Introduction
The long-awaited capital investment program has finally returned, Hong Kong Government has launched the New Capital Investment Entrant Scheme (New CIES) in March 2024. Hong Kong has long been recognized as a vibrant global financial hub, attracting investors from around the world. With its stable legal system, low tax rates, and strategic location, this city offers an ideal environment for businesses to thrive. The New Capital Investment Entrant Scheme (New CIES) is a program designed to further bolster Hong Kong’s economic growth by encouraging foreign investment. In this blog post, we will explore the key features and benefits of the New CIES and how it serves as a gateway to Hong Kong’s prosperity.
Overview of the New Capital Investment Entrant Scheme (New CIES)
The New CIES was introduced by the Hong Kong Government to attract high-net-worth individuals who wish to make substantial investments in Hong Kong. It offers a fast-track pathway for eligible individuals to obtain residency in Hong Kong, thereby facilitating their contribution to the local economy. The scheme is specifically tailored to individuals who can demonstrate a strong financial background and a commitment to investing in Hong Kong.
Eligibility Criteria
To qualify for the New CIES, applicants must meet certain eligibility criteria, including:
Nationality
Foreign nationals with nationals of Afghanistan, Cuba and Democratic People’s Republic of Korea are excluded; Chinese nationals who have obtained permanent resident status in a foreign country; Macao SAR residents; and Chinese residents of Taiwan.
Minimum Net Asset
Applicants must have a minimum net worth of HKD 30 million (or equivalent in foreign currencies) throughout the two years preceding the dates he lodged the application for Net Asset Assessment of the Scheme.
Minimum Investment Requirement
Applicants are required to make a qualifying investment of at least HKD 30 million in permissible investment assets, such as stocks, bonds, or non-residential estate. Separately, each applicant is required to place HKD 3 million into a new CIES IP which will be setup and managed by the Hong Kong Investment Corporation Limited. All investment must be made within 180 days after entering Hong Kong with the entry permit.
Clean Background
Applicants should have no criminal record and no adverse immigration record in Hong Kong.
Benefits of the New CIES
The New CIES offers a range of benefits to successful applicants, including:
Residency in Hong Kong
Successful applicants and their dependents are granted a visa or entry permit which allows them to reside in Hong Kong for an initial period of two years. This can be renewed every three years, as long as the applicant continues to meet the scheme’s requirements.
Flexibility in Business Activities
New CIES participants enjoy the freedom to engage in business activities in Hong Kong, including starting their own businesses or investing in existing ones. This enables them to explore new opportunities and tap into Hong Kong’s dynamic market.
Quality Education and Healthcare
Hong Kong boasts world-class educational institutions and a well-established healthcare system. Participants can avail themselves of these high-quality services for themselves and their families.
Taxation Benefits
Hong Kong maintains a simple and low-tax region, making it an attractive destination for investors. New CIES participants can enjoy favorable tax rates on their qualifying investment income, subject to certain conditions.
Application Process
Before submit the application to Immigration Department, applicants require to first approach the New CIES Office for verifying whether they have fulfilled the net asset requirement. If they passed the requirement, the New CIES Office will issue a certified proof to Immigration Department and applicants can submit an entry application to Immigration Department. The department will issue an “Approval-in-Principles” to suitable applicants. Then applicants can make the committed investment within 180 days after they entered Hong Kong.
Lastly, applicants should approach the New CIES Office again to verify if the investments have met the requirement, and the Office will issue certifying proof. Applicant will be granted a formal approval letter of entry applications from Immigration Department
Please be noted that, applicants must engage a practicing CPA to verify both the net asset requirement and investment requirement. The CPA will issue fulfilment documents to applicant to further process the application.
How can FastLane HR offer help?
We understand the complexity if the application of this new visa scheme. FastLane HR has professional team to help you to apply for the New CIES visa from provide advices, gather and review documentation, submit application and follow up with relevant government departments. We also have practicing CPA to partner with which enable comprehensive services can be provided to you.