Ultra-wealthy families and their family offices are turning their backs on Switzerland – once the main haven for European wealth – and increasingly relocating their financial operations to Dubai. This trend reflects shifts in the global tax environment: while Switzerland is becoming less attractive due to political uncertainties and tighter regulations, Dubai appeals to the wealthy with simpler rules, lower taxes, and a luxurious lifestyle. Meanwhile, Bosnia and Herzegovina (particularly Republika Srpska) remains something of a “tax haven” in the heart of Europe, with exceptionally low tax rates – yet it is still often bypassed by ultra-wealthy investors seeking new destinations for their family offices.

Switzerland is losing its lead due to taxes and regulation

For decades, Switzerland was considered a safe haven for international family offices and private banks. However, in recent years, there has been a noticeable capital outflow. The reasons are manifold. First, stricter regulations and increased demands for financial transparency have undermined Switzerland’s tradition of discretion. “There is an increasing number of regulatory requirements in Switzerland, along with significantly greater obligations to disclose confidential information. In contrast, family offices in Dubai are not subject to such strict standards and can operate much more privately – which is highly appealing to the global wealthy,” explains Ronald Graham, a partner at the law firm Taylor Wessing in Dubai, who advises clients on relocating their funds.

Furthermore, political uncertainty and discussions about the introduction of new taxes contribute to the unease among the wealthy. Switzerland is holding a referendum this year on introducing a 50% tax on inheritances and gifts above a certain threshold. Although analysts expect voters to reject such a drastic proposal, the debate itself has shaken confidence. “The uncertainty created over the past two years has motivated some families to reconsider Switzerland as a financial center,” said a client of a Swiss family office. In addition, Switzerland’s reputation has taken a hit following incidents such as the collapse of Credit Suisse, which has further encouraged the exodus of wealth to other destinations.

Dubai – A New Haven for Global Wealth

Dubai’s skyline: a luxurious lifestyle and business environment attracting wealthy families.
An increasing number of European family offices are relocating to Dubai, which has positioned itself as a modern oasis for wealth management. According to financial experts, this metropolis offers a unique combination of favorable conditions: simplified regulation, minimal taxation, and a top-tier quality of life. Unlike Switzerland, Dubai and the broader United Arab Emirates do not impose personal income tax, capital gains tax, or inheritance tax, which is highly appealing to those looking to preserve family wealth. Additionally, in special economic zones such as the Dubai International Financial Centre (DIFC), foreign investors are guaranteed 0% corporate tax for extended periods and full ownership of their companies.

Regulation in Dubai is more flexible – the definitions of “family” and the scope of family office activities are broad enough not to trigger strict supervisory regulations like in Europe. This allows for discretion in operations, which is one of the key attractions for ultra-wealthy clients. At the same time, the lifestyle in Dubai is among the most luxurious in the world. “The standard of living in Dubai is exceptional, and the economic system is tailored to entrepreneurs and ultra-high-net-worth individuals,” confirms Reto Gareus from KPMG Switzerland, highlighting that the emirate is actively building an ecosystem that caters to billionaires.

The statistics support this trend – over the past year, around 200 family offices were established in Dubai, bringing the total to approximately 800, according to DIFC data. This sharp increase has also been driven by global developments: the abolition of tax regimes such as the UK’s non-dom status, high taxation in other European countries, and even asset sanctions on Russian nationals have steered the wealthy toward safe havens like Dubai. The UAE government is also offering additional incentives – from "golden visas" for investors (long-term residence permits) to investments in infrastructure and innovation – all of which make Dubai a global hub for managing family wealth.

A Tax Haven in the Heart of Europe – Bosnia and Herzegovina and Republika Srpska

Paradoxically, while the ultra-wealthy are moving their capital to the Middle East, one European destination remains largely unnoticed despite offering extremely favorable business conditions. This refers to Bosnia and Herzegovina, specifically its entity Republika Srpska, which experts often refer to as a “European tax haven” due to its low taxes and costs. The corporate income tax rate in BiH is just 10% – among the lowest in Europe – and there is no tax on dividends (profits distributed to company owners). Such a tax system theoretically positions BiH as an attractive destination for capital preservation. For comparison, many developed countries impose corporate taxes of 20–30% and also tax dividend payments to shareholders, which is not the case here.

In addition to low tax burdens, Republika Srpska also boasts fast and simple company registration procedures. Thanks to reforms and the introduction of a one-stop-shop system in 2013, a business entity in RS can be registered in just a few days. For example, “while you can register a company in Republika Srpska in three days, it may take months to register a business entity in the Federation of BiH,” reports the Chamber of Commerce. This administrative efficiency has attracted many foreign entrepreneurs to establish their companies in Banja Luka and other RS cities. Another advantage is the low operating costs – from office rental prices to salaries of qualified staff – doing business in BiH is significantly cheaper than in financial hubs like Zurich or Dubai. For family offices, this means they can establish a local office and infrastructure team at much lower costs, increasing the net returns on managed capital.

However, despite these advantages that justify BiH’s nickname as the “tax haven of Europe,” most ultra-wealthy families still overlook it when choosing destinations for their family offices. The reasons are partly due to perception and habit – Dubai and similar centers have a global image of security, political stability, and prestige, while BiH has yet to build a reputation as an international financial center. Nevertheless, a number of family offices in the region are already recognizing the benefits of RS and quietly taking advantage of local conditions to structure their operations. This practice is becoming increasingly noticeable, especially among European investors seeking more discreet and cost-effective alternatives within Europe itself.

Support from Regional Experts

Experts from the Stevanović Law Office and the company Standard Prva confirm that in recent years they have worked with several family offices interested in operating in Bosnia and Herzegovina. They already provide services to these clients in the region – from establishing legal structures and handling regular financial and tax reporting, to identifying low-risk investment opportunities in areas such as real estate, the IT sector, and renewable energy. Through such comprehensive support, families can fully take advantage of Republika Srpska’s tax benefits while complying with all legal requirements and maintaining a high degree of discretion.

According to these experts, discretion and trust are crucial in the business of managing family wealth. Each family office has specific needs and goals, so solutions are tailored individually – whether it involves establishing holding companies, structuring investments, or protecting assets across multiple jurisdictions. Experience with clients already confirms that the combination of local tax advantages and professional advisory services is an effective model for preserving and growing family wealth. For those considering relocating or establishing a family office in such an environment, discreet consultations with an experienced team can be the first step toward making the right decision. The Stevanović Law Office and Standard Prva emphasize a confidential, expert approach – interested families are welcome to contact them for detailed advice and explore how to make the most of Europe’s “tax haven” with full legal security.

Sources: Financial Times, SWI Swissinfo; Srpskainfo; Chamber of Commerce of Republika Srpska; expert statements from Standard Prva and Stevanović Law Office

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