I have written that having dual residency or dual citizenship is becoming an important step for many in the 21st century. In fact, I now believe that most elite and many of the professionally employed class with be global citizens in the 21st century.
To illustrate – I had no idea that UK Prime Minister Boris Johnson was, until 2017, a citizen of the United States.
My mind is blown.
That label could be applied to the UK prime minister Boris Johnson, who was born in New York but has not lived in the US since he was five. Johnson renounced his citizenship in 2017, having said he was outraged a few years earlier by having to pay the US tax authorities for gains on the sale of his London home.
The U.S. is one of only two nations on the planet that taxes global income. Most countries tax only income earned within the country. Due to my lack of global awareness, I did not know this until recently (another example of why global thinking is essential).
After we learned my wife is eligible for “Right of descent” citizenship in Canada, I wondered what tax consequences we would experience if she chose to exercise that right of Canadian citizenship? Canada only taxes the income you earn in Canada so this would not impact our taxes as we live in the Pacific Northwest of the U.S.