According to yet another global index, the UAE passport is the most powerful in the world.
With a score of 110.50, the Emirati document has entered the top 10 list by Nomad Capitalist for the first time, jumping straight to the number one position from 35 last year.
This is largely due to recent changes allowing foreigners to apply for dual citizenship. The travel freedoms afforded by a UAE passport, combined with the country’s business-friendly environment and enviable tax system, place the United Arab Emirates (at the) top of our list for 2023,” said the tax and immigration consultancy.
According to its website, the Nomad Capitalist Passport Index was created to highlight the best citizenships in the world. “Our ratings are based not only on visa-free travel, but also on international taxation laws, global perception, dual citizenship, and personal freedom,” according to the company.
The passport’s ranking is determined by five factors, each of which is assigned a different score.
- Visa-free travel
- Taxation of citizens
- Global perception
- Granting dual citizenship
- Personal freedom
Read more: UAE passport remains world’s most powerful with access to 175 countries
For example, taxation is based on the long-arm reach of a country’s tax laws, as well as a country’s tax rates:
- Citizen-based tax: where passport holders pay no matter where they live — score of 10
- Resident-based tax: where residents are taxed on worldwide income — score of 20 (if rates exceed 50%) or 30 (if they don’t)
- Territorial tax: where income made within the country is taxed — score 40
- No income tax — score of 50
Another factor — dual citizenship — applies in two ways, she said — first, if a country allows its citizens to get a second citizenship, and second, whether it allows foreigners to naturalize there as well.
For more on UAE passport, click here.
