Spotlight on APAC Series: Hong Kong

The Hong Kong Government announced that from 16 October 2024, residential properties and investment vehicles would become eligible investments under the Capital Investment Entrant Scheme (CIES), expanding beyond commercial real estate. The residential property must be no less than HK$50 million (or approximately US$6.4 million) and HK$10 million of that will count towards CIES eligibility. The property must have been purchased on or after the launch date of CIES, which was 1 March 2024.

Key points include:

• This new rule expands eligibility from previous CIES processes, which focused only on commercial real estate.

• Investments vehicles like Limited Partnership Funds (LPFs) and Open-ended Fund Companies (OFCs) are now included under the scheme There are no restrictions on the type or location of investment similarly, like BVI partnerships and Cayman special purpose companies, which can be made onshore in Hong Kong.

• This expansion follows growing interest in investment vehicles and is to ease entry for investors by streamlining CIES criteria, including residential investment.

• Applicant can clock HK $30 million of investment for 7 years to get Permanent Residency status, of which $10 million can be based on commercial real estate, another $10 million from residential real estate and another $10 million from LPFs and OFCs (combined).

By stipulating the minimum amount of $50 million for the residential real estate option, the scheme now supports the luxury housing market and simplifies entry for high-net-worth individuals without affecting the lower-end housing market.

If you would like to discuss your global immigration needs, please get in touch with Antonia Grant, [email protected] or Rachel Ang, [email protected].

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