On March 24, the Hong Kong Special Administrative Region Government issued the "Policy Declaration on the Development of Family Office Business in Hong Kong", explaining policy positions and measures to establish a thriving ecosystem of global family offices and asset owners.
The Policy Statement proposes eight major policy measures, as follows:
The new Capital Investor Entrant Scheme
Based on the original "Capital Investment Entrant Scheme", the investment scope of the proposed scheme includes:
1. Stocks listed in Hong Kong;
2. Bonds issued or fully guaranteed by Hong Kong listed companies, the government, or entities wholly or partially owned by the government;
3. Subordinated bonds issued by authorized institutions;
4. Eligible collective investment schemes (including investment-linked insurance schemes).
In addition to assets denominated in Hong Kong dollars, the Hong Kong government will also consider assets denominated in renminbi.
If the application is successful, the applicant can come to live and develop in Hong Kong with his spouse and unmarried dependent children.
provide tax breaks
If passed by the Legislative Council, family investment holding vehicles (FIHVs) managed by single family offices in Hong Kong will be exempted from profits tax.
Transactions eligible for tax relief include:
Securities investment, futures contracts, deposits, and investment in private companies, etc.
In the next step, the government will review the current preferential tax regime for funds and carried interests in order to create a more favorable tax environment for the asset and wealth management industry.
Provide market facilitation measures
The Securities and Futures Commission of Hong Kong has published guidance specifically for family offices.
In addition, the Licensing Division has set up a dedicated communication channel, and investors can handle inquiries about family offices through email and telephone.
Under the premise of properly protecting investors, the regulator will simplify the suitability assessment and disclosure process of intermediaries for high-end clients or ultra-high-net-worth individual clients in accordance with the "risk-based principle."
Establishment of Hong Kong Wealth Inheritance Academy
The Hong Kong Wealth Inheritance Institute (subsidized by the Hong Kong government) was established under the framework of the Hong Kong Financial Services Development Council, and is supported by partners such as industry organizations, professional service providers, universities and the FamilyOfficeHK dedicated team of Invest Hong Kong.
The academy will provide talent training services for industry practitioners and wealth heirs, and expand the talent pool for the family office industry in Hong Kong.
Promote art storage facilities at airports
The Hong Kong Airport Authority is actively studying the establishment of art and treasure storage, exhibition and appreciation facilities at the Hong Kong International Airport under the "Airport City" development project.
A global family office with assets invested in art can benefit from Hong Kong's thriving art ecosystem.
Developing Hong Kong as a center for philanthropy
The Hong Kong government's goal is to develop Hong Kong into a philanthropic center that facilitates the deployment of charitable funds for global family offices and philanthropists.
The following measures will also be introduced:
1. Optimize the procedures for charitable organizations to apply for tax exemption to further develop the charitable industry in Hong Kong;
2. The Inland Revenue Department will prepare standard forms to facilitate the submission of applications and simplify the processing procedures, and provide further guidance for applicants to prepare regulatory documents so that they can make clear statements on charitable purposes;
3. Regarding the tax exemption of family investment control vehicles managed by single family offices in Hong Kong, the government plans to optimize the legislative proposals to increase the extent to which exempt charities can enjoy beneficial interests in family investment control vehicles.
Expansion of dedicated functions of FamilyOfficeHK
In order to facilitate the establishment and expansion of global family offices in Hong Kong, the dedicated FamilyOfficeHK team of Invest Hong Kong will expand its functions to provide services including coordinating wealth owners to promote charitable business and assisting in education-related matters.
New Family Office Service Provider Network
The FamilyOfficeHK dedicated team will convene and establish a new network of family office service providers from institutions providing comprehensive services to family offices.
Includes: private banks, accounting and law firms, trusts and other professional services firms.
The network will provide a two-way channel for the government and the industry to communicate on the latest policy developments. It will also leverage on the industry's global network to publicize and promote various opportunities in Hong Kong to family offices.
The release of the "Policy Declaration" shows that the Hong Kong government regards the work of attracting family offices to Hong Kong as a strategic priority project, and also confirms the determination of the Hong Kong government:
In addition to the international financial center, the Hong Kong government will create more diversified and comprehensive favorable policies to attract high-net-worth individuals and their family offices to settle in Hong Kong.
Xingyunhai International is headquartered in Hong Kong, China, occupying regional advantages and possessing strong resources. Professional consultants, senior copywriters, and post-service teams follow up the whole process, providing comprehensive and considerate services such as Hong Kong immigration, further education, and investment.
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