01
ADGM, DIFC and available vehicles
A family commonly compares an ADGM foundation or trust, a DIFC foundation or trust, a dedicated holding company, an SPV and a family office. A foundation has separate legal personality, while a trust is a legal relationship under which a trustee holds and administers assets for beneficiaries or a permitted purpose. The answer depends on the assets, retained control, succession objectives and the geography of family members and counterparties.
02
Scope and legal constraints
The legal regime must be chosen before documents are drafted. ADGM or DIFC rules should not be assumed to apply in mainland UAE or another free zone. Professional trust, investment or asset-management services may require regulatory permission, and certain ADGM foundations and SPVs must appoint a licensed company service provider. The structure does not disapply beneficial-ownership disclosure, AML/KYC, sanctions controls, creditor rights, family law or succession law.
A UAE private-wealth structure should be selected by governing law, assets, family circumstances, tax residence and the intended banking route—not by the word “foundation” alone.
03
Governance, control and succession
A workable model identifies the founder or settlor, council or trustee, guardian or protector, beneficiaries, appointment and removal powers, reserved powers, the investment mandate and distribution rules. The charter, by-laws or trust deed are aligned with a letter of wishes, family constitution and an incapacity or death protocol. Legal ownership, effective control and bank mandates should tell the same story.
04
Accounts for a trust, foundation and family
A bank reviews more than a certificate of registration. It normally maps the full ownership and control chain, founder or settlor, trustee, council, guardian or protector, beneficiaries, tax residence, source of wealth and funds, the history of capital, assets and expected transactions. The institution is selected for custody, private banking, investments, real estate or operating payments, and account opening remains the bank's independent decision.
05
Tax map for an international family
Before assets move, the analysis covers the classification of the foundation or trust, UAE corporate tax, conditions of any relevant free-zone treatment, VAT on remunerated services, taxation of the settlor, founder and beneficiaries in their residence countries, CFC and reporting rules, CRS/FATCA and taxes triggered by contributions or distributions. A headline rate alone does not establish the final result or an exemption.
FAQ
FAQ
Which private-wealth structure works in United Arab Emirates?
A family commonly compares an ADGM foundation or trust, a DIFC foundation or trust, a dedicated holding company, an SPV and a family office. A foundation has separate legal personality, while a trust is a legal relationship under which a trustee holds and administers assets for beneficiaries or a permitted purpose. The answer depends on the assets, retained control, succession objectives and the geography of family members and counterparties.
Does the structure protect assets automatically?
The legal regime must be chosen before documents are drafted. ADGM or DIFC rules should not be assumed to apply in mainland UAE or another free zone. Professional trust, investment or asset-management services may require regulatory permission, and certain ADGM foundations and SPVs must appoint a licensed company service provider. The structure does not disapply beneficial-ownership disclosure, AML/KYC, sanctions controls, creditor rights, family law or succession law.
Can a bank account be guaranteed?
A bank reviews more than a certificate of registration. It normally maps the full ownership and control chain, founder or settlor, trustee, council, guardian or protector, beneficiaries, tax residence, source of wealth and funds, the history of capital, assets and expected transactions. The institution is selected for custody, private banking, investments, real estate or operating payments, and account opening remains the bank's independent decision.
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Related services
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