have used your US nationality outside Spain. How they can find out and what kind of evidence I don't know, but it's something you need to remember. Perhaps discussing with immigration lawyer in Spain?

I don't know much about inheritance issue, but holding US citizenship can impact you
negatively when trying to open a bank or savings account because of FATCA. It's truly onerous for banks and many refuse dealing with US citizens. Also many try to renounce US citizenship because of onerous US taxation rules.

 

Thank you Joppa, in my case I really want to keep both if possible. We are going to discuss with lawyers to better understand pros and cons.

 

There are certain circumstances that you can be dual national (Spain/US) if meeting the criteria.

* Disclaimer - I haven't read this in any detail*

Dual Nationality

 

It is possible for nationals from Lat Am to also hold Spanish one, but doesn't look like it's the same with the US.

 

-- Spain requires me to renounce my US citizenship, which I do not want to. But it sounds like this is easy to avoid by saying, sure, I intend to drop my US citizenship...and then never following up on the US side? Would this work, are there problems to be aware of?

I guess it in part will depend on the process to acquire Spanish citizenship and any affirmations that you need to make as part of that process. For example could it be deemed that you had made a false declaration and what are the downstream impacts of this in future - for example in the extreme... revocation of citizenship.

I am not familiar with Spanish citizenship law but there is an interesting constitutional question in Australia that has piqued my interest in this sort of topic. Fundamentally the laws of a country are what determine eligibility for citizenship, and other nations have no control or power in the granting or revocation of citizenship. Conceptually at least you could go to the local US consulate, pay the $2350 USD fee, declare that you are not doing it of your own free will, and then have the application for renunciation rejected by the US DoS. If you were lucky you might even be able to get the consular official to reject it before paying... ie. at one of the pre-interviews.

Fundamentally, the only real "problem" I can foresee is that Spain could refuse to recognise that you are a US Citizen and thus bar you from any receiving a consular visit and support on Spanish territory in the event of say detention.

-- some websites talk about potential tax implications down the line. For example, which country would tax my parent's estate should something happen? Would it matter whether that year I maintain my tax residence in Spain or I have already moved out?

There is no estate or gift tax treaty between the US and Spain so basically this means that both countries will be able to apply their laws on any taxation of the distribution in the case of the US, or receipt of the distribution in the case of Spain. Without a treaty, you would have to rely on any relief baked into US and Spanish law.

Of course any income generated by the assets of the estate that you inherit will fall under the protections of the Income tax treaty between the two countries in terms of relief from double taxation and which country has the primary right to tax that income. The fact that Spain would not necessarily recognise your US citizenship could have bearing on the tax treaty coverage of your income. But I think that would only be of concern if the treaty recharacterised certain spain sourced income as US sourced (unlikely). But you would still be covered by treaty terms for any income generated from US sources that you had inherited (say rent on a inherited real property).

 

I guess it in part will depend on the process to acquire Spanish citizenship and any affirmations that you need to make as part of that process. For example could it be deemed that you had made a false declaration and what are the downstream impacts of this in future - for example in the extreme... revocation of citizenship.

I am not familiar with Spanish citizenship law but there is an interesting constitutional question in Australia that has piqued my interest in this sort of topic. Fundamentally the laws of a country are what determine eligibility for citizenship, and other nations have no control or power in the granting or revocation of citizenship. Conceptually at least you could go to the local US consulate, pay the $2350 USD fee, declare that you are not doing it of your own free will, and then have the application for renunciation rejected by the US DoS. If you were lucky you might even be able to get the consular official to reject it before paying... ie. at one of the pre-interviews.

Fundamentally, the only real "problem" I can foresee is that Spain could refuse to recognise that you are a US Citizen and thus bar you from any receiving a consular visit and support on Spanish territory in the event of say detention.



There is no estate or gift tax treaty between the US and Spain so basically this means that both countries will be able to apply their laws on any taxation of the distribution in the case of the US, or receipt of the distribution in the case of Spain. Without a treaty, you would have to rely on any relief baked into US and Spanish law.

Of course any income generated by the assets of the estate that you inherit will fall under the protections of the Income tax treaty between the two countries in terms of relief from double taxation and which country has the primary right to tax that income. The fact that Spain would not necessarily recognise your US citizenship could have bearing on the tax treaty coverage of your income. But I think that would only be of concern if the treaty recharacterised certain spain sourced income as US sourced (unlikely). But you would still be covered by treaty terms for any income generated from US sources that you had inherited (say rent on a inherited real property).

Hi Moulard, thank you for the thoughtful answer. That constitutional question is in fact interesting. Spain can require me to "renounce my US citizenship" but cannot compel the US to accept it so the whole thing is a bit absurd.

I read that Spain has pretty high estate taxes, up to 34%, so will need to understand that well, plus the general income complexity you allude to and which is the case anyway as the cost of living in Spain and being American.

Thank you again

 

If you anticipate to retire in the US (or Costa Rica) in the future, why troubling yourself with Spanish citizenship if it requires some legal arm twisting? I mean, I am a dual US/German citizen and I had to go through some legalities (Beibehaltungsgenehmigung) to have both. But, I grew up in Germany and I now still have a vacation apartment there, so there is some attachment and reason to be on both continents. If plan to leave Spain anyways and go back to good ol USA, then what's all the fuss about becoming a Spaniard?

 

Hallo What!, thank you for the thought -- fair point, but holding Spanish citizenship would also help me travel through Schengen countries, not just Spain, without the "90 out of 180 days" rule which is quite a pain frankly, especially as I anticipate at least one of our kids will study in a EU university and, who knows, perhaps stay here to live and work. Plus my spouse is Spanish and has a ton of family here, so there is an attachment to both continents even if at some point we want to move back to the US or CR.

 

I have looked into this in the past as most of my family have both UK and Spanish nationalities (technically not accepted by Spain).

The law says that a person who aquires Spanish citizenship (and who should have renounced their previouls one) can lose the Spanish citizienship if they continue to make use of the original.

The question here is what is meant by "make use"? In the case of the OP, the right by which he aquired citizenship (contrary to what is written) is residence in Spain (the fact he is married to a Spaniard only affects the amount of time he needs to be resident before obtaining the right to apply).

As per some jurisprudence, the "use" of the other citizenship which would potentially generate the withdraw of the Spanish nationality would be using the status of citizen of the USA to become resident in another country, including the US.

Technically, to avoid this risk, the OP would need to show that, upon returning to the US (or going to any other country) he does so as a Spanish citizen and does not rely on his "renounced" American citizenship for the right to reside.

That said, the Spanish authorities are really going to have to dig to find out under what nationality anyone registers in another country, but if they want to find out they probably can, and then they can strip you of the Spanish citizenship aquired by residence.

 

Thank you, Overandout. I will look into what "make use" actually means -- but friends tell me that travelling to the US on a Spanish passport while being an American is a no-no.

 

It would be extremely easy for them to enforce this if they want to, and who's to say they won't -- all they need is either a far-right government or a flood of annoying Americans/Brits/others taking up questionable citizenship calling too much attention to the whole situation.

The penalty is already clear: fraud in the citizenship application constitutes revocation of Spanish citizenship. Saying you'll renounce U.S. citizenship in order to get Spanish citizenship but then taking no steps to do would easily be called fraudulent acquisition of Spanish citizenship. Even without fraud, their rule is: you can't keep U.S. citizenship and Spanish citizenship -- so they'd be within their rights to give you a deadline to take steps to rid of it.

As for how they'd know you still have it: extremely easy. Whatever bank you bank with (domestic or foreign) must record whether or not you're a U.S. citizen. If you ever fly back to the U.S. you must use your U.S. passport to enter -- and all countries have access to Interpol databases that record every flight ever taken anywhere in the world, which will show you on a flight ticketed as a U.S. citizen.

Also, if you acquired Spanish citizenship but move out of Spain, you'll lose citizenship unless you affirmatively act to keep it every 3 years, by contacting the Spanish consulate in the country you're living in. Obviously if you move back to the U.S. and need to affirm your Spanish citizenship, it'd be hard to convince the Spanish consulate there that you're not using your U.S. citizenship as a resident of the U.S.

 

I am a US citizen and Spanish permanent resident like the OP. I have talked to a Spanish immigration attorney and based upon my personal situation, he has advised me not to seek Spanish citizenship. Following is the reasoning:

-Although a remote possibility as previous posters have pointed out, I could potentially endanger my US citizenship By becoming dual. An interesting point is the US government is Ok with my wife who was born in Spain and naturalized US as an adult as well as my two children who were born in the US with the right of Spanish citizenship; however, different with me who was born and raised in US and chooses another citizenship as an adult.

-If I were to move back to the US, I maintain my right to Spanish permanent residency.

-With my current business, I need to legally work in US, Spain and Mexico. With my current status I am able to work in all three. At my age, I have no intention of expanding my work in Europe. This may be a key negative issue to the OP since he wanted to have the option of working in other European countries.

-With my current status, I am subject to the 90 of 180 Schengen visa outside of Spain. I do not see this as a hinderance. Furthermore, my lawyer said there is no way for this to be monitored unless I travel by air or personal auto.

-As a Spanish permanent resident, I have access to healthcare throughout the EU.

-I can not vote in Spanish election.

Based upon these factors, I have decided not to become a Spanish citizen. There is not much upside for me to become a Spanish citizen and a very big downside albeit remote.

 

I didn't become a Spanish national, as I didn't want to give up my British passport. Just hope that decision doesn't cause complications, if VOX come to power.

 

I would not worry about that scenario. If VOX comes into power, you will probably be better off In UK while me in the USA!

 

I am planning to become a Spanish citizen.

I am also aware that if I were to return to live in the UK I would have two options:

1) Reside in the UK as a Spanish national, with the visa as would be required, or,
2) Reside in the UK as a UK national and accept that this breaches the conditions of my Spanish citizenship and that it could be revoked if the Spanish authorities discover it.

Of course this would also be the case if I were to go to another third country. Once taking Spanish citizenship I would have to reside there as a Spanish citizen.