In his 2023 Policy Address on 25 October 2023, the Chief Executive announced the launch of the New Capital Investment Entrant Scheme (New CIES), which officially commenced on 1 March 2024.  For information about  the New CIES, please refer to our first article.

In his 2024 Policy Address on 16 October 2024, the Chief Executive announced an amendment to the New CIES rules, allowing investments in real estate, including residential properties, effective immediately.  Additionally, investments made through an eligible private company wholly-owned by the applicant will count towards the applicant’s eligible investment, starting 1 March 2025.  For more on this update, please refer to our second article.

Further enhancements to the New CIES requirements were announced last month on 7 January 2025, summarised below.

Relaxed requirement for holding net assets prior to the application

To qualify to apply for a visa under the New CIES, applicants currently must have sole beneficial entitlement to net assets or net equity with a market value of at least HK$30 million (or equivalent in foreign currencies) for the two years preceding the date of the application.

Effective 1 March 2025, this requirement will change; applicants will only need to hold these assets for six months prior to applying. Additionally, assets held with family members will also be considered, based on the applicant’s respective portion.

Investments via a wholly-owned company

Starting 1 March 2025, investments made through an applicant's eligible wholly-owned private company will be considered as part of their eligible investments under the New CIES.  An 'eligible private company' refers to a holding company incorporated or registered in Hong Kong, wholly-owned by the applicant, either directly through a Family-owned Investment Holding Vehicle (FIHV) or via a Family-owned Special Purpose Entity (FSPE), managed by an 'eligible single-family office', as defined in section 2 of Schedule 16E to the Inland Revenue Ordinance (Cap. 112).

This enhancement aims to foster synergies between the New CIES and the establishment of family offices in Hong Kong.

Key takeaways

The recent relaxations in the New CIES requirements have made it significantly easier for individuals and their dependants to settle in Hong Kong.  With over 800 applications submitted and an anticipated investment exceeding HK$24 billion in the first ten months since its launch in March 2024, Hong Kong is positioned to become a significant global cross-border wealth management centre by 2028.  This growth is further supported by the establishment of 2,700 single-family offices, with numbers continuing to rise.

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Disclaimer: The information contained in this article is intended to be a general guide only and is not intended to provide legal advice. Please contact [email protected] if you have any questions about the article.