World’s 10 Best and Strongest Passports
For Taxpayers who are considering obtaining multiple passports, the ‘strength’ of the passport in addition to the tax implications of the country are very important factors in determining which passport to obtain. To secure a passport, taxpayers must become a citizen of the country they are seeking to obtain the passport. Therefore, whether it is because the Taxpayer has lineage in a particular country, lives and works in a country full time and meets the immigration requirements — or simply wants to acquire a passport by way of Citizenship-by-Investment, it is important that the Taxpayer conduct their due diligence and research first to make sure the passport provides the benefits they are intending it will. For example, if a Taxpayer is seeking to spend 90 days in each country within the Schengen area but the specific passport they acquired only allows for 90 days within the entire Schengen area, and not each specific country — then even a very strong, highly ranked passport is not conducive for what the Taxpayer seeks out of the new passport. Let’s take a look at the world’s 10 best passports.
Japan continues to rank as the most powerful passport providing taxpayers with nearly 200 global locations, they can visit without having to obtain a visa or by simply obtaining a visa on arrival. While this makes it a very powerful passport for the world traveler in you — it is important for taxpayers considering this passport to keep in mind that Japan has a very high tax rate. The tax rate in Japan can reach upwards of +45%, depending on the amount of income the Taxpayer earns. Therefore, Taxpayers considering obtaining this passport and becoming a permanent resident of Japan must weigh all the pros and cons carefully.
South Korea is also a very popular passport that provides taxpayers with over 190 locations that they can visit either visa free or visa on arrival. From a tax perspective, permanent residents of South Korea may be subject to significant amounts of income taxes as well, depending on if they are considered a permanent resident or not — and their annual income.
While Japan may have the highest number of countries that a taxpayer can visit with a visa free or visa on arrival scenario, if a person is considering being a permanent resident of that same country as well – the tax implications are just as important. While Singapore provides for more than 190 different countries that can be visited these are free or visa on arrival, unlike Japan or South Korea, the tax rates are limited and typically taxpayers pay a much lower tax rate than they would in either of the other two countries — and something to consider if a person wants to obtain an Asian passport while residing in that same country as well.
For taxpayers who seek a Portugal Residence-by-Investment opportunity but are not comfortable with the updated version of the program, they may consider becoming a resident and citizen of Spain. Spain allows for 190 countries that can be visited by visa free or visa on arrival, but it is important to note that the tax rate in Spain can be very high, reaching upwards of 50%.
A German passport allows for upwards of ~190 different countries comma but has a high tax rate of +45%.
A Finland passport allows for upwards of ~190 different countries comma but has a high tax rate of +43%.
An Italy passport allows for upwards of ~190 different countries comma but has a high tax rate of +43%.
The Luxembourg passport allows for upwards of ~190 different countries comma but has a high tax rate of +46%.
The Austria passport allows for upwards of ~190 different countries comma but has a high tax rate of +50%.
The Denmark passport allows for upwards of ~190 different countries comma but has a high tax rate of +42%.
About Our International Tax Law Firm
Golding & Golding specializes exclusively in international tax, and specifically IRS offshore disclosure.
Contact our firm for assistance.