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New Capital Investment Entrant Scheme for Hong Kong
03/05/2024
Hong Kong has introduced a new initiative to cement its position as a global financial hub and a preferred destination for high-net-worth individuals seeking to establish family offices. With its strategic location, well established financial infrastructure, and supportive government policies, Hong Kong offers an attractive ecosystem for family businesses and investors. The New Capital Investment Entrant Scheme (CIES), aims to further enhance its appeal to global talent and wealth creators.
In this article, we will explore the key features of the CIES, its potential impact on Hong Kong’s financial landscape, and the opportunities it presents for investors and family offices.
Key points
- The Capital Investment Entrant Scheme (CIES) aims to attract foreign investors with at least HK$30 million (approx $3.8 million USD) in permissible investment assets to enhance the city’s economy and competitiveness as an international financial centre.
- The CIES allows investors to apply for permanent residency in Hong Kong by investing HK$30 million (approx $3.8 million USD) in Hong Kong.
- Eligible investments include, financial assets, non-residential real estate, and a new CIES Investment Portfolio.
- Dependents of the investor will also be eligible to stay in Hong Kong.
What is a Family Office?
A family office in Hong Kong, refers to a private wealth management advisory firm that serves high-net-worth individuals and families. The main purpose of a family office is to manage and preserve the financial affairs of affluent families, providing a range of services to meet their unique needs and objectives. These services can include investment management, estate planning, tax management, philanthropy, and various other financial and administrative functions.
Key features of a family office in Hong Kong may include:
- Wealth Management: Managing the family’s investment portfolio, which may include stocks, bonds, real estate, and other assets, with the goal of preserving and growing wealth over generations.
- Estate Planning: Assisting with the transfer of assets from one generation to the next, often through the creation of trusts, wills, and other legal structures.
- Tax Planning: Developing strategies to minimise tax liabilities for the family and its assets, taking advantage of local and international tax regulations.
- Philanthropy: Advising on charitable giving and helping families establish and manage charitable foundations or trusts.
- Concierge Services: Providing personalised services such as bill payment, travel arrangements, and other administrative tasks to simplify the daily lives of family members.
- Risk Management: Identifying and mitigating potential risks to the family’s wealth, including legal, financial, and operational risks.
- Succession Planning: Assisting in the planning and implementation of smooth transitions of wealth and responsibilities to the next generation.
Hong Kong is a prominent financial hub in Asia, and its strategic location and business-friendly environment make it an attractive location for family offices. The city offers a well-established financial infrastructure, legal framework, and a range of financial services that make it conducive for managing and growing wealth. Additionally, Hong Kong’s proximity to mainland China and its strong ties to international markets make it a key player in the wealth management industry in the region.
According to a survey by the Commerce and Economic Development Bureau, Hong Kong is home to more of the world’s top 500 family enterprises than any other territory in the Asia-Pacific region. Moreover, its integration within the Greater Bay Area, which boasts a population of over 86 million and a substantial number of ultra-high-net-worth households, further strengthens its appeal. (Source)
What is the New Capital Investment Entrant Scheme?
The New Capital Investment Entrant Scheme, introduced by the Hong Kong government, aims to attract global talent and high-net-worth individuals from diverse sectors. The scheme presents an opportunity for eligible applicants to obtain residency in Hong Kong by making substantial investments in permissible financial assets and non-residential real estate.
Successful applicants are required to invest a minimum of HK$30 million and may bring dependents to Hong Kong for a period of two years, with possibilities for extension and eventual permanent residency. By encouraging investments and attracting affluent families, the scheme aims to bolster Hong Kong’s economic growth and development.
What are the Benefits and Opportunities for the New Capital Investment Scheme?
The New Capital Investment Entrant Scheme allows eligible candidates to have a pathway to Hong Kong Permanent Residency (PR). Holding PR provides a wide range of benefits and opportunities for eligible investors and family offices.
Residency in Hong Kong
By obtaining residency in Hong Kong, individuals gain access to a dynamic business environment, a comprehensive range of investment opportunities, and a well-established legal and regulatory framework.
The scheme’s emphasis on attracting global talent ensures a diverse pool of expertise and networks, fostering collaboration and innovation. Moreover, the scheme provides an avenue for investors to contribute to Hong Kong’s economic growth and development while enjoying the city’s vibrant lifestyle and cultural offerings.
What are the Eligibility and Requirements for the New Hong Kong Resident Permit (CIES) ?
To participate in the New Capital Investment Entrant Scheme, applicants must meet specific eligibility criteria and fulfil financial requirements. Eligible individuals are required to:
- The applicant invests a minimum of HK$ 30 million (approx $3.8 million USD) in the country in permissible investment assets, including financial instruments and non-residential real estate.
- The HK$30 million (approx $3.8 million USD) must be broken down as follows; a minimum of HK$27 million (approx $3.4 million USD) in permissible financial assets and non-residential real estate and HK$3 million (approx $383,000 USD) into a new CIES Investment Portfolio.
- The applicant must maintain the investment in Hong Kong for at least seven years.
- The applicant has had net assets of not less than HK$ 30 million approx $3.8 million USD) in the two years preceding the date of application.
The scheme also allows for dependents, including spouses and unmarried dependent children under the age of 18, to accompany successful applicants to Hong Kong.
How can Belaws help?
For more information about starting a business in Hong Kong, why not talk to one of our experts now?
Please note that this article is for information purposes only and does not constitute legal advice.
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Frequently asked questions
What is the New Capital Investment Entrant Scheme (HONG KONG CIES)?
The Hong Kong CIES is a program by the Hong Kong government to attract high-net-worth individuals by offering them residency in exchange for investment.
Who is eligible for the CIES?
Individuals with at least HK$30 million (approx $3.8 million USD) in net assets and willing to invest HK$30 million in permissible assets in Hong Kong qualify.
What are the benefits of CIES?
Successful applicants can obtain permanent residency in Hong Kong, access investment opportunities, and enjoy a vibrant lifestyle.
What are the investment requirements for CIES?
Applicants must invest a minimum of HK$30 million, with HK$27 million in permissible financial assets and non-residential real estate, and HK$3 million in a new CIES Investment Portfolio. They must also maintain the investment for at least seven years.
Can I bring dependents to Hong Kong under CIES?
Yes, spouses and unmarried dependent children under 18 can accompany successful applicants.
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