Foundations and family offices in the UAE: which structure for a business family?
In brief. The UAE offers business families three tools: a foundation (DIFC or ADGM) to hold and pass on assets, a family office to manage them, and the 2022 federal family business law to organise governance. A family foundation can be tax-transparent under conditions; a family office pays 9 % corporate tax on its fees.
Foundations
| DIFC | ADGM | |
|---|---|---|
| Law | DIFC Law No. 3 of 2018 | Foundations Regulations 2017 |
| Governance | Council of at least two members | Council; guardian required after the founder's death |
| Privacy | Public charter, private by-laws | Individuals' names off the public register |
| Published fees | To check with DIFC | USD 1,000 to set up, USD 500 a year |
Family offices
- DIFC: minimum family wealth of USD 50 m, USD 12,000 licence.
- ADGM: minimum family wealth of USD 10 m, a 'controlled' activity with no FSRA permission needed.
The federal family business law (2022)
It allows a family charter, several share classes (for example dividend-only shares), family pre-emption rights and dispute resolution through conciliation.
Tax
Under the Federal Tax Authority guide updated in June 2026, a family foundation can be tax-transparent if its beneficiaries are individuals and it does not run a business. Family members living outside the UAE, in France for example, must be analysed separately: their own tax can cancel the benefit.
Our role
We map the family's assets, compare structures and their costs, and support family governance alongside specialist lawyers.
Facing a decision like this?
We read every request personally and reply within 72 working hours when we believe we can be useful. The first review is free and without commitment.
Request a reviewSources
This guide is general information. It is not investment, legal or tax advice. The rules quoted must be checked by your advisers before any decision.