Absolutely yes - if you are a permanent resident and have held your green card for at least 5 years (the qualifying period) you should apply for citizenship. The reason is that a green card is not permanent; you lose it when you leave the country for a year or more. So if, for example, you got a consulting gig in Russia for a couple of years and then wanted to come back to the US, your previous green card would not be valid and you would have to start from scratch.
If you can afford it, there is really no reason not to, even if you didn't have the additional complications with unclear other citizenships.
The only people who should be careful about applying for US citizenship are those from countries (like Japan) who are barred from having dual citizenships; otherwise if you can afford it, it is frankly a no-brainer.
Plus, if you are a citizen you can vote. I don't know about you, but living and paying taxes in a country where I don't have the right to vote kinda drives me crazy.
I am not a lawyer, but look on the bright side, my opinion was free.
Is it really a no brainer? You have to pay US taxes even if you leave the country. But if you are sure you are going to live there for the rest of your life I guess that won't make any difference.
Greencard holders are also obligated to pay exit tax after several (8?) years of residency.
IMHO, this a big deal only if you have illiquid assets. If you don't have any the only problem is having to realize the unrealized gains - not the end of the world.
If you are a citizen you can apply for non-residency. I believe the rule is that if you are out of the country for >= 181 days of the calendar year, you may apply to be income-tax exempt on those portions earned outside the USA.
It's the "foreign earned income exclusion", and it's only the first $91k exempted from US tax (plus a housing allowance, with some restrictions). To get it, you need a "bona fide foreign residence" or 330 days/yr out of the US. I'm actually going to spend the last few months of 2009 on vacation, using the savings in taxes to pay for it, since I'll be out 9-10 months in 2009 just for work.
The first 91k is basically 18k in taxes at current rates. They unfortunately changed it from LAST 91k (i.e. the income at your highest marginal rate, easily 33% or 35%) in 2006, at the same time as making it inflation adjusted).
The US is fine with dual-citizenship, it just doesn't encourage it because it can make certain policy issues a bit more awkward.
Sources:
".U.S. law does not mention dual nationality or require a person to choose one citizenship or another. Also, a person who is automatically granted another citizenship does not risk losing U.S. citizenship. However, a person who acquires a foreign citizenship by applying for it may lose U.S. citizenship. In order to lose U.S. citizenship, the law requires that the person must apply for the foreign citizenship voluntarily, by free choice, and with the intention to give up U.S. citizenship." [1]
"Dual nationality can also occur when a person is naturalized in a foreign state without intending to relinquish U.S. nationality and is thereafter found not to have lost U.S. citizenship: the individual consequently may possess dual nationality. While recognizing the existence of dual nationality and permitting Americans to have other nationalities, the U.S. Government also recognizes the problems which it may cause." [2]
Good reference. I have been with friends in years past for their U.S. citizenship swearing in. I recall they had to turn in any other passports they had (at least they were told they had to). I guess I'm still confused.
This doesn't sound right. My wife was just recently sworn in and was not asked for her previous passport, and one of my daughters just got her citizenship, and was not asked for her passport either.
The US allows dual citizenship with any allied or non-hostile nations. US citizenship is only lost if the person expressly disavows US citizenship when or after becoming a citizen of another nation. (US and international law no longer recognize the concept of "nationless" citizenry.)
The US does not recognize dual citizenship with hostile nations. The last-acquired citizenship is deemed the person's current citizenship.
The consequence of dual citizenship is that you pay taxes, if applicable, to both countries as citizens. (Many countries have different tax rates for non-citizens.)
Edit: Follow-up to the above post -- The US treats its passports as superior to those of other nations, which is why you are urged to use your US passport when traveling in or out the US. You do not actually have to turn over your other passport. Israel, for example, requires citizens to use an Israeli passport for expedited re-entry.
If you can afford it, there is really no reason not to, even if you didn't have the additional complications with unclear other citizenships.
The only people who should be careful about applying for US citizenship are those from countries (like Japan) who are barred from having dual citizenships; otherwise if you can afford it, it is frankly a no-brainer.
Plus, if you are a citizen you can vote. I don't know about you, but living and paying taxes in a country where I don't have the right to vote kinda drives me crazy.
I am not a lawyer, but look on the bright side, my opinion was free.