Many passport rankings typically focus solely on the factor of visa-free travel. However, according to Nomad Capitalist, a tax and immigration consulting firm, passport strength is more nuanced than that. They produce an annual index that takes into account five criteria, each with a weighted percentage: visa-free travel (50%), taxation (20%), global perception (10%), ability to hold dual citizenship (10%), and personal freedom (10%).
The 2024 Nomad Passport Index emphasizes that the number of countries a passport holder can visit does not paint the complete picture. Switzerland claimed the top spot in this year’s ranking, followed by Ireland and Portugal. A slight corporate tax adjustment in Ireland was overshadowed by its strong performance in travel and global perception. On the other hand, Portugal tied with Ireland across most categories except personal freedom.
One significant change in this year’s rankings was the drop of the United Arab Emirates from the top spot to sixth place. This was due to a shift in tax policy affecting both local and foreign company owners. Bulgaria, on the other hand, climbed from 42nd to 32nd in the index, mainly because of its impending inclusion in Europe’s Schengen zone.
Hong Kong slid from 44th place to 50th, while Macao ranks 69th and China sits at 120th. The complete list can be found on Nomad Capitalist’s website. While many are curious about how their passports fare globally, Nomad Capitalist produces this ranking to assist individuals in obtaining second or even third citizenships, commonly known as a “passport portfolio,” to reduce tax burdens or have a backup residency plan.
Passport rankings are typically based on the number of visa-free travel options a passport offers, but Nomad Capitalist takes a more comprehensive approach by considering five criteria: visa-free travel, taxation, global perception, ability to hold dual citizenship, and personal freedom. The 2024 Nomad Passport Index ranked Switzerland as the best passport in the world, followed by Ireland and Portugal. The United Arab Emirates, which was previously ranked No. 1, slipped to sixth place due to changes in tax policy. Bulgaria saw a significant rise in its ranking, while Hong Kong dropped from 44th to 50th place. Nomad Capitalist produces the ranking to assist individuals in obtaining multiple citizenships, often for tax purposes or as a back-up residency plan.
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