Video Briefing

Nomad Capitalist: The Three Tiers of Passports

Jul 1, 2020Video Briefing15:31Watch on YouTube

A second passport should not be judged only by the number of countries it allows visa-free access to. Travel access matters, especially for people replacing a strong Western passport or improving a weaker passport, but citizenship also affects taxes, investment options, personal freedom, political risk, banking, and long-term diversification. One framework divides passports into three travel tiers: Tier A, Tier B, and Tier C.

Why passport tiers matter

The tier system focuses on the passport as a travel document, not the full value of citizenship.

A citizenship can be useful for reasons beyond travel, including:

  • protection from changing tax laws
  • access to new investments
  • a backup plan if the home country becomes less attractive
  • a more neutral travel document
  • diversification away from one government
  • reduced dependence on one country’s politics
  • citizenship insurance for the future

For Western citizens, especially Americans considering expatriation, the quality of the replacement passport matters. Someone giving up a strong passport may not want to suddenly need visas for many countries.

For people with average or weak passports, the goal may be to improve travel access and gain entry to regions that were previously difficult.

Tier A passports

Tier A passports are defined mainly by visa-free or visa-waiver access to the United States.

The benchmark is U.S. Visa Waiver Program access, plus Canada, which does not technically use the same program but allows visa-free access to the United States.

Around 40 countries are described as having this level of access.

Tier A passports usually include access to several major developed destinations, often including some or all of:

  • United States
  • Canada
  • Australia
  • New Zealand
  • Japan
  • Singapore
  • Brunei
  • most European Union countries
  • Chile
  • Poland, after gaining U.S. Visa Waiver Program access

The transcript treats the United States as the main benchmark because it is difficult for most nationalities to enter without a visa, and because many Americans considering renunciation want to know whether they can still return easily.

Some passports are described as “A-minus” rather than full Tier A. These may offer very strong travel access but lack one important destination, such as the United States or Canada.

Examples mentioned include Brazil, Argentina, and Israel. These passports may allow access to many countries but still require visas for some major destinations such as the United States, Canada, Australia, or New Zealand.

Tier B passports

Tier B passports are defined by access to Europe, especially the Schengen Area.

A Tier B passport generally provides visa-free access to Schengen countries. If the Schengen Area were to weaken or disappear, the transcript says Tier B would still mean access to most European countries.

The UK and Ireland are treated separately because they are more difficult to access than most Schengen countries. A passport with access to Europe plus the UK may be considered “B-plus.”

Countries and regions mentioned as often having Tier B-type access include:

  • Western Balkans
  • South Pacific countries
  • Georgia and the Caucasus
  • several South American countries
  • Caribbean citizenship-by-investment countries

Some Caribbean citizenship-by-investment passports are described as strong Tier B or B-plus passports because they may provide access to Europe and South America. One is described as having access to every country in Europe and every country in South America.

The practical value of Tier B is that even without U.S. access, the passport still gives substantial travel flexibility and is often enough for many people’s needs.

Tier C passports

Tier C passports do not provide visa-free access to either the United States or the Schengen Area.

This category includes many African passports, except stronger examples such as Seychelles and Mauritius. It also includes several Asian passports and some weaker South American passports.

Examples of weaker Tier C passports mentioned include:

  • Egypt
  • Morocco
  • Thailand
  • Vietnam

Some Tier C passports are described as “C-plus” because they do not provide U.S. or Schengen access but still have useful access elsewhere.

Russia and Turkey are given as C-plus examples. They may lack easy access to the United States and European Union, but they offer useful travel access across regions such as:

  • Asia
  • South America
  • Caribbean countries
  • parts of Africa
  • Central Asia
  • Eastern Europe

The transcript says Russia’s passport has improved significantly over the last 15 years, except for access to the West. Turkey is described in a similar way.

Wealth does not guarantee passport strength

A country’s wealth does not necessarily determine passport quality.

The transcript contrasts Gulf countries with less wealthy countries. Qatar is described as one of the wealthiest countries by some measures, but not as having a great passport. Bahrain and Kuwait are also described as weaker. The UAE is described as having a strong A-minus passport.

El Salvador is used as the opposite example: despite being poorer, its passport is described as a solid B-plus passport.

The point is that passport strength is often political. Diplomatic relationships, migration concerns, regional agreements, and country reputation can matter more than national wealth.

Improving passports over time

Some passports have improved dramatically over time.

Examples mentioned include:

  • Serbia
  • Georgia
  • Russia
  • Ukraine

Ukraine is mentioned as having gained access to the Schengen Area. Serbia and Georgia are described as strong performers whose passports have improved.

The transcript says some current Tier C passports may become Tier B passports in the future, and some weaker Tier B passports may become stronger over time.

This is one reason a lower-tier passport may still be valuable as an insurance policy if it is easy, affordable, or complementary to an existing strong passport.

Why a lower-tier passport can still be useful

A person who already has a strong Tier A passport and plans to keep it may not need another Tier A passport.

For someone from Canada, the UK, Australia, or a similar country, a Tier B or even Tier C passport may still be useful if it provides:

  • backup citizenship
  • access to different regions
  • visa-free access to countries not covered by the first passport
  • lower maintenance
  • protection from one country’s politics
  • a small-country citizenship that does not interfere much with overseas citizens
  • future upside if the passport improves

The transcript suggests that lower-cost, easier-to-get, or faster second passports can be useful when they complement an existing strong passport.

Passport choice should match the goal

The right passport depends on why the applicant wants it.

Someone renouncing U.S. citizenship may care more about replacing lost access to the United States, Canada, Australia, or Europe.

Someone with a weak passport may care most about gaining access to Schengen, the UK, or other major travel regions.

Someone who already has a strong passport may care more about:

  • tax protection
  • political diversification
  • investment access
  • ease of obtaining the passport
  • low maintenance
  • neutrality
  • long-term backup value

The main mistake is choosing purely by visa-free country count. A passport should be judged by how well it solves the applicant’s specific problem.

Main takeaway

The three-tier system is a practical way to compare passports by travel access:

  • Tier A: access to the United States or similar top-tier travel privileges
  • Tier B: access to Europe or the Schengen Area, with B-plus for additional access such as the UK
  • Tier C: no U.S. or Schengen access, but possibly useful regional access

A second passport does not always need to match the strength of the first passport. It needs to fit the person’s broader strategy: travel, tax planning, investment access, political diversification, future citizenship insurance, or protection from relying on only one country.