DA-Tax
Costs of Family Office
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Family Offices manage considerable wealth and so need to be in stable tax friendly jurisdictions with sophisticated banking and financial services. This explains the popularity of London, Geneva and Monaco as locations.
A Family Office needs at least 5 people to run it. An office manager, an investment manager, an accountant, a secretary and an extra person to cover holidays. Some may be part-time.
In Monaco with costs of an office lease and other usual office costs the budget will be at least €1.5M, probably a lot more.
This means for a single Family assets under management really need to be over €200 million to make it worthwhile. Obviously much depends on how liquid the assets are and how actively they are being managed.
The costs partly explain the popularity of multi Family offices in which the annual operating costs can be shared.
Monaco is very keen to attract Family Offices so immigration is unlikely to be an issue for staff. It is also very secure and centrally located for investment management. There is also the usual contingent of private banks.
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