Hong Kong Accelerates Wealth Sector Growth with New Investor Schemes and Tax Reforms

Capital Investment Entrant Scheme aims to attract high-net-worth investors, bolstering Hong Kong’s wealth sector amid competition from global financial centers like Singapore and Dubai.
With assets under management surpassing HK$30 trillion, Hong Kong boasts over 250 open-ended fund companies and 780 limited partnership funds.

To foster market growth, the government plans to extend the ‘Open-ended Fund Companies and Real Estate Investment Trust Fund Subsidy Scheme’ for three years. Additionally, a task force will collaborate with industry stakeholders to further propel asset and wealth management industry development.
Attracting global family offices and asset owners can inject more funds and spur economic activities. To this end, Hong Kong offers tax relief for qualifying transactions by single family offices and streamlines assessments for high-end professional investors.

The New Capital Investor Entry Scheme will soon accept applications. Eligible investors investing HK$27 million or more in eligible assets in Hong Kong and HK$3 million in the new Capital Investor Entry Scheme Investment Portfolio can apply for residency and business development in Hong Kong.

Regarding taxation, Hong Kong’s financial secretary, Paul Chan, reaffirms the city’s commitment to a minimum corporate tax rate of 15 per cent, in line with the Organization for Economic Cooperation and Development’s recommendation. Consultations on the implementation plan are underway, with legislative proposals expected in the latter half of 2024.