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Prime Locations: Assessing family office locations

Prime Locations: Assessing family office locations

Part Two - pros and cons of locations around the world.

Mr FamilyOffice
May 24, 2024

Family office insights this week:

30 family office locations assessed
In books, why many wealthy individuals manage to lose it all
The relevance of traditional degrees in a job market
Three tasty family office job vacancies!
The latest from UBS on family office asset allocation

Prime Locations: Where to open your family office (Part Two)

Last week we looked at the crucial factors in deciding where to open a family office. Today it’s Part Two with a look pros and cons of locations around the world.

Some locations are on the way up. Some are on the way down.

Here we go…

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

The full list continues here

Boston, California, Cayman Islands, Channel Islands, Dallas, Dubai, Florida, Greece, Hong Kong, Houston, Hong Kong, Italy, Liechtenstein, London, Luxembourg, Monaco, New York, Puerto Rico, Panama, Singapore, Spain, Switzerland, Sydney, Tennessee, Tokyo, Toronto, Wyoming

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.

If you would like to feature or share your ideas, hit reply to this mail.

💼 careers

There will be more newsletters on family office careers soon.

To whet the appetite, here are three notable family office job opportunities currently available:

Director of Family Office Management - Bessemer Trust (New Jersey / Family Office)

Vice President, Financial Advisory - Iconiq (New York / Family Office)

Director of Family Office Services - Orba (Chicago / Service Provider)

𝕏 highlights

Latest on family office allocation. The UBS Global Family Office Report 2024 was released this week. Here are the latest common themes in asset allocation.

Family Offices: Asset Allocation choices
4 key takeaways from the UBS Global Family Office Report 2024
1. Increased Allocation to Developed Market Bonds: Following 2023's rise in fixed income prices, family offices have significantly increased their holdings in developed market… x.com/i/web/status/1…
— Mr Family Office (@MrFamilyOffice)
11:01 AM • May 22, 2024

It’s F1 weekend in Monaco, so a look at the wealth by numbers.

This weekend the F1 circus rolls into Monaco 🏁
Monaco wealth by numbers
Monaco is home to 12,261 millionaires in an area of just 0.78 square miles
The average home in Monaco costs $4,560 per square foot
A small one-bedroom apartment in Monaco can cost at least $1.6 million… x.com/i/web/status/1…
— Mr Family Office (@MrFamilyOffice)
1:45 PM • May 24, 2024

The richest Brits.

The Sunday Times Rich List was published this week
The top 20 wealthiest Brits
(their previous position), net worth, change in the year and source of wealth:
20 (16) Denise, John and Peter Coates
£7.467bn net worth
£1.328bn ⬇️
Gambling: Bet365
19 (32) Lord Bamford and family… x.com/i/web/status/1…
— Mr Family Office (@MrFamilyOffice)
8:08 AM • May 22, 2024

📚 what to read

The Missing Billionaires by Victor Haghani. by Victor Haghani and James White was recommended to me. It explores why many wealthy individuals manage to lose it all. The authors look at the financial pitfalls and behavioral biases that cause fortunes to disappear. Through historical analysis and practical advice, the book offers insights into preserving and growing wealth across generations.

📻 what to listen to

PWC’s Family Business Stories podcast has an episode on what to consider before moving abroad. A relevant one for those looking to change jurisdiction. Topics include tax residence, tax privileges, flat-rate taxation, freedom of movement and legal structures, as well as wills and pensions

📺 what to watch

Milken is one of the most popular conferences for family office professionals. A lot of the sessions are recorded and available on the Milken Institute website.

Panel - Degree or Not Degree: The Higher Education Dilemma | Milken Institute

Experts in a vast field of opinions will explore the complex interplay between higher education, skills-based hiring, and the sometimes elusive value of a college degree in today's workforce. Join our panelists as they delve into the ongoing debate about the relevance of traditional degrees in a job market that increasingly emphasizes practical skills and competencies. They will address the emerging trend toward alternative skill-building pathways and assess how individuals can navigate the range of choices to align their educational experiences with their career goals. A critical factor in any decision: How are US college students and alumni tackling student debt? Listen to what university presidents, corporate executives, and government officials must contribute to this broader discourse on the changing landscape of higher education, as well as the multifaceted world of skills, degrees, and employability.

milkeninstitute.org/panel/15562/degree-or-not-degree-higher-education-dilemma

And finally…

Once again, the full list of 30 family office locations is here. More will be added in due course.

There’s no one-size-fits-all jurisdiction for family offices. It is often uniquely personal reasons that determine where wealthy families decide to base themselves.

As always, I want to hear from you. Let me know what you think is the most important factor for deciding where to base a family office.

What is the main consideration when choosing a family office location?

Family Office Buzz is back on Monday with more of the best content on family offices from 𝕏, LinkedIn and beyond.

That’s all for this week.

Bon weekend… whatever location you are in!

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