Trust structures for international families: Gibraltar leads the way

In an increasingly volatile world, wealthy international families are prioritising asset protection, succession planning and cross-border flexibility more than ever. One of the most robust tools for achieving these goals remains the trust — and Gibraltar is one of the world’s leading offshore jurisdictions in which to establish a trust.

What benefits do Trusts offer?

Planning for wealthy international families typically involves assets, relationships and structures situated in multiple jurisdictions from which complex tax issues and conflicts of law inevitably arise. When electing how to structure their wealth it is therefore essential to do so in a manner that provides security and certainty.

Trusts have long been used by high-net-worth individuals and their families to:

• Protect wealth from political or economic instability.
• Plan generational transfers in a tax-efficient manner.
• Safeguard assets during family disputes or divorces.
• Maintain confidentiality and control across borders.

Despite evolving regulations, trusts remain highly relevant, especially when based in a stable, tax neutral jurisdiction with an effective legal framework. Trusts in Gibraltar are often used in tandem with other vehicles, such as Foundations, Companies or Pension structures, to provide holistic wealth solutions.

What sets Gibraltar apart?

• Common Law jurisdiction – Gibraltar combines an English common law tradition with a forward-looking regulatory environment, making it uniquely suited to serve the needs of international families.
• Strong legal foundation – the Gibraltar Trustee Act, the main trusts legislation in Gibraltar with subsequent amendments, is largely based on the English Trustee Act, making it familiar and reliable for lawyers and clients globally.
• Tax-neutral environment – a properly structured Gibraltar trust can be free from local taxation on income and gains, if the settlor is non-resident, the trust holds no Gibraltar-source income, and beneficiaries are not Gibraltar residents.
• Favourable tax regime – most passive investment income is not taxable in Gibraltar, including bank interest, dividends from companies listed on a recognised stock exchange or dividends paid to non-residents. There is no capital gains tax in Gibraltar and no inheritance, wealth or gift tax.
• Asset protection ¬– the transfer of assets to a trust will qualify for statutory protection if the trust has been properly established and the transfer of assets to the trust is properly registered with the Gibraltar Financial Services Commission (GFSC).
• Enhanced confidentiality ¬– only charitable trusts need to be registered in Gibraltar. All other trusts are private and there is no requirement to register a Gibraltar trust or to file a copy of the trust deed with any government body, providing complete confidentiality for the settlor, the beneficiaries and the trust assets.
• Effective regulation and high professional standards – unlike many offshore jurisdictions, trust service providers in Gibraltar, such as Sovereign Trust (Gibraltar), are regulated by the GFSC, which stipulates requirements as to minimum capitalisation, professional competence and indemnity insurance. This provides greater confidence, particularly for families with complex governance needs.
• EU and UK connectivity – while Gibraltar is outside the EU, it maintains strong commercial and legal ties with both the UK and the broader European market.

How can Sovereign help?

Sovereign opened its first office in Gibraltar in 1987 and has since grown into one of the largest independent corporate and trust service providers with a presence in over 20 jurisdictions around the world. We currently manage over 20,000 structures for a wide variety of clients – companies, entrepreneurs, private investors or high net worth individuals (HNWIs) and their families – and have assets under administration in excess of USD25 billion.

With nearly four decades of operational experience across multiple jurisdictions, Sovereign Trust (Gibraltar) offers:

• Trust creation, management and administration services for all types of trusts, including asset protection trusts.
• Cross-border tax and legal structuring.
• Ongoing compliance and reporting.

We work closely with clients, lawyers and accountants to ensure that each trust is aligned with the family’s long-term objectives — whether that’s preserving a family business, funding philanthropy or passing wealth to the next generation.

Global families need more than just structures: they need jurisdictions that offer security, professionalism and flexibility. Gibraltar ticks all these boxes and can offers a global solution for wealthy international individuals and families to future-proof their legacies.