Citizenship de Plaisance
Taleb criticizes acquiring a passport for convenience while avoiding the obligations associated with citizenship. He presents his own naturalization as a commitment to a country’s shared benefits and costs.
THE IDEA
Citizenship de Plaisance
Many well-to-do people who come to live in the United States avoid becoming citizens while living here indefinitely. They have a permanent residence permit as a free option, as it is a right, but not an obligation, for they can return it with a simple procedure. You ask them why they don’t take the oath in front of a judge, then throw a cocktail party at a waterfront country club. The typical answer is: taxes. Once you become a U.S. citizen, you will have to pay taxes on your worldwide income, even if you live overseas. And it is not easily reversible, so you lose the optionality. But other Western countries, such as France and the United Kingdom, allow their citizens considerable exemptions if they reside in some tax haven. This invites a collection of people to “buy” a citizenship via investments and minimum residence, get the passport, then go live somewhere tax-free.
A country should not tolerate fair-weather friends. There is something offensive in having a nationality without skin in the game, just to travel and pass borders, without the downside that comes with the passport.
My parents are French citizens, which would have made it easy for me to get naturalized a few decades ago. But it did not feel right; it even felt downright offensive. And unless I developed an emotional attachment to France via skin in the game, I couldn’t. It would have felt fake to see my bearded face on a French passport. The only passport I would have considered is the Greek (or Cypriot) one, as I feel some deep ancestral and socio-cultural bond to the Hellenistic world.
But I came to the U.S., embraced the place, and took the passport as commitment: it became my identity, good or bad, tax or no tax. Many people made fun of my decision, as most of my income comes from overseas and, if I took official residence in, say, Cyprus or Malta, I would be making many more dollars. If I wanted to lower taxes for myself, and I do, I am obligated to fight for it, for both myself and the collective, other taxpayers, and to not run away.
Skin in the game.
When to use it
Deciding whether to obtain dual citizenship in a country that offers tax benefits but requires only minimal residency.
Evaluating the ethical implications of holding a passport solely for travel convenience without participating in civic duties.
Applying the concept to corporate headquarters: a company moves its legal domicile to a tax haven while retaining operations elsewhere.
Choosing to marry or formalize a partnership: weighing the legal and financial commitments against the freedom of staying unattached.
FROM THEORY TO EVERYDAY LIFE
In practice
Expatriates Avoiding U.S. Citizenship
Taleb describes wealthy residents who prefer the option of leaving the United States to the commitment of citizenship. His criticism concerns avoiding shared obligations; the excerpt’s simplified tax discussion should not be read as a complete account of residency taxation.
Author’s Personal Decision
Despite having the option to obtain French citizenship easily, the author declined because they lacked deep emotional attachment to France. Instead, they embraced U.S. citizenship—even though it meant higher taxes—as a genuine commitment and part of their identity.
A MOMENT TO REFLECT
Put it to work.
What does it mean to have skin in the game regarding your nationality? How does that shape your sense of identity and responsibility?
How might the trade-off between tax optimization and genuine commitment apply to other areas of life, such as marriage or business partnerships?
Examine a time you chose convenience over commitment. What were the costs and benefits, and did the decision align with your values?
Often confused with
CONTINUE THE CONVERSATION
Source texts
- Skin In The Game Hidden Asymmetries In Daily Life (Nassim Nicholas Taleb)