July 2025 Newsletter

As we move into the second half of the year, the big news from Sovereign’s perspective is that Gibraltar, where our Group is headquartered, has had two big wins – political agreement on a formal treaty between the EU and the UK in respect of Gibraltar, and the long-awaited removal of Gibraltar from the EU’s list of high‑risk jurisdictions for money laundering.

Gibraltar was specifically excluded from the post-Brexit EU-UK Trade and Cooperation Agreement (TCA), which came in to force in May 2021. Since then, there have since been 19 formal negotiation rounds, as well as other talks, on the EU-Gibraltar relationship. It is regarded as “the last piece of the EU exit jigsaw”.

The Gibraltar government has continued to stress the importance of maintaining an open ‘fluid’ border between Gibraltar and Spain given the importance to Gibraltar’s economy of around 15,000 frontier workers who reside in Spain but work in Gibraltar, including many Sovereign employees.

The new agreement will remove all checks and controls on people and goods circulating between Spain and Gibraltar and establish a customs union between Gibraltar and the EU. The joint statement said the way was now clear for negotiating teams to finalise the full legal text.

The second win was that European Commission reconfirmed its intention to delist Gibraltar (and also the UAE) from its list of high‑risk jurisdictions for money laundering. A similar proposal in April 2024 was vetoed by the European Parliament, but this time the Commission’s regulation was approved.

EU financial institutions and companies are required to apply enhanced vigilance in transactions involving high-risk listed countries so, in addition to the reputational damage, a listing adds costs to transactions involving people or entities from listed countries. It is therefore a huge relief that Gibraltar’s de-listing has finally been confirmed.

Elsewhere, the Sovereign Report reports on the first companies to take advantage of Hong Kong’s game-changing new redomiciliation regime and the use of trusts in Thailand for wealth and asset management. In Africa we unpack the implications of the Mauritius 2025–26 Budget for the financial services sector and explore the optimal timing for South Africans looking to move funds offshore.

In Europe, we look at Portugal’s tightening of naturalisation rules, the new Companies House identity verification requirements for directors and people with significant control of UK companies, and Malta’s new Commercial Yacht Code. In the Middle East we include useful updates from Qatar, Dubai and the ADGM.

We also feature global perspectives on international residency and citizenship planning, and close with news on the amazing work of the Sovereign Art Foundation in Portugal. Click through to read the full stories.

Mauritius unveils ambitious Five-Year Strategy for Financial Services Sector

When Should South Africans Take Their Money Offshore?

Mauritius Budget 2025-26: Impact on Financial Services Sector

European Commission removes Gibraltar and the UAE from ‘high-risk’ list

EU and UK agree post-Brexit deal easing Gibraltar border flow

Non-profit and charity sectors: look after your people and manage the challenges

Transport Malta publishes fifth edition of the Commercial Yacht Code

UK Companies House Brings New Identity Verification Service

Isle of Man and UK Target Tax Avoidance Scheme Promotors

Portugal Tightens Citizenship by Naturalisation Rules

Malta Launches Consultation on Auto-Enrolment Pension Scheme

Companies House Uses ECCTA Powers to Drive Real-World Impact

Winners crowned for Isle of Man Innovation Challenge 2025