Get US citizenship or not?

Hi all,

Our family is planning to move to India in a couple of years, we have 2 kids (both US citizens). Me and wife are Indian citizens.
We are currently eligible to apply for US citizenship (got GC >5 years back). We have been debating whether we want to do it or not.

We have been thinking of following points towards making the decision:

Reasons for not getting US citizenship

  1. Sentimental reasons - Obviously, we dont want to give up Indian passports. If dual citizenship was an option, this would have been very easy decision.
  2. Once we start jobs in India, we wont have to pay any US taxes (other than perhaps any investments like stocks, dividends etc.)

Reasons for getting US citizenship

  1. Two-way door decision - If we get US citizenship, then our understanding is that we can work in both US and India (with a PIO), so effectively if we want to get back to US that is an option. With GC, you have to renew parole every 6 months, and there is a chance it gets denied.
  2. If we want to keep more investments like a house etc. in US, I am guessing things are easier with US citizenship
  3. International travel is much easier with US passport (no visa requirements etc. for most countries).

A few questions:

  1. Has anyone else gone through this decision process? Are there other points to consider while making this decision?
  2. Getting jobs in India in tech - is it easier with Indian citizenship, or does US citizenship have any benefits?
  3. Tax-wise: any issues with taxes in India or US if we are on US citizenship?

Thanks and Happy New Year!

Hi friends, any feedback on this question?

Have similar questions if you got your questions answered please post them here.

I am not sure your #2 reason for not getting US citizenship is true. Even as a GC holder you are legally required to pay US taxes on global earnings.

See here: Frequently Asked Questions About International Individual Tax Matters | Internal Revenue Service

I chose to go with US citizenship for your #1 reason above.

There are two aspects to being a Green Card Holder in India

Immigration : If you are outside India for more than a year you will be abandoning your GC. You can keep it active for two years by applying for a re entry permit before you leave US. But after 2 years you will have to make a decision if you want to go back or give up the Green card. To give up the GC you need to file I407 form with USCIS and the process is easy.

Tax : You are a US person for tax purposes as a GC holder and will need to file taxes if you are outside US on re entry permit or on GC for more than a year without reentry permit with your immigration privileges gone. Once you give up the Green Card, IRS may levy an exit tax if you are a long term US resident i.e Green Card holder for 8 of the past 15 years. Exit tax depends on your net worth and average tax paid in last 5 years.