Invest and stay: Hong Kong offers fast-track residency to attract global investors

Hong Kong has unveiled an attractive residency-by-investment programme, appealing to global capital and high-net-worth individuals (HNWI).

Since its launch in March 2024, the New Capital Investment Entrant Scheme (New CIES) has garnered significant attention. As of the end of November 2024, over 700 applications have been received by InvestHK, the government’s investment promotion department. If all applications are approved, it is expected to attract around HK$21 billion (S$3.62 billion), injecting fresh momentum into the city’s economy. Approved applicants and their dependents will also be permitted to enter and stay in Hong Kong, and apply for permanent residency after seven years of continuous residence in the city.

Hong Kong is a vibrant metropolis that offers a rich tapestry of living experiences and activities throughout the year, making it a unique destination for residents and visitors.

Each season in Hong Kong presents distinct opportunities; summer sees temperatures between 28-33 deg C, making it ideal for diving, kayaking and yacht outings, while temperatures during the cooler winter months can drop to 2-7 deg C, perfect for hiking along the city’s extensive trail network. Dragon’s Back on Hong Kong Island is one of the city’s most iconic trails, offering outstanding views for nature lovers and hiking enthusiasts.

Spring has become a popular time for outdoor activities like camping and stargazing, whereas autumn brings stunning foliage, particularly in areas like Tai Tong. The city’s nightlife is equally dynamic, with no legally enforced closing times for bars and clubs, contributing to its reputation as “the city that never sleeps”. 

Living in Hong Kong is characterised by relative freedom from excessive regulations, allowing for a cosmopolitan lifestyle enriched by a welcoming international community. Moreover, the city’s geographical location makes it convenient for travel to major Asian cities within a four-hour flight.

A cut above the rest

With its blend of cultural heritage and modern conveniences, Hong Kong remains an alluring place to live and explore. National service is not a mandatory requirement for permanent residents. As a major financial hub, it also takes an innovative and positive approach to distinguish itself from the competition. Leveraging its strategic position in the Guangdong-Hong Kong-Macau Greater Bay Area, the city allows investors to connect seamlessly to Chinese, Asian and global markets.

Unlike its competitors, Hong Kong’s New CIES avoids stringent criteria like specific work experience, business ownership or company turnover. Instead, eligibility hinges on applicants’ ability to demonstrate the absolute beneficial ownership of a net worth of at least HK$30 million for the two years preceding the application, and invest HK$30 million (the minimum investment threshold) in various permissible investment assets under New CIES, including equities, debt securities, certificates of deposits, subordinated debt and eligible collective investment schemes, amongst others.

The government anticipates that an influx of HNWIs and family offices will boost the local economy. According to the Altrata World Ultra Wealth Report 2024, Hong Kong is estimated to have

over 12,500 UHNWIs

, each with a net worth exceeding US$30 million (S$40.35 million). It currently ranks first on the list of Asia-Pacific destinations and second worldwide for UHNWIs.

Notably, Hong Kong ranks first in Asia and third globally in the

Global Financial Centres Index

, further solidifying its status as a premier financial hub and Asia’s largest centre for cross-border wealth management. It is also recognised as the

world’s freest economy

, which enhances its appeal to international investors and family offices looking for a conducive environment for wealth management and growth. 

Open for business

Long synonymous with a business-friendly environment, Hong Kong’s legal system, rooted in common law, provides transparency and robust investor protection. Corporate setup is swift, with no restrictions on foreign ownership.

The city’s tax regime is another draw. Corporate taxes are tiered at 8.25 per cent and 16.5 per cent, while personal income tax is capped at 17 per cent. Notably, Hong Kong imposes no sales tax, value-added tax, withholding tax, capital gains tax, estate tax or taxes on dividends and interest from savings.

These advantages have earned Hong Kong high marks on various global indices. The “Legatum Prosperity Index 2023” ranked the city first in the world for investment environment and second for enterprise conditions.

“The increasing New CIES application figures reflect the strong confidence from high-net-worth individuals in Hong Kong,” says Ms Alpha Lau, director-general of Investment Promotion at InvestHK. As Hong Kong positions itself to attract global investors, the New CIES stands as a testament to its ambition. By offering a streamlined path to residency and a gateway to one of the world’s most dynamic regions, the city is sending a clear message: Hong Kong is open for global investors.

Visit this website

for more information on the New CIES.