The New Capital Investment Entrant Scheme (New CIES) was introduced by the Hong Kong Special Administrative Region (HKSAR) Government on 1 March 2024 to attract high-net-worth individuals, business elites, and innovative entrepreneurs.
The scheme offers eligible investors the opportunity to reside in Hong Kong upon making a minimum investment of HK$30 million in permissible assets.
As of January 2025, the scheme has garnered over 800 applications, reflecting strong confidence in Hong Kong's position as an international asset and wealth management center.
In a bid to further enhance the scheme's attractiveness, the HKSAR Government announced a series of enhancement measures, effective from 1 March 2025:
1. Relaxation of Net Asset Requirement (NAR):
- Shortened Assessment Period: Applicants are now required to demonstrate ownership of net assets or net equity valued at no less than HK$30 million for a continuous period of six months preceding the application, a reduction from the previous two-year requirement.
- Inclusion of Jointly Owned Assets: Assets jointly owned with family members can now be considered in the NAR calculation, provided the applicant is the absolute beneficial owner of the respective portion.
2. Investment via Family-owned Investment Holding Vehicles (FIHVs):
- Investments made through an eligible private company wholly owned by the applicant will be recognized under the scheme.
- An eligible private company refers to a holding company incorporated or registered in Hong Kong, wholly owned by the applicant, structured as an FIHV or a Family-owned Special Purpose Entity under an FIHV, managed by an eligible single-family office as defined in Section 2 of Schedule 16E to the Inland Revenue Ordinance (Cap. 112) and incurring at least HK$2 million operating expenditure annually in Hong Kong to carry out the activities of FIHV.
These enhancements aim to encourage more investors to join the scheme and to create synergy with the tax concession regime for family offices, further strengthening Hong Kong’s reputation as a global wealth management hub.
Detailed information on the New CIES and its updated rules effective from 1 March 2025, can be found on the official New CIES website.
For tailored guidance and application support, Fidinam is here to help.