US Passport Slips in Global Rankings: What It Means for Mobile Wealth

The 20th anniversary edition of the Henley Passport Index reveals that the US passport has slipped in global power rankings, now sitting outside the top five. For Americans considering international mobility, and for those holding multiple citizenships, the shift has practical implications.

The Rankings Shift

The Henley Passport Index measures passport power by visa-free or visa-on-arrival access to destinations worldwide. The US passport, long among the most powerful globally, has seen its position erode as other countries expand their treaty networks.

Current leaders include Singapore, Japan, and several European nations, whose citizens enjoy access to more destinations than their American counterparts. 

The gap reflects both the expansion of visa-free agreements by other nations and, in some cases, the tightening of access for US citizens.

Why This Matters for HNWIs

For high-net-worth individuals, passport power affects:

• Business travel: More visa requirements mean more advance planning, application processes, and potential delays. For executives managing global businesses, friction in travel reduces efficiency.

• Investment access: Some investment opportunities require presence in certain jurisdictions. Visa-free access simplifies due diligence trips and in-person meetings.

• Residence options: While passport power and residence rights are distinct, some visa-free arrangements include extended stay provisions that can support residence planning.

• Emergency flexibility: In uncertain times, the ability to relocate quickly without visa applications provides security.

The CBI Option

Citizenship by Investment (CBI) programmes offer an alternative passport without the ties of ancestry or naturalisation.

Current options include:

• Caribbean programmes: Dominica, St Kitts and Nevis, Grenada, and others offer citizenship through investment, typically in real estate or government funds. Costs range from around $100,000 to $200,000+ depending on family size and investment type.

• European options: Malta offers an exceptional naturalisation process, though at significantly higher cost (€600,000+ contribution plus property requirements) and with genuine residence requirements. Portugal's golden visa programme leads to citizenship after five years.

• Middle Eastern developments: Some Gulf states have introduced limited naturalisation pathways, though these remain more restrictive than traditional CBI programmes.

Due Diligence Essential

CBI programmes have faced scrutiny, with some suspended or modified following concerns about due diligence standards.

Anyone considering this route should:

• Work only with reputable, established agents
• Expect thorough background checks (which is actually a positive indicator)
• Understand ongoing requirements (tax filings, renewals, etc.)
• Consider the reputation implications of different passports

Integration with Tax Planning

For Americans specifically, a second citizenship doesn't resolve US tax obligations - citizens remain subject to worldwide taxation  regardless of residence. However, a second passport combined with proper expatriation planning (including the exit tax calculation) can form part of a comprehensive restructuring.

For non-Americans, citizenship choices may create opportunities to access preferential treaty positions, residence options, or banking relationships not available under their original nationality.

Looking Ahead

The trend toward greater passport stratification is likely to continue. Countries with strong economies, good governance, and effective diplomacy will see their passports appreciate in value. Those with political instability, sanctions exposure, or weak international relationships may face increasing travel restrictions.

For mobile wealth, this creates both challenges and opportunities - but requires proactive planning.

Mosaic Chambers advises HNWIs on international mobility and citizenship planning. Contact us to discuss your options.