Hong Kong Family Office Guide 2026

The 0% tax concession regime

The centrepiece of Hong Kong's family office policy is the profits tax concession for family-owned investment holding vehicles (FIHVs), enacted in May 2023 and effective for tax years commencing on or after 1 April 2022. Under the regime, a qualifying FIHV pays 0% profits tax on assessable profits from qualifying transactions in specified assets — covering most financial investments, from listed equities and bonds to private company investments — plus incidental transactions, provided incidental income does not exceed 5% of total turnover.

To qualify, the FIHV must be managed in Hong Kong by an eligible single family office (ESF-SFO) and satisfy four core conditions:

• Asset threshold: at least HK$240 million of specified assets under management, aggregated across the family's FIHVs.
• Substance: at least two qualified full-time employees carrying out core income-generating activities in Hong Kong.
• Local expenditure: at least HK$2 million of operating expenditure incurred in Hong Kong each year.
• Ownership: at least 95% of the beneficial interest held by family members, defined broadly to include spouses and up to six generations of descendants.

A family may benefit up to 50 FIHVs, and the SFO itself must derive at least 75% of its assessable profits from services to the family. Elections are made through the Inland Revenue Department (including form IR1479); most advisers recommend confirming eligibility with professionals before relying on the regime.

Structure: SFO, FIHV, FSPE and PTC

A typical structure separates ownership from management: the family's assets sit in one or more FIHVs, with family special purpose entities (FSPEs) holding direct investments, while an ESF-SFO — usually a Hong Kong private company owned at least 95% by the family — provides investment management and administration. Families wanting extra privacy and control can use a private trust company (PTC) to act as trustee of family trusts without the full regulatory burden of a professional trustee. The right structure depends on asset size, the number of family branches and succession goals; the guide cards below cover each option in depth.

SFO licensing exemptions

A genuine single family office that manages only the assets of its own family members is generally not carrying on asset management "for the public", and is therefore outside the scope of Type 9 (asset management) licensing under the Securities and Futures Ordinance. The SFC has issued guidance confirming this position for narrow SFOs. Licensing questions arise quickly, however: managing assets for outside investors, operating as a multi-family office (MFO), or running an investment committee whose members are not employees can all trigger licensing or notification obligations — take professional advice before structuring.

CIES: the HK$30 million pathway

The New Capital Investment Entrant Scheme (CIES) offers a residency route for investors with net assets of at least HK$30 million. Applicants must invest at least HK$27 million in permitted financial assets and/or real estate — real estate counts up to HK$15 million in total, of which residential property is capped at HK$10 million and must cost at least HK$30 million per property — plus HK$3 million into the CIES Investment Portfolio managed by Hong Kong Investment Corporation to back innovation and technology.

Since March 2025, applicants need only show the HK$30 million net asset position for six months (previously two years), with jointly held family assets counted pro-rata. From March 2026, investments may be held through a wholly-owned private company that is an FIHV managed by a qualifying SFO — a direct bridge between CIES and the 0% tax concession. That SFO must employ at least two full-time staff in Hong Kong, incur at least HK$2 million of annual operating expenditure, and manage at least HK$240 million of specified assets.

Market snapshot and government targets

The policy push is delivering measurable results. The 2022–25 target of helping 200 family offices set up or expand in Hong Kong was achieved ahead of schedule, with InvestHK's dedicated FamilyOfficeHK team having assisted more than 200 offices by end-2025. The 2026–28 target is at least 220 more. Alongside the tax concession and the CIES–SFO synergy, the government promotes the ecosystem through flagship events such as the annual Wealth for Good in Hong Kong summit and continued support for talent and philanthropy.