Key incentives and regulatory advantages

Tax benefits: Hong Kong’s territorial tax system – imposing no capital gains, inheritance, or offshore income taxes – remains a cornerstone of its appeal. SFOs can apply for tax concessions on qualifying transactions after establishment, with recent budget proposals expanding eligible investment types and streamlining compliance.

Immigration flexibility: The new Capital Investment Entrant Scheme (CIES), launched in March 2024, allows residency for investors allocating HKD 27 million to qualifying assets, alongside HKD 3 million to a dedicated portfolio. With over 500 applications filed by September 2024, the scheme reinforces Hong Kong’s appeal to high-net-worth individuals.

Regulatory ease: Unlike jurisdictions requiring specialised licensing, Hong Kong allows family offices to operate without complex approvals, simplifying setup and reducing administrative burdens.

2024–25 Budget initiatives:

The government is prioritising three measures to attract family offices:

Tax concessions: Expanding exemptions for family-owned investment vehicles and refining eligibility criteria.

Global engagement: Hosting the second Wealth for Good Summit in March 2025 to showcase Hong Kong’s strengths to global asset owners.

Enhanced connectivity: Strengthening ties with the Greater Bay Area to unlock mainland China opportunities, while promoting fintech and sustainable investments.

2025 outlook

Hong Kong’s family office sector is poised for a 43% growth spike in 2025, driven by its role as China’s international financial gateway. Innovations in financial technology, green finance, and professional services – coupled with world-class infrastructure and lifestyle amenities – position the city as a long-term destination for ultra-high-net-worth families.

Why Hong Kong?

Access to China: Proximity to mainland markets offers unparalleled business and investment opportunities.

Lifestyle appeal: A blend of urban sophistication, nature, top-tier healthcare, and education attracts global elites.

East-west integration: Hong Kong combines Asian business networks with Western legal and financial frameworks.

With targeted government support and a focus on innovation, Hong Kong is cementing its status as Asia’s premier family office hub, leveraging its unique advantages to sustain growth beyond 2025.

A qualified solicitor in Hong Kong since 2000, Alfred Ip is skilled in helping individuals and their families manage personal and wealth-related matters, including trust and probate (both contentious and non-contentious), family and mental capacity issues. He was also admitted as a Solicitor of England and Wales in 2002.

publications

Hugill & Ip is the new member of GGI in Hong Kong

Alfred Ip contributes to private wealth global practice guide in Hong Kong

Hong Kong’s family office landscape in 2025: Growth and government strategy