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From their PDF, https://s3-eu-west-1.amazonaws.com/nomadcapitalist/Nomad-Pas...

They have multiple factor in their ranking. One of them is the freedom index which is described as:

  The ability of citizens to live freely is responsible for 10% of each country’s total
  ranking. We believe that freedom of speech and of the press is a good thing, and
  imposing laws on non-resident citizens is generally a bad idea. This index relied on
  data regarding mandatory military service, government spying programs,
  incarceration rate, and laws targeting non-resident citizens (such as the United
  States’ Foreign Corrupt Practices Act), as well as the World Press Freedom Index
  and Economic Freedom Index to determine how free citizens of each country are,
  particularly non-resident citizens. Each country was assigned a score from 10 to 50
  based on our proprietary blend of these factors, with 10 being the least free and 50
  being the most free.

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