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Structuring Global Wealth – Family Offices in Singapore

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​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​publishesd on 8. July 2025 | reading time approx. 5 minutes 

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In the context of family offices, Singapore is positioning itself as an attractive strategic base for serving Asian clients or allocating capital regionally.
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​In recent years, the establishment of family offices has gained significant momentum worldwide. Family offices do not just serve as wealth management vehicles, but also as strategic instruments for safeguarding multigenerational ownership interests, governance, and regulatory compliance. Singapore has emerged as a preferred jurisdiction for setting up Single Family Offices (SFO). 59 % of family offices in Asia are located in the city state. Since 2020, the wealth management sector has experienced substantial growth, with the number of SFOs increasing from approximately 400 to over 2,000 by the end of 2024. Several well-known examples illustrate the increasing interest of European families in Singapore-based structures. German or European multi-family offices, providing financial and administrative services to multiple high-net-worth families, such as “Das Family Office”, “HQ Trust”, “Reuss Private”, and “Stonehage Fleming” use Singapore as a strategic base for serving Asian clients or allocating capital re-gionally.​


Single Family Office structures (SFO)​​

A SFO is typically a legally independent entity established exclusively for the purpose of man-aging the wealth of a single family. Modern family offices increasingly integrate areas such as sustainable investing, philanthropy, and succession planning alongside traditional asset protection, thus evolving into comprehensive governance platforms that align family legacy with future-readiness. Due to regulatory thresholds and ongoing operational costs, including structuring, staffing, legal and tax advisory, and asset management, a standalone SFO typically does make sense financially when managing liquid or flexibly deployable assets of at least SGD 20 million (about EUR 13 million).

Singapore offers a highly flexible legal framework for setting up an SFO. Common legal forms include private limited companies (Pte. Ltd.), trusts, or fund vehicles, often embedded in larger holding structures. The regulatory framework is overseen by the Monetary Authority of Singapore (MAS), though SFO are generally exempt from licensing requirements as long as they do not serve third-party clients. To benefit from key tax exemptions – notably under Sections 13O and 13U of the Income Tax Act – formal application and MAS approval are required, including proof of minimum assets under management, and the establishment of local substance such as physical office presence, local employees, and domestic investments. 

To qualify for tax exemptions, family offices need a minimum of SGD 20 million in assets under management (AUM) at the point of application and throughout the incentive period under Section 13O, and SGD 50 million under Section 13U respectively. Operating companies or holding structures may be contributed into the SFO framework, provided they are legally integrated and clearly valued as part of the AUM. However, such existing assets do not count towards certain investment thresholds, such as those under the Capital Deployment Requirement (CDR). A SFO is required to comply with the CDR within 24 months. This entails deploying at least SGD 10 million or 10 % of AUM into so-called Qualifying Investments, which may include SGX-listed equities, private equity or venture capital funds and Real Estate Investment Trusts. It is important to note that existing family-owned assets do not qualify under this requirement, the CDR is focused exclusively on new capital allocations.

Singapore offers very favorable and clear tax policies: it only taxes income earned or derived in Singapore and certain foreign income remitted into Singapore. Furthermore, there is no capital gains tax, an exemption on taxation of dividend income (qualifying criteria apply) and no with-holding tax on the distribution of dividends. The tax rate for corporate income tax is 17 %; for personal income tax a progressive rate of up to 24 % applies. Since October 2024, there are additional incentives for SFO CDR investments in unlisted companies, philanthropic activities and climate-related projects, mirroring the preferential investment tendencies of many high-net worth families.


Singapore’s strategic advantages​

The advantages of a Singapore-based family office extend beyond tax considerations. Singapore has a highly developed, market-based economy that thrives on exports, particularly in the electronics, chemicals, and services sectors. It is widely recognized for its skilled and efficient workforce, pro-business environment, political stability, and economic policies that foster free trade, investment, and innovation. In addition, Singapore has developed a strong and robust financial sector. The country currently benefits from the global trend of supply chain diversification. Companies are relocating regional functions to Singapore and many investors allocate funds to the city-state. Altogether, a very beneficial environment for family offices and their activities.

Structural considerations​

Before establishing a family office in Singapore, European individuals or families need to take certain structural considerations into account. The legal, fiscal and regulatory environment of the home jurisdiction remains a critical factor in determining how cross-border assets and ownership structures are aligned. For many families, the first step involves clarifying the role the Singapore family office is intended to play within the broader asset structure: Is it a purely administrative vehicle, a central investment platform, or an operational holding for Asian businesses? Depending on this, it may be necessary to review and adapt the European asset-holding entities, foundations, or trusts to ensure that assets flow to and from Singapore in a compliant and tax-efficient way. Jurisdictions such as Germany, France, Switzerland or the Nordics each have distinct approaches to foreign-controlled structures and their tax treatment, especially regarding controlled foreign corporation rules and beneficial ownership reporting. Depending on where the assets and the family members are located, inheritance tax may also be an important aspect of the overall planning process.

Setting up a family office reflects a strategic approach to long-term wealth preservation, institutional accountability, and global risk management. Careful consideration and thorough planning play a vital part for future success. ​

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Dr. Paul Weingarten

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+65 62 3867 70

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