Dual Citizenship for German Citizens Living in the U.S.

April 24, 2002

For German citizens who live in the United States as permanent residents, the question of whether to apply for U.S. citizenship is a significant matter. While there are numerous benefits to obtaining U.S. citizenship (including substantial advantages regarding estate taxes and social security, the ability to vote and the elimination of the potential for deportation), obtaining U.S. citizenship while living in the United States would generally result in the automatic loss of German citizenship under the German Citizenship Law (Staatsangehörigkeitsgesetz or StAG).

Historically, the German government has opposed dual citizenship for German citizens living abroad but has not applied the same standard to German citizens who reside in Germany. Recognizing this approach to dual citizenship as outdated, the German government amended the StAG effective January 1, 2000 to provide broader exceptions to this general rule. Prior to this amendment, it was possible to file an Application for the Retention of German Citizenship (Antrag auf Beibehaltung der deutschen Staatsangehörigkeit), but such an application was only granted if doing so was in the public interest or if the applicant was essentially forced by the foreign government to obtain the second citizenship. In either case, the regulations were strictly construed, and applications were rarely granted.

The new law mostly eliminates these strict requirements, although an Application for the Retention of German Citizenship still needs to be filed and a Permission to Retain Citizenship (Beibehaltungsgenehmigung or BBG) must be granted to prevent losing German citizenship. To obtain a BBG, the applicant needs to demonstrate through credible evidence that the applicant (i) is in fact a German citizen, (ii) has a continuing link to Germany, and (iii) will be subject to material personal disadvantages if the applicant does not obtain the foreign (i.e.: U.S.) citizenship.

Credible evidence supporting the existence of a "continuing link" to Germany can include such matters as the presence of family members of the first degree in Germany, ownership of real estate in Germany, right to pension payments in Germany, membership in German organizations, visits to Germany, ownership of German bank accounts, etc.

While neither the StAG nor its resultant regulations provide specifically what a "material personal disadvantage" is, some disadvantages which might currently affect German citizens residing in the U.S. include such matters as estate taxes, purchase/sale of real estate, choice of profession, and involvement in the affairs of the community.

There is no "safe-harbor" with respect to the above criteria (i.e.: it is not the existence of any one or two specific criteria that will establish the "continuing link" or the "material personal disadvantage," but it is the sum and/or severity of several criteria that will be determinative). While the regulations under the amended StAG are much less restrictive, granting the BBG remains discretionary.

In addition to the above requirements, an applicant must be able to communicate in German in ordinary daily life without noticeable difficulty.

The fee for an Application is currently DM 500 (approximately $230), but is reduced to DM 375 if the Application is denied. Applications for German citizens residing in the U.S. should be filed with the responsible consulate, which will forward the Application to the Bundesverwaltungsamt in Cologne, Germany, the central processing office for all Applications.

It is important to keep in mind that the Application must be filed and the BBG granted before U.S. citizenship is obtained. Otherwise, German citizenship will be lost in accordance with the default provisions of the StAG. A BBG is generally valid for only two years, so it is important to monitor the timing of the citizenship application. While the process of becoming a U.S. citizen (naturalization) usually takes between 9 and 18 months, problems in the naturalization process can delay the process beyond the BBG’s two-year window.

For more information, please contact fschuckmann@cohenlaw.com