Choosing Your Family Office Location: Founder's Playbook

If you expect a liquidity event and plan to receive a large sum of money (say $30M+) from selling a business or company shares, it's worth preparing well in advance to avoid nasty (and costly) surprises.

Depending on what you want to do, you have 2 options.

For some people, this is enough to stop thinking about money, and they can retire into the sunset or do whatever they desire. They can outsource wealth management to a private bank or multi-family office and don't think much about it. They only check statements every 6 months to ensure the performance aligns with the goals.

However, for many founders, such a liquidity event is not the end of the Quest but the beginning of a new chapter. You made some money and may want to take some rest, but you are not ready to retire. You want to manage your money proactively, maximise the returns, and get involved in other new, bigger ventures.

That is when you want to consider establishing a family office.

As we discussed, because of the costs of running a full-on single-family office (SFO), you usually need at least $250M to make it work. But today, if you don't have complex needs and want to focus on investment activity, you can start a private investment office with a much lower amount than that.

So, deciding on the family office location is one of your most consequential choices. It impacts everything from tax burden to talent acquisition, regulatory exposure, and long-term family wealth preservation.

What Makes a Perfect Family Office Location?

There isn't one.

Different locations are best suited for various aspects of family office operations. Your optimal jurisdiction depends on your goals, priorities, and playing level.

Let's break down the eight critical factors you need to evaluate across potential jurisdictions:

1. Access to Professional Services & Infrastructure

What you need: Banking systems, legal expertise, accounting professionals, tax advisors, and technology infrastructure that can support complex wealth management.

Questions to ask:

• Does the jurisdiction have strong API-enabled banking systems for modern treasury operations?
• Is there a deep bench of family office-specific advisors?
• How advanced is the digital infrastructure and cybersecurity environment?

Remember: A jurisdiction without strong professional services is like playing a high-stakes game without proper equipment. Don't handicap yourself from the start.

2. Access to Talent & Skilled Professionals

Family offices recognise that their most valuable asset is people—the professionals managing their wealth, structuring their investments, and executing their strategies.

Consider:

• Will you find specialists in your investment areas (private equity, venture capital, real estate)?
• Is there a multilingual talent pool if you need global capabilities?
• Are nearby universities producing relevant graduates?
• What's the typical compensation structure in this market?

Remember: The best investment strategy is worthless if you can't hire the right people to execute it.

3. Regulatory Framework & Legal Structures

The regulatory environment determines how you'll structure your family office, what activities you can perform without licensing, and how much compliance overhead you'll carry.

Switzerland offers exceptional legal certainty with a minimal regulatory burden for single-family offices, while the US provides the Family Office Exception under the Investment Advisers Act. Different structures have different implications:

• Common Law Jurisdictions (UK, Singapore, Hong Kong): Recognise trusts, which can be valuable for estate planning
• Civil Law Jurisdictions (Germany, Switzerland): May offer foundations, but do not recognise trusts

Questions to ask:

• Does the jurisdiction have specific family office regulations?
• What licensing or regulatory requirements can apply to your intended activities?
• How strong are the asset protection and privacy provisions?

4. Tax Regime

No factor varies more dramatically across jurisdictions than taxation. It encompasses income taxes, capital gains, dividends, inheritance, personal and wealth taxes.

The UAE offers zero personal income tax and 0% corporate tax for qualifying free zone entities. Singapore has no capital gains tax, wealth tax, or inheritance tax. At the other end of the spectrum, Denmark has progressive individual taxes reaching 52-55%.

Don't fall into the trap of choosing a location based on the lowest tax. It isn't automatically the best choice. Tax stability, treaty networks, and alignment with your investment strategy often matter more than just taxes.

Key considerations:

• Does the jurisdiction tax worldwide income or only local-source income?
• What's the effective tax rate for your specific situation, not just the headline rate?
• Are there special regimes for family investment vehicles?
• How do succession and inheritance taxes work?

Remember: High returns come with risk, including tax risk. Aggressive tax planning often comes with reputation, compliance, and long-term sustainability trade-offs. So, get advice from a qualified tax professional with a global view as soon as possible.

5. Immigration Rules & Investment Visa Availability

Your family office location also needs to account for the residency needs of family members or key executives.

Singapore's Global Investor Programme (GIP) provides a clear path to permanent residency through a family office setup. Spain's Golden Visa program allows residency through real estate or business investment. The UAE's Golden Visa offers investors and entrepreneurs a 5-10-year residency. However, getting a passport in the US or Switzerland may not be easy.

Consider:

• How easy is it to obtain and maintain residency permits?
• What are the physical presence requirements?
• Does it offer a path to permanent residency or citizenship?
• Are there special programs for wealth creators and investors?