Hong Kong
A gateway to mainland China and broader Asia, Hong Kong offers deep capital markets, a common law legal system, and a sophisticated financial services ecosystem. The city remains a primary hub for families with significant Chinese business interests.
Family Offices
500+
Avg AUM
HK$800M
Regulatory Body
SFC (Securities and Futures Commission)
Tax Environment
Territorial system; no capital gains tax; profits tax 8.25-16.5%
Introduction
Hong Kong remains one of Asia's most important financial centres and a critical hub for family offices, particularly those with significant business interests in mainland China and the broader Greater China region. The city's deep capital markets, common law legal system, and sophisticated financial infrastructure provide a robust operating environment.
The introduction of tax concessions for family-owned investment holding vehicles (FIHVs) in 2023 signals Hong Kong's commitment to attracting and retaining family office capital. Combined with the city's territorial tax system, absence of capital gains tax, and extensive connectivity to mainland China through Stock Connect, Bond Connect, and the Greater Bay Area initiative, Hong Kong offers unique advantages.
While some families have diversified to Singapore in recent years, Hong Kong's unmatched proximity to mainland China, deeper capital markets, and established legal infrastructure continue to make it essential for families with Chinese business interests or seeking to access the world's second-largest economy.
Key Numbers
Evaluation
Hong Kong operates a territorial tax system where only profits sourced in Hong Kong are subject to profits tax. The two-tiered profits tax rate is 8.25% on the first HK$2 million of assessable profits and 16.5% on the remainder. There is no capital gains tax, no withholding tax on dividends, and no sales tax or VAT.
The new tax concessions for family-owned investment holding vehicles (FIHVs), introduced in 2023, provide profits tax exemption on qualifying transactions carried out by eligible single family offices. Qualifying conditions include minimum asset thresholds, family involvement requirements, and substance conditions in Hong Kong.
Personal income tax (salaries tax) is capped at a maximum rate of 15% on net income or progressive rates up to 17% on net chargeable income, whichever is lower. This relatively low personal tax burden complements the business-friendly corporate tax environment for family office principals and staff.
Resources Directory
Key Highlights
China access
Stock Connect, Bond Connect, and Wealth Connect schemes provide unparalleled access to mainland Chinese markets.
Common law system
English common law legal framework provides familiar structures for international families and cross-border transactions.
Deep capital markets
One of the world's largest stock exchanges and a hub for Asian IPO activity and private capital.
New tax concessions
Tax concessions for family-owned investment holding vehicles (FIHVs) introduced in 2023 to attract family offices.
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Frequently Asked Questions
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