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The UK and US have ranked just 21st and 29th respectively in the inaugural Nomad Capitalist Freedom Index, a new global study assessing financial sovereignty, asset protection, and personal liberty in more than 200 countries across the world.

Together, their relatively low rankings see them fall behind a number of Western peers, including Portugal, Ireland and the Netherlands, Denmark, and Sweden, adding to the growing narrative that both nations' current trajectories could undermine their appeal to international capital.

The index, compiled by boutique tax and citizenship consultancy Nomad Capitalist, places the UK and US well behind counterparts not just in Europe, but across several continents. In the UK, the firm pointed to rising taxes, tighter regulations, and the scrapping of the non-dom regime as key reasons for its relatively low position in the rankings.

While the UK received high marks for asset protection in its only standout category, it scored less favourably across others, including financial freedom, human rights, and quality of life. The report warned that the country was moving in an 'unfavourable direction,' with 'increasing regulations, higher taxes, and stricter immigration policies' likely to 'discourage wealth-generating entrepreneurs and investors.'

Nomad Capitalist Research Associate Javier Correa said the UK, along with the US, have become 'poster children' for 'bloated bureaucracy [and] rising taxes.' Globally minded citizens, he continued, 'need to understand that the western world has changed.'

The inaugural Index ranks nearly 200 countries and five US states across five weighted categories: Financial freedom, personal safety, asset protection, human rights, and quality of life. It's designed for globally mobile individuals looking to protect wealth and maximise flexibility.

Nomad Capitalist conducted the research using both quantitative and qualitative data from nearly 30 trusted public sources, combined with Nomad Capitalist Insider Research – proprietary insights from their team, clients, and global network across six continents.

Fresh off a £3.4bn deal with the UK that transferred the sovereignty of the Chagos Islands to the Indian Ocean nation, Mauritius, topped the rankings alongside Monaco. The authors of the Freedom Index credited Mauritius for its 'favourable tax regime, respected courts and strong personal safety standards.' Monaco was praised for combining 'exceptional financial freedom, human rights, and safety without sacrificing lifestyle.' Nomad Capitalist highlighted its tax-free environment on personal income and capital gains, with corporate profits taxed only under limited foreign-revenue or intellectual-property conditions.

Switzerland followed in third place, while Portugal, Ireland made up the remainder of the top five.

The United States' position in the Index meant they were superseded by countries including Latvia, Estonia, the Czech Republic, and Japan. Its total score was hampered by a poor ranking for Safety – its score bracket judging 'moderate unrest, social issues, and unreliable enforcement.'

The Freedom Index builds on Nomad Capitalist's established portfolio of global rankings, including the Nomad Passport Index, Nomad Beach Index, and Nomad Real Estate Yield Index.