Hong Kong Chief Executive, John Lee Ka-chiu, has released The Chief Executive 2024 Policy Address on 16 October in which enhancements have been made to the New Capital Investment Entrant Scheme (New CIES) aimed at encouraging overseas investors. Among changes, applicants to the scheme are now allowed to invest in residential properties, provided that the transaction price of a single property is HKD50m (USD6.43m) or above. The total investment amount in real estate (the aggregate of all residential and non-residential properties) that counts toward fulfilling the minimum investment threshold is subject to an aggregate cap of HK$10m.
Chi-man Kwan, Group Chief Executive Officer of Raffles Family Office, has broadly welcomed the changes. “We consider the enhancements to the New Capital Investment Entrant Scheme (CIES) as a major upgrade to attract a broader range of international capital and asset owners to Hong Kong . . . Building on the success of the relaunched CIES, which have generated an influx of enquiries, the new enhancements increase the scheme’s appeal to ultra-high-net-worth individuals and families seeking to leverage Hong Kong’s strategic location, low tax environment, and robust financial infrastructure. These improvements are expected to turn interest into action, particularly for those planning to establish family offices in Hong Kong.”
“Furthermore, we welcome the Government’s announcement to consult the industry on its proposal to add qualifying transactions eligible for tax concessions for funds and single-family offices. Tax implications are one of the key considerations for family offices when choosing their location of domicile. We look forward to an even more conducive environment for family offices, and hope to leverage our strengths in wealth management and legacy planning to better cater to the needs of our clients.”