How does dual citizenship actually works?

[NoKYC]

I'm thinking about getting a CBI but before doing it, how does it work in practice.

I'm citizen X with passport X, I'm getting passport Y.

If I go back to my original country (Western country) but with passport Y, how does customs see me? Citizen X with passport Y or citizen Y with passport Y?

The goal is not to trigger taxation or other legal troubles relating to taxes.

 

[Martin Everson]

If I go back to my original country (Western country) but with passport Y, how does customs see me? Citizen X with passport Y or citizen Y with passport Y?

I travel all the time with different citizenship. There is no issue and they see you as citizen of the passport your are holding. Some countries are weird however when it comes to entry/exit of of its citizens. If your american you must use your US passport for entry and exit or its an offense. So check those type of quirks in your home country.

The goal is not to trigger taxation or other legal troubles relating to taxes.

You need to be careful. Your biometric data does not change with a new passport. So if your country is able to cross check biometric data with a database of its citizens at border control it could be an issue. But this is highly unlikely I hope.

 

[JustAnotherNomad]

The goal is not to trigger taxation or other legal troubles relating to taxes.

Citizenship usually plays a very minor role for the taxes you owe, unless you're American. Not sure what you're trying to accomplish here.

 

[Marc Rich]

it all depends on your country X dual-citizenship laws. For example, some countries - their citizens are prohibited to get a second passport (think China, India, Kazakhstan etc) while some have no limits (Russia).

If you are for example a Chinese citizen and you travel back to China on your second passport...well... bye bye. I know of a personal experience of a Chinese doing just that. He had to claim the second passport was in fact a phony in order to avoid jail time (for a fake passport, there was just a fine - no jail time). Funny enough - of course second passport was a legitimate second passport from a CBI program in the pacific.

If you are from Russia or Sweden for example - you can easily fly into your home country on your second passport - no issues.

Another story - I was in Nairobi last month and the man in front of was a Saudi. He gave passports to the border control and the officer said "Are you from KSA or are you from St Kitts??" lol don't give two passports with no reason to border control.

 

[NoKYC]

Citizenship usually plays a very minor role for the taxes you owe, unless you're American. Not sure what you're trying to accomplish here.

Well let's just say I don't want to get stuck in my home country because of the rules about Covid for example. I'm a Canadian citizen but if they keep pushing too much and go Australia style, I'm thinking about ditching my citizenship so technically they couldn't keep me inside. I'm just exploring options.

 

[JustAnotherNomad]

Well, you wrote about taxes.
As for a second citizenship, I guess it depends on your country. If the law says "citizens of our country cannot leave without a permit", well, as long as you still have that old citizenship, the law would probably apply to you?
If that's what you're worried about, I'd check the Australian laws. What were the exceptions? It might be enough to just have a second residency somewhere, that would be a lot cheaper than a second citizenship.
Of course a second citizenship certainly doesn't hurt, but it's not a get-out-of-jail-free card.

 

[Rzeznik]

The goal is not to trigger taxation or other legal troubles relating to taxes.

Taxes are related to your tax residency. Probably you want tax residency somewhere because if you want open bank account you will have give them TIN and it will be reported to taxman. CRS will be forced almost everywhere as I see and even Georgia is going to start reporting in 2023(last time I have checked). Now depends what proof of address will be required. If you will have new passport and adress from your passport country noone will ask about you probably.(passport from 0% tax country).

BTW real life examples of proof of residency for banks.
Revout / Some banks allow you entry ANY adress even on moon it will be shown on billing. Revoult on CC doesn't show on statement where were purchase made. Just shop name and amount.
I have water bill from my parcel that I can point at any location (billing adress - maybe moon would not work there because they are sending paper letters but revolt not)

PS:If you won't have any residency that is possible someone will try tax you and you won't have anything to defend depends on amounts like 6figures someone can ask questions even in Bank.