The passport of the United Arab Emirates (UAE) has been named the most powerful in the world by Nomad Capitalist, an offshore consulting firm, in its annual list.
According to the Nomad, the UAE, which has entered the top-ten list for the first time this year, jumped from 35th to first place last year.
The increase is largely due to recent changes that allow foreigners to apply for dual citizenship. When the travel freedoms afforded by a UAE passport are combined with the country’s business-friendly environment and enviable tax system, the UAE tops the list for 2023.
Following the UAE passport is the Luxembourg passport, which has ranked first for the past two years.
“This tiny but prosperous European Union (EU) member state offers its citizens high levels of freedom,” says Nomad. “It also boasts excellent passport perception. And fortunately for the expats living there, it recently became easier to naturalise as a citizen.”
Next on the list is Switzerland, which is one of the only three non-EU countries to make the top ten. Nomad stated: “Swiss citizens enjoy high levels of liberty and privacy. The country has risen from fifth to the third position this year.
“Moreover, the country’s famous neutrality ensures that Swiss nationals remain some of the most respected travellers around the world.”
Ireland’s passport is the fourth on the list. The country has one of the lowest corporate tax rates in Europe, and its passport has one of the highest visa scores.
According to the Nomad, Ireland’s “excellent reputation” makes travelling as an Irish citizen “generally hassle-free,” adding that “while Ireland is not a member of the European Schengen Area, it is a member of the Common Travel Area (CTA), which means free travel to, and the right to work in, the UK.”
Portugal has the world’s fifth most powerful passport because the country is open and friendly. “Portuguese citizens are also highly welcomed around the world, enjoying visa-free travel to countries like South Africa that other European Union citizens do not,” the Nomad added. With high levels of English fluency and a favourable tax exemption programme, Portugal also welcomes expats.”
Sixth on the list is the German passport, which represents a high-tech, heavily industrialised economy with a strong work ethic.
Germany, often referred to as the “engine of Europe,” has the largest economy in the EU and the world’s fourth-largest economy overall, according to the consulting firm.
“It’s also Europe’s most populous country. As a result, German passports bestow a high degree of travel freedom, though the tradeoff comes in the form of higher taxes than many of its European neighbors, though thankfully leaving the German tax system is relatively straightforward.”
The passport of the Czech Republic, which has been featured in the top 10 for four years in a row, ranks at number seven this year. “The Czech Republic is a popular expat destination with a rich culture. Located in the centre of Europe, the nation joined the EU in 2004.
“Czech passport holders, therefore, enjoy a high degree of travel freedom. Plus, with proper structuring in place, you can also enjoy a considerable degree of tax freedom too.”
Following the Czech Republic is a newcomer to the top-ten list: New Zealand, where a warm climate, easygoing nature, and cinematic landscapes help ensure the country remains as popular with expats as it has always been.
“Although the country imposed strict lockdowns during the pandemic, citizens today generally enjoy a considerable degree of personal freedom inside the country with an equal amount of travel freedom throughout the world,” Nomad stated.
Sweden’s passport is the ninth most powerful in the world, having dropped from joint second last year.
“Despite this, Sweden has a seven-year streak as a top-ten passport. This is due to the country’s excellent global reputation as well as the high level of personal and travel freedoms provided, but at the expense of extremely high taxes.”
Finland is the tenth passport on the list.
Finland, which was ranked first only a few years ago, continues to offer visa-free travel to a large number of countries, but stricter tax policies for expats have reduced the country’s score.
Of the 199 passports ranked by the firm, Pakistan’s has been ranked at 195.
“Pakistan passport ranking relative to other global passports is calculated by relying on the Pakistan government’s approach not just to travel, but also to international taxation laws, global perception, dual citizenship, and personal freedom as just the number of countries Pakistan passport holder may visit won’t tell the whole story and you will have to deal with far different requirements to pay tax, live freely, comply with regulations, and avoid scrutiny when traveling, the firm said.”
