6 September 2026 · Definition
What Is a UAE Family Foundation
A family foundation is a UAE legal structure used to hold and manage a family's wealth, plan succession and, where relevant, support charity. It has no shareholders, assets are held by the foundation for its beneficiaries under a charter. For corporate tax, it can elect to be treated as a tax-transparent Unincorporated Partnership under Article 17, so its income is attributed to the beneficiaries rather than taxed at the foundation.
Exiloz Management & Tax Consultant · Dubai-based FTA-focused advisory · VAT, corporate tax & accounting
How a foundation works
It separates ownership from control.
- A legal person with no shareholders.
- Holds assets for named beneficiaries.
- Governed by a charter and by-laws.
- Used for wealth and succession planning.
Why families use it
It can be tax-efficient.
- Elect tax-transparent treatment (Article 17).
- Income attributed to beneficiaries.
- Individual investment income usually outside CT.
- Available mainland, DIFC and ADGM.
Related guides
Frequently Asked Questions
For families exploring a foundation.
Does a foundation have shareholders?
No. A foundation has no shareholders; it holds assets for its beneficiaries under a charter.
What is a family foundation used for?
Holding and managing family wealth, succession planning, and sometimes charity.
Can a foundation be tax-transparent?
Yes, via the Article 17 election, so income flows to the beneficiaries.
Can Exiloz advise on a foundation?
Yes. We assess whether a family foundation fits your plan.
Is a foundation right for you?
Exiloz assesses whether a family foundation suits your wealth and succession goals.