The Hong Kong government has rolled out the red carpet to family offices, announcing a series of tax breaks and a revamped capital investment entrant scheme in an effort to woo family offices to set up shop in the special administrative region.
The government said in a statement that subject to approval by the Legislative Council, family-owned investment holding vehicles managed single family offices would be exempt from profits tax.
It also said that the government would carry out a further review of the existing preferential tax regimes for funds and carried interest.
The government also proposed a revamped capital investment entrant scheme. Permissible assets for the scheme will include equities listed in Hong Kong, debts issued or fully guaranteed by companies listed in Hong Kong or by the government, subordinated debts issued by authorised institutions, and eligible collective investment schemes.
Under the scheme, applicants will be able to reside in Hong Kong along with their spouses and any dependent children.
Other incentives include the establishment of art storage facilities at the airport.
“Developing family office business will be conducive to pool capital from around the world in Hong Kong, bolster our financial market as well as asset and wealth management industry,” said the Financial Secretary Paul Chan.
“It will also promote the sustainable development of Hong Kong’s financial and professional services, innovation and technology, green, arts and culture and philanthropy, creating strong impetus for Hong Kong’s growth.”
The measures come as Hong Kong has been hemorrhaging family offices to Singapore in the wake of the introduction of a sweeping national security law in 2020 and several years of pursuing a zero-Covid policy.
Last week, the government held its Wealth for Good summit, which attracted over 100 key decision-makers from global family offices and their professional teams across the region.
