Triple citizenship

[vaveh]

Hello,

I am currently a green card holder in the USA and already have both Canadian and Russian citizenships and passports. I will soon be here for 5 years and become eligible to apply for US citizenship. The main reason is that I'd like to get green cards for family members who currently reside in Canada. Second, I would also not have to worry about maintaining green card status and can travel more freely and for longer.

My main concern is the double-taxation of US citizens no matter where they live. Can anyone talk about how bad this is? Could I retire in a place like Spain or Portugal without my retirement account being taxed through the roof? I do have a 401k and Roth IRA for that purpose.

Also, when I checked Canadian and Russian documentation about dual citizenship, there doesn't seem to be a problem, but I still wanted to check with this community whether there are any downsides to having all 3 of these passports. I am aware that for example I can only enter/exit Russia with my Russian passport, and similarly for the USA.

Any other insights are also appreciated.

Thanks a lot in advance,
Vaveh

[R78]

Citizenship:
Russia and Canada allow multiple citizenships. So no issues here

Taxes:
Being a dual citizen may mean filing taxes in that country each year. I do not know about Russia or Canada, but the US taxes you on your world-wide income.
That means, if you were to retire in any country, your income / pensions / retirements earned in any of these countries, is taxable under US law. Additionally, the country where you reside (spain) may also subject to filing yearly taxes. That does not mean you will get taxed twice as the US & many of the western countries have tax treaties. So while you may file tax forms in multiple countries , you will most lilely only get taxed once.

[arkaa]

US has tax treaties with most countries to avoid double taxation.

So if you paid taxes on foreign income in that country, then you could claim a foreign tax credit when you file your US tax return. Depending on your total worldwide income, you may get credit for all or a part of the taxes paid. For ex: if you are in a 15% tax bracket in Spain, but adding the Spain income makes you a 25% tax bracket in the US, then you get full credit for the taxes paid plus you have to pay the additional 10% to US. If the situation were reversed, then you get credit for only the taxes dues on that income in US even though you paid more taxes in the foreign country.

Also, there is a generous earned income exemption for foreign income.

If this is a real concern for you, then you should talk to a CPA and plan your retirement income & investments with some professional advice.