# Dual Citizenship



## 808 Engineer (Sep 15, 2012)

Can anyone comment on the pros and cons of having a Dual Citizenship with the U.S. ?


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## Phil_expat (Jan 3, 2011)

Can you be more specific: A man or woman from the USA or Philippines?


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## 808 Engineer (Sep 15, 2012)

My wife was born in Manila and is now a U.S. citizen. We are planning to semi retire in the Philippines. I was born in the U. S. . I was wondering if there is any benefit to her obtaining Dual Citizenship. Visa's are no problem. The Balikbayan Visa works out ok. We will also be purchasing a condo and renting it out six months a year while we're back in the U.S..
Mahalo for any help.


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## jon1 (Mar 18, 2012)

808 Engineer said:


> My wife was born in Manila and is now a U.S. citizen. We are planning to semi retire in the Philippines. I was born in the U. S. . I was wondering if there is any benefit to her obtaining Dual Citizenship. Visa's are no problem. The Balikbayan Visa works out ok. We will also be purchasing a condo and renting it out six months a year while we're back in the U.S..
> Mahalo for any help.


The only issue with Dual Citizenship that I am aware of is for an individual working in a position that requires a US Govt Security Clearance. You can't be Dual and keep your clearance.


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## Phil_expat (Jan 3, 2011)

808 Engineer said:


> My wife was born in Manila and is now a U.S. citizen. We are planning to semi retire in the Philippines. I was born in the U. S. . I was wondering if there is any benefit to her obtaining Dual Citizenship. Visa's are no problem. The Balikbayan Visa works out ok. We will also be purchasing a condo and renting it out six months a year while we're back in the U.S..
> Mahalo for any help.


If your wife uses her US passport to enter the Philippines she is under the same rules as aliens. Both of you would need to get a visa extension within 21 days after that every two months but after 2 years she and you have to leave the country for a calendar day. If she has dual citizen (both USA and the Philippines recognize it) she can enter the Philippines with no restrictions and you could claim married to Philippine citizen so no extensions. You can apply for a 13a”I” (residence) card in the Philippines. If she does not have a Philippine passport but has her birth certificate she can get her Phil passport at the Philippine embassy. This does not affect either of your US citizenship. Dual citizenship for her has all the advantages for both of you and no disadvantages. The 13a”I” card will allow you to enter Philippines without her as a Philippine residence.


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## cvgtpc1 (Jul 28, 2012)

Phil_expat said:


> If your wife uses her US passport to enter the Philippines she is under the same rules as aliens. Both of you would need to get a visa extension within 21 days after that every two months but after 2 years she and you have to leave the country for a calendar day. If she has dual citizen (both USA and the Philippines recognize it) she can enter the Philippines with no restrictions and you could claim married to Philippine citizen so no extensions. You can apply for a 13a”I” (residence) card in the Philippines. If she does not have a Philippine passport but has her birth certificate she can get her Phil passport at the Philippine embassy. This does not affect either of your US citizenship. Dual citizenship for her has all the advantages for both of you and no disadvantages. The 13a”I” card will allow you to enter Philippines without her as a Philippine residence.


Which passport does she use to fly back to the US?


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## 808 Engineer (Sep 15, 2012)

She hasn't applied for Dual yet. We're just weighing the pros and cons.


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## cvgtpc1 (Jul 28, 2012)

My question was for Phil_Expat, he seems very knowledgeable on the subject so I assume his wife has dual citizenship....

I'm just not sure how dual passports work on the US return. I see going in with the PI passport, but then when you leave wouldn't think you can use the US passport cuz it has no PI entry stamp and you can't use the PI passport for entry from the standpoint there's no US tourism stamp, unless the US passport is ID enough and the travel is all recorded in the PI passport and that's good enough for US Immigration.....


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## Asian Spirit (Mar 1, 2010)

Since you are still in the states, I would contact the closest passport agency to get the correct information. Either that or contact the State Dept. 
If you still don't have the needed info after you arrive in the Philippines, go to the American Citizens office in the
US Embassy, Manila and they will have exact information.


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## Phil_expat (Jan 3, 2011)

We are working on my wife visa to get her USA passport; she does not have one yet. I have asked friends that have two passports how it works. You really have to show both passports and both may get a stamp. Leaving the Philippines for the USA show both passports. Her Philippine passport means she does not have to show extensions or have an exit clearance which is required if stayed in the Philippines for 6 months. Her US passport allows her to board the airplane. Entering the USA her USA passport gets her in (show both). Leaving the USA her Philippine passport let her board the airplane. Entering the Philippines having a Philippine passport allow her not to get extensions or exit clearance. You have to always show both passports! One friend of mine that just return from the USA told me they stamped both passports!


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## cvgtpc1 (Jul 28, 2012)

Thanks! As far as I can decipher on the US immigration website it does appear they show both when traveling.


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## Phil_expat (Jan 3, 2011)

On important matters like this, never NEVER take one person opinion on it. I have been misled by even officials that should know. There are many forums on this subject and others, goggle it! Check the US and Philippine website but those can be misleading too because of the many exceptions on any subject.


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## mikeshane (Dec 29, 2010)

In the Philippines and in the US you should show both passports. In the Philippines, they will stamp both passports when you leave or return. When going to another country, only show one passport unless they ask you for a second one. If you show both it could take some time to explain why she has two since many countries don't allow dual citizenship.


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## Kevin_S (Feb 13, 2013)

808 Engineer said:


> My wife was born in Manila and is now a U.S. citizen. We are planning to semi retire in the Philippines. I was born in the U. S. . I was wondering if there is any benefit to her obtaining Dual Citizenship. Visa's are no problem. The Balikbayan Visa works out ok. *We will also be purchasing a condo and renting it out six months a year while we're back in the U.S*..
> Mahalo for any help.




Keep in mind the tax implications for each country. Especially if you have income, such as rental property. You are subject to each country's laws. I would seek the professional advice, just to be sure.


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## humanaso (Jul 28, 2012)

Best reason is so that she can give up her USA citizenship so that she can have banking in the Philippines without having to fill out annual information reports to the USA (FBAR) and not have to file USA tax returns with her Philippines bank interest or any other income she derives from Philippine sources.


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## humanaso (Jul 28, 2012)

Kevin_S said:


> Keep in mind the tax implications for each country. Especially if you have income, such as rental property. You are subject to each country's laws. I would seek the professional advice, just to be sure.


Philippine govt. only taxes on Philippine source income. The USA taxes on worldwide income so by keeping her USA citizenship she must declare any bank interest, rental income, dividends, capital gains, etc, derived from Philippine sources, on her 1040.

Plus she must fill put an annual Form (FBAR) declaring her bank account in the Philippines and possibly form 8938 if her and your assets are above a certain threshold.


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## Phil_expat (Jan 3, 2011)

The bank manager of China Bank and others have told me there is a law in the Philippines that banks may not give account information to another country. Well, I do not believe this! Law or no law: USA has signed treaties with a lot of countries in order to get information even Grand Cayman is reporting. The USA has given money to the Philippines with certain things required. An account friend and others tell me that one should never go over $9,000 dollars in Phil bank accounts ($10,000 is actually the amount the triggers reporting). As long as you’re total balance is below $10,000 ($9,000!) you do not have to report anything to the USA.


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## Mug (Sep 28, 2012)

Phil_expat said:


> The bank manager of China Bank and others have told me there is a law in the Philippines that banks may not give account information to another country. Well, I do not believe this! Law or no law: USA has signed treaties with a lot of countries in order to get information even Grand Cayman is reporting. The USA has given money to the Philippines with certain things required. An account friend and others tell me that one should never go over $9,000 dollars in Phil bank accounts ($10,000 is actually the amount the triggers reporting). As long as you’re total balance is below $10,000 ($9,000!) you do not have to report anything to the USA.



Another thing to keep in mind is the level of deposits in a bank covered by FDIC. A few years ago it was 100,000 pesos, about $2,500 today. As in the USA, it would seem most prudent to deal with multiple banks to keep all your money FDIC protected. The limit in the USA is now $250,000.


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## humanaso (Jul 28, 2012)

Mug said:


> Another thing to keep in mind is the level of deposits in a bank covered by FDIC. A few years ago it was 100,000 pesos, about $2,500 today. As in the USA, it would seem most prudent to deal with multiple banks to keep all your money FDIC protected. The limit in the USA is now $250,000.


Today PDIC is covered to 500,000 pesos (12,000 USD).

All banks will start reporting under FATCA which kicks off Jan 2013 for account years 2012 and 2013. It is not clear whether the banks will need to look back further to find US account holders. 

BTW this includes green card holders too. If any of your wives have green card status and have accounts here, those need to be declared too. The banks will report them to the USA so if she/you didn't report them, the IRS will find them and charge a minimum penalty of minimum $10,000 per account per year of non-reporting on the FBAR form or up to 50% or $100,000 which ever is higher if they believe you/her willingly didn't report.

The $10,000 reporting requirement is an aggregate so if you have $4000 in one bank and $6000 in another you are required to report both and include the interest on schedule b of the 1040 and check the box "yes" where it asks about foreign accounts and trusts at the bottom of schedule b.


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