Family office domicile options in the UAE

In the past decade the UAE has witnessed a consistent increase in the number of HNWIs and UHNWIs relocating to the UAE, due to a variety of reasons ranging from incentivized long-term residency schemes, nominal taxation, access to superior healthcare, infrastructure and education to a vibrant economy that remained open to business despite the global pandemic.

To meet the increased demand for effective and robust wealth management, the various free zones within the UAE have introduced new regulations or have updated existing legislation governing single family offices (SFOs). Furthermore certain, free zones will provide 40 or 50 year tax holidays to entities incorporated therein and we expect this to remain in effect irrespective of the Corporate Tax Law.

Free zones allow HNWIs and UHNWIs to benefit from conducting business in a tax-free environment, with sophisticated regulatory regimes and professional service providers and, in the case of the Dubai International Financial Centre (DIFC) and the Abu Dhabi Global Market (ADGM), common law legal systems. An overview of the existing Family Office regimes is set out below.

Authored by: Sunita Singh-Dalal