Is a US Passport Really the Best? 

Most Americans believe their nation has the best of everything, but did you know that the US passport ranks relatively low compared to other countries? 

If you’re from the US, you probably think your passport ranks 1st, or at least close to 1st.

But once you start factoring in considerations like the US tax code and restrictions on their citizens living abroad, that particular assumption starts to become pretty threadbare. 

According to our own Nomad Passport Index, the US passport ranks 44th in the world – a ranking that may shock some but is based on solid facts like US passport opportunities, how the US handles its citizens living abroad and its limits on citizens domestically. 

So, it stands to reason that with increasing political and financial stability, many people – including US citizens – are taking a long, hard look at this passport and wondering out loud whether it’s worth having.

Lots of people have already started looking for a second passport. There are many excellent US passport alternatives out there and plenty of companies that will sell you one. 

At Nomad Capitalist, we look at things a little differently.

Yes, we do help people plan for second passports and multiple citizenships. In fact, that strategy is at the core of how we advise people to protect themselves and their families.

But if experience and years of helping people achieve financial and personal freedom have taught us anything, it’s that this world is not black and white – one size does not fit all.

So, at Nomad Capitalist, we offer a holistic approach that also factors in everything from legal tax reduction to offshore banking, helping our clients find the best way to safeguard their wealth, freedom and prosperity. 

What are the Benefits of a US Passport in 2025?

Before we get into the weaknesses of a US passport, let’s cover why you might want to hold on to it, if you have one.

A US passport in 2025 grants visa-free, visa-on-arrival or eTA (electronic Travel Authorisation) access to over 172 countries, making a pretty solid international travel document. You can also use Global Entry and TSA PreCheck for faster airport security in the US and some international locations.

Beyond travel, a US passport gives you good consular protection abroad. If you face trouble in another country, US embassies and consulates can help with emergencies, lost passports or legal issues. 

It also offers the right to live and work in the US without restrictions, plus access to government benefits, social security and healthcare programs. 

But are these reasons enough to rely on your US passport alone?

Why Having a US Passport Might Not Be the Best Choice

Beyond the reasons above, the US simply doesn’t have the same benefits and perks as other Western countries’ passports

There are two main reasons why a US passport doesn’t pack as much punch as others in the Western hemisphere. These are:

• Citizenship-based taxation – no matter where you live or where you earn money, the IRS will come after you. 
• Citizens have the right to live in the US, but that’s it. Compare that with an EU passport, where citizens have the right to live in any one of 27 nations. 

International tax obligation is a major setback of a US passport. It’s the only country besides Eritrea that taxes its citizens regardless of where they live. 

Citizens of Canada, Denmark, Malta and others can move overseas, retain their citizenship and owe zero taxes to their home country. However, if you’re a US citizen who becomes a tax resident of another country, you’re still subject to US tax or, at the very least, you’ll have to file in both jurisdictions. 

This isn’t true for Canadians, Danish or Maltese citizens. They can move overseas and only owe taxes to the government where they reside, rather than needing to send tax payments back home and where they’re living. 

This can potentially cost you thousands of dollars each year in taxes. It’s especially bad when you realise there are so many options available that are just as good as a US passport, if not better. 

According to Nomad Capitalist founder Andrew Henderson, the US tax code ‘makes a US passport substantially worse than its European and Asian counterparts from Sweden to Singapore, which give their citizens more freedom’.

The other strike against a US passport is that it only allows its citizens to live in their own country. In comparison, citizens of the European Union and European Economic Area countries can move freely between each country’s borders. 

Just as a US citizen can move from California to Florida, a European can relocate to Spain, Germany, France or Ireland, to name just a few.

US Passports Offer Fewer Travel Opportunities than Other Nations

A US passport doesn’t give you the same opportunities as some others. 

It grants visa-free, visa-on-arrival or eTA travel to 172 countries, which might sound good, but it’s not amazing for such a prominent passport. 

In comparison, several countries offer the same, close to the same or even more options than a US passport. 

A German passport allows holders to travel to 179 countries, while Singapore offers 174 countries with a much better and fairer tax code than the US. 

This isn’t to say that being able to travel to over a hundred countries on an American passport without a visa isn’t good. It’s simply to say that it isn’t unique – dozens of countries all over the world offer the same or similar perks. 

However, no matter where you go, only the US government chases you with taxation. 

The Best US Passport Alternatives 

Some of the best alternatives to a US passport include EU countries such as Ireland, Malta and Portugal, to name just a few of our favourites. 

But, if you’re looking for a new passport, it’s important to choose one based on your specific needs and goals. 

You may want a passport that allows you to travel, study, invest and live within or without the national borders of the nation. With an EU passport, you have enhanced travel freedoms plus the opportunity to live and work throughout Europe. 

Some EU countries have high taxes, but others have low taxes. Or, if not, they have special tax regimes which you can take advantage of to legally reduce your tax burden.

Plus, unlike being a US citizen, you won’t be hunted to the ends of the earth by the IRS.  

The passport you choose depends on what you’re seeking. For example, another perk of EU citizenship is that it offers several excellent social benefits. 

So, you may, for example, prefer to retain private health insurance, or you may discover that the public service in your new European home is comparable to the service you received privately in the US and opt to use the public service instead. 

The point is you now have a choice; a choice in where you want to live, what kind of tax system you wish to have and what services you can avail of. 

Plus, since EU citizenship can also be passed along to family members, your children and their children will receive the same rights to live, travel, work and study anywhere in Europe.  

You can take a look at our Nomad Passport Index for a full breakdown of the world’s best passports and why they’ve ranked this way. Otherwise, here are our top choices for US passport alternatives. 

Malta

There are a few tax-friendly countries within the EU, and Malta is one of them. 

And when it comes to passports, this small island country makes the top of the list for many reasons. 

As you can see, Malta’s citizenship program has changed significantly, but the returns can significantly outweigh the costs, especially considering how much you can save each year in taxes. 

So, if you want the best option for yourself and your family, Malta is an excellent choice. 

But you need to hurry because Europe’s (Citizenship-by-Investment (CBI) and golden visa programs are closing fast. If fast-track EU citizenship is your goal, get in touch with us today because wasting further time may mean you lose out. 

The Caribbean

An investment of US$1 million for citizenship may not suit everyone, but there are several cheaper options available in the Caribbean.

Several of these island nations charge their citizens little to no tax, plus their passports are just as strong as the United States.  

Among these island nations are states like Antigua and Barbuda, Dominica, St Lucia, St Kitts and Nevis and Grenada. Each of these countries offers foreigners an opportunity to invest and live in tranquil islands away from the intense political climate of the US.

Antigua and Barbuda offers several options for citizenship by investment, opening the doors for the island’s favourable culture and taxes. Investing in real estate, local businesses, the nation’s university fund or donating to a public project allows investors to become citizens. 

Similarly, Dominica and Grenada offer citizenship-by-investment programs that grant an easy path to citizenship. The exact price for each program varies depending on which of the island countries you choose and how many people you’re getting passports for.

In Antigua and Barbuda, you can expect to invest upwards of US$230,000, depending on the program you choose. One of the main benefits of citizenship in Antigua and Barbuda is that the program extends to up to another three family members for the same price. 

This means if you have a spouse and children, you can get their citizenship in Antigua and Barbuda for no extra charge. 

However, if you’re not looking for multiple citizenships for family members, Dominican citizenship might be a cheaper option.

Our comparison guide will help you find the best Caribbean nation to invest in a second citizenship. 

Is a US Passport the Best Passport? – FAQs

Are the Benefits of a US Passport Worth it?

More Americans started realising the limitations of their good, but not top-rated, passports during and post the pandemic. 

Unable to travel to most places in the world and with increasing social unrest, US citizens began looking at citizenship by investment (CBI) to get the same benefits as top-ranked passport holders.

CBI allows investors to fast-track their path to a second passport and dual citizenship – and the freedom that comes with that – without giving up their US citizenship.

With that said, there has been an increasing number of Americans renouncing their US citizenship in recent years. Indeed, this is the only way to sever ties with the IRS and their tax obligations.

There are many ways to get citizenship, but if you’re upset your passport isn’t at the top of the charts, citizenship by investment can help you fix that in a matter of months.

At Nomad Capitalist, we’ve helped over 2,000 wealthy investors and entrepreneurs to ‘go where they’re treated best’, whether that’s by moving their investments offshore, buying a second passport or relocating to a more tax-friendly country. 

Our clients are paired with experts in tax, investment strategy, immigration and asset protection to create a holistic plan based on their unique goals. Click to learn more about our holistic Nomad Capitalist plans.