Tax Incentive Requirements for Family Offices in Singapore: What’s New in 2025

Singapore has become one of the world’s fastest-growing family office hubs, with the number of single-family offices (SFOs) rising from around 400 in 2020 to over 2,000 by the end of 2024. The city-state’s combination of political stability, strong financial regulation, and favorable tax incentives has positioned it as a leading wealth management destination in Asia.

However, following a series of high-profile money laundering cases and growing scrutiny of global capital flows, the Singapore government has introduced a series of new rules effective in 2025. These reforms do not undermine Singapore’s attractiveness but raise the bar for foreign investors seeking to establish or restructure family offices in the country.

AUM and local business spending requirements

The Monetary Authority of Singapore (MAS) has refined the tax incentive thresholds under Sections 13O, 13U, and 13D.

From January 1, 2025, the AUM requirement is measured only against Designated Investments (DI) rather than total assets. Local Business Spending (LBS) is no longer a flat figure but follows a tiered model. Funds with less than S$250 million must spend at least S$200,000 annually, funds between S$250 million and S$2 billion must spend at least S$300,000, and those above S$2 billion must spend at least S$500,000.

This approach ensures that larger family offices contribute more to Singapore’s economy while smaller offices remain viable.

Global Investor Program – Family office pathway

From February 21, 2025, the Global Investor Program (GIP) requires applicants establishing a family office to invest at least S$50 million into equities listed on approved Singapore exchanges. REITs and Business Trusts are excluded from the qualifying asset pool.

This change ensures that family office capital directly supports Singapore’s capital markets and drives real economic value, rather than being channeled into passive investment vehicles.

Corporate Service Providers Act

From June 9, 2025, the Corporate Service Providers (CSP) Act introduces mandatory registration and compliance obligations for all service providers, including those offering nominee services. Providers must register with the Accounting and Corporate Regulatory Authority (ACRA), meet fit-and-proper criteria for officers, and comply with enhanced anti–money laundering and counter-financing of terrorism duties.

Transfer pricing rules on related-party loans

Singapore’s Inland Revenue Authority (IRAS) has updated its transfer pricing guidance with effect from January 1, 2025. Related-party loans of up to S$15 million must apply an indicative margin of 170 basis points over the reference rate. For loans above S$15 million, a full arm’s-length analysis is required.

Philanthropy Tax Incentive Scheme

The Philanthropy Tax Incentive Scheme, which took effect on January 1, 2024, remains unchanged in 2025. It allows approved donations to qualify for a 100 percent tax deduction, capped at 40 percent of statutory income. In 2025, the Ministry of Finance and MAS issued clarifications on approved intermediaries and reporting processes, giving family offices clearer operational guidance.

Strategic Outlook for foreign family offices

Singapore’s latest reforms reflect a dual objective: on one hand, they aim to attract genuine long-term capital by directing family office investments into the country’s equity markets and encouraging structured philanthropy; on the other, they tighten governance and compliance by imposing clearer rules on financing, service providers, and transparency.

While the requirements are stricter than before, Singapore continues to offer one of the most attractive frameworks globally for family offices seeking both tax efficiency and regulatory credibility.

This article first appeared on ASEAN Briefing, our sister platform.