Hong Kong to ease asset requirements for cash-for-residency scheme

Authorities will ease the threshold for calculating an individual’s net assets through Hong Kong’s cash-for-residency scheme, which is expected to bring in HK$24 billion (US$3 billion) to the city.

The Financial Services and the Treasury Bureau and InvestHK also announced on Tuesday that investments made through family-owned investment holding vehicles would count towards requirements under the scheme as the city sought to “create synergy” with its efforts to become a hub for family offices.

“Since the launch of the scheme, we have been liaising closely with the industry and are continuously working on further enhancements,” said Secretary for Financial Services and the Treasury Christopher Hui Ching-yu.

“We believe these measures will encourage more investors to join the scheme and can create synergy with the tax concession regime for family offices, thereby promoting the development of family office businesses in Hong Kong.”

Launched in March last year, the New Capital Investment Entrant Scheme (New CIES) – also known as the investment-migration scheme – allows applicants to invest at least HK$30 million in funds, stocks, bonds or other vehicles, in exchange for residency for their family in the city.

Under the new measures announced on Tuesday, starting from March 1 an applicant under the New CIES must only show that they have net assets of not less than HK$30 million in the six months preceding their application, down from two years initially.

In addition, net assets or net equity jointly owned with the applicant’s family members would also be taken into consideration when calculating the net asset requirements of the scheme.