Recently, Invest Hong Kong (InvestHK) announced the latest application and approval overview of the New Capital Investment Entrant Scheme (NCIES) in Hong Kong.
At the same time, the Hong Kong Government announced a further relaxation of the application threshold for the scheme.
01
New Capital Investment Entrant Scheme
Received 579 applications in half a year
In March this year, the Hong Kong government officially launched the New Capital Investment Entrant Scheme (NCIES), which aims to attract eligible persons to migrate to Hong Kong by way of investment in financial assets, while setting the application threshold at HK$30 million.
According to a paper recently submitted to the Legislative Council by Invest Hong Kong, the scheme has received 579 applications as of September, of which 448 applications have been verified as meeting the net worth requirement. This figure fully demonstrates the strong confidence of high net worth individuals in the Hong Kong market.
If all these applications are approved, it is expected to bring in an inflow of more than HK$17.3 billion to Hong Kong, further reinforcing Hong Kong's leading position in asset and wealth management.
02
Latest Policy Benefits
Residential properties included in investment scope
At the initial stage of the scheme, investors were limited to investing in financial assets and non-residential properties.
However, according to the 2024 Policy Address, starting from October 16, 2024, the investment scope of the New Capital Investment Entrant Scheme will be expanded to include residential properties, with the requirement that the transaction price of a single residential property should not be less than HK$50 million, and the maximum amount of investment in residential properties to be counted as part of the total investment under the Scheme is HK$10 million.
In addition, with effect from March 1, 2025, investments made through eligible private companies wholly owned by the applicant will also be counted towards the eligible investment amount.
Image source: Sing Tao Daily
The inclusion of residential properties in the investment categories of the New Capital Investment Entrant Scheme (NCIES) not only enhances the flexibility of the scheme, but also broadens the scope of applicants' investments in Hong Kong.
Since the Hong Kong government relaxed its policies related to the property market in September, the volume of residential transactions in Hong Kong has gradually recovered. In the first three quarters of this year, the transaction volume of super-luxury properties hit a three-year high. The Government's optimization of the New Capital Investment Entrant Scheme is expected to further stimulate demand in the high-end residential market.
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New Capital Investment Entrant Scheme
What is the scope of investment?
The New Capital Investment Entrant Scheme (NCIES) allows eligible investors to invest $27 million of the $30 million in financial assets and real estate, with the remaining $3 million to be used in the CIES investment portfolio.
The specific investment scope includes:
★ Permitted financial assets: covering equities, debt securities, certificates of deposit, subordinated bonds, eligible collective investment schemes and ownership interests in limited partnership funds registered under the Limited Partnership Funds Ordinance.
★ Real estate: including non-residential real estate and high-value residential real estate (the transaction price of a single residential property must be HK$50 million or above).
★ Capital Investment Entrant Scheme (CIES) Portfolio: Applicants are required to invest HK$3 million in a portfolio which will be invested in Hong Kong-linked companies or projects that support innovation and technology and other industries that are critical to the long-term development of Hong Kong's economy.
The Hong Kong New Capital Investment Entrant Scheme offers a number of advantages. Upon approval, applicants can bring their dependants (including their spouses and their unmarried and dependent children under the age of 18) to live in Hong Kong.
Applicants and their dependants who have ordinarily resided in Hong Kong for a continuous period of not less than seven years may apply for permanent residence in Hong Kong in accordance with the law. Applicants who do not meet the continuous ordinary residence requirement but have continuously met the investment requirements of the new scheme for not less than seven years may apply for unconditional stay in Hong Kong.
If the application for permanent residence/unconditional stay is approved, the applicant is free to dispose of his/her invested assets.
If you are interested in applying for the new Capital Investment Entrant Scheme (CIES), please contact Nebula Hai International for our customized services.
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