US passport is the 44th most powerful in the world, according to new metrics

WDoes the drop of a hat make one passport more powerful than another? The ranking of the most famous passports, published by London-based investment migration consultancy Henley & Partners, focuses solely on visa-free travel. There is. Basically, the more countries that citizens can visit without a visa, the better. Her six countries occupy the top spots in this ranking: France, Germany, Italy, Japan, Singapore and Spain, each containing 194 visa-free destinations. (In 2024, the US will tie for her sixth place at 189.)

But Nomad Capitalist, a Dubai-based immigration and tax consultancy, believes assessing the strength of a passport is much more complex.

“While most indicators, and most people, think of passports only in terms of travel privileges, the citizens of each country have very different requirements, such as paying taxes, living freely, adhering to regulations, and avoiding surveillance when traveling. According to the 2024 Nomad Capitalist Passport Index, visa-free travel (50%), taxation of citizens (20%) and global recognition. (10%), dual citizenship (10%), and personal freedom (10%). ).

In Nomad Capitalist’s 8th annual ranking, all of the top five passports and eight of the top ten belong to European countries.

Switzerland has jumped from third place last year to take the top spot in 2024, with Nomad Capitalist pointing to the country’s “extremely high levels of freedom and privacy.” Furthermore, “Switzerland’s neutrality ensures that Swiss citizens remain the world’s most respected travellers, while dual citizenship laws mean that foreign residents can also access some of Swiss bliss.” is guaranteed.”

Ireland, which has moved up to second place this year, stands out for its high passport visa score and has an “excellent international reputation, so traveling as an Irish citizen is generally hassle-free.” Ireland Although not part of Europe’s Schengen Area, it is a member state of the EU and shares a common travel area (CTA) agreement with the UK, allowing free travel to and the right to work in the UK. “report.

In third place is Portugal, according to Nomad Capitalist, whose “citizens are widely welcomed around the world and enjoy visa-free travel to countries such as South Africa not available to other European Union (EU) nationals.” That’s what it means. “Portugal is very expat-friendly, with a great culture, a high level of English, and a favorable tax-exemption program.”

Luxembourg and Finland are tied for fourth place in this year’s ranking. Small but wealthy, Luxembourg has great freedom and passport recognition. “As a bonus for foreigners living there, it has recently become easier to naturalize as a citizen,” Nomad Capitalist points out. Although Finland offers visa-free travel to many countries, “more restrictive tax policies for expatriates have lowered the country’s score, dropping it to fourth place.”

The United Arab Emirates, which ranked first last year, has fallen behind. It will rank sixth in 2024 due to UAE tax changes that will affect domestic and foreign business owners.

The United States is tied for 44th place with Brazil and has the highest rating for freely allowing dual citizenship to Americans, but it is ranked 44th in the United States in terms of freely allowing dual citizenship for Americans, but global perceptions (derived from the World Happiness Report, Human Development Index, and subjective factors) ) and personal freedom. (Based on data and reporting on compulsory military service, government surveillance, press freedom, and other factors).

But in most cases, the United States is poorer than many Western countries because of its tax policy. Nomad Capitalist assigns the lowest tax scores to countries that tax their citizens regardless of where they live. The United States is one of only three countries in the world that imposes deportation taxes on foreign nationals. (The others are Eritrea and Myanmar.) For Americans living abroad, worldwide income is always subject to federal income tax. However, as noted by the Internal Revenue Service, you may be eligible for certain foreign earned income exclusions or foreign earned income tax credits.