The Hong Kong government has put forth a proposal to attract more family businesses to the city by offering tax exemptions for qualified family offices. The objective is to establish or expand at least 200 family offices by the end of 2025 through the proposed legislation, which will be submitted within the year.
These tax incentives are deemed as a competitive advantage that high-net-worth individuals consider when deciding on a location for their family offices. The policy applies to single-family offices that manage eligible family-owned investment holding vehicles and operates independently from the existing registration model for asset management companies.
This proposed legislation is anticipated to become law shortly and will further reinforce Hong Kong's position as an international financial center and a regional asset management center.