Hong Kong's NEW CIES (Hong Kong Investment Immigration System), a representative investment immigration system in Asia, is receiving intense interest from high-net-worth individuals worldwide. As the asset-related requirements have been significantly relaxed, the number of applicants for the investment immigration system has increased by nearly 440% within a month.
According to related industries on the 28th, the NEW CIES system allows foreign individuals aged 18 and over (including Chinese nationals with permanent residency in other countries) to apply if they invest a minimum of 30 million Hong Kong dollars (approximately 5.3 billion won) in Hong Kong. Applicants who receive a visa approved under the NEW CIES can reside in Hong Kong with their spouses and dependent children for about two years. The residency right can be extended every three years, and after residing for over seven years, CIES applicants and their accompanying family members can apply for permanent residency.
Earlier this year, Hong Kong significantly eased the asset-related requirements for the NEW CIES. Under the previous system, applicants were required to maintain a net worth of at least 30 million Hong Kong dollars in their name for two years, but this period has been reduced to six months. In addition, assets co-owned with family members can be recognized as assets if the applicant is actively managing them.
It is also noteworthy that new investment methods have been recognized. Previously, applicants were required to diversify their investment of 30 million Hong Kong dollars into a CIES investment portfolio established by a Hong Kong investment company, stocks, debt securities, and time deposits among permitted investment assets.
However, following the reform of the NEW CIES earlier this year, individuals are now allowed to establish companies or family offices (FO) for investment. However, personal companies must hire at least two full-time employees in Hong Kong and spend a minimum of 2 million Hong Kong dollars annually on operating expenses.
If certain criteria are met through family offices, corporate tax exemption benefits can also be obtained. If the assets exceed 240 million Hong Kong dollars (approximately 42 billion won), up to eight family members can collectively meet the asset requirements.
According to the Hong Kong Investment Authority, Hong Kong has received 1,257 applications in approximately 14 months since the introduction of the NEW CIES, of which 543 applicants have met the investment requirement of at least 30 million Hong Kong dollars each. The Hong Kong Investment Authority is currently expecting to attract over 37 billion Hong Kong dollars (approximately 6.5 trillion won) in investment funds through these applications.
As of June this year, a total of 1,548 applications have been received, and the total investment amount is estimated to be around 46 billion Hong Kong dollars (approximately 8 trillion won).
In particular, after the reform of the NEW CIES earlier this year, the number of applicants increased by 440% in March compared to the previous month. The relaxation of asset requirements and the diversification of investment methods greatly contributed to this increase. Alpha Lau, the director of the Hong Kong Investment Authority, noted in an interview with the Hong Kong South China Morning Post (SCMP), "I am confident that the new CIES will attract more talents and capital to Hong Kong."
Given that Hong Kong is well-equipped with infrastructure facilities, the outlook for the NEW CIES is favorable. Hong Kong maintains its position as the top in the Asia-Pacific and third in the world in the Global Financial Centres Index (GFCI). As Asia's largest financial hub, 70 of the world's top 100 banks have established operations in Hong Kong. With 12,500 ultra-high-net-worth individuals (UHNWIs) residing in Hong Kong, there are diverse investment opportunities.
The living environment is also excellent. Hong Kong has 54 international schools offering curricula from various countries, including the United States, the United Kingdom, Germany, and Japan. Korean international schools offer classes in both Korean and English, helping children adapt smoothly to the local culture. It boasts an outstanding educational environment, having five universities ranked within the top 100 globally—the only region in Asia to have this many.
Furthermore, there are no capital gains taxes, value-added taxes, or property taxes, and the corporate tax rate is relatively low at 16.5%. Personal income taxes range from 2% to a maximum of 17%, applying relatively low rates even to high-income earners. There are also no inheritance, gift, or dividend taxes.
Charles Luchanko, founder of the Hong Kong family office Arte Capital Asia, said, "Hong Kong offers an efficient and streamlined business environment in various aspects such as company establishment, talent acquisition, and government regulations," adding, "a simple tax system is a significant advantage of Hong Kong compared to other countries. I 100% recommend to my foreign friends that they live with their families in Hong Kong."
He added, "Hong Kong is a family-friendly city with seasonal outdoor activities, beaches, and parks nearby," and that "it is a safe and livable place that offers a variety of cultural and culinary experiences."