Passport rankings are often simplified to focus solely on the number of countries that a passport holder can visit without a visa. However, according to the tax and immigration consulting firm Nomad Capitalist, the strength of a passport is more intricate than just visa-free travel. Nomad Capitalist develops a weighted annual index that considers five essential criteria in evaluating passport power: visa-free travel, taxation, global perception, ability to hold dual citizenship, and personal freedom. Each of these elements plays a crucial role in determining the overall strength of a passport.
The latest Nomad Passport Index for the year 2024 reveals that Switzerland has claimed the top spot, with Ireland and Portugal following closely behind. Switzerland’s ranking is a result of performing well across various criteria, showcasing its overall strength as a passport. Ireland’s slight corporate tax adjustment did not hinder its high position, as it excelled in travel and global perception categories. Portugal’s tie with Ireland highlights its consistent appeal, while Finland’s rise to fourth place emphasizes the importance of global accessibility. However, the most noteworthy change in rankings was seen with the United Arab Emirates, which dropped to sixth place due to alterations in tax policies affecting both domestic and overseas company owners.
Bulgaria’s passport has significantly improved in the index, climbing from 42nd to 32nd place within two years. This progress is primarily attributed to Bulgaria’s upcoming inclusion in Europe’s Schengen zone, scheduled for late March. On the other hand, Hong Kong’s ranking experienced a decline, moving from 44th place in 2022 to 50th place this year. Furthermore, Macao ranks 69th, while China lags further down the list at 120th place. Nomad Capitalist’s complete list of rankings can be viewed on its official website.
While many individuals are interested in comparing their passports to those of others globally, Nomad Capitalist emphasizes that the annual ranking serves a more significant purpose. The consulting firm assists individuals in obtaining second or third citizenships, also known as a “passport portfolio.” This strategic approach helps individuals reduce their tax liabilities or establish backup residency plans. CEO Andrew Henderson affirms that the company’s mission extends beyond mere comparison, focusing on empowering individuals to navigate the complexities of international travel and citizenship.
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