A family office is a wealth management structure established by a high-net-worth family to consolidate and professionalise the administration of its financial, real estate, corporate, and tax affairs. It may take the form of a single-family office (serving one family exclusively) or a multi-family office (shared among several families under a third-party professional platform).
In practice
What Is a Family Office
A family office is an administrative and advisory structure designed to bring under one roof all the services a high-net-worth family requires: asset management, tax planning, real estate governance, succession planning, consolidated accounting, and sometimes philanthropy or concierge services.
Spain does not have a specific legal form for family offices. In practice, the structure is built around a holding company — typically a Sociedad Limitada (SL) or Sociedad Anónima (SA) — which acts as the umbrella vehicle for the family’s various investment holdings and operational businesses.
Single-Family Office vs Multi-Family Office
Two main models exist:
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Single-family office (SFO): a structure dedicated exclusively to one family, with its own in-house team of investment managers, lawyers, and tax advisers. The level of customisation is high; the cost structure is typically justified from a certain level of assets under management.
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Multi-family office (MFO): a shared platform serving several families, usually operated by an independent professional firm. It provides similar services at a lower per-family cost but with less bespoke customisation.
Typical Structure in Spain
A Spanish family office structure commonly involves:
- A holding company as the top-tier vehicle, consolidating shareholdings in operating companies and channelling dividend flows.
- Dedicated vehicles for real estate assets (often through a sociedad patrimonial) and for financial investment portfolios.
- Succession planning instruments, including shareholders’ agreements, family protocols, and lifetime gifts, to prepare intergenerational transfers.
The wealth tax exemption for qualifying family business shareholdings and the 95% reduction in Inheritance and Gift Tax on the transfer of those shareholdings are central to comprehensive family office planning in Spain. Access to these regimes depends on meeting specific statutory conditions.
International Families
When family members are spread across multiple jurisdictions, the family office must integrate double tax treaty analysis, Modelo 720 compliance (declaration of overseas assets), and exit tax planning for members who relocate their tax residence. Spain’s special inpatriate tax regime (commonly known as the Beckham Law) may also be relevant for family members who move to Spain.
Family Office vs Private Banking
A family office should not be confused with a private bank. Private banking is a business line of a financial institution; a family office is a structure that acts exclusively in the interest of the family, without the conflicts of interest inherent in distributing proprietary financial products. The scope of services provided by a family office is also typically broader, encompassing legal, tax, and family governance matters that go beyond portfolio management.