Hong Kong Approves Moves To Attract Single-Family Offices

Editorial Staff

18 May 2023

Hong Kong’s government has approved tax and other measures to encourage single-family offices.

Late last year, the Asian city introduced a bill providing tax concessions for investments managed by eligible single-family offices, with retrospective effect from 1 April 2022. Called the Inland Revenue (Amendment) (Tax concessions for family-owned investment holding vehicles) Bill 2022, it exempts family-owned investment holding vehicles and their portfolios of special purpose entities from tax on transactions carried out by a Hong Kong-based family office.

Authorities in Hong Kong have approved the package of measures, effective 19 May this year.

The qualifying criteria for single family offices includes a minimum of $30 million of assets (HK$240 million) with 95 per cent beneficial ownership, two full-time employees in Hong Kong, $255,000 yearly operating expenses in Hong Kong and not more than 50 holding vehicles.

Such measures come at a time when Hong Kong is competing against rival hubs such as Singapore and Dubai to attract SFOs and other wealth management entities.

"This pivotal development will undoubtedly serve as a catalyst for elevating the competitiveness of Hong Kong’s family office industry. We are witnessing an inflection point in our sector, a transformative moment that promises to reshape the landscape of wealth management and bespoke financial services. The forward momentum being generated by these changes is not just promising, but essential,” Chi-man Kwan, group CEO and co-founder of , said.

"We wholeheartedly welcome more forthcoming policies from the government and regulators. It is this kind of proactive, strategic vision that will enable Hong Kong to continue to prosper and thrive as a global financial hub. These policies are not only beneficial for our industry, but they also reflect a broader commitment to fostering economic growth and innovation. This is an exciting time for the family office industry, and we look forward to playing a pivotal role in shaping its future.”