Why high-net-worth Australians are looking at Dubai for their family office
Ask any Australian private-banker what their globetrotting clients discussed in 2025 and “Dubai” will rank near the top. According to KPMG’s Global Family Office Report 2024, the number of single-family offices registered in the UAE tripled between 2020 and 2024, driven mainly by new residents from Europe, the UK and Australia.¹
Behind the headlines is a simple truth: in an era of rising tax burdens, geopolitical uncertainty and rapidly shifting investment themes, Dubai offers a rare mix of fiscal efficiency, common-law protections and world-class infrastructure. Establishing a family office in the emirate gives Australian ultra-high-net-worth (UHNW) families a springboard into Middle-East, North-African and South-Asian growth while keeping wealth structures recognisable to common-law advisers back home.
In this guide we unpack the advantages, regulatory nuances and practical steps involved, showing how Dubai Invest supports Australians throughout the process.
The edge Dubai offers over other family-office hubs
- Nil personal income and capital-gains tax
Australian tax residents pay up to 45 % plus the Medicare levy. Restructuring correctly and spending sufficient days offshore can deliver material after-tax gains.² - DIFC common-law courts
Unlike many civil-law jurisdictions, the Dubai International Financial Centre applies English-language common law, giving Australian solicitors and QCs a familiar legal backbone. - Robust asset-protection regimes
Foundations and trusts registered in DIFC or ADGM allow ring-fencing of family wealth from business liabilities or succession challenges. - Time-zone bridge
Dubai’s GMT+4 is within trading hours of both Europe and Asia on the same day—perfect for active investment mandates. - Lifestyle and connectivity
Emirates operates daily non-stops from Sydney, Melbourne, Brisbane and Perth; schools like Repton and Australian International School offer IB and NSW curriculums; top-tier healthcare rivals Singapore. - Residency certainty
The 10-year Golden Visa extends to qualifying investors, family members and key staff, avoiding repetitive immigration paper-work.
How does Dubai compare with Singapore and Switzerland?
| Factor | Dubai | Singapore | Switzerland |
|---|---|---|---|
| Personal income tax | 0 % | Progressive to 24 % | Progressive to ±40 % + wealth tax |
| Legal system | Common law (DIFC) | Common law | Civil law |
| Minimum capital for FO licence | USD 50,000 (DIFC) | ~USD 10 m AUM | None but higher ongoing costs |
| Residency path | 10-year Golden Visa | Renewable Employment Pass | Difficult without C-permit |
| Proximity to MEA deals | Strong | Moderate | Limited |
Which family-office structures are available?
- Single Family Office (SFO)
Dedicated to one family. Greater control, privacy and alignment. In DIFC this takes the form of a private company limited by shares or a foundation holding the operating entity. - Multi Family Office (MFO)
Serves multiple unrelated families. Cost-sharing but less customisation. Typical choice when AUM < USD 50 m per family. - Foundation-based holding
A DIFC or ADGM foundation acts as the ultimate owner of global subsidiaries, safeguarding generational continuity.
Dubai Invest works with each client to model tax impact in Australia, including controlled foreign company (CFC) rules and the Commissioner’s 45-day presence test.
Regulatory landscape at a glance
| Regulator | Key focus | Relevance to Australians |
|---|---|---|
| DIFC Authority | Licensing & governance | Oversees FO classification, minimum capital, reporting |
| DFSA | Financial services conduct | Required only if FO manages third-party money or offers advice |
| Ministry of Economy | Economic Substance Regulations (ESR) | Annual return to prove genuine activity; Dubai Invest maintains logs |
| UAE Central Bank | FX & anti-money-laundering | KYC, UBO declaration (similar to AUSTRAC expectations) |
2023 update: SFOs with fewer than 20 clients and AUM below USD 1 bn are exempt from prudential capital requirements but must still appoint an authorised individual in Dubai.
Step-by-step roadmap
- Clarify objectives
Estate planning, philanthropy, venture investment? Goals dictate the licence type and staffing model. - Select jurisdiction
UAE mainland, DIFC or ADGM. For common-law governance and global bank access, 80 % of our Australian clients choose DIFC. - Name reservation & pre-approval
Reserve the “Example Family Office Ltd” name; submit KYC for shareholders and director(s). - Draft constitutional documents
Memorandum & Articles or Foundation Charter. Dubai Invest’s in-house bilingual legal team ensures they fit both DIFC rules and Australian trust law. - Capitalisation & bank account
Deposit minimum share capital (USD 50,000) into a UAE bank. Relationship managers often request a personal visit; we arrange remote video KYC where possible. - Licence issuance
After due diligence, DIFC issues the Family Office Licence (usually 3–4 weeks). Visa quotas open automatically. - Golden Visa & dependent permits
Principal director, spouse, children and up to three domestic staff qualify. Processing time: 5–10 business days. - Office fit-out & staffing
Regs mandate a physical workspace; our partnerships with Innovation Hub and OneCentral start at AUD 22,000 per year. - Ongoing governance
Annual audit, ESR filing, Ultimate Beneficial Owner (UBO) register. Dubai Invest provides a fixed-fee compliance package so nothing is missed while you are in Sydney or the Gold Coast.
Indicative timeline and costs (DIFC SFO)
| Milestone | Typical timeframe | Cost range (AUD) |
|---|---|---|
| Pre-approval & name check | 5–7 days | 0 (included) |
| Licence & registration | 3–4 weeks | 38,000–45,000 |
| Legal drafting | Parallel | 12,000–18,000 |
| Office lease (1-year) | Parallel | 22,000–60,000 |
| Residency visas (family of 4) | 2 weeks | 9,500 |
| Annual compliance | Ongoing | 12,000–20,000 |
Figures quoted for 2025; FX at 1 AUD = 2.45 AED. Government fees subject to change.
Case study: Diversifying beyond ASX and Sydney property
The Mitchell family sold a stake in their Queensland agribusiness for AUD 220 m. Their priorities:
- Reduce concentration in AUD assets.
- Build exposure to climate-tech and African agrifood start-ups.
- Streamline succession for three adult children living across Brisbane, London and Dubai.
Dubai Invest structured a DIFC foundation owning a single-family office. Within six months:
- 10-year Golden Visas issued to all direct family members.
- USD 40 m allocated to a blended venture capital fund regulated by DFSA.
- A property management subsidiary acquired 12 furnished apartments in Downtown Dubai, generating 8.1 % net yield.
- Philanthropic arm registered with the Community Development Authority to support reef-restoration projects in the Great Barrier Reef, reinforcing Australian heritage ties.
Key pitfalls to avoid
- Assuming 0 % tax equals no reporting: Australian CFC and transfer-pricing rules still apply. Engage dual-qualified tax counsel early.
- Underestimating substance requirements: Hiring at least one UAE-based executive and leasing real space is mandatory.
- Mixing third-party funds: An SFO licence prohibits managing assets for non-family members; doing so risks DFSA enforcement.
- Neglecting Sharia considerations: While non-Muslims are exempt, UAE inheritance default is Sharia. A properly notarised DIFC Will overrides it for real estate and shares.
Frequently Asked Questions (FAQ)
Is a Dubai family office compatible with an Australian discretionary trust?
Yes. The trust can become the shareholder of the UAE holding company, preserving Australian CGT concessions. Specialist structuring is essential to avoid double reporting.
Do we need to relocate permanently to Dubai?
No. The Golden Visa requires only one entry every 12 months. However, tax residency rules in Australia depend on physical presence and ties—seek advice before changing domicile.
What banking options are available?
Over 50 international banks operate in DIFC (HSBC, Standard Chartered, NAB’s representative office). Opening an account typically takes 10–20 working days once KYC is complete.
Can the family office hold operating businesses, not just investments?
Yes. Subsidiaries in mainland UAE or free zones (e.g., logistics in Jafza, tech development in Dubai Internet City) can be wholly owned by the family office.
How long does the entire setup take?
With documents ready, an SFO can be fully operational—including visas—in 6–8 weeks.
Ready to explore Dubai as your family-office base?
Dubai Invest’s Australia-UAE team handles every step—from entity selection to Golden Visa stamping—so you focus on strategy, not paperwork.
➡️ Book a confidential, no-obligation video consultation today: https://dubaiinvest.com.au/contact
Or meet us in person at our upcoming Grand Business Conference in Sydney—see the agenda here: Grand Business Conference
Invest smart. Set up seamlessly. Your gateway to Dubai starts here.
¹ KPMG Global Family Office Report 2024, page 17.
² Australian Taxation Office, “Taxation of Foreign-Sourced Income,” updated April 2025.
