Family office in Dubai: DIFC rules, ADGM option and corporate tax

What a single family office is

In ADGM's words, a single family office is a company set up to manage the financial and personal affairs of one family. In DIFC, a Family Office is a registered entity licensed by the DIFC Registrar to serve one family's members, entities, structures and businesses.

Its permitted services include investments, tax and wealth planning, legal, philanthropy, administration and acting as a holding company or trustee. The federal family business law (Federal Decree-Law No. 37 of 2022) also lets a family set up a family office or family council to separate family wealth from business ownership and oversee family investments. It applies to family businesses; in DIFC and ADGM, their own rules prevail where they conflict.

For a simple asset-holding company, see offshore company registration.

How the DIFC family office regime works

DIFC's Family Arrangements Regulations 2023 took effect on 31 January 2023, repealing the 2011 Single Family Office Regulations and their USD 10 million investable-assets test.

The family must meet the Minimum Net Asset Requirement: USD 50 million in aggregate net asset value, at fair market value or, where that can't be found, book value. Family members are a common living ancestor and their descendants, or descendants of a common ancestor no more than three generations back, with spouses, stepchildren and adopted children.

Serving more than one family needs the Registrar's approval, and providing restricted financial services by way of business to more than one family needs DFSA authorisation.

• 1. Set up the DIFC entity. The Registrar licenses a DIFC registered person as the Family Office.
• 2. Prepare the family statement. Cover family members, source of wealth and funds, ultimate beneficial owners, politically exposed persons, planned services and proof of net assets, or use a corporate service provider's letter.
• 3. Apply to the Registrar. The regulations' fee schedule lists USD 12,000 for the Family Office license, on top of the DIFC entity's own registration fees, plus an optional USD 1,000 to keep owners' and directors' details on a private register, at the time of writing.
• 4. Stay compliant. Keep source-of-wealth and source-of-funds records for at least six years, and confirm yearly in your Confirmation Statement that you serve one family and meet the net asset rule.

DIFC's Family Wealth Centre, set up in 2023, supports families on succession and governance.

ADGM's single family office option

ADGM is Abu Dhabi's international financial centre. Its family offices page lists:

• Minimum family net assets of USD 10 million.
• A controlled license activity, with no financial services permission needed to serve one family.
• Fees of USD 5,600 to incorporate and USD 5,300 a year to renew, with no minimum capital.
• An optional Restricted Scope Company, which discloses only the office address and company name.
• A business plan before you apply online.

A multi-family office in ADGM needs a financial services permission.

DIFC vs ADGM family office compared

Corporate tax: what the FTA says

The FTA's public clarification CTP008 covers family wealth structures. It says:

• A family office company that doesn't meet the Article 17 conditions is a taxable person, taxed on all its income, including arm's-length management fees.
• A free zone family office may get 0% on qualifying income from qualifying activities, such as wealth or investment management under CBUAE, DFSA or FSRA oversight. A license alone isn't enough.
• A foundation with separate legal personality can apply to be treated as tax transparent under Article 17(1), and so can holding companies or SPVs wholly owned and controlled by a transparent foundation.
• Family members aren't taxed on personal or real estate investment income through the structure, but may be on a share of business income above AED 1 million in a calendar year.

Since March 2025, eligible family foundations can apply on EmaraTax for unincorporated partnership treatment, and once approved they no longer file corporate tax returns. Applicants must already be registered for corporate tax, and individual beneficiaries should check whether they must register and file. Qualifying investment funds are exempt once the FTA approves their application and they meet the conditions. This summarises FTA guidance; it isn't tax advice.

Governance documents and how we help

Federal Decree-Law No. 37 of 2022 says a family may have a charter covering ownership, values, profit distribution, share valuation and disputes. The articles of association prevail if the two conflict, and a copy can be deposited in the family business register. Separately, DIFC asks for a family statement and ADGM for a business plan. For wills, see inheritance for expats.

Global Sky PRO is not a law firm, wealth manager, tax agent or financial adviser. We help prepare setup documents and applications, arrange legal translation and attestation of overseas papers, and follow up with the authority alongside your family's lawyers. See business setup and corporate tax registration.