Mr Family Office Newsletter
Posts
Prime Family Office Locations: The Full List

Prime Family Office Locations: The Full List

Pros and cons of family office locations around the world.

Mr FamilyOffice
May 24, 2024

Prime Locations: The Full List

Here we go, the full shortlist of prime family office locations, with pros and cons for each.

Bahamas 🌴

A tax haven in the tropics, it’s easy to see why this is a destination of choice for many family offices. The Bahamian government continues to promote a stable and welcoming environment for family offices.

Pros	Cons
No income, capital gains or inheritance taxes	As a tax haven, faces increased scrutiny and compliance costs
Stable political & economic environment, tax-neutral jurisdiction	Some claims the workforce is lacking skills
Well-developed financial services industry	Remote location can be inconvenient
The Digital Nomad Visa makes it easier for employees	Vulnerable to natural disasters
Strong privacy laws	Tech infrastructure is improving but still needs work

Beijing 🐼

Beijing stands out as a burgeoning center for family offices due to its strategic access to the vast Chinese market. The growth of wealth in China has been astonishing, but balancing against the wealth of opportunities for investment and business growth, lies …

Pros	Cons
Capital of a global economic player	Regulatory uncertainty: China is still a one-party country
Strong finance sector	Air quality issues
Political, cultural & educational hub of China	Political uncertainty: China is still a communist country
Government initiatives to open up financial sector	Language: Beijing can be difficult for foreigners

Belgium 🍫

There’s more to Belgium than beer and chocolate. Its central location in Europe and skilled, multilingual workforce make it an attractive hub for family offices looking at the EU. In a Twitter/X discussion, people were pretty hard on Belgium, but a number of family offices have made it their home.

Pros	Cons
Strategic EU base, advanced digital infrastructure	High personal income tax rates, high labor costs
Skilled multilingual workforce	Complex tax regulations
Favorable capital gains tax regime (0% in many cases)	Admin: anti-money laundering rules, anti-tax evasion measures
Strong legal system	Complex political system can mean regulatory inconsistencies

Bermuda 🏝️

Bermuda is another sunshine paradise in the Atlantic. The Bermudan government actively promotes family offices and has implemented standalone family office legislation to attract global family offices.

Pros	Cons
No income, capital gains, or inheritance taxes	Small workforce pool
Respected regulatory environment	Vulnerability to natural disasters
Proximity to US and access to LatAm markets	High cost of living & operations, expensive insurance costs
Strong insurance and reinsurance market	Limited local market and investment opportunities

Boston 🏫

Proximity to the likes of Harvard & MIT, Boston is an attractive location due to its access to talent and status as an established wealth management hub. The relatively low taxes and strong financial sector further enhance its appeal.

Pros	Cons
Access to top talent from prestigious universities	High cost of living and office space
Established wealth management hub	Harsh winters
Relatively low taxes compared to other US states	State inheritance tax
Vibrant biotech and health sectors, with investment opportunities	Recent increases in regulatory oversight
Robust financial services sector	Traffic congestion can be horrific

California 🌞

Major selling points are quality of life and proximity to Silicon Valley. A large, diverse talent pool and tech ecosystem make it a prime choice for those interested in technology & startups. But high state income taxes, living costs, crime rates and government interference are driving family offices out of state.

Pros	Cons
Large, diverse talent pool	High state income taxes
Tech/startup ecosystem - huge investment opportunities	High costs of living/operating. Increasing crime rates
Favorable climate, diverse landscape, high quality of life	Stringent regulations and growing government intervention
Strong tech industry presence	Increasing tax burdens
Access to top talent	Wildfire and earthquake risk

Cayman Islands 🏦

The Cayman Islands are a favored location for family offices due to their no-tax regime, respected regulatory environment, and proximity to the US and Latin American markets. But reputation is an issue…

Pros	Cons
Supportive, pragmatic government	Limited workforce
Strong family office organizations and representation	Vulnerability to hurricanes
No direct taxes	Perception issues - can mean reputational risk
Respected regulatory regime	Increased international scrutiny
Proximity to US/LatAm markets
Tax-neutral jurisdiction
Strong financial services sector

Channel Islands 🐄

The Channel Islands in the English Channel, including Jersey and Guernsey, offer low tax rates and a political stability. Proximity to Europe and strong financial regulations are positives, but remoteness, limited talent and high operating costs can be significant drawbacks.

Pros	Cons
Low tax rates	Remote location
Stable political environment	Limited talent pool
Respected financial centers	High operating costs
Proximity to London and Europe	High cost of living for staff
Strong regulatory framework	Increasing pressure to join tax transparency initiatives

Dallas 🤠

If you like the heat, Dallas offers a business-friendly environment with no state income tax and lower living and operating costs. Its growing economy is another plus.

Pros	Cons
No state personal income tax	Limited direct international flights
Lower costs of living/operating than other US cities	Lack of established wealth management talent pool
Business-friendly environment	Extreme weather events
Growing economy - this brings diverse investment opportunities	Limited public transportation makes commuting difficult
	Recent legislative changes impacting property taxes

Dubai 🏙️

A leading location for family offices due to its no-tax regime, strategic location in the EMEA region and rapidly developing financial hub status. high-quality infrastructure further enhances its appeal, but the introduction of VAT and a 9% tax on certain corporations indicates how policies can quickly change.

Pros	Cons
No personal income taxes or capital gains tax	Political instability in the Middle East region
Strategic EMEA location, gateway between East and West	For summer months the heat can be stifling
Rapidly developing financial hub and robust regulatory framework	Cultural differences: adapting to local customs & business practices
High-quality infrastructure in transportation, health and tech	Lack of skilled family office talent, expensive cost of living
Emerging markets opportunities	New VAT & corporate taxes show how policies can quickly change

Florida 🏖️

Since Covid, many family offices have made the jump from New York to Florida, the Wall Street of the south. Anecdotally it seems that many families relocated to Florida during the pandemic and decided not to return.

Pros	Cons
No state personal income tax	Vulnerability to hurricanes
Established wealth management hub	Lack of state inheritance tax could change
Favorable climate and lifestyle	High costs in major cities
Growing economy, emerging tech scene, thriving real estate opportunities	High property insurance costs
Cultural ties and proximity to Latin America	Recent changes in property tax laws

Greece 🏛️

Greece introduced its Golden Visa Program, offering residency benefits in return for significant local investment. As family offices leave London, Greece is proving to be a popular destination. In return for a flat tax of €100,000 p.a. and an investment of €500,000 in Greek real estate or securities, individuals are exempt from taxes on foreign income/capital gains/inheritance.

Pros	Cons
Golden passport scheme / flat tax scheme	Political/economic instability
Relatively low costs of living	Brain drain of local talent
Strategic location in Europe, established maritime cluster	Underdeveloped wealth management industry
Great weather & beaches - perfect location to moor the family yacht	Complex bureaucracy can be incredibly frustrating
Favorable tax reforms	Recent austerity measures - poor services such as health and infrastructure. Higher crime in certain areas such as Athens

Hong Kong 🏢

Hong Kong is a prominent financial hub with low tax rates and is a strategic gateway to mainland China. However, high living costs and political uncertainty are cause for concern. While the government continues to court global family offices, turbulence on the ground has changed the atmosphere considerably.

Pros	Cons
Low tax rates	High costs of living/operating
Respected financial center	Political unrest impacting stability and confidence
Gateway to mainland China	Shortage of family office talent
Strong financial services sector	Recent national security law impacting privacy

Houston 🚀

A lack of state income tax and lower living / operating costs make it appealing for family offices. Its position as an energy industry hub and growing economy are additional benefits. However, limited access, lack of established wealth management talent and natural disaster risks are some notable cons.

Pros	Cons
No state personal income tax	Limited direct international flights
Lower costs of living/operating	Hotter climate & that humidity
Energy industry hub offering great investment opportunities	Lack of established wealth management talent
Growing economy	Vulnerable to natural disasters such as flooding risk
	Traffic congestion

Italy 🍝

At a time when London seems to be actively driving family offices away, Italy is stepping up. The country is offering attractive residency programs and a high quality of life, with rich cultural heritage and relatively low living costs outside major cities. Italy offers a flat tax of €100,000 p.a. in return for exemptions on taxes on foreign income/capital gains.

Pros	Cons
Flat rate tax system, exempting individuals from foreign taxes	Political and economic instability
High quality of life and attractive lifestyle. Rich culture and history	High taxes and bureaucratic complexity
Relatively low costs outside major cities	Brain drain of local talent. Many of the smartest Italians still move away
Attractive residency programs	Italy has ongoing economic challenges with slow growth

Liechtenstein 🏰

The tiny principality of Liechtenstein lies on the border of Switzerland and Austria. It’s stable, the government is highly pragmatic and there is zero anti-rich sentiment. Many family offices set up their structures in Liechtenstein without physically moving there.

Pros	Cons
Advisors are close to the government	It’s small… there is not much more than the small city of Vaduz
Pragmatic and supportive government	Limited talent pool
Favorable tax regime (zero capital gains tax)	Perceived as a tax haven, facing increased scrutiny in EU
Strong financial services sector	Limited access, land-locked country, nowhere for the superyacht
Political and economic stability	Difficult to obtain citizenship
Confidentiality and privacy laws	High costs of living and operating
Proximity to major European markets

London 🎡

London is facing an identity crisis. Once the premier hub for global family offices, it’s seen an exodus due to changes in non-dom rules and a more hostile environment toward UHNWIs. Many family offices now retain a presence in London, but relocate their primary operations elsewhere.

Pros	Cons
Major global financial center	Very high costs of living/operating
Deep talent pool	Brexit uncertainty impacting regulations
Respected regulatory environment	Higher taxes than other European centers
Strong legal system	Recent tightening of tax regulations
High quality of life and culture	Perceived increase in crime

Luxembourg 💼

Luxembourg is known for its stable political environment, respected wealth management center and pro-business policies. However, high living costs and very high personal taxes turn a lot of family offices off.

Pros	Cons
Stable political environment	Relatively high taxes
Respected wealth management center	High costs of living/operating
Pro-business policies and regulations	Small talent pool
Excellent quality of life	Recent EU scrutiny on tax practices

Monaco 🏎️

Monaco is a classic family office destination. No income tax, no wealth tax, no capital gains tax, no property tax. It’s a hub for the ultra-wealthy and is the richest per capita city in the world. Small, with less than 40,000 inhabitants, but at the center of Europe with great transport links.

Pros	Cons
Highly favorable taxes	Extremely high costs of living/operating
Safe and stable jurisdiction	Limited space, strict residency rules
High-end lifestyle, excellent access	Small workforce pool
Strong privacy laws	Limited local market - few local investment opportunities
The harbor, the restaurants, the F1, the glamor!	Recent international pressure on tax transparency

New York 🗽

Traditionally the leading US city for family offices, a premier global financial hub with a deep talent pool and unmatched cultural amenities. But higher taxes are leading family offices to consider other locations. Like London, I expect many family offices to maintain a team in New York, but relocate elsewhere.

Pros	Cons
Preeminent global financial center	Extremely high costs of living/operating
Deep talent pool across industries	High state and city taxes
Unmatched cultural/lifestyle amenities	Stringent and complex regulations
Strong legal system	Recent legislative changes increasing tax burdens

Puerto Rico 🌺

Puerto Rico offers significant tax advantages for resident investors, making it an attractive location for family offices. Its proximity to the US mainland and lower living costs are additional benefits. But Puerto Rico is not the most comfortable or stable place to live.

Pros	Cons
No federal personal income taxes	Political/economic instability
Low taxes for resident investors	Vulnerability to hurricanes and earthquakes
Proximity to US mainland	Limited family office talent pool
Lower cost of living	Infrastructure challenges (every road has a pothole)
	Risk of crime can impact the quality of life

Panama 🛳️

Panama's favorable tax regime and established banking center make it appealing for family offices. But it’s perhaps now most synonymous with the Panama Papers scandal when +11 million documents were leaked detailing financial and attorney-client information of more than 200,000 entities.

Pros	Cons
No personal income or inheritance taxes	Perceived as a tax haven; Panama Papers means reputational risk
Use of US dollar currency	Limited family office talent pool
Established banking center	Political/economic instability
Favorable tax regime	Recent international scrutiny on tax practices

Singapore 🏙️

Singapore is on the way up. With low tax rates, respected financial hub status, and strategic location in Asia, it is highly attractive for family offices from Asia and around the world. Singapore is a success story as family offices in other Asian locations such as Hong Kong look to relocate.

Pros	Cons
Low tax rates	Very high costs of living/operating
Respected financial/wealth mgmt hub	Limited residency options
Strategic Asia location, progressive government initiatives. Government is pragmatic and proactive in encouraging UHNW families to the city-state	Cramped and humid, Singapore is sometimes cited as a city for young people but not for older generations due to the limited residential space. Education costs at international schools are also extremely high
Strong financial services sector and innovative wealth-tech scene. Well established legal and regulatory structures	Recent tightening of financial regulations
Strong rule of law

Spain 🎨

Spain may seem like an unlikely choice, but it has taken significant steps to become attractive to wealthy families. Its Golden Visa program provides residency benefits for significant investments. Spain is looking to hoover up some of the wealthy families leaving the UK.

Pros	Cons
High quality of life, climate, beaches	Political, economic instability
Low taxes for foreign residents; relatively cheap real estate	Underdeveloped wealth management industry
Rich culture and history - with investment opportunities in art, culture & heritage projects	High personal taxes and a complex tax system that is hard to navigate
Recent tax reforms	Brain drain of local talent
Strategic location in Europe and a member of the EU	Bureaucratic complexity

Switzerland 🕵️‍♂️

Another classic family office hub. Renowned for a stable political and economic environment, respected private banking sector and stringent privacy laws. But it’s not all sunshine and rainbows.. cost of living is very high, there are strict residency rules and international pressure on banking secrecy is growing.

Pros	Cons
Highly stable political/economic environment	Very high costs of living/operating
Respected and high-quality private banking hub, emerging fintech and Blockchain hub	Strict residency and immigration rules - this can complicate relocation of key family office staff
Stringent privacy laws - discretion is the name of the game in Switzerland	Some say the Swiss are not welcoming to foreigners
Low taxes - zero to low capital gains taxes	Limited local market
Excellent quality of life, good schools, infrastructure, low crime	Recent international pressure on banking secrecy

Sydney 🐨

Australia’s no inheritance tax policy, high quality of life, and Sydney's status as a respected financial hub make it attractive for family offices. However, high personal income taxes, very high living costs, and its remote location are significant drawbacks. Recent regulatory changes also impact its attractiveness.

Pros	Cons
No inheritance taxes	High personal income taxes
Respected financial hub, strong legal framework	Very high costs of living/operating
High quality of life, excellent healthcare	Remote location - inconvenient time zone making it difficult to coordinate with global financial markets
Strong economy, thriving real estate and tech sectors bringing investment opportunities. Strong ties to the Asia-Pacific region	Recent regulatory changes impacting financial services

Tennessee 🎸

Tennessee is a bit of a curve ball, but was suggested by several X followers. It offers a business-friendly environment with no personal income tax and low living and operating costs. Its growing economy is another plus. But Tenessee is not a family office hub, and the wealth management industry undeveloped.

Pros	Cons
No personal income tax	Limited high end services that wealthy families would expect
Low costs of living/operating	Lack of direct international flights
Business-friendly policies	Extreme weather conditions
Growing economy, particularly tech, music and entertainment sectors	Underdeveloped wealth mgmt industry and lack of family office talent pool
	Recent legislative changes impacting property taxes

Tokyo 🗼

Tokyo is an established global financial center with a deep talent pool and innovative tech ecosystem. Its strategic location in Asia adds to its appeal. But cultural barriers mean that Tokyo is predominately a hub for wealthy Japanese families.

Pros	Cons
Established global financial center, stable economy with a strong regulatory framework	Very high costs of living/operating
Deep talent pool	Language/cultural barriers
Innovative tech/business ecosystem. Urban development/smart cities offering interesting investment opportunities	Stringent regulations and complex regulatory environment
Strategic location in Asia, access to the Asia-Pacific market	Recent tax increases
Culturally rich environment in which to live and work	Some risk of natural disasters (although excellent infrastructure and contingency planning in place)

Toronto 🍁

Toronto and other Canadian cities have been historic hubs for family offices, but there appears to be a steady flow of family offices out of Canada. As taxes increase and left-leaning governments target the wealthy, Canada is no longer the most comfortable place for family offices.

Pros	Cons
Stable economic/political environment	High personal/corporate tax rates, high property taxes
Respected financial hub and strong tech and innovation hub	High costs of living/operating
Diverse, skilled talent pool	Harsh winters
Strong financial services sector	Recent regulatory changes impacting financial services

Wyoming 🦬

Attractive rules around Private Family Trust Companies (PFTCs) have made Wyoming an unlikely hub for family offices. Wyoming offers some of the strongest asset protection rules in the US. As a business-friendly state, it is relatively easy to operate in. The main downside is its remote location though.

Pros	Cons
No personal income or inheritance taxes	Remote location - lack of direct international flights
Strong asset protection laws (PFTCs)	Limited family office talent pool
Business-friendly environment	Fewer cultural amenities or luxury services that wealthy families expect
Low cost of living	Limited access to major markets and investment opportunities

I’d love to hear from you on family office jurisdictions.

For a closer look at specific locations, look out for future Focus On series. These will get into the details of particular locations. The lifestyle, the rules, the reality, the problems, the perks.