Hong Kong Residence by Investment

Hong Kong’s iconic Capital Investment Entrant Scheme (CIES) is back.

Once considered among the most prestigious residency programs in Asia, the new CIES was introduced in 2024, giving investors the opportunity to gain permanent residency in a global powerhouse jurisdiction quickly.

The minimum investment associated with this program has always been high: When the program was initially scrapped in 2015, that figure stood at HK$10 million.

That limit has now increased to HK$30 million (around US$3.87 million), yet 500 applicants applied in the first six months of the new scheme’s launch, representing a massive financial boost to the local economy. 

The organisation handling the scheme, Invest HK, says it has handled around 5,000 queries from potential applicants during that period. 

It is now possible to qualify for the program through real estate investments, making it even more attractive to investors who want permanent residence. 

Hong Kong is a hub for business owners and one of the more tax-friendly jurisdictions in Asia. 

Hong Kong’s territorial tax scheme means that income generated outside its borders is not taxed. There’s no capital gains or dividend tax either.  

Nomad Capitalist founder Andrew Henderson made the decision to incorporate his company in Hong Kong some time ago, and his view of it being a suitable jurisdiction hasn’t changed. 

‘I’ve always liked Hong Kong. It was number one on the Economic Freedom Index for a long time,’ he explains. 

‘It was a place where a business like what Nomad Capitalist was initially – where we didn’t really have employees, there was no physical presence, it was all digital – a good fit for Hong Kong.’

Most of Asia’s more developed countries don’t make it as simple as Hong Kong for foreigners to gain permanent residency. If you’re a wealthy investor who’s serious about creating a base in this part of the world, the new CIES will be of interest.

Why Hong Kong?

There is a buzz about Hong Kong that’s hard to find anywhere else. It’s an exciting place to live with lots of English speakers and there are plenty of tangible benefits.

With residency in Hong Kong, you get the ability to become a tax resident and make use of its territorial tax policy. Its strategic location allows easy access to other Asian markets. 

When you invest in Hong Kong, you invest in a country with no dividend tax and no capital gains tax, not to mention one of the fastest-growing economies in the world. 

So, why not get a permanent residency while you’re at it? 

Our ultimate guide to expat living in Hong Kong explores what to expect if you make the move. 

Hong Kong Residence by Investment: Pros and Cons

Pros

• A tax-friendly country: Become a tax resident of Hong Kong and you can lower your tax bill dramatically, especially if your income is foreign-sourced. 
• Economic and political stability: Markets can change, but any investment you make in Hong Kong right now would generally be considered safer than in many other countries. 
• Strategic location: Get easy access to other key Asian markets and a gateway to China. 
• Huge expat community: Living in Hong Kong will give you the opportunity to network with other successful investors and entrepreneurs. 

Cons

• High cost of living: Hong Kong ranks 6th in the world in the Numbeo Cost of Living Index for 2025.
• A busy, overcrowded city: If you prefer peaceful and relaxing surroundings, Hong Kong won’t be a good fit. 
• No citizenship: Hong Kong citizenship doesn’t exist, so there’s no hope of getting naturalised here. 
• Cultural differences: While Hong Kong is fairly Westernised, it won’t feel as familiar as a base closer to Europe or the Americas that offers a softer landing.

Requirements for Hong Kong Residence by Investment

Two bodies are responsible for assessing an applicant’s eligibility for Hong Kong residence by investment. 

The CIES Office assesses an applicant’s assets and investments, ensuring they meet the thresholds of the program. This office is owned and managed by InvestHK. 

However, it’s the Hong Kong Immigration Department that makes visa-related decisions.

You must be at least 18 years old and fall into one of the following categories to qualify for the New CIES Program:

• Foreign national
• Chinese national who has obtained permanent resident status in a foreign country
• Macao Special Administrative Region resident
• Chinese resident of Taiwan.

Citizens from Afghanistan, Cuba and the Democratic People’s Republic of Korea are excluded.

Eligible applicants must have invested at least HK$30 million (US$3.87 million) in qualifying assets in Hong Kong before applying. 

This must include at least HK$3 million (about US$390,000) deposited in a government-managed CIES investment portfolio.

Qualifying assets include:

• Equities 
• Debt securities 
• Certificates of deposits 
• Subordinated debt 
• Eligible collective investment schemes 
• Ownership interest in limited partnership funds
• Real estate worth at least HK$27 million (although only HK$10 million worth of real estate can count toward your total investment).

Assets held before the launch date of the new scheme (March 1, 2024) don’t count toward this investment threshold. 

Investments held jointly with family members, such as those held in a Family-owned Investment Holding Vehicle (FIHV) or a Family-owned Special Purpose Entity (FSPE), are eligible to count toward the threshold. 

Applicants can include their spouse, civil partner and children under 18 as part of their application. 

Successful applicants and their dependents are initially given a two-year visa, then a three-year visa upon renewal. 

You can indefinitely renew your visa every three years, provided you continue to hold at least HK$30 million worth of qualifying assets.

After seven years as a temporary resident in Hong Kong, applicants are eligible to apply for permanent residency, after which they can cash in their investments without surrendering their right to reside there. 

How to Apply for Permanent Residency by Investment

Step 1. Net Asset Assessment 

The Net Asset Assessment is conducted by the New CIES Office to ensure you have enough net permissible investment assets or net equity to meet the investment criteria of the program. You can apply for it online. 

You’ll have to demonstrate that you had at least HK$30 million available to invest throughout the six months before the application. 

You’re encouraged to hire a certified accountant to help demonstrate your access to the necessary funds. 

Once you’re deemed to have fulfilled the Net Asset requirement, the New CIES Office will send you certifying proof of this and notify the Immigration Department. 

Step 2. Approval-in-Principle to Enter Hong Kong

Upon passing the Net Asset Assessment, you can apply to the Immigration Department for approval in principle to enter Hong Kong. This application will involve submitting personal details and documents about yourself and your dependents.

With this approval in principle, you and your dependents will gain a visa to enter Hong Kong for 180 days, allowing you to complete your investments. 

Step 3. Acquire Enough Qualifying Assets

You must hold HK$30 million worth of qualifying assets before you apply for your long-term residence permit. Assets acquired before 1 March 2024 don’t count as qualifying assets.

If you already hold enough qualifying assets, you can skip the Net Asset Assessment and Approval-in-Principle application and go straight to Step 4.

Step 4. Assessment on Investment Requirements

Once again, you can make your application to the New CIES Office online. This time, you’ll be assessed to ensure you have completed at least $HK30 million of qualifying investments.

Again, you’re encouraged to hire a certified accountant to help you prove that this is the case.

After you’re deemed to have met the investment requirements, the New CIES Office will send you certified proof and notify the Immigration Office of its decision. 

Step 5. Formal Approval

Once you’ve obtained the proof of holding enough qualifying assets, you can request formal approval of your visa application with the Department of Immigration.

Once you’re granted formal approval, you and your dependents will be given permits to reside in Hong Kong for two years.

Step 6. Portfolio Maintenance Requirements

To renew your visa and extend your stay in Hong Kong, you’ll need to have your assessments reviewed again by the New CIES Office to ensure you meet the portfolio maintenance requirements. 

This essentially is a check to see if you’re still holding HK$30 million worth of qualifying assets. Any new acquisitions or disposals must be reported during this process. 

You’re encouraged to start the process at least three months before your visa expires.  

Step 7. Extension of Stay

Once the New CIES Office confirms that you have met the portfolio maintenance requirements, you can apply to extend your visa for a further three years. 

Your visas will be indefinitely renewable for three-year periods, provided you continue to show proof of meeting the Portfolio Maintenance Requirements.

Step 8. Apply for Permanent Residency

After seven years of continuous ordinary residence in Hong Kong, you’ll be eligible to apply for permanent residency.

During these seven continuous years, Hong Kong must have been your primary residence. You can still qualify if you went overseas for a temporary purpose, such as for a holiday or business reasons, but if you treated another country as your primary home for an extended time, that might not count toward your continuous ordinary residence in Hong Kong. 

Your qualification for permanent residency is based on your continuous ordinary residence, NOT how long you’ve held your investments. So, you could technically discard all of your investments after five years and still apply for permanent residency after seven, provided you’ve been living in Hong Kong for all that time.  

With that said, if you gained residency in Hong Kong through the CIES program and kept your investments for seven years, you can qualify for an Unconditional Stay in Hong Kong, even if you weren’t living in Hong Kong for all of that period. 

An unconditional stay isn’t the same as permanent residency. Permanent residents get more rights, such as the right to vote in elections. 

You can remain in Hong Kong for as long as you wish with an unconditional stay, regardless of how many investments you hold. However, unlike with a permanent residence, you’ll lose your unconditional stay in Hong Kong if you’re absent for more than 365 days. 

Some people might call that a condition, but let’s not get pedantic. It’s still a useful option for investors who would like to have several home bases, but want to keep Hong Kong as a long-term Plan B.  

Taxation in Hong Kong

Hong Kong has a territorial tax system in which both individuals and corporations are only taxed on income sourced within Hong Kong. Foreign-sourced income is not taxed, and this is a major reason why incorporating there is popular. 

Personal income tax rates are low, capping out at 17% for high earners. There are no withholding taxes on dividends or interest. However, withholding tax on royalties does apply, currently at a rate of 5.25%. 

There’s no social security or capital gains tax in Hong Kong either, further enhancing its reputation as one of the most tax-friendly jurisdictions in Asia.

Alternatives to Hong Kong Residence by Investment

Singapore Global Investor Program

Singapore is another major finance hub in Asia, offering a residence permit for those who invest a significant amount in the local economy. 

You can get permanent residency through its Global Investor Program by investing SGD$10 million (around US$7.5 million) in a Singaporean business or SGD$25 million (US$18.9 million) in a qualifying investment fund. 

Singapore also has a territorial tax system, making it a tax-friendly destination for those with offshore businesses or foreign-generated income. 

Singapore’s infrastructure is world-class, and you’ll be surrounded by successful investors and entrepreneurs from all over the world. 

Malaysia MM2H Program

Malaysia’s infrastructure has developed hugely over the past decades. While it’s not quite on par with Singapore or Hong Kong yet, it’s becoming an attractive place to live and do business.

You can gain a permanent residency relatively cheaply through the Malaysia My Second Home (MM2H) program. The scheme has several tiers, and you’ll receive added benefits for investing more.

Still, on the low end, you can get residency by transferring at least MYR150,000 (US$33,900) into a Malaysian bank account and buying a residential property worth at least MYR600,000 (US$135,600).   

United Arab Emirates Residency

You can get residence in the United Arab Emirates if you buy a property worth at least AED750,000 (about US$204,000) or by starting a business in the UAE.

There’s no personal income tax in the UAE, although a couple of taxes have been introduced: a 5% VAT charge and 9% corporate tax for most companies.

Still, the UAE remains a tax-friendly residence option. 

Hong Kong Permanent Residency by Investment: FAQs

Ready to Become a Hong Kong Permanent Resident?

Hong Kong has been one of the most exciting tax-friendly bases for investors and entrepreneurs for some time. 

The reintroduction of its CIES scheme now makes it easier to gain permanent residency there if you’ve got the capital to invest. 

However, it can be a long and complicated road to permanent residency and no move of this kind should be considered without careful planning. 

That’s where we come in. 

Nomad Capitalist has helped 2,000+ high-net-worth individuals to make holistic offshore plans based on their unique personal and professional goals.

Our clients are paired with experts in tax, investment strategy, asset protection and immigration to ensure their plans are completed without a hitch. To learn how we can help you, get in touch today.