Family Office Tax Incentives: Why Some Countries Are Offering Decades of Relief
In July, Indonesia’s parliament passed a law that could give qualifying investors a 0% corporate income tax rate for up to 50 years. That is roughly two generations, which is the horizon family offices tend to think in.
Indonesia is the newest entrant in a competition that has been building for years: governments offering tax relief, new legal frameworks, and faster processes to attract family capital. The headline numbers are striking. The details, as usual, are where the real story sits.
A New Entrant: What Indonesia Passed
On July 21, Indonesia’s parliament passed a law creating the Pusat Finansial Internasional Indonesia (PFII), a specially regulated international financial center. According to lawmakers, qualifying investors could receive a 0% corporate income tax rate for up to 50 years. The framework also provides for relief on value-added tax and customs duties, exemptions for certain income generated outside Indonesia, and defined tax treatment for inheritance. The government is targeting investment banks, wealth managers, family offices, and aircraft and ship-leasing companies.¹
Indonesia’s finance ministry estimated the first center could attract between Rp300 trillion and Rp500 trillion ($16.7 billion to $27.8 billion) in investment. The ambition is also regional: Indonesia has long sought a wealth-management industry that can rival Singapore, where many affluent Indonesian families hold and manage assets.¹
Figure 1: “Indonesia’s PFII law: what’s set, what’s pending.”
Family Office Tax Incentives: What Countries Are Actually Offering
Indonesia is entering a field with established players.
Singapore. The number of single family offices awarded tax incentives by the Monetary Authority of Singapore grew from 400 at the end of 2020 to over 2,000 at the end of 2024.² Those incentives come with annual conditions on assets under management, workforce size, operating spend, and investment allocations.³
Hong Kong. The government gazetted a bill on June 12 to enhance its tax concessions for family-owned investment holding vehicles, funds, and carried interest. If enacted, the enhanced regime would apply retroactively from the 2025/26 year of assessment.⁴ A Deloitte study reported by the city’s financial services bureau estimates 3,384 single family offices in Hong Kong at the end of 2025, up 681 from the end of 2023.⁵
Dubai. The Dubai International Financial Centre reported 1,289 family-related entities at the end of 2025, up 61% in a year, and 1,408 by mid-2026, up 36% year on year. DIFC pairs free-zone tax treatment with its own legal framework, including family-specific regulations introduced in 2023.⁶
Tax relief is not the only lever, and it is not one-directional. The United Kingdom ended its non-dom regime on April 6, 2025, replacing it with a four-year regime for new arrivals who have not been UK resident in the previous ten tax years.⁷ Italy went the other way on price: its flat tax on foreign income for new residents rose to €300,000 a year from 2026, with those who established residence before December 30, 2025 grandfathered at €200,000.⁸
Figure 2: “Regime changes, 2025–2026.”
The Numbers Don’t Measure the Same Thing
Headline counts are easy to quote and hard to compare. Singapore’s figure counts single family offices awarded tax incentives.² Hong Kong’s is a Deloitte estimate of single family offices.⁵ DIFC reports “family-related entities,” a category it tracks alongside a separate count of family foundations.⁶ Each is a legitimate data point. Together, they are not a scoreboard.
Figure 3: “What each hub’s number counts.”
Incentives Come With Strings
The more recent moves pair relief with oversight. Singapore’s revised framework, effective June 15, replaced case-by-case licensing exemptions with a class exemption that requires notification to the regulator, with a one-year transition for existing offices.⁹ MAS has said the framework is meant to ensure all single family offices are subject to anti-money laundering controls.² Reporting on the framework describes it as balancing Singapore’s appeal as a hub with basic visibility into the sector’s size and banking relationships.¹⁰
Indonesia’s 0% rate will not override the OECD’s Pillar Two framework, so large multinational groups remain subject to a 15% minimum effective tax rate. Economists have also warned that weak economic-substance and beneficial-ownership rules could allow round-tripping, in which domestic funds are routed offshore and returned as foreign investment to claim the benefits.¹ Hong Kong’s reforms, in one analysis, raise the bar on compliance and substance, a standard feature of global financial centers.¹¹
What Remains Unclear
Several pieces are still open. Indonesia’s rates, beneficiaries, and eligibility conditions for several incentives will be set in implementing regulations, so how the 50-year term applies to family offices specifically is not yet settled.¹ Hong Kong’s enhancements are a bill, not yet confirmed law in the sources reviewed.⁴
There is a larger question the data does not answer. These sources document incentives and counts. They do not show that tax relief alone causes a family to relocate, or how much weight families give to legal systems, banking access, talent, and proximity to their businesses.
The Questions the Data Raises
How much of a hub’s appeal is the headline rate, and how much is the legal system, banking, and talent around it?
How durable is an incentive written for decades when the rules around it keep changing? The UK ended a regime, Italy raised its price twice in two years, and Singapore revised its framework.
What does “substance” require, and who verifies it?
What I find interesting is that the most visible number, a tax rate, may be the least informative part of the competition. The details that determine whether a hub works for a family sit in the conditions: minimum assets, local spending, reporting, and how stable the rules prove to be. As more governments compete for family capital, the useful comparison is the whole package, not the rate alone.
Explore more perspectives on family offices, private markets, and capital allocation at johnjezzini.co
Sources
¹ Entrepreneur Asia Pacific, “Indonesia Passes Financial Hub Law, Offers 50-Year Tax Holiday,” July 21, 2026.
² Monetary Authority of Singapore, “Written reply to Parliamentary Question on licensing of Single Family Offices under the Securities and Futures Act,” February 5, 2025.
³ Asian Wealth Management / Hubbis, “Single-Family Offices in Singapore Employ 2,200 Locals” (citing MAS data).
⁴ KPMG, “Hong Kong: Draft legislation to enhance family office tax regime,” June 2026.
⁵ Hong Kong Financial Services and the Treasury Bureau, “A Boom in Family Offices in Hong Kong is Driving up the Economy,” February 10, 2026 (citing a Deloitte study).
⁶ Dubai International Financial Centre, “DIFC records industry leading achievements in H1 2026,” July 28, 2026; and “Dubai International Financial Centre announces landmark annual results for 2025,” February 5, 2026.
⁷ BDO UK, “Changing rules for non-dom status: what to do now.”
⁸ IMI Daily, “Non-Dom Regimes Explained: UK, Ireland, Italy, and Beyond”; and Adva-Lux, “Italy’s Flat Tax for New Residents in 2026.”
⁹ CMS, “MAS Finalises Licensing Exemption Framework for Single Family Offices,” 2026.
¹⁰ Crowdfund Insider, “Singapore’s Revised Single Family Office Framework to Take Effect June 15,” June 2026.
¹¹ China Briefing, “Hong Kong Enhances Fund and Family Office Tax Incentives under UFE,” 2026.
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