Setting up a family office in the UAE

Families moving their wealth management to the UAE usually choose between the two financial free zones, the Dubai International Financial Centre (DIFC) and Abu Dhabi Global Market (ADGM). Each has its own route for a single family office, and UAE corporate tax treats the family office differently from the family foundation or trust that holds the assets. This guide sets out the main rules.

A single family office in DIFC

DIFC's Family Arrangements Regulations 2023 came into force on 31 January 2023. Under them:

• A Family Office must be licensed as such by the DIFC Registrar of Companies, on the prescribed form and with the information required by Regulation 4.2.
• The family must meet the Minimum Net Asset Requirement, defined as "in aggregate a net asset value of USD50,000,000", measured at fair market value or, where that cannot be ascertained, at book value.
• The regulations set a Family Office Licence fee of USD 12,000.
• A family is two or more Family Members, defined by reference to a common ancestor identified to the Registrar.
• A separate Family Business Register is available for family businesses, with an entry fee of USD 5,000.

As summarised by Al Tamimi & Company, a single family office of this kind serves one family only and is exempt from regulation by the Dubai Financial Services Authority (DFSA) provided it serves only that family. The application includes a statement on the family's structure, entities, source of wealth and funds, control arrangements and ultimate beneficial ownership, and the family can apply for the Private Register option to keep shareholder and director details off the public register.

A single family office in ADGM

As described by Forsters in June 2026:

• Family office activity in ADGM is a controlled activity that needs specific authorisation from the ADGM Registration Authority; a standard company alone is not enough.
• Under the Controlled Activities Rules, a single family office must have a minimum value of USD 10,000,000, interpreted by reference to the net asset value of the family rather than the family office's own balance sheet.
• A family office that does not manage third-party capital is overseen by the Registration Authority rather than the Financial Services Regulatory Authority (FSRA). A family office that carries on regulated activities needs a Financial Services Permission from the FSRA.

How corporate tax treats the family office

The Federal Tax Authority (FTA) updated its Corporate Tax Guide on the Taxation of Family Foundations (CTGFF1) in June 2026. As summarised by PwC and Al Tamimi & Company:

• A single or multi family office generally provides taxable business services and is subject to corporate tax on all its income, including management and service fees.
• Fees between the family office and the family's entities must be at arm's length under the transfer pricing rules.
• A family office in a free zone may benefit from the 0% rate for Qualifying Free Zone Persons on Qualifying Income only where its activities are subject to regulatory oversight by a UAE competent authority; a licence alone is not sufficient.

Corporate tax is charged at 0% on taxable income up to AED 375,000 and 9% above that amount.

Family foundations and tax transparency

Under Article 17 of Federal Decree-Law No. 47 of 2022, a Family Foundation can apply to the FTA to be treated as an Unincorporated Partnership, so that its income is taxed in the hands of its members rather than the foundation itself, if all of these conditions are met:

1. It was set up for the benefit of identified or identifiable natural persons, a public benefit entity, or both.
2. Its principal activity is to receive, hold, invest, disburse or otherwise manage assets or funds associated with savings or investment.
3. It does not carry on an activity that would be a Business or Business Activity if the founder, settlor or a beneficiary carried it on directly.
4. Its main purpose is not the avoidance of corporate tax.
5. It meets any other conditions set by the Minister.

KPMG notes that, under the FTA's guidance, family members are not taxed on personal investment or real estate income received through these structures. The June 2026 guide also allows a company owned and controlled by more than one qualifying Family Foundation to apply for the same treatment, while a limited liability company cannot itself be a Family Foundation.

What to do

• Confirm the family's aggregate net assets against the DIFC USD 50 million and ADGM USD 10 million thresholds.
• Decide whether the office will serve one family only or manage outside capital, as that decides whether a financial services licence is needed.
• Separate the asset-holding structure (foundation or trust) from the service company (the family office) and check each against the corporate tax rules.
• Set and document arm's length fees between the family office and the family's entities.
• Review the tax position in each family member's home country before assets are moved.

Our international tax, corporate tax and company setup and PRO services cover family office structuring, registration and ongoing compliance. See also our guide to the UAE holding company.

Sources

• DIFC: Family Arrangements Regulations 2023 (updated August 2023)
• Al Tamimi & Company: DIFC family offices offering
• Forsters: How do you set up a family office in Abu Dhabi, and why now? (June 2026)
• Ministry of Finance: Federal Decree-Law No. 47 of 2022 and its amendments
• Ministry of Finance: Cabinet Decision No. 116 of 2022 on the annual taxable income subject to corporate tax
• PwC: Family Foundations Corporate Tax Guide (2026)
• Al Tamimi & Company: FTA updates Family Foundations Guide 2026
• KPMG: UAE guidance on corporate tax treatment of family wealth management structures

This page gives general information as at the date shown and is not advice for your specific situation. Rules in other countries are summarised for orientation; your home-country position should be confirmed before you act.