Definitive global law guides offering comparative analysis from top-ranked lawyers
CHAMBERS GLOBAL PRACTICE GUIDES
Private Wealth 2025
Definitive global law guides offering comparative analysis from top-ranked lawyers
Contributing Editors Basil Zirinis and Elizabeth Kubanik Sullivan & Cromwell LLP
Global Practice Guides
Private Wealth Contributing Editors Basil Zirinis and Elizabeth Kubanik Sullivan & Cromwell LLP
2025
Chambers Global Practice Guides For more than 20 years, Chambers Global Guides have ranked lawyers and law firms across the world. Chambers now offer clients a new series of Global Practice Guides, which contain practical guidance on doing legal business in key jurisdictions. We use our knowledge of the world’s best lawyers to select leading law firms in each jurisdiction to write the ‘Law & Practice’ sections. In addition, the ‘Trends & Developments’ sections analyse trends and developments in local legal markets. Disclaimer: The information in this guide is provided for general reference only, not as specific legal advice. Views expressed by the authors are not necessarily the views of the law firms in which they practise. For specific legal advice, a lawyer should be consulted. Content Management Director Claire Oxborrow Content Manager Jonathan Mendelowitz Senior Content Reviewers Sally McGonigal, Ethne Withers, Deborah Sinclair and Stephen Dinkeldein Content Reviewers Vivienne Button, Lawrence Garrett, Sean Marshall, Marianne Page, Heather Palomino and Adrian Ciechacki Content Coordination Manager Nancy Laidler Senior Content Coordinators Carla Cagnina and Delicia Tasinda Content Coordinator Hannah Leinmüller Head of Production Jasper John Production Coordinator Genevieve Sibayan
Published by Chambers and Partners 165 Fleet Street London EC4A 2AE Tel +44 20 7606 8844 Fax +44 20 7831 5662 Web www.chambers.com
Copyright © 2025 Chambers and Partners
Contents
INTRODUCTION Contributed by Basil Zirinis and Elizabeth Kubanik, Sullivan & Cromwell LLP p.6
GERMANY Law and Practice p.171 Contributed by Flick Gocke Schaumburg Trends and Developments p.188 Contributed by Flick Gocke Schaumburg GREECE Law and Practice p.194 Contributed by Bernitsas Law Trends and Developments p.217 Contributed by Machas & Partners HONG KONG SAR, CHINA Law and Practice p.223 Contributed by Charles Russell Speechlys Trends and Developments p.241 Contributed by King & Wood Mallesons INDIA Law and Practice p.246 Contributed by Cyril Amarchand Mangaldas Trends and Developments p.264 Contributed by Khaitan & Co ISRAEL Law and Practice p.271 Contributed by FISCHER (FBC & Co.) ITALY Law and Practice p.288 Contributed by Gatti, Pavesi, Bianchi, Ludovici
ARGENTINA Law and Practice p.14 Contributed by McEWAN Trends and Developments p.29 Contributed by McEWAN AUSTRIA Law and Practice p.33 Contributed by Schindler Attorneys
BAHAMAS Law and Practice p.49 Contributed by McKinney, Bancroft & Hughes Trends and Developments p.58 Contributed by McKinney, Bancroft & Hughes
BELGIUM Law and Practice p.62 Contributed by Tiberghien Trends and Developments p.75 Contributed by Arteo CANADA Law and Practice p.82 Contributed by Hull & Hull LLP Trends and Developments p.98 Contributed by Hull & Hull LLP
Trends and Developments p.310 Contributed by Maisto e Associati
CHINA Law and Practice p.104 Contributed by Commerce & Finance Law Offices Trends and Developments p.121 Contributed by Dacheng Law Offices COLOMBIA Law and Practice p.128 Contributed by Rimon, P.C. Trends and Developments p.147 Contributed by Rimon, P.C. FRANCE Law and Practice p.152 Contributed by Chauveau Mulon & Associés
JAPAN Law and Practice p.316 Contributed by Mori Hamada & Matsumoto
LUXEMBOURG Law and Practice p.325 Contributed by CMS
Trends and Developments p.350 Contributed by ATOZ Tax Advisers
MALTA Law and Practice p.355 Contributed by Fenech & Fenech Advocates
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MAURITIUS Law and Practice p.372 Contributed by CMS Prism in association with CMS
SWITZERLAND Law and Practice p.530 Contributed by Tax Partner AG
MEXICO Trends and Developments p.389 Contributed by Galicia Abogados, S.C.
TURKS & CAICOS Law and Practice p.545 Contributed by Coriats Trust Company Limited
NETHERLANDS Law and Practice p.396 Contributed by Arcagna
UK Law and Practice p.551 Contributed by Irwin Mitchell Trends and Developments p.569 Contributed by Irwin Mitchell
Trends and Developments p.411 Contributed by Forvis Mazars NV
NEW ZEALAND Law and Practice p.416
US VIRGIN ISLANDS Trends and Developments p.576 Contributed by Marjorie Rawls Roberts P.C.
Contributed by Cone Marshall Limited Trends and Developments p.430 Contributed by Cone Marshall Limited NORWAY Law and Practice p.436 Contributed by Advokatfirmaet Hjort AS Trends and Developments p.450 Contributed by Advokatfirmaet Hjort AS
USA Law and Practice p.585
Contributed by Holland & Knight LLP Trends and Developments p.601 Contributed by Schindler Cohen & Hochman LLP USA – CALIFORNIA Law and Practice p.609 Contributed by Pillsbury Winthrop Shaw Pittman LLP Trends and Developments p.623 Contributed by Pillsbury Winthrop Shaw Pittman LLP USA – FLORIDA Law and Practice p.629 Contributed by Pillsbury Winthrop Shaw Pittman LLP Trends and Developments p.642 Contributed by Pillsbury Winthrop Shaw Pittman LLP
PERU Law and Practice p.457 Contributed by Rebaza, Alcázar & De Las Casas Trends and Developments p.470 Contributed by Rebaza, Alcázar & De Las Casas
PORTUGAL Law and Practice p.477
Contributed by Durham Agrellos Trends and Developments p.487 Contributed by Durham Agrellos
USA – MASSACHUSETTS Law and Practice p.649 Contributed by Rimon, P.C. Trends and Developments p.661 Contributed by Rimon, P.C.
SINGAPORE Law and Practice p.492
Contributed by WongPartnership LLP Trends and Developments p.512 Contributed by DBS Private Bank SPAIN Law and Practice p.518 Contributed by Anaford Abogados
USA – NEVADA Law and Practice p.665 Contributed by Solomon Dwiggins Freer & Steadman
Trends and Developments p.675 Contributed by McDonald Carano
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USA – NEW YORK Law and Practice p.679 Contributed by Teitler & Teitler LLP
USA – TEXAS Law and Practice p.687 Contributed by Ytterberg Deery Knull LLP Trends and Developments p.702 Contributed by Ytterberg Deery Knull LLP
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INTRODUCTION
Contributed by: Basil Zirinis and Elizabeth Kubanik, Sullivan & Cromwell LLP
Sullivan & Cromwell LLP has advised many of the world’s most influential families for more than 135 years, on all aspects of their business and legal af - fairs, from complex transactions to family business governance and wealth preservation. Through 13 offices on four continents, the firm provides highly integrated legal services to some of the world’s lead -
ing families and companies in their most important domestic and cross-border matters. The firm prides itself on being at the intersection of private client, trust and transactional advice, and can advise on and execute any type of transaction, in any industry, eco - nomic climate or geographic region.
Contributing Editors
Basil Zirinis is a partner in Sullivan & Cromwell’s estates and personal group, and leads the international private client practice from London and New York. He represents private clients around the world in a broad
Elizabeth Kubanik is a European counsel in the London office of Sullivan & Cromwell, in the estates and personal group. She has represented US and international families and fiduciaries with respect
range of matters, including domestic and international estate and trust planning, family business governance and transition, and estate and trust administration and litigation. Basil is a member of the International Academy of Estate and Trust Law, STEP and ACTEC.
to a variety of tax and planning issues, including trust structuring, family business and succession planning, and charitable planning, with a focus on cross-border planning and structures. Elizabeth is a member of the International Academy of Estate and Trust Law, and is frequently asked to speak at industry conferences.
Sullivan & Cromwell LLP 1 New Fetter Lane London EC4A 1AN England
Tel: +44 207 959 8900 Fax: +44 207 959 8950 Email: zirinisb@sullcrom.com Web: www.sullcrom.com
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INTRODUCTION Contributed by: Basil Zirinis and Elizabeth Kubanik, Sullivan & Cromwell LLP
Increased global mobility Emerging from the COVID-19 pandemic, the increase in digitalisation and the rise in remote work opportuni - ties created a highly mobile environment. Individuals are now more transient than ever before. There has also been increased use of electronic tools in inter - national estate, trust and tax planning. With private client data being increasingly accessible via electronic platforms, the need to safeguard against security vul - nerabilities has never been greater. Global shifts in immigration and tax policies have fuelled this mobility trend. For example, some juris - dictions provide “residence-by-investment” schemes and/or preferential tax treatment for certain new resi - dents. Such policies, and the related surge in interest, have been met with some criticism in recent times. For example, the European Commission has called for member countries to eliminate residence-by- investment programmes due to anti-money launder - ing and security concerns, and some commentators have questioned the effect of such policies on local communities. In response, some countries have started to limit or terminate their respective programmes. In late 2023, Portugal enacted major changes to its Golden Visa programme, eliminating real estate investment as a basis for residency. In early 2024, Greece increased the threshold requirements for investments. Two major developments occurred in April 2025: Spain ended its Golden Visa programme, and the European Court of Justice ordered Malta’s existing “Golden Passport” programme to be shut down. On the other hand, in the USA, the Trump administration announced plans for a “Gold Card” programme that would allow wealthy foreigners to live and work in the country in exchange for USD5 million. Presumably, these programmes will continue to be an area of focus in cross-border client practice. Preferential tax regimes that appeal to high net worth clients, and changes to such regimes, have also continued to impact global immigration patterns. Greece’s “flat tax” regime taxes high net worth indi - viduals at a flat annual rate of EUR100,000 per year on foreign-sourced income, subject to certain invest - ment requirements. Italy has implemented a similar
Global Outlook – Private Wealth in 2025 The pace of legal, cultural and technical develop - ments around the world increases each year, and international estate, trust and tax planning continues to evolve with them. Decades of globalisation, com - bined with the unprecedented mobility of the world’s wealthy, have made it common to have clients whose residences and assets range across multiple jurisdic - tions. International practice New and increasingly complex challenges have arisen in planning during life and at death, as coun - tries attempt to stabilise economies impacted by the evolving geopolitical landscape and ongoing interna - tional conflicts, and as families are affected by multi - ple – often conflicting – tax laws, rules of inheritance, treaties and cultural norms. As a result, international private client lawyers must work closely with legal advisers in many jurisdictions to ensure that advice is not being given in isolation, and that all factors affect - ing a client’s planning have been identified. Cultural differences Understanding and appreciating the cultures (both legal and national) of the various jurisdictions is also vital, and lawyers who do so will be increasingly valu - able, whether in non-contentious planning or in trust and estate litigation. Making an effort to bridge cul - tures and languages will also make mistakes much less likely. Lawyers who function as a team, who respect the intricacies and unique aspects of each legal system, and who recognise that an appreciation of language and culture is fundamental to successful cross-border work will have enormous advantages over lawyers who see multi-jurisdictional planning or litigation as separate silos where each lawyer has responsibility only for their own jurisdiction. The Chambers Private Wealth Global Practice Guide is designed to help encourage and facilitate such cross- border co-operation. A few recent global trends in the law that relate to families, their businesses and their planning are dis - cussed below.
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INTRODUCTION Contributed by: Basil Zirinis and Elizabeth Kubanik, Sullivan & Cromwell LLP
“flat tax” regime; however, in August 2024, the Italian government approved a measure that doubled its flat tax from EUR100,000 to EUR200,000 per year. Swit - zerland’s lump-sum tax regime is available to foreign - ers who live but do not work in Switzerland (although the lump-sum taxation system is not available in all cantons). Unlike the Greek and Italian regimes, Swit - zerland calculates a taxpayer’s tax base from the tax - payer’s lifestyle expenses. Spain’s “Beckham” regime provides preferential tax treatment to foreigners who acquire tax residence in Spain for work purposes. Portugal’s expatriate tax regime – the “Non-Habitual Resident” (NHR) tax regime – ended in 2023 and has been replaced by the somewhat more restrictive “Tax Incentive for Scientific Research and Innovation” (IFICI), which provides for a flat tax rate of 20% on eligible income from Portu - gal and exemptions on professional foreign-sourced income. Furthermore, in April 2025, the United Kingdom abolished its longstanding “non-dom” tax regime. All of these regimes are much more complex than they appear at first, and comprehensive tax plan - ning with local experts is vital. Global conflicts Russia’s military invasion of Ukraine in February 2022 has caused many hundreds of thousands of deaths and displaced many millions of people. The ongoing conflict continues to have a resounding international impact. In response to the crisis, the European Union, the USA and other countries have imposed economic sanctions against Russia, with broad international economic ripple effects. These sanctions have had a significant impact on private client advisers, who must keep abreast of changing guidance in relation to clients with ties to Russia. Individual violators of sanctions are generally subject to strict liability and face stiff penalties. Long-standing tension in the Middle East boiled over in October 2023, when Hamas launched an attack on Israel. The ongoing conflict has since escalated into one of the most significant in the region in decades, causing tens of thousands of deaths and displacing
millions of people. The conflict has since spread to Lebanon and Iran. Private client advisers will need to continue to monitor the political and economic environment surrounding the conflict and the effect on clients’ patterns of global migration as a result. Elections and political risk 2024 was a landmark year globally for political elec - tions, and the impact of these elections has unfolded in the first part of 2025. In the United Kingdom, the Labour Party defeated the Conservative Party in the July 2024 general election, and in 2025 sweeping tax changes were made, particularly with respect to the “non-dom” tax regime. In the USA, President Donald Trump returned to office for a second term. Since tak - ing office, President Trump has introduced an eco - nomic agenda focused on tax cuts and the imposition of tariffs, impacting private clients with multi-jurisdic - tional wealth. Recent years have seen increased political volatility worldwide, highlighted by the reintroduction of broad- scale tariffs in international trade, a rise in national - ism and the continued consolidation of authoritarian regimes around the globe. The socio-economic fall - out resulting from the pandemic, mounting interna - tional conflicts and other societal forces has increased worldwide political turmoil and, in some cases, civil unrest. The risk of nationalisation has increased, and continues to create the need to ensure that private clients separate personal wealth from ownership of companies that can be nationalised, which may prove difficult given that a family’s wealth is often predomi - nantly tied up in its family business. Private client advisers will need to keep abreast of any shifts in power and associated policy to continue to effectively counsel their clients in the face of political change. The global economy The evolving geopolitical landscape and ongoing global conflicts, combined for several years with per - sistent inflation, high global interest rates and turbu - lent economic markets, continue to generate concern regarding an impending recession. This concern has
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INTRODUCTION Contributed by: Basil Zirinis and Elizabeth Kubanik, Sullivan & Cromwell LLP
been further fuelled by escalating global trade ten - sions and the looming threat of tariffs. The results of 2024 political elections are sure to further impact the global economy. All of these factors have dramatic consequences for clients and their business interests. Demand for increased transparency and oversight The global drive for transparency continues to be a dramatic force of change in the international private client world. Governments are increasingly focused on cross-border arrangements and structures, and have implemented regulatory schemes that require the exchange of tax-related information. For example, the USA has achieved near-complete international com - pliance with the Foreign Account Tax Compliance Act (FATCA). The Common Reporting Standard (CRS – the recipro - cal automatic information exchange agreement devel - oped by the OECD) has been adopted in over 100 jurisdictions and requires entities (including trusts and foundations) to report information on controlling per - sons. For entities, the controlling persons are gener - ally the individuals who exercise control over the entity or who have a direct or indirect controlling ownership interest in the entity. For a trust, the controlling per - sons are defined to include the settlors, the trustees, the protectors (if any), the beneficiaries or class of beneficiaries, and any other natural persons exercis - ing ultimate effective control over the trust (whether directly or indirectly). Of course, few of these individuals (who may be resi - dent in numerous jurisdictions) actually control a trust, yet the broad reporting requirements create significant compliance burdens and challenges for trustees and financial institutions dealing with trusts. The global reach of the CRS has also made the co-operation of teams of advisers across multiple relevant jurisdic - The European Union has expanded the scope of man - datory disclosure beyond the CRS with the adoption of DAC6, a European Directive requiring tax, account - ing and legal professionals (“intermediaries”) to report their clients’ qualifying cross-border planning arrange - ments. Any cross-border arrangement involving one tions that much more important. Expansion of mandatory disclosure
of a number of specified “hallmarks” is subject to disclosure. The implementation of DAC6 varies by jurisdiction. DAC6 is retroactive to 25 June 2018, which means that intermediaries and their clients may already have substantial reporting obligations under the disclosure regime. In addition to increased emphasis on the automatic exchange of information in programmes that purport to make the information available only to tax and law enforcement authorities, some governments and organisations have moved for even greater transpar - ency, demanding public registers. For instance, in July 2018 the European Parliament and Council adopted the fifth Anti-Money Laundering Directive (5AMLD), which broadened the availability of EU member states’ national registers of ultimate beneficial ownership of trusts. Beginning in 2020, trusts’ beneficial ownership information was required to be made available to: • professionals and institutions subject to anti- money laundering rules, including attorneys and financial institutions acting within the framework of customer due diligence; • persons who can demonstrate a “legitimate interest” in the information, as determined under national law; and • the public, in the case of any trust that holds cer - tain interests in a company outside the EU. However, in November 2022 the European Court of Justice declared this amendment invalid, balancing the public interest objective of the amendment against the right to privacy under the European Union Charter. Information on beneficial ownership must now only be accessible to persons and organisations that are able to demonstrate a “legitimate interest” in such information. In May 2024, the Anti-Money Laundering Regulation and the sixth Anti-Money Laundering Directive were adopted. This new package of laws aims to harmonise existing anti-money laundering rules, providing guid - ance on the type of information that should be held in EU member states’ beneficial ownership registers, and aiming to ensure that those with a “legitimate interest” (very broadly defined to include authorities,
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INTRODUCTION Contributed by: Basil Zirinis and Elizabeth Kubanik, Sullivan & Cromwell LLP
journalists, civil society organisations and similar) have access to registers of ownership information. Prior to the adoption of 5AMLD, the United Kingdom had already enacted similar legislation in the context of shareholders of corporations, which requires the disclosure of persons with significant control. Since 2016, all UK-incorporated companies and limited liability partnerships (LLPs) have been required to maintain a register of natural persons with significant control, held open for public inspection. Further - more, since 2018, UK-resident trusts and trusts with UK assets or income have been required to provide information for inclusion in the UK register of trusts. In response to 5AMLD, the UK expanded the register of trusts to include additional categories of non-UK trusts with connections to the UK, such as trusts that enter into a business relationship with a business that is subject to the UK’s anti-money laundering regime. Such trusts were required to be registered by Sep - tember 2022. In line with EU regulations, the register – which was previously available only to government institutions – is now available to persons with a “legiti - mate interest”. The EU has also indirectly imposed transparency obli - gations on offshore jurisdictions through the publica - tion of a list of non-co-operative tax jurisdictions. In February 2025, the “blacklist” contained 11 non-co- operative jurisdictions, including several US territo - ries. Numerous offshore jurisdictions have adopted (or have announced plans to adopt) local laws and regulations that implement the provisions of DAC6 and 5AMLD. These developments coincide with the increas - ing criminalisation of tax and compliance advice. In recent years, the UK Criminal Finances Act, the US Foreign Corrupt Practices Act and similar laws have threatened private client advisers with criminal penal - ties for their clients’ misconduct, effectively co-opting them into the oversight of client behaviour. Under the UK Criminal Finances Act, a corporate body (eg, a law firm or a financial institution) that fails to insti - tute policies designed to prevent the facilitation of tax offences or money laundering by its employees could
itself be subject to substantial fines or the termination of licences. In the USA, new reporting requirements under the Corporate Transparency Act came into effect in Janu - ary 2024, as part of the Anti-Money Laundering Act of 2020, requiring corporations, limited liability compa - nies and similar entities to disclose beneficial owner - ship information to the US Department of the Treas - ury Financial Crimes Enforcement Network (FinCEN). Under the regulations, a beneficial owner includes any individual who, directly or indirectly, either exercises substantial control over a reporting company, or owns or controls at least 25% of the ownership interests of a reporting company. The information reported to FinCEN would not be publicly available but would be accessible by certain law enforcement agencies, reg - ulatory agencies, financial institutions (in certain cir - cumstances) and Department of Treasury personnel. However, in March 2025, FinCEN took significant steps to limit reporting requirements, issuing an inter - im final rule that removed the requirement for US com - panies and US persons to report. Under the interim final rule, the definition of “reporting company” now only includes foreign companies that are registered to do business in any US state or tribal jurisdiction, and such foreign companies are not required to report any US persons as beneficial owners. The final rule is expected in the second half of 2025. The substantial reporting burdens imposed by these types of regulations have had a notable impact on the offshore trust world. Many smaller trust companies simply do not have the resources to comply with the complex regulations, and the risks of incorrect report - ing often outweigh the benefits of taking on clients from certain jurisdictions. Some commentators have questioned the privacy implications, as well as the efficacy and fairness of the burden placed by these expansive transparency and oversight frameworks upon individuals, families and advisers. In particular, practitioners are increasingly challenging the requirement that court proceedings relating to trust administration or related intra-family matters be kept open to the public where not spe - cifically requested by the parties. These proceedings
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INTRODUCTION Contributed by: Basil Zirinis and Elizabeth Kubanik, Sullivan & Cromwell LLP
Artificial intelligence (AI) Rapid advances in AI technology have dominated headlines over the past year, particularly with the rise of widely accessible AI chatbots. More so than ever before, companies are incorporating AI technology into the workplace, and such technology is quickly transforming the way people work and live. However, many commentators have also raised concerns about the impact of such rapid advancement and whether AI technology could also be harmful as it progresses. The rise of AI technology raises potential issues in the legal sector as well. Many lawyers and law firms have started to harness the power of AI in their day-to-day work. However, questions remain as to whether AI will eventually be able to replicate certain skills of legal professionals. While AI may aid lawyers in the future, lawyers should evaluate the skills that may not easily be replaced, such as emotional intelligence and the personal relationships they have with their clients. Questions have also been raised regarding the eth - ics of AI, with commentators raising concerns ranging from the accuracy and dependability of such tools to the confidentiality risks for client information. With the inevitability of AI entering the legal sector comes the question of how lawyers and wealth advisers can or should fulfil their responsibilities to their clients with the assistance of AI. The future We are living in times of increased uncertainty as countries determine how to address economic vola - tility, international conflict and an evolving technologi - cal landscape. Such uncertainty will impact the trends discussed above – political volatility, transparency, the increase in trust and estate litigation, and the rapid development of technology. Of course, the world of private client advice does not involve only these areas; much of the work relates to helping families structure the succession of wealth in responsible and lasting ways, preserving long-existing family businesses, encouraging family harmony, protecting family assets for both current and future generations, and preserv - ing private property. These needs will also continue and grow.
generally involve non-contentious petitions, brought with the consent of all the interested parties. Under such circumstances, the public’s general interest in transparency may not justify the impairment of the liti - gants’ privacy. Commentators suggest that the norm of public access to court proceedings in the UK and other jurisdictions is likely to drive trust administration business to offshore forums. Rise of estate and trust litigation The world is in the middle of the greatest generational transfer of wealth in history, and cross-border estate and trust litigation has never been busier. Trustees find themselves entangled in a rising number of complex and costly cross-border disputes, often serving as the target of aggrieved beneficiaries (or excluded family members) in jurisdictions that have forced inheritance laws or that do not recognise trusts. A global recession would likely increase the occurrence of such disputes as, for example, trustees must determine whether to distribute assets to beneficiaries in difficult financial positions and make investment decisions in a volatile market. Litigation in the areas of bankruptcy and fraud may also increase. The issue of requisite capacity in the execution of documents such as wills and trusts has become a dominant consideration. With increasing frequency, lawyers are ensuring they have evidence of their cli - ents' requisite capacity at the time of execution, as well as emphasising the importance of planning for a client's future incapacity, such as with powers of attorney and succession planning. Whether representing fiduciaries or challengers, anticipating litigation can go far towards increasing the likelihood of obtaining a favourable result (wheth - er through the courts or via a negotiated settlement). The greatest risks in multi-jurisdictional trust litigation come from the potential clash of laws and procedures of the different countries, yet these inconsistencies also create opportunities for surprise and victory. The litigation team that truly understands the intricacies in each jurisdiction and appreciates the contrasting cultural forces can exploit the gaps that are created to its substantive and procedural advantage.
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INTRODUCTION Contributed by: Basil Zirinis and Elizabeth Kubanik, Sullivan & Cromwell LLP
New challenges that are emerging include adapting current laws and structures to evolving methods of reproduction due to scientific and medical advance - ments. These range from the increasing use of surro - gacy arrangements to the posthumous conception of children from frozen embryos after one or both of their biological parents have died. Laws to address ques - tions of inheritance rights and the definition of such terms as “issue” and “legitimate” in these contexts either do not exist or conflict among jurisdictions.
Digital assets, including virtual currencies such as Bit - coin, continue to evolve, requiring national legal sys - tems to adapt and address new issues as they arise. The development of law around these new challenges, especially after several particularly volatile years in crypto, will be of increasing importance.
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ARGENTINA
Brazil
Paraguay
Chile
Uruguay
Buenos Aires
Argentina
Law and Practice Contributed by: Juan McEwan and Agustín Lacoste McEWAN
Contents 1. Tax p.16
7. Citizenship and Residency p.26 7.1 Requirements for Domicile, Residency and Citizenship p.26 7.2 Expeditious Citizenship p.26 8. Planning for Minors, Adults with Disabilities and Elders p.26 8.1 Special Planning Mechanisms p.26 8.2 Appointment of a Guardian p.26 8.3 Elder Law p.27 9. Planning for Non-Traditional Families p.27 9.1 Children p.27 9.2 Same-Sex Marriage p.27 10. Charitable Planning p.27 10.1 Charitable Giving p.27 10.2 Common Charitable Structures p.28
1.1 Tax Regimes p.16 1.2 Exemptions p.18 1.3 Income Tax Planning p.18 1.4 Taxation of Real Estate Owned by Non-Residents p.18 1.5 Stability of Tax Laws p.19 1.6 Transparency and Increased Global Reporting p.20 2. Succession p.21 2.1 Cultural Considerations in Succession Planning p.21 2.2 International Planning p.21 2.3 Forced Heirship Laws p.21 2.4 Marital Property p.22 2.5 Transfer of Property p.23 2.6 Transfer of Assets: Vehicle and Planning Mechanisms p.23 2.7 Transfer of Assets: Digital Assets p.23 3. Trusts, Foundations and Similar Entities p.23 3.1 Types of Trusts, Foundations or Similar Entities p.23 3.2 Recognition of Trusts p.24 3.3 Tax Considerations: Fiduciary or Beneficiary Designation p.24 3.4 Exercising Control Over Irrevocable Planning Vehicles p.24 4. Family Business Planning p.24 4.1 Asset Protection p.24 4.2 Succession Planning p.24 4.3 Transfer of Partial Interest p.25 5. Wealth Disputes p.25 5.1 Trends Driving Disputes p.25 5.2 Mechanism for Compensation p.25 6. Roles and Responsibilities of Fiduciaries p.25 6.1 Prevalence of Corporate Fiduciaries p.25
6.2 Fiduciary Liabilities p.26 6.3 Fiduciary Regulation p.26 6.4 Fiduciary Investment p.26
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ARGENTINA Law and Practice Contributed by: Juan McEwan and Agustín Lacoste, McEWAN
McEWAN is a pioneer in delivering legal and tax ad - visory services to private clients in Argentina. With a proven track record advising ultra high net worth indi - viduals and their families, McEWAN has earned solid recognition in the areas of estate structuring, inter - national tax planning, and cross-border succession. The firm’s multidisciplinary team ‒ comprising sea - soned lawyers and accountants ‒ provides strategic counsel not only to individuals and family groups, but also to private banks, family offices, trust companies,
investment banks and private equity firms seeking trusted guidance on complex legal and tax matters. McEWAN offers comprehensive capabilities across civil, tax and corporate law, along with a strong repu - tation in high-value succession cases and complex tax litigation. In addition, its professionals bring deep expertise in family law, particularly in managing high- conflict, multi-jurisdictional matters involving family governance, asset protection, and intergenerational planning.
Authors
Juan McEwan is the founder and managing partner of McEWAN. He is a pioneer in the development in Argentina of legal and tax advisory services targeted at high net worth individuals and families. Juan advises
Agustín Lacoste is a partner in the private client law department of McEWAN and a member of the Buenos Aires Bar Association. His practice is focused on the daily counselling of high net worth families,
on all aspects of domestic and international estate planning and succession matters for individuals, trust and estate administration, charitable giving, and the operation of tax-exempt organisations. He also assists clients with tax planning and has expertise in creating local and international trusts and foundations. Juan’s practice encompasses multi-jurisdictional and international matters for numerous multinational families. He co-authored the book “International Succession” (Oxford University Press, 2014), as well as a law review concerning private wealth.
providing them with highly valuable, creative and reliable solutions through sophisticated legal advice and tax services. Agustín has published articles on tax litigation, wealth planning and estate planning in Argentina, as well as on international succession.
McEWAN Esmeralda 1061 PB C1007ABM Buenos Aires Argentina Tel: +54 117 078 1112 Fax: +54 117 078 1112
Email: info@estudiomcewan.com.ar Web: www.estudiomcewan.com.ar
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ARGENTINA Law and Practice Contributed by: Juan McEwan and Agustín Lacoste, McEWAN
1. Tax 1.1 Tax Regimes
tled. A tax credit will also be permitted with regard to a similar tax paid abroad. PIT – Amendments to Legislation More than five years have passed since the enact - ment of Law 27.430, which incorporated significant changes and had a great impact on high net worth individuals and families due to the taxability of finan - cial investments and the inclusion of fiscal transpar - ency through the controlled foreign company rules. However, through the enactment of Law 27.541, exemptions for certain Argentine-sourced income has been re-established, such as: • income derived from the allocation of capital in public securities issued by the national, provincial, municipal or City of Buenos Aires governments, negotiable obligations, debt securities, bonds and other securities, as well as from participations in mutual funds; and • interest from savings accounts and fixed-term deposits in national currency, capital gains from public securities issued by the national, provincial, municipal or City of Buenos Aires governments, and participations in mutual funds and financial trusts. Section 130 of the ITL establishes that certain foreign structures (companies or other entities or contracts such as trusts) will be considered “transparent” for tax purposes if they meet certain requirements. To that end, the ITL establishes three categories of entities: • trusts, private interest foundations and similar structures established or domiciled abroad; • companies without fiscal personality; and • companies with fiscal personality. Trusts and Private Interest Foundations The ITL establishes that fiscal transparency will apply to trusts, private interest foundations and similar structures if an Argentine tax resident exercises con - trol over the structure – ie, when there is evidence that the assets remain in its possession and/or are admin - istered either directly or indirectly by the tax resident – in the following cases, among others:
The Argentine tax regime functions at the three levels of government: federal, provincial and municipal. The most relevant taxes at federal level levied on individu - als are income tax and personal assets tax – although there are other taxes that, albeit normally irrelevant, may have an impact on wealth structuring. Personal Income Tax Individuals residing in Argentina are subject to person - al income tax (PIT) on worldwide income. In summary, the following are regarded as Argentine residents: • Argentine citizens, whether native or naturalised individuals; • foreign individuals who have obtained perma - nent residency status in Argentina or have been in Argentina with temporary authorisation for 12 months (provided that temporary absences do not exceed 90 days); and • undivided estates in which the decedent was Argentine domiciled on the date of their death. In the case of individuals, the Income Tax Law (ITL) establishes a progressive scale consisting of two con - cepts: • a fixed tax value; and • a variable rate (from 5% to 35%). However, the ITL applies a differential treatment to profits derived from the sale of bonds, stocks, other securities and real estate, and income derived from dividends distributed by Argentine entities – at rates of 7% or 15%, respectively. For transfers of real estate, a 15% rate of PIT applies to the extent that the real estate was acquired on or after 1 January 2018. Where the real estate being sold was acquired prior to 1 January 2018, a 1.5% with - holding tax (real property transfer tax ( impuesto a la transferencia de inmuebles , or ITI)) will apply. PIT is an annual tax and the tax return must be filed in mid-June of the year following the tax period set -
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• revocable trusts or foundations; • when the settlor/founder is also a beneficiary; and • when the settlor/founder has decision-making power, directly or indirectly, to invest or divest assets. If a trust/private interest foundation does not meet these characteristics, it will not be considered trans - parent for tax purposes. Personal Asset Tax – Amendments to Legislation The criteria according to which an individual falls with - in the scope of personal asset tax (PAT) changed five years ago from domicile to residency under the terms and conditions foreseen in the ITL. Law 27.667 (published in the Official Gazette on 31 December 2021) increased the value of the standard tax-free threshold from ARS2 million to ARS6 million. The law also provided that this value will be adjusted annually based on the consumer price index ( índice de precios al consumidor , or IPC). The IPC adjustment began to apply from the 2022 tax period. However, on 28 June 2024, Law 27.743 introducing modifications to the PAT was approved by Congress. For the tax period 2023, the tax-free threshold was set at ARS100 million. Therefore, Argentine-resident indi - viduals will be subject to PAT on assets held both in and outside Argentina as of December 31st each year. Unlike the previous regulations, this new law introduc - es a single progressive tax rate for all assets above the threshold (located in Argentina and abroad), ranging from 0.5% to 1.50%. Real property in which the taxpayer lives ( casa hab- itación ) – or in which the deceased used to live in the case of undivided estates – will not be taxable when its value is equal to or less than ARS350 million. The taxable base is the market value of such assets and, apart from a few exceptions, debts are not deductible. As mentioned in 1.4 Taxation of Real Estate Owned by Non-Residents , for real estate property, PAT is also applicable to non-resident individuals exclusively on assets held in Argentina. To ensure that the tax is col - lected, the law provides a method of substitution that
imposes the obligation to file the tax return and pay the tax on the local resident that administers the asset on behalf of the foreigner (“substitute taxpayer regime”). Those individuals must designate a local substitute taxpayer to pay the tax assessed on property located in Argentina, applying a fixed tax rate of 0.5%. A 0.5% tax rate applies on the net equity value of Argentine companies owned by resident and non-res - idents individuals or entities. The company is respon - sible for filing the tax return and paying the applicable tax (“substitute taxpayer regime”). Expatriates residing in Argentina on work assignments for a period not exceeding five years are considered non-residents (Section 123 (c) of the ITL) and are therefore taxed exclusively on their Argentine situs assets. The employment reasons that require Argen - tine residence must be duly proven. Gift/Estate Tax In Argentina there is neither federal gift tax nor inher - itance/estate tax. A gift tax/estate tax ( impuesto a la transmisión gratuita de bienes , or ITGB) is only appli - cable for Buenos Aires Province ( Provincia de Buenos Aires , or PBA). ITGB is assessed on any increase in an individual’s wealth due to the receipt of a gratuitous transfer of assets from acts including inheritances, legacies and gifts. According to the law, the following are regarded as liable. • Natural persons and legal entities domiciled within PBA that benefited from the gratuitous transfer are liable. In this case, the tax applies to the total sum of the assets received by that person or entity. • Natural persons and legal entities domiciled outside PBA are liable when the increase in their wealth comes from a gratuitous transfer of assets located within PBA (PBA situs assets). In this case, the tax applies only to the amount of the increase derived from the transfer. The PBA Tax Code considers that the shares and equity interests of a company registered outside PBA are a PBA situs asset in the proportion of those assets held by the company that are situated in PBA (eg, a company incorporated and registered in the Autonomous
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City of Buenos Aires having real property in PBA). For tax assessment purposes, the shares will be valued according to the net asset value of the lat - est closed financial statements. The tax-free allowance when the beneficiary is the spouse, child or parent of the transferor is ARS8,488,486. If the amount received exceeds this sum, the tax will be applied to the difference. In any other cases, the tax-free allowance is ARS2,038,752. The applicable tax rates vary between 1.6% and 9.51%, depending on the value of the property trans - ferred and the relationship between the transferor and the transferee of the property. The rates are based on the assessment value or the market value (whichever is higher). The PBA Tax Code (Section 320 of Provincial Law 10.397) provides that certain heirs (surviving spouse, ascendants and/or descendants) will be exempt from ITGB when they receive any of the following assets mortis causa: • a homestead ( vivienda familiar ) in accordance with Section 244 of the Argentine Civil and Commercial Code ( Código Civil y Comercial de la Nación , or CCCN); • real property entirely destined for the housing of the decedent or their family, provided it is the only property and its assessed value does not exceed ARS1,154,400 (for the 2025 fiscal period); and • a company, whatever its form of organisation, pro - vided the valuation of its assets does not exceed the amount established by law (ARS153,276,715 for the 2025 fiscal period) and as long as the activity is effectively maintained in the five years following the death of the decedent – otherwise, they must pay the tax reassessment for the remain - ing years to obtain the benefits of the exemption (although this exemption will not apply when the income of the company derived from rental and financial assets exceeds ARS6,145,618 (for the 2025 fiscal period)). Even though there are no similar taxes in the rest of the provinces (Entre Ríos Province abrogated this tax on 22 December 2018), it cannot be ruled out that oth -
er provinces may introduce similar taxes in the future or that an inheritance is enacted at a federal level. Every now and then these possibilities are mentioned. 1.2 Exemptions See 1.1 Tax Regimes (Gift/Estate Tax). 1.3 Income Tax Planning There are no special provisions in the ITL that provide a step-up in the value of assets to their fair market value. 1.4 Taxation of Real Estate Owned by Non- Residents Non-residents are subject to PAT on all property locat - ed in Argentina as of December 31st each year. To col - lect this tax, the law provides a method of substitution that is imposed on the local resident who administers the asset owned by the foreign national. Such person must submit and pay the tax return (“substitute tax - payer regime”). The applicable fixed tax rate is 0.5% and there is no tax relief allowed. In addition, provincial real estate tax must be paid annually, in one or several instalments in the months of February, April, June, August and October. By way of example, the tax in PBA comprises a fixed amount (from ARS455 to ARS700,551) and the tax rate to be applied on the surplus of the established minimum of the scale goes from 0.028% to 2.363%, depending on the type of property and the fiscal valuation carried out by the Land Registry and Territorial Information Service. If the property is rented out, the tenant should with - hold tax at an effective rate of 21% (the ITL presumes that 90% of the rent is the net income and applies a 35% tax rate). If the property is to be rented for com - mercial purposes (ie, it is not to be the tenant’s home), VAT would apply at a rate of 21% of the rental value. As for PAT, the law provides a substitution method for the collection of this tax, which is imposed on the local resident designated by the non-resident for this purpose. Such person must submit and pay the tax return. As regards onerous transfers of real estate, PIT applies to the extent that the real estate was acquired by the
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non-resident on or after 1 January 2018. Where the real estate being sold was acquired by the non-resi - dent prior to 1 January 2018, a 1.5% withholding tax (ITI) will apply. In addition, the deed of sale of the real estate is subject to stamp tax – the rate of which will depend on where the real estate is located, as each province sets a specific rate within its own provincial tax code. By way of example, in the Autonomous City of Buenos Aires, the tax rate for the transfer of owner - ship of real estate is 3.5% on the economic value of the contract. Where a non-resident receives income on the sale or transfer of shares or other interests in foreign entities, and the value of this derives at least 30% from assets located in Argentina (eg, real estate), this income will be taxed in the same way as capital gains. Gratuitous transfers during the non-resident lifetime (gift) of real estate situated within PBA will be sub - ject to ITGB. If the gratuitous transfer derives from the death of the non-resident (inheritance), court fees derived from the succession proceeding will also apply (amounting from 1.5% to 2.2% of the value of the property). Fideicomisos (local trusts) are commonly used struc - tures to defer ITGB and avoid court fees. If the prop - erty is situated outside PBA, gifting the real estate could be an alternative (the donor may keep lifetime usufruct over the given property). 1.5 Stability of Tax Laws Stability is not a quality that is readily associated with Argentina, and the country’s tax legislation is no exception to this. This can clearly be seen by the changes made to PAT in recent years, which can be summarised as follows. • In May 2016, the National Executive Branch sent a draft bill to Congress, which included a tax amnes - ty, a moratorium, and staggered modifications in the non-taxable minimum amounts and rates of PAT. The bill contemplated the abrogation of PAT as of 1 January 2019. • Law 27.260 (22 July 2016) introduced staggered modifications in the non-taxable minimum amounts and rates of PAT. The abrogation of this tax was finally set aside.
• Law 27.429 (22 December 2017) established the fiscal consensus reached by the federal govern - ment, the provinces (except San Luis) and the Autonomous City of Buenos Aires. It was aimed at implementing tax policies designed to promote and increase investment, as well as private employ - ment, through a reduction in the fiscal burden of taxes with a distortive effect on overall economic activity. The other side of the obligations assumed by local jurisdictions was the commitment not to create new national taxes on assets or increase the tax rate on PAT. • On 12 October 2018, the National Executive Branch submitted a bill to ratify amendments to the previously mentioned fiscal consensus. Item (e) of the bill provided for the suspension of the commit - ment assumed by the national government. • Law 27.480 (21 December 2018) raised the mini - mum taxable base and the fixed 0.25% tax rate was finally replaced by a progressive scale (up to 0.75% tax rate). • Law 27.541 (23 December 2019) raised tax rates once again through a progressive scale ranging between 0.5% and 1.25% and delegated to the executive branch the power to establish differential rates for assets held outside Argentina, which have been finally raised to up to 2.25%. • Law 27.667 (31 December 2021) again raised tax rates, which now range within a progressive scale between 0.5% and 1.75% for domestic property and from 0.70% to 2.25% for assets held abroad. • Besides PAT, a one-off extraordinary contribution levied on the assets held by individuals and undi- vided estates (both residents and non-residents) was enacted in 2020. This tax was known as aporte solidario y extraordinario or impuesto a la riqueza . • Law 27.743 (27 June 2024) – as mentioned in 1.1 Tax Regimes (Personal Asset Tax – Amendments to Legislation) – established a single progressive tax rate for domestic and foreign assets alike, ranging from 0.5% to 1.5% for fiscal year 2023. Furthermore, it provides a reduction of tax rates for the following fiscal years: (a) fiscal year 2024 ‒ from 0.50% to 1.25%; (b) fiscal year 2025 ‒ from 0.50% to 1.00%; (c) fiscal year 2026 ‒ from 0.50% to 0.75%; and (d) fiscal year 2027 ‒ a flat rate of 0.25%.
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