German Dual Citizenship for Americans (and the US Tax Point Nobody Mentions)
Americans can now hold German and US citizenship together. Here is what changed, what it means for keeping your US passport, and the US tax angle to plan for.
For US citizens living in Germany, one rule used to stand in the way more than any other: Germany generally did not allow you to keep your old citizenship. That changed in 2024. Americans can now become German without giving up their US passport. That is genuinely good news, but there is one consequence that exam-prep blogs almost never mention, and it is worth understanding before you apply.
What changed in 2024
Until the 2024 reform, most people naturalising in Germany had to renounce their previous citizenship, and US citizens were no exception. The reform that took effect in June 2024 changed this. Germany now broadly allows dual citizenship, so you no longer have to give up your American citizenship to become German. You do not need to file a separate request to keep it. Under the current law, multiple citizenship is permitted.
It is worth being precise here, because the rules moved again in October 2025. That later change abolished the three-year fast-track to citizenship. It did not touch the dual-citizenship rule. The ability to hold both passports remains in place.
The US side allows it too
Dual citizenship only works if both countries permit it, and the United States does. Becoming a citizen of another country through naturalisation does not, by itself, cause you to lose US citizenship. So a German-American dual citizenship is recognised on both sides. You can hold and use both passports.
The US tax point to plan for
Here is the part that gets left out. The United States taxes its citizens on their worldwide income no matter where they live. It is one of the very few countries that taxes based on citizenship rather than residence. Becoming German does not remove this. As long as you remain a US citizen, your US tax and reporting obligations continue, even while you live in Germany and pay German taxes.
In practice this means US citizens abroad generally still have to file with the US each year and may have reporting obligations relating to foreign bank accounts and assets. There are long-standing mechanisms designed to reduce or prevent actual double taxation, so for many people the result is paperwork rather than a second full tax bill. But the obligation to file and report does not go away simply because you have taken German citizenship.
None of this is a reason to avoid German citizenship. It is a reason to go in with your eyes open. The details depend entirely on your own income, accounts, and circumstances, and the rules are genuinely complex, so you should consult a qualified cross-border tax professional about your own situation rather than relying on general guidance.
What this does not change
Taking German citizenship does not change your US tax status, and keeping your US citizenship does not change any of the German requirements. You still need five years of residence, German at B1 level, a passed citizenship test, and the ability to support yourself. The dual-citizenship rule simply removes the old requirement to choose between the two passports.
The test is still the test
Whatever your nationality, the Einbürgerungstest is the same: 33 questions, 17 needed to pass, drawn from the official catalogue. PassCitizen has the full question set, sorted by topic and with the state-specific questions, plus mock exams in the real format. It is free and needs no account.
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