Hong Kong Residency

Hong Kong, blending Eastern and Western cultures, boasts world-class infrastructure and low taxation, serving as a business-friendly environment in East Asia, with autonomy in governance since 1997, recognized as the world’s freest economy and a vital international finance hub.

Hong Kong, a vibrant metropolis blending Eastern and Western cultures, boasts world-class infrastructure and low taxation, fostering a business-friendly environment. Positioned at the heart of East Asia, it covers Hong Kong Island, the Kowloon Peninsula, the New Territories, and numerous outlying islands. Established as a British colony in 1841, it reverted to Chinese sovereignty in 1997 under the Joint Declaration, becoming a Special Administrative Region with autonomy in governance. Recognized as the world’s freest economy by the Heritage Foundation’s 2019 Index of Economic Freedom, Hong Kong serves as a crucial international finance and trade hub with a population of approximately 7.49 million.

Time Frame

Four (4) to eight (8) months

Investment Requirement

Applicants must complete a test based on points under the Quality Migrant Admission program.

Key Benefits of Residence by Investment in Hong Kong

• Economic and political stability, Hong Kong stands as a major financial and trading hub due to its strategic location
• Operates under a well-established legal system rooted in English common law, providing transparent rules and regulations
• Serves as the premier gateway for business and investment flowing into and out of mainland China
• Recognized as the world’s freest economy, with no limitations on capital flow
• The currency remains stable and convertible, linked with the US dollar
• Functions as a global communications capital, boasting an outstanding communications framework
• Hosts an international standard airport and holds the title of the world’s busiest container port
• The taxation system is favorable for both citizens and businesses

The Residency by Investment Options for Hong Kong

• The Quality Migrant Admission Scheme
• The General Employment Policy
• Investment as Entrepreneurs

The Capital Investment Entrant Scheme ceased officially on 15 January 2015. Nonetheless, alternative options remain available for individuals seeking Hong Kong residence, including:

The Quality Migrant Admission Scheme

The Quality Migrant Admission Scheme aims to attract highly skilled or talented individuals to settle in Hong Kong and contribute to its economy, excluding nationals of Afghanistan, Cuba, Laos, DPRK, Nepal, and Vietnam. Before earning points in one of the two point-based tests below, applicants must fulfill a set of prerequisites (qualified individuals from the Talent List receive extra points under the QMAS):

• The General Points Test mandates achieving a passing score of 80/225 and encompasses five categories: age, academic or professional credentials, work experience, language proficiency, and family background.
• The Achievement-Based Points Test is designed for candidates who have attained distinction through exceptional performance (such as winning Nobel Prizes, Olympic medals, national or international awards) or who can demonstrate peer recognition or significant contributions to their field (such as receiving a lifetime achievement award from their industry).
• Applicants who meet one of the criteria under this test will be awarded 225 points; otherwise, no points will be granted, and the application will be rejected.

The General Employment Policy

The General Employment Policy sets out the admission requirements for individuals seeking to enter or remain in the HKSAR for professional employment. Under the General Employment Policy (GEP), individuals seeking to work as specialists in the HKSAR must meet specific admission criteria. Candidates possessing unique abilities, expertise, or knowledge not readily available in Hong Kong can apply to work under the GEP provided they fulfill the following conditions:

• The candidate possesses a strong academic record, typically holding a bachelor’s degree in an appropriate employment field
• A legitimate job opening exists.
• The candidate receives a verified employment offer and works in a position related to their academic credentials or job experience that local workers cannot fill.
• The compensation plan, including salary, housing, healthcare, or additional perks, generally aligns with current market standards for experts in Hong Kong.

Investment as Entrepreneurs

The Investment as Entrepreneurs option caters to individuals seeking to enter or stay in the HKSAR by setting up or joining a business, as outlined in the General Employment Policy. The Investment as Business Owners category defines the eligibility criteria for individuals aiming to enter or continue their presence in the HKSAR as entrepreneurs under the GEP, intending to establish or join a company in the HKSAR.

• Candidates must demonstrate a remarkable academic background, typically obtaining a primary degree in a related area.
• They are required to establish or join a fledgling enterprise and possess the ability to make a substantial contribution to Hong Kong’s economy, considering factors such as the business plan, revenue, financial resources, locally created jobs, and the introduction of new technology or skills.
• Chinese expatriates holding passports from the People’s Republic of China and meeting the aforementioned requirements, along with the standard immigration prerequisites, can apply for HKSAR Investment as Business Owners visas if they hold permanent residency abroad or have resided overseas for at least one year immediately before submitting the application. (‘Overseas’ excludes mainland China, the Hong Kong Special Administrative Region, and the Special Administrative Region of Macao.)

Procedures and Time Frame

The applicant must submit all relevant application forms and supporting documents to obtain any of the above visas. Upon receiving all required documents, the Immigration Department typically takes four to eight months to process visa or entry permit applications.

Endorsing requests is entirely optional and subject to changes in government regulations. The head of migration holds complete authority to deny any request, regardless of meeting all eligibility standards. Successful applicants will typically receive a restricted extended residency of 24 months (solely without other stay limitations upon admission). Petitioners can request an extension of their stay in the HKSAR before their time restriction expires. Such requests will only be considered if the claimants still meet the qualification criteria under the entry for investment, the QMAS, or the General Employment Policy.

Tax in Hong Kong

Taxation in Hong Kong follows a territorial source principle. Hong Kong firms only pay taxes on earnings generated within Hong Kong, with the current tax rate set at 17.5% on taxable income. There are no withholding taxes on interest or dividends, and no taxes are applied to capital gains. However, a withholding tax of 5.25% is imposed on royalties, which is applicable to royalties paid to non-local recipients not affiliated with the payers.

A tax rate of 16.5% is applied if the parties involved are connected. Hong Kong firms serve as ideal vehicles for global trading or consulting activities that require connections in Hong Kong, allowing these businesses to operate tax-free. The same exemption applies to companies owning real estate outside Hong Kong. No capital gains tax is imposed, and dividends received or distributed by a Hong Kong firm remain tax-exempt. Additionally, the standard profits tax rate for income sourced from Hong Kong is highly competitive, standing at 16.5%.

If you would like to learn more about the Hong Kong Residence by Investment Programs, please don’t hesitate to contact us at Tsavorite as we would love to connect with you.