Hong Kong has cemented itself as one of the world’s leading financial hubs, attracting high-net-worth individuals (HNWIs) and family offices seeking a strategic base for wealth management and succession planning. With its robust legal framework, deep capital markets, and a favourable tax regime, the city has emerged as a premier location for those looking to establish a Single-Family Office (SFO).
At the heart of Hong Kong’s appeal is its position as a gateway to China and the wider Asia-Pacific region. The city provides unparalleled access to some of the fastest-growing economies in the world, making it an attractive location for families looking to diversify their investment portfolios across multiple jurisdictions. Hong Kong’s role as a global wealth management centre is further reinforced by its well-established banking sector, extensive network of asset managers, and world-class financial services infrastructure.
One of the key advantages of setting up an SFO in Hong Kong is its tax-friendly environment. The city operates a territorial tax system, meaning that only income sourced in Hong Kong is subject to taxation. There is no capital gains tax, no estate duty, and no withholding tax on dividends or interest, making it an attractive jurisdiction for wealth preservation and intergenerational planning. Recent tax concessions introduced for family-owned investment holding vehicles (FIHVs) further enhance the benefits of structuring a family office in Hong Kong, providing greater clarity and certainty for wealth management strategies.
Hong Kong’s government has actively supported the development of the family office sector through various initiatives designed to attract and retain global wealth. The introduction of the Capital Investment Entrant Scheme (CIES) offers a pathway for investors and their families to obtain residency, further reinforcing the city’s reputation as a stable and business-friendly environment. The government has also streamlined regulations, reducing compliance burdens for family offices while ensuring adherence to international standards.
Beyond its financial and regulatory advantages, Hong Kong offers an exceptional quality of life, making it an attractive destination for families seeking both professional and personal benefits. The city is home to world-class education institutions, a high standard of healthcare, and a vibrant cultural scene, providing an ideal environment for both business and family life. Its strategic location, coupled with efficient transport links and a well-developed infrastructure, ensures that individuals and businesses can operate seamlessly on a global scale.
Structuring an SFO in Hong Kong is a straightforward process, with flexible legal frameworks allowing families to tailor their operations to their specific needs. Whether through a private limited company, trust, or fund structure, families have the ability to design a governance model that aligns with their long-term wealth management objectives. Additionally, Hong Kong’s strong legal system, based on English common law principles, offers robust asset protection and dispute resolution mechanisms, providing families with confidence in the security of their investments.
As the demand for family office services continues to grow in Asia, Hong Kong stands out as a leading destination for wealth preservation, investment management, and legacy planning. With its business-friendly environment, attractive tax regime, and proximity to key markets, the city presents a compelling case for families looking to establish an SFO. For those seeking a dynamic and sophisticated financial hub that offers both stability and growth opportunities, Hong Kong remains a top choice.
