The Gelephu Mindfulness City Authority (GMC) unveiled a new policy on 29 September that will allow family offices and investment funds to establish themselves in the city from 1 October. The move is part of the country’s broader strategy to turn the south‑Bhutan SAR into a world‑class economic hub centred on mindfulness, sustainability and innovation.
Under the new rules, a family office does not need to apply for a licence; it simply informs the Gelephu Financial Services Office (GFSO) of its intended activities. If its assets under management exceed US$10 million and it meets a handful of conditions, tax benefits kick in automatically, a process that can take only a few weeks—far shorter than the months‑long applications typical of other financial centres.
Indian investors stand to benefit the most. The GFSO recognises India as a fully eligible jurisdiction, meaning a SEBI‑registered AIF or PMS can run a fund domiciled in Gelephu without obtaining a separate GMC licence. The regulator will respond within four weeks of the application, and the tax exemption for funds runs for the life of the fund, while family offices enjoy a 15‑year exemption.
Gelephu’s proximity to India—just a two‑hour flight or a short land border—adds to its appeal. The city’s new framework is designed to attract high‑value careers and infrastructural investment, with the capital generated earmarked for Bhutan’s entrepreneurship and innovation programmes.
GMC’s spokesperson said the focus is on the quality of the first cohort rather than sheer size. While no AUM or entity‑count target has been set, the regulatory thresholds of US$10 million for family offices and US$50 million for capital‑intensive strategies will shape the initial wave of entrants. Applications open on 1 October, and the GMC Authority will review them within weeks, setting the stage for a potentially transformative influx of foreign capital.