Portugal outperforms the UK and US in new passport power ranking

It now comfortably outranks the likes of the US passport at 20^th and the UK passport at 13^th, with its EU access, tax-structuring benefits and lifestyle quality driving it up the list.

Global Passport Power and Appeal Index 2025

The World Digital Foundation’s Global Passport Power and Appeal Index, released in September 2025, evaluates passports through a multidimensional lens designed specifically for the needs and priorities of HNWIs, investors, and the globally mobile.

“Instead of only focusing on visa-free travel, this index was compiled and scored based on broader considerations that affect wealth strategy and lifestyle optimisation,” Explains the World Digital Foundation’s Danielle Moxey.

“This included global mobility, international banking and investment ease, tax exposure, healthcare and political stability, lifestyle appeal, and HNWI investment opportunities.”

Portugal ranked fourth in this year's index, finishing higher than any other country in the EU.

They added: “Singapore, Switzerland, and the UAE make up the top three thanks to their efficient governance, competitive tax frameworks, and investor-friendly ecosystems, while European nations Portugal, Ireland, Germany and Luxembourg are close behind, offering a balance of lifestyle, stability, and access to EU markets.

“Australia, Canada and New Zealand complete the top 10 due to their quality of life and investment transparency, despite moderate-to-high tax burdens.”

Why Portugal’s Passport Ranks So Highly

Portugal is considered by many to be one of Europe’s most attractive destinations for international investors, globally mobile professionals and affluent families.

Portugal’s passport grants visa-free access to more than 190 countries and confers full rights to live, work, and invest throughout the European Union.

The country’s IFICI tax regime (also known as NHR 2.0) is also attractive to high-skilled professionals, entrepreneurs, and investors. Qualifying individuals pay 0% tax on most foreign-sourced income (excluding pensions and income from blacklisted jurisdictions), such as dividends and capital gains, while paying a flat 20% tax rate on Portuguese-sourced employment or self-employment income for 10 consecutive years.

HNWIs further benefit from Portugal’s lack of wealth or inheritance taxes and preferential tax treatment of certain foreign income, making it a premier destination for strategic wealth planning.

Meanwhile, Portugal’s Golden Visa residency-by-investment programme allows non-EU investors to qualify through a €500,000 subscription to one or more qualifying investment funds regulated in Portugal.

This covers qualifying family members and lets holders travel visa-free in the Schengen Area for up to 90 days in any 180-day period, with only a minimal physical-presence requirement (about 7 days/year or 14 days per 2-year period).

Portugal also led the European Union in real estate performance during the first half of 2025, recording a 15.2% annual rise in property prices - nearly triple the EU average - attracting buyers and investors seeking capital appreciation and portfolio diversification.

“Portugal combines EU-level access, tax structuring benefits, and lifestyle quality in a way few countries can match,” notes Moxey.

“Complementing these benefits are Portugal’s exceptional quality of life, modern infrastructure, a favourable climate, geostrategic location, property market and general investment appeal, and a cost of living well below that of many other Western European countries.”

Shifting Citizenship and Residency Appeal

More and more HNWIs are looking away from the likes of the US and the UK, with rising concerns over taxation, political instability, personal safety, and declining quality of life driving wealth migration to more stable destinations.

The World Digital Foundation forecasts the US will capture just 6% of the world’s new high-net-worth passport acquisitions from 2025 to 2028, while the UK is projected to capture just 4.5%, placing it well behind nations such as Portugal, Singapore and the UAE.

“With a combined share of just over 10% between 2025 and 2028, these two countries risk ceding long-term economic influence to nations that have adapted faster to the competitive realities of elite global mobility.” Adds Danielle Moxey:

Chris Marson is an international private wealth expert at the RTI Family Office. He explained: “Countries like Singapore, the UAE, and Portugal offer competitive tax advantages, simpler reporting requirements, and access to high-quality infrastructure without the same regulatory baggage.

“For globally-mobile entrepreneurs and investors, this combination means they can focus on growing their wealth and businesses rather than navigating citizenship and residency in the US and UK.”

Paul Stannard, chairman and founder of Portugal Pathways, a company that supports HNWIs in relocating and investing in Portugal, has seen this impact first-hand, with more and more UK, US and international citizens residing and gaining citizenship in Portugal:

He adds: “With the UK and US failing to provide certainty and stability for HNWIs, many are now seeking citizenship and residency in more favourable emerging countries such as Portugal.

“The country’s IFICI tax regime and Golden Visa residency-by-investment programmes, the most sought-after currently, paired with Portugal’s climate, growing expat community, low crime rate, stunning beaches, growing property market, culture, investment potential and geostrategic location, mean we’re seeing more and more HNWIs look to Portugal as a place for residency and citizenship.”