As part of its ambitions to be a famly office hub, the Hong Kong government has announced a slew of new measures that cover a wide range of areas including residency, art, philanthropy and more.
Hong Kong is introducing various new measures to lure family offices, according to a government statement.
«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 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.»
Residency with Yuan Assets
On Hong Kong’s residency path, the government will expand the existing Capital Investment Entrant Scheme (CIES) to allow assets denominated in the Chinese yuan to be considered in the application process
The current scheme allows Hong Kong dollar-denominated assets including stocks, bonds and funds. More details on the updated scheme will be announced later.
Tax Concessions
Hong Kong will look to introduce profit tax exemption for family-owned investment holding vehicles (FIHV) managed by single-family offices in the city.
This exemption is subject to approval by the local legislative council and the government will also look to further review the existing preferential tax regimes for funds and carried interest.
Art Storage
On art, authorities are «actively exploring the establishment of storage, display and appreciation facilities for art and treasures at the Hong Kong International Airport».
«It will enable global family offices with capital allocation in art to benefit from the thriving art ecosystem in Hong Kong,» the statement said.
Philanthropic Center
As part of its plans to also be a philanthropic center, Hong Kong will «enhance the processing of applications» for recognition of the tax exemption status of charities and provide further guidance on precise statements of charitable objects.
For tax exemptions offered to single-family offices in Hong Kong, the government plans to «enhance the legislative proposal» by expanding the extent of beneficial interest that an exempted charity may hold in an FIHV.
Government Support
Other initiatives announced relate to more hands-on government support including a dedicated communication channel by the Securities and Futures Commission on family office licensing.
A «Hong Kong Academy for Wealth Legacy» will be formed with a focus on talent development. A dedicated «FamilyOfficeHK» team as well as a new network of family office services providers (private banks, accounting and legal firms, trusts and other professional services firms) will also be established to facilitate related matters.
«The Policy Statement demonstrates our determination to develop Hong Kong into a leading global family office hub,» Chan added.
