January 2026 Newsletter

As 2026 gets underway, the global political, economic and social tensions that characterised 2025 seem only to have intensified. In this volatile environment, resilience and durability take on heightened importance and clients, both private and corporate, would be advised to stress test their structures and strategies.

The big news from Sovereign’s perspective is that the Gibraltar government has just announced that the expected date for the entry into force of the UK-EU treaty to govern Gibraltar’s post-Brexit relationship with the EU is to be 10 April, a significant advancement on previously indicated timelines. Although not yet published, the treaty promises to be a good deal for Gibraltar after many years of uncertainty.

Significant global tax transparency reforms feature prominently in our January newsletter, with the OECD advancing new standards through the expansion of automatic exchange of information – most notably extending reporting to overseas real estate and implementing the CARF and CRS 2.0 regimes. These initiatives reinforce the international commitment to closing information gaps across digital assets, crypto‑related transactions and cross‑border property ownership.

In Europe, Cyprus has implemented a comprehensive tax reform package that sees sweeping changes to corporate income tax, personal tax bands, capital gains and enforcement rules. Portugal’s Constitutional Court has also intervened to block proposed nationality law amendments, safeguarding legal certainty for applicants, while the Swiss populace has firmly rejected a federal inheritance tax.

Business regulation continues to evolve in the UK, with the Property (Digital Assets etc.) Act 2025 now in force and Companies House implementing mandatory identity verification for directors and PSCs. The updated guidance on identifying Persons with Significant Control underscores the growing importance of corporate ownership transparency.

This issue explores jurisdiction‑specific opportunities, including Malta’s new preferential tax regime for senior family office employees, and examines positive AML/CFT momentum with South Africa’s removal from the FATF grey list.

We also examine key operational topics – group medical insurance strategies, workplace pension obligations and annual leave entitlement in the UAE – supporting employers as they navigate this increasingly complex workplace environment.

Finally, the Sovereign Art Foundation announces the winners of the Singapore Students Prize (well done!) and launches the fifth edition of the Sovereign African Art Prize.