Combining Alternative Residency, Citizenship and Wealth Preservation Strategies for the International Clients and Advisers

Conflicts, heightened political tensions, economic volatility, trade tariffs, restrictions on travel and the movement of assets will leave many individuals worldwide, together with their families, businesses and advisers, facing much increased uncertainty. To maintain their personal and commercial freedoms, such people require adaptable and tax-efficient solutions.

Strategic international residency and citizenship planning can provide clients and their family members with flexibility, security, business opportunities, tax efficiencies and a platform upon which to structure, manage and protect their wealth. It can also offer significant lifestyle benefits, such as visa-free travel and access to high quality healthcare and education.

Implementing an international residency and citizenship planning strategy also presents a unique opportunity to review and modify the way that your wealth is structured to avoid potential exposures to taxation in the present and the future.

Holding trust administration licences in nine jurisdictions and offering a suite of more than 50 residency, tax residency and citizenship programmes across 15-plus countries, the Sovereign Group’s international office and partner network ensures we are very well placed to deliver highly efficient and effective strategies combining residency, citizenship and wealth management.

Wealth structuring and the use of trusts

Wealth structuring is designed to manage, protect and grow your wealth in the most effective and tax-efficient manner. Trusts are among the most powerful tools for managing assets – money, investments, land or buildings. They offer enhanced security and asset protection, while also providing streamlined estate planning for the transfer of wealth to future generations.

A trust is a legal arrangement under which a person (the settlor) transfers assets to a trustee, who then holds and manages them for the benefit of specified beneficiaries. The trustees must ensure that the assets are used according to the settlor’s wishes and must always act in the interest of the beneficiaries.

The practical advantages of a trust are gained from the distinction that is drawn between the legal owner of property, the trustee, and those people that have the use or benefit of the property, the beneficiaries. This provides enhanced protection from future financial difficulties, marital splits or litigation. Additionally, assets can be passed to the next generation according to the settlor’s wishes without the disruption, delay, cost and publicity associated with the probate process.

Planning and implementing wealth protection strategies that include trusts provides significant advantages, especially for those:

• Seeking asset protection.
• Wishing to dispose of their estate on death freely and without recourse to a lengthy and expensive probate procedure.
• Holding assets across multiple jurisdictions.
• Intending to sell a business.
• Planning to establish a new or alternate country of residence, tax residency and/or citizenship.
• With family members resident abroad.

It is important to note that the taxation of trusts depends on a variety of factors, including the tax profile of the settlor and their beneficiaries, the tax profile of the trust itself and the location of the assets placed into trust. Different countries have very different rules for the taxation of trusts, so the tax residence of settlors, beneficiaries and assets need to be reviewed on a regular basis.

Professional planning and advice are therefore required. If it is determined that a trust is not the most suitable option, alternative wealth structures can be implemented.

Alternative Residency and Citizenship by Investment Planning

Many governments recognise the economic advantages of encouraging affluent and productive individuals, along with their families and businesses, to invest in and establish residency and/or citizenship in their country.

As a result, the number of Residency and Citizenship by Investment (RCBI) programmes has increased and evolved. Combined with well-planned and managed wealth structuring solutions these can offer individuals and their families with enhanced mobility, lifestyle benefits, tax efficiencies and asset protection. Below is a summary of the available programmes, their benefits, as well as an overview of the minimum investment requirements for each.

Alternative Citizenship, Residency and Global Mobility

Citizenship by Investment (CBI) Programmes provide applicants and their qualifying dependants with a number of benefits, including:

• New citizenship that can be passed down to future generations.
• Governmental protections, including security and legal rights.
• The right to reside, settle, work and stay indefinitely in your chosen country.
• Visa-free or visa on arrival access to up to 186 countries.
• Freedom of movement, residence and work in the European Union (Malta) and CARICOM (Caribbean).
• Excellent education and healthcare systems.
• The option to maintain dual citizenship.
• Multiple personal and corporate tax concessions.

Alternative European Residency by Investment and Mobility

European Residency by Investment (RBI) Programmes provide applicants and their qualifying dependants with a local residence permit and the following additional benefits:

• • The right to reside, settle and stay indefinitely in their chosen European member state.
  • Visa free access to the EU Schengen area for 90 days in any 180 days*.
  • Low or no annual minimum stay requirements.
  • No language requirements.
  • Access to high quality educational institutions and medical facilities.
  • Multiple personal and corporate tax benefits.
  • Possible eligibility to apply for citizenship by naturalisation in the future.

The following European countries offer RBI Programmes for non-EU nationals with the following minimum qualifying investment requirements:

* Cyprus is not currently part of the EU Schengen agreement although Schengen visas can be applied for within Cyprus. The Cyprus government stated in January 2025 that it aims to complete all technical preparations by 2025, paving the way for formal Schengen membership during or before the first half of 2026. This is not however guaranteed.

Alternative GCC Residency by Investment and Mobility

The Gulf Cooperation Council (GCC) states comprise Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates. GCC RBI Programmes provide qualifying applicants with a local residence permit and the following additional benefits:

• The right to reside, settle and stay in their chosen country.
• Option to include spouse and qualifying dependents.
• Visa free access to GCC states.
• Low or no annual minimum stay requirements.
• No language requirements.
• Access to high quality educational institutions and medical facilities.
• Multiple personal and corporate tax benefits.

The following GCC countries offer residency through investment programmes with the following minimum qualifying investment requirements:

US Permanent Residency with full Education and Work Entitlements

Since mid-March 2025 hundreds if not thousands (current estimates vary significantly) of international students and graduates have had their US visas revoked.

The EB-5 Immigrant Investor Programme enables high-net-worth foreign nationals and their qualifying family members to obtain a ‘Permanent Resident Card’ – generally known as a ‘Green Card’ – which entitles its holder to permanently live, study and work in the US and offers the following benefits:

• Minimal application requirements, with no business experience or language proficiency tests.
• Applicants can include their spouse and any unmarried children under the age of 21.
• Access to reduced tuition fees for schools and universities.
• A cost-efficient route to gain permanent residence in the US.
• No sponsorship requirements for employers or schools.
• Flexible physical presence requirements.
• The EB-5 visa can lead to US citizenship. The principal investor and family members may be eligible for US citizenship five years after their initial entry into the US.

Alternative Residency by Investment, Mobility and Special Tax Status

Planning your future place of residency and tax residency is an important but often overlooked element of international wealth planning and management. The following RCBI programmes have been established specifically to attract HNWIs and their family members through the provision of a special tax status for new residents who remain non-domiciled in their chosen country of residence.

Additional Associated Costs

Additional government fees, and costs around due diligence, legal, tax, documentation preparation and application processing can apply to all programmes listed above, resulting in additional charges in the order of 10 to 30% of the listed minimum requirements. The inclusion of qualifying dependants will also result in additional costs.

Alternative Residency Permit and Citizenship Options

Alternative residency and citizenship solutions are also available for those who intend to make a country their primary place of residence and tax residency. These include:

• Financially independent visas.
• Business establishment visas.
• Tax residency programmes.
• Citizenship through naturalisation.

Sovereign’s International Mobility and Wealth Structuring Strategies

1. Sovereign has extensive experience of wealth structuring for high-net-worth international clients who have complex financial affairs and assets around the world.
2. Sovereign generally recommends that Cyprus, Gibraltar, Guernsey, Hong Kong, the Isle of Man, Malta, Mauritius, Singapore and the UK are among the best trust jurisdictions available.
3. Sovereign is fully licensed to act as a professional trustee in all these jurisdictions.
4. Sovereign advises on and provides access to an extensive range of residency, citizenship and tax residency solutions around the world.
5. Sovereign’s international network of offices, experienced local teams and professional service partners ensure it is well placed to assist clients with the identification, development and implementation of the most suitable overall strategy for their needs.
6. Sovereign works with individuals, families and businesses either currently based in or seeking to establish new links in Europe, the Middle East, Africa, Asia, the Americas and the Caribbean.
7. When combined and managed correctly, the following Sovereign services enable us to develop and implement and manage comprehensive, flexible and tax efficient strategies for clients:
   • International residency and citizenship planning and implementation.
   • Tax residency planning and implementation.
   • Wealth structuring through trusts and foundations.
   • Estate and succession planning.
   • Corporate set up and management services.
   • International retirement plans.
   • Wealth management.
   • International life and medical insurances.

For further information, to discuss your requirements and/or determine whether you qualify for any other suitable residency, tax residency or citizenship programmes, please contact Sovereign’s Residency & Citizenship Planning team below.