Singapore VCC insights
Best Place to Set Up a Family Office in 2026: An Eleven-Hub Scorecard for Principals
Short answer: There is no single best place to set up a family office. Singapore scores most consistently across licensing, office tax, estate tax, banking and courts after its 15 June 2026 framework. The UAE wins on personal tax, Hong Kong on its FIHV concession, London on depth, and Switzerland on banking. Each hub carries a different trade-off.
Most rankings of the best place to set up a family office score hubs on one line: the headline tax rate. That misses how a family office actually works. A principal needs the office itself to be lawful without a fund manager licence, the investment vehicles to be taxed predictably, the family to be able to live somewhere, and assets to pass to the next generation without a large estate charge. This scorecard rates eleven hubs on eight disclosed criteria, using only what we could check on official sources on 13 October 2026, and marks everything else “check locally”.
Key facts at a glance
- Singapore’s revised single family office (SFO) framework took effect on 15 June 2026: a class exemption from licensing, with notification to MAS, a MAS-licensed bank account and an annual return. Existing SFOs have until 15 June 2027.
- Singapore’s fund tax incentives under the Income Tax Act 1947 require at least S$20 million (section 13O) or S$50 million (section 13U) in designated investments, per MAS.
- Singapore has no estate duty for deaths on or after 15 February 2008; its top resident personal income tax rate is 24% from YA 2024.
- Hong Kong’s FIHV concession taxes qualifying profits at 0% if the family’s eligible SFO manages at least HK$240 million of specified assets.
- ADGM single family offices need minimum family net assets of US$10 million; the UAE does not levy income tax on individuals and charges 9% corporate tax above AED 375,000.
- The UK replaced the remittance basis with a 4-year foreign income and gains regime on 6 April 2025; inheritance tax on foreign assets now turns on 10 years of UK residence out of 20.
- The US federal estate tax basic exclusion is US$15 million for 2026.
This article is general information only and is not legal, tax or immigration advice. For matters needing legal advice, we work with a panel of experienced Singapore law firms.
What is the best place to set up a family office in 2026?
For an Asia-facing family that wants one hub to do most of the work, Singapore is the most balanced choice on our criteria. For families whose priority is personal income tax, or who are already anchored in the Gulf, Europe or the United States, a different hub, or a two-hub arrangement, often fits better.
The reason is that “family office” covers three separate legal questions that rarely share an answer. First, can the office manage family money without a licence? Second, how are the investment vehicles taxed? Third, where does the principal live, pay personal tax and die? A hub can be excellent on one and weak on another. The UAE levies no income tax on individuals but applies 9% corporate tax to business profits above AED 375,000, subject to exemptions and free zone rules. Singapore taxes residents progressively but exempts qualifying fund income under sections 13O and 13U and has had no estate duty since 2008. London has deep markets and courts but, since April 2025, reaches the foreign assets of long-term residents for inheritance tax.
How does this scorecard rate the hubs?
Each hub receives a qualitative rating on eight criteria, judged for a principal with internationally mobile wealth who wants a single family office managing only the family’s money. We do not award numerical scores, because a number implies a precision the underlying law does not support.
The ratings use four labels:
- Strong: a clear, published rule that favours the family, confirmed on an official source in this review.
- Workable: available, but with conditions, cost or discretion that need planning.
- Constrained: a published rule that will bite for many families.
- Check locally: we could not confirm the position on an official source on 13 October 2026, so we make no claim.
The eight criteria are: (1) licensing of the office; (2) tax on the office and its investment vehicles; (3) personal tax on the principal; (4) estate or inheritance taxation; (5) a residency route for the family; (6) treaty access; (7) banking and custody depth; and (8) courts and legal system. Ratings describe the regime, not any provider, and will move as rules change.
How do the eleven hubs compare on licensing, tax and estate rules?
On the first four criteria, Singapore, Hong Kong and ADGM have the clearest published rules for a single family office, while the UAE leads on personal tax and the United Kingdom is the most constrained on estate taxation.
| Hub | 1. Licensing of the office | 2. Tax on office and vehicles | 3. Personal tax | 4. Estate taxation |
|---|---|---|---|---|
| Singapore | Strong: class exemption from 15 June 2026 (notify MAS, MAS-licensed bank, annual return) | Strong with conditions: 13O (S$20m) or 13U (S$50m) fund incentives | Workable: progressive, top resident rate 24% | Strong: no estate duty for deaths on or after 15 February 2008 |
| Hong Kong | Check locally | Strong with conditions: FIHV 0% on qualifying profits; HK$240m threshold, 2 staff, HK$2m spend | Check locally | Strong: estate duty abolished from 11 February 2006 |
| Dubai (DIFC) | Strong: Family Office regime since 2023, no DFSA registration for one family; multi-family offices need DFSA authorisation | Workable: UAE corporate tax 9% above AED 375,000; free zone treatment, check locally | Strong: no income tax on individuals | Check locally |
| Abu Dhabi (ADGM) | Strong: SFO is a controlled licence activity, not a financial services permission; US$10m family net assets | Workable: UAE corporate tax applies; ADGM cites a 0% route for foundations | Strong: no income tax on individuals | Check locally |
| Switzerland | Check locally | Check locally | Check locally (cantonal) | Workable: no federal inheritance tax; cantons and communes levy their own |
| Luxembourg | Check locally | Workable: SPF wealth vehicle (law of 11 May 2007), no commercial activity, outside the EU Parent-Subsidiary Directive | Check locally | Check locally |
| Ireland | Check locally | Check locally | Check locally | Check locally |
| Jersey and Guernsey | Check locally | Check locally | Check locally | Check locally |
| London | Check locally | Check locally | Workable for new arrivals: 4-year FIG regime after 10 years non-resident | Constrained: foreign assets in scope after 10 of 20 years’ residence, with a 3 to 10 year tail |
| Cayman and BVI | Check locally | Check locally | Check locally | Check locally |
| New York or Delaware | Strong: SEC family office rule excludes qualifying offices from the Advisers Act | Check locally | Check locally (federal plus state) | Workable: US$15m federal basic exclusion for 2026 |
How do the hubs compare on residency, treaties, banking and courts?
On the second four criteria the picture is less clear-cut, because residency programmes are discretionary and banking depth is a market judgement rather than a rule. Where a cell reflects general market standing rather than a published rule, we label it “qualitative”.
| Hub | 5. Residency route | 6. Treaty access | 7. Banking depth | 8. Courts |
|---|---|---|---|---|
| Singapore | Workable: Employment Pass or Global Investor Programme, both discretionary | Strong (qualitative): broad treaty network | Strong (qualitative); MAS-licensed bank now a licensing condition | Strong (qualitative): common law |
| Hong Kong | Workable: New CIES, HK$30m net assets and HK$30m committed investment | Check locally | Strong (qualitative) | Strong (qualitative): common law |
| Dubai (DIFC) | Check locally | Workable: the UAE reports a large treaty network; check entity eligibility | Workable (qualitative) | Check locally |
| Abu Dhabi (ADGM) | Check locally | Workable: ADGM cites over 100 investment and tax treaties for Abu Dhabi | Workable (qualitative) | Strong: direct application of English law |
| Switzerland | Check locally | Check locally | Strong (qualitative) | Strong (qualitative): civil law |
| Luxembourg | Check locally | Constrained for the SPF, which is excluded from the Parent-Subsidiary Directive | Workable (qualitative) | Strong (qualitative): civil law, EU |
| Ireland | Check locally | Check locally | Workable (qualitative) | Strong (qualitative): common law, EU |
| Jersey and Guernsey | Check locally | Check locally | Workable (qualitative) | Strong (qualitative): established trust jurisdictions |
| London | Check locally | Check locally | Strong (qualitative) | Strong (qualitative): common law |
| Cayman and BVI | Check locally | Check locally | Constrained (qualitative): usually a vehicle domicile, not where the office is run | Check locally |
| New York or Delaware | Check locally | Check locally | Strong (qualitative) | Strong (qualitative): common law |
The many “check locally” cells are deliberate: we prefer an honest gap to a figure that may have changed.
What changed in 2025 and 2026 that older rankings miss?
Four regime changes since early 2025 alter the comparison, and most published rankings predate at least one of them.
- Singapore: MAS’s revised SFO framework took effect on 15 June 2026. MAS describes it as structure-agnostic, giving qualifying SFOs a class exemption from licensing. They notify MAS, keep an account with a MAS-licensed bank and file a short annual return. Existing SFOs have a transitional period to 15 June 2027. The licensing exemption itself carries no AUM minimum; the S$20 million and S$50 million figures belong to the separate 13O and 13U tax incentives.
- United Kingdom: on 6 April 2025 the 4-year foreign income and gains (FIG) regime replaced the remittance basis. For inheritance tax, HMRC’s manual sets a long-term residence test of 10 out of the previous 20 tax years, and a leaver stays in scope for between 3 and 10 tax years depending on years of residence.
- Switzerland: on 30 November 2025 Swiss voters rejected a proposed federal 50% tax on estates and gifts above CHF 50 million. Inheritance and gift taxes therefore remain a cantonal and communal matter.
- United States: federal legislation signed on 4 July 2025 (Public Law 119-21) set the federal estate and gift tax basic exclusion at US$15 million for 2026.
Hong Kong’s FIHV regime, in operation since 19 May 2023, and the UAE’s corporate tax, which applies from financial years starting on or after 1 June 2023, are now settled features rather than novelties.
Which hub suits which kind of family?
The right hub depends less on the headline tax rate than on where the family lives, where its businesses operate and how many generations the structure must serve.
- Asia-based families with a liquid portfolio and a long horizon: Singapore, using a 13O or 13U vehicle where the AUM supports it, with an exempt SFO under the 2026 framework.
- Families with mainland China or Hong Kong ties and at least HK$240 million to manage: Hong Kong’s FIHV concession, often alongside a Singapore booking or management presence.
- Families relocating a principal for personal tax reasons, especially from the Gulf region or Europe: the UAE, with ADGM or DIFC chosen for the legal environment the family prefers.
- European families wanting to stay in the EU: Luxembourg, with the SPF suited to passive financial assets only. Ireland is a candidate whose details need local confirmation.
- Families anchored in the United States: an office relying on the SEC family office rule, planned around the federal estate tax exclusion.
- Families using trusts as the main holding layer: Jersey, Guernsey, Cayman or BVI for the vehicle, with the office itself run elsewhere.
Many larger families use two hubs: one where assets are booked and vehicles domiciled, and one where the principal lives. The split must be real; a vehicle whose decisions are in practice taken elsewhere can lose its intended tax treatment.
How should a principal choose between hubs?
Start with the family’s personal facts, not the hub. The sequence below keeps the decision anchored to rules that will actually apply.
- Map residence and citizenship for every principal and likely heir, including any exit or inheritance tax tail from the current home country.
- Decide whether the office will manage only family money. Serving a second family generally takes the office out of the single family office route and into licensing or authorisation in Singapore, DIFC and ADGM alike.
- Size the portfolio against each hub’s thresholds: S$20 million or S$50 million for Singapore’s incentives, HK$240 million for Hong Kong’s FIHV, US$10 million for an ADGM SFO.
- Check the substance each regime expects: qualifying investment professionals and local spending in Singapore, two qualified staff and HK$2 million of spending in Hong Kong.
- Choose where the family will bank and hold custody, and confirm the banking condition. Singapore now requires a MAS-licensed bank account for the SFO and its fund vehicles.
- Test the estate position in every country where assets are situated, not only where the family lives.
- Re-check every “check locally” cell with qualified local advisers before committing.
For the Singapore side of a cost comparison, the free tools at Raffles Corporate Services include a company set-up cost calculator and a compliance deadline calculator.
Is Singapore the best country to set up a family office?
On our eight criteria, Singapore is the most consistent performer: no cell is constrained, and most rest on published rules confirmed in this review. It is not the cheapest place for a principal’s personal income tax, and its incentives carry real conditions.
The strengths are structural. The 2026 framework gives qualifying SFOs a class exemption from licensing without an AUM minimum. The 13O and 13U incentives exempt qualifying fund income if the fund meets the AUM, investment professional, local spending, capital deployment and private banking conditions set out by MAS. There is no estate duty, and the legal system is common law. The trade-offs are a progressive personal tax up to 24% for residents, discretionary immigration routes, and incentive conditions that must be met throughout the incentive period, not just at application.
Frequently asked questions
Which country has the lowest tax for a family office?
On published rules, the UAE does not levy income tax on individuals, which helps a principal’s personal position. The office and its vehicles can still face UAE corporate tax at 9% above AED 375,000 unless an exemption or free zone treatment applies. Singapore and Hong Kong can exempt qualifying investment profits through conditional incentives.
Do I need a licence to run a single family office in Singapore?
Not if the office qualifies under MAS’s class exemption, in force from 15 June 2026. It must manage money only for the family and permitted persons, notify MAS, keep an account with a MAS-licensed bank and file an annual return. Existing SFOs have until 15 June 2027 to comply.
Is there a minimum AUM for a family office in Singapore?
The licensing exemption has no AUM minimum. The tax incentives do: S$20 million in designated investments for section 13O and S$50 million for section 13U, maintained throughout the incentive period.
Can a family office be based in one hub and hold assets in another?
Yes, and many do. The office, the investment vehicles, the bank and the family’s residence can sit in different places. Each regime tests where management and control actually happen, so the arrangement must reflect where decisions are really made.
Why does this scorecard say “check locally” so often?
We only state foreign rules we could confirm on an official source on 13 October 2026. Where we could not, we leave the cell unrated rather than repeat figures that may be outdated.
Need help with this? Call, SMS or WhatsApp +65 8501 7133, or email hello@rafflescorporateservices.com. Raffles Corporate Services works with a panel of corporate and employment law firms; this article is general information, not legal advice.
Last reviewed: 13 October 2026. The Editorial Team, variablecapitalcompaniesact.com.