Why the UAE Is Winning Family Office Relocations in 2026
By Affinitas FZCO — Corporate Structuring, Tax & Investment Advisory
The global family office map is being redrawn — and the United Arab Emirates is emerging as one of the clear winners.
As traditional European hubs tighten tax rules, introduce exit taxes, and dismantle long-standing wealth planning regimes, high-net-worth families are voting with their feet. Increasingly, they are choosing the UAE as their new base for capital, governance, and long-term succession planning.
This is not a temporary trend. It reflects a structural shift in how global wealth is organised.
A Global Context: Why Family Offices Are Moving
Over the last 24 months, several jurisdictions historically favoured by family offices have undergone aggressive tax and regulatory changes:
- Exit taxes on emigrants
- Wealth taxes based on fictitious returns
- Elimination of family investment vehicles
- Reduced expat regimes and partial residency benefits
For many families, the message has been clear: planning certainty is disappearing.
The UAE, by contrast, has taken the opposite approach — combining international compliance with predictable, investor-friendly frameworks.
What Makes the UAE So Attractive to Family Offices?
1. No Exit Tax, No Wealth Tax
One of the most decisive advantages of the UAE is what it does not impose:
| Tax Area | UAE Position |
|---|---|
| Exit tax | ❌ None |
| Net wealth tax | ❌ None |
| Inheritance tax | ❌ None |
| Capital gains tax (most assets) | ❌ None |
| Tax on foreign income | ❌ None |
For family offices planning generational wealth transfers, this alone is often a deal-breaker when comparing jurisdictions.
Source:
🔗 UAE Ministry of Finance – Tax Framework
https://mof.gov.ae
2. Corporate Tax — Predictable, Transparent, Globally Accepted
The UAE’s 9% corporate tax has not reduced its appeal. In fact, it has increased credibility with banks, regulators, and institutional counterparties.
Key points family offices value:
- Clear participation exemption for dividends & capital gains
- Qualifying income regimes in Free Zones
- No surprise retroactive taxation
- OECD-aligned without being punitive
3. World-Class Legal & Financial Jurisdictions
Family offices are not relocating blindly — they are choosing specific jurisdictions within the UAE that offer international-grade governance.
Most commonly used:
- Dubai International Financial Centre – common law, independent courts
- Abu Dhabi Global Market – English law, trust & foundation regimes
- DMCC, RAKEZ, IFZA – flexible holding & SPV environments
These zones provide:
- Ring-fenced regulation
- Recognised court systems
- Bankability with global institutions
Source:
🔗 DIFC Legal Framework
https://www.difc.ae
4. Substance Without Bureaucracy
Unlike many jurisdictions that impose heavy substance rules with little flexibility, the UAE applies commercially reasonable substance requirements:
- Physical office where needed
- Management presence aligned with activity
- Local staff proportional to scale
This balance allows family offices to remain compliant without operational paralysis.
UAE vs Traditional Family Office Jurisdictions (2025)
| Factor | UAE | Netherlands | Luxembourg |
|---|---|---|---|
| Exit tax | None | Proposed / active | Conditional |
| Wealth tax | None | Yes (Box 3) | None |
| Family investment vehicles | Flexible | VBI abolished | Limited |
| Regulatory stability | High | Declining | Medium |
| Residency pathways | Clear | Restricted | Complex |
| Long-term certainty | Strong | Weakening | Moderate |
Strategic Sectors Attracting Family Office Capital
Family offices relocating to the UAE are not parking capital — they are deploying it.
Most active sectors include:
- Private credit & alternative lending
- Technology & AI-linked holdings
- Energy transition & renewables
- Real estate (income-generating, not speculative)
- Healthcare & life sciences
The UAE’s regional access to MENA, Asia, and Africa further strengthens its role as a strategic base.
Expert Insight
“We are seeing a clear shift from tactical relocations to permanent family office migrations. The UAE offers something rare today: stability, tax clarity, and global legitimacy — all at the same time.”
— Affinitas FZCO, Family Office Advisory Team
What Family Offices Should Consider Before Relocating
Relocation is not just about tax rates. Poor structuring can create:
- Banking issues
- Treaty access problems
- Future exit complications
- Substance challenges
Key questions every family office must answer:
- Holding company or SPV-based structure?
- Free Zone or financial centre jurisdiction?
- Governance model for next generation?
- Residency & succession planning alignment?
How Affinitas FZCO Supports Family Office Relocation
Affinitas FZCO advises international families, founders, and family offices on end-to-end relocation strategy, including:
- Jurisdiction selection (DIFC, ADGM, Free Zones)
- Holding & SPV structuring
- Cross-border tax optimisation
- Corporate tax & VAT compliance
- Banking, substance & governance setup
- Ongoing accounting and reporting
🔗 Family Office Structuring in the UAE
Final Thought
The UAE is not winning family office relocations by accident.
It is winning because it offers what investors need most today:
For families willing to structure correctly and think beyond short-term tax arbitrage, the UAE has become one of the most compelling family office destinations globally.
If you are assessing relocation, restructuring, or future-proofing your family office, early planning is critical — especially as global tax rules continue to tighten.
Affinitas FZCO provides:
- ✅ Mainland & Free Zone company formation
- ✅ Corporate tax & compliance advisory
- ✅ Accounting & audit services
- ✅ Bank account opening support
📞 Call: +971 (0) 4 576 2903
📩 Email: in*******@af***********.com