In-depth analysis of Hong Kong's "Investment Immigration": 10 core questions answered comprehensively

Since March 1 this year, Hong Kong has formally opened up"New Capital Investment Entrant Schemeof the application channel.

The scheme aims to attract global asset owners to settle in Hong Kong and, through capital deployment and management, explore diversified investment opportunities in Hong Kong to further promote Hong Kong's economic prosperity and stability.

To help you quickly understand"New Capital Investment Entrant SchemeWe have compiled a list of the 10 most frequently asked questions to help you with the rules and regulations.

Requirements for application

1.What are the requirements to be met to apply

The applicant submits[Application for net worth review]you mustAged 18 or above, have no adverse immigration record and meet the general immigration and security requirements.
Scope of application of the plan:

✔ Foreign nationals;

✔ Chinese nationals who have acquired permanent resident status in a foreign country;

✔ Residents of the Macao Special Administrative Region;

✔ and Chinese residents of Taiwan.

2.What requirements do I have to meet for a net worth review? Does a house count as net worth?

The applicant must have owned, for the entire two years prior to the filing of the application, not less than the market value of theNet worth of HK$30 million (or equivalent in foreign currency)Includes real estate worldwide, but must be the amount remaining after deducting any and all charges, liens, or title liabilities pledged or attached thereto.

Application Process

3.What are the main steps in applying for Immigrant Investor?

01. Review of net assets

The applicant first applies to the New Capital Investment Entrant Scheme Office to verify that he meets the net worth requirement.

02. Application for entry (approved in principle)

The applicant must apply for a visa/entry permit from the Immigration Department within the validity period of the Certificate of Compliance with the Net Worth Requirement Examination.

03. Review of investment provisions

Applicants are required to invest a minimum of HK$30 million (or equivalent in foreign currency) in net worth of permissible investment assets.

04. Application for entry (formal authorization)

Upon completion of the committed investment and the issuance of a Certificate of Compliance with Investment Requirements Examination by the New Capital Investment Entrant Scheme Office, the applicant must submit the Certificate to the Immigration Department within the validity period of the Certificate.

05. Review of investment management provisions

The applicant must deposit the licensed financial assets in a designated account opened with an eligible financial intermediary (only one account can be opened with each financial intermediary).

06. Extension of stay

InvestHK issues the relevant vetting certificate to the applicant and informs the Immigration Department of the result. If the Director of Immigration is satisfied that the applicant and his/her dependants (if any) continue to meet the eligibility criteria under the Scheme, he/she will normally grant the applicant and his/her dependants (if any) an extension of stay for a period of not more than three years.

07. Permanent residence/unconditional stay

An applicant and his/her dependants may apply to become Hong Kong permanent residents after having ordinarily resided in Hong Kong for a continuous period of not less than seven years and having satisfied any other relevant requirements stipulated in the Immigration Ordinance (Cap. 115).

4.What are the advantages of obtaining approval in principle?
Bring your family to Hong Kong

Applicants may bring their dependants (including their spouses and their unmarried and dependent children under the age of 18) to Hong Kong and are normally allowed to stay in Hong Kong for not more than two years.
Extension of stay

After the expiration of the period, an application may be made every three years for an extension of stay for a period of not more than three years.
Application for Hong Kong Permanent Resident

Applicants and their dependants who have ordinarily resided in Hong Kong for a continuous period of not less than seven years may, in accordance with the law, apply to become permanent residents of Hong Kong.
Application for unconditional stay in Hong Kong

Even if an applicant fails to meet the requirement of continuous ordinary residence in Hong Kong but has continuously met the financial requirements of the new scheme for not less than seven years, he/she can still apply for unconditional stay in Hong Kong.
Free disposal of assets

Upon approval of the application, the applicant is free to dispose of the assets invested under the scheme.

investment requirement

5."What are the investment requirements of the New Capital Investment Entrant Scheme?

▶ This program requires eligible applicants toInvestment of HK$30 millionin licensed investment assets, including:

▶ 3 million must be invested in the project:Applicants must invest HK$3 million in a Capital Investment Entrant Scheme (CIES) portfolio.

▶ The remaining HK$27 million:

You can freely choose to invest in the following subjects:

💡 Worth noting:

• Equities, debt securities, certificates of deposit, subordinated debt must be denominated in Hong Kong dollars or Renminbi; there is no limit on the amount of investment in equities, debt securities, subordinated debt, and certain assets in eligible collective investment schemes under the Scheme.

• Ownership interests in private limited partnership funds and private open-ended fund-type companies are subject to an aggregate investment limit of HK$10 million.

6.Can the portfolio be adjusted if necessary?

▶ You can.

Applicants may switch investments between authorized investment assets, provided that the principles of investment discipline are observed and that all proceeds from the disposal of assets at market value are reinvested.

In the case of a conversion between licensed financial assets, the conversion has to be completed within 14 calendar days and the Director of Investment Promotion has to be notified in writing within 7 working days after the completion of the transaction.

7.In case I lose money on my investment, do I need to make up the amount?

▶ No need.

If the total market value of the applicant's permissible investment assets falls below HK$30 million or even suffers a total loss, the applicant is not required to invest funds to make up the difference.

8.Can I withdraw my investment income?

▶ Depending on the situation.

If the market value of the applicant's permissible investment assets grows above HK$30 million, the applicant is not allowed to withdraw capital gains: the applicant may withdraw cash dividend income, interest income and rental income derived from the permissible investment assets.

Renewal and Permanent Residence Requirements

9.How often do I have to renew my visa?

▶ The visa is based on the "2+3+3" model.  

Upon obtaining "formal approval" from the Immigration Department, the applicant will be allowed to stay in Hong Kong for two years;

Three months before the expiry of the two-year period, the investor is required to apply for a Certificate of Examination from the Office of the New Capital Investment Entrant Scheme (OCIES), on the basis of which the Immigration Department (ImmD) will normally grant the applicant and his/her dependants an extension of stay for a period of not more than three years;

When the three-year period expires, they may apply for another three years. If the applicant has resided in Hong Kong for a continuous period of not less than 7 years, he/she can apply to become a permanent resident and can then freely dispose of the investment assets under the Scheme.

10. If I have passed the eligibility test but I cannot live in Hong Kong permanently, will it affect my ability to obtain Hong Kong status?

Applicants and their dependantsHaving ordinarily resided in Hong Kong for a continuous period of not less than seven yearsThey may apply to become permanent residents of Hong Kong after meeting any other relevant requirements stipulated in the Immigration Ordinance (Cap. 115).

Some applicants who have met the investment management requirements of the Scheme for seven years but may not meet the requirement of continuous ordinary residence in Hong Kong may be able toAfter the expiration of seven yearsApplication for unconditional stay in Hong Kong (i.e. they are allowed to enter and remain in Hong Kong without being subject to any condition or limit of stay).

Hong Kong's low, simple and competitive tax regime, its policies at the forefront and its status as an international financial center determine that it is strong enough and will bring once-in-a-lifetime investment opportunities to investors.

If you are interested in applying for Hong Kong Investment Immigration, welcome to contact Timeless Group, we will provide you with "Private Customized + Exclusive Service".