A new passport. But the tax office stays the same, for now.
You hold your new passport in your hand.
A different coat of arms. Another citizenship. A good feeling.
But for tax, one clear rule applies.
Germany, Austria and Switzerland tax people by residence and habitual abode, not by citizenship.
As long as you live in Germany, you remain fully liable to tax there, even with an additional passport.
Your second passport widens your options as a citizen. Your residence still determines where you pay tax.
When you want to change more than your passport
Perhaps your wish for freedom goes further still.
You want to move your main home. Live in another country. Give your family a new home.
For tax purposes, nothing changes until you actually move your residence abroad.
That is a separate topic with its own rules, for example on exit tax and extended limited tax liability.
More on this at wohnsitzausland.com.
The second citizenship is one decision. Moving your residence is another. Both deserve careful planning.
Your passport is new. Your tax transparency stays.
An additional passport changes your citizenship. But for banks, your tax residence is still what counts.
Banks report accounts under the Common Reporting Standard (CRS) to the countries where you are tax resident.
They ask about your tax residence, not your passports.
Another passport changes nothing about this reporting.
A second passport gives you an additional citizenship. It does not replace proper tax planning.
Keep your homeland. Gain a second one.
You do not have to give up your roots to acquire another citizenship.
Since 27 June 2024, Germany has generally allowed multiple citizenship.
If you take on another citizenship, you no longer automatically lose your German one.
Switzerland also allows multiple citizenship.
Austrians generally lose their citizenship when they acquire a foreign one, unless they first obtain a permit to retain it (Beibehaltungsbewilligung).
A second citizenship begins with the wish for more freedom. And with knowing which rules apply to the passport you already hold.