Hong Kong’s family office landscape in 2025: Growth and government strategy

by Alfred Ip

Hong Kong is solidifying its position as a leading global hub for family offices, backed by progressive government policies, tax advantages, and strategic initiatives outlined in the 2024–25 budget. Over the past year, the city has attracted 50+ new single-family offices (SFOs), managing combined assets exceeding USD 100 billion. Major financial institutions, including HSBC and UBS, have expanded their family office services in Hong Kong, reflecting strong market confidence.

Key incentives and regulatory advantages

Tax benefits: Hong Kong’s territorial tax system – imposing no capital gains, inheritance, or offshore income taxes – remains a cornerstone of its appeal. SFOs can apply for tax concessions on qualifying transactions after establishment, with recent budget proposals expanding eligible investment types and streamlining compliance.

Immigration flexibility: The new Capital Investment Entrant Scheme (CIES), launched in March 2024, allows residency for investors allocating HKD 27 million to qualifying assets, alongside HKD 3 million to a dedicated portfolio. With over 500 applications filed by September 2024, the scheme reinforces Hong Kong’s appeal to high-net-worth individuals.

Regulatory ease: Unlike jurisdictions requiring specialised licensing, Hong Kong allows family offices to operate without complex approvals, simplifying setup and reducing administrative burdens.

2024–25 Budget initiatives:

The government is prioritising three measures to attract family offices:

Tax concessions: Expanding exemptions for family-owned investment vehicles and refining eligibility criteria.

Global engagement: Hosting the second Wealth for Good Summit in March 2025 to showcase Hong Kong’s strengths to global asset owners.

Enhanced connectivity: Strengthening ties with the Greater Bay Area to unlock mainland China opportunities, while promoting fintech and sustainable investments.

2025 outlook

Hong Kong’s family office sector is poised for a 43% growth spike in 2025, driven by its role as China’s international financial gateway. Innovations in financial technology, green finance, and professional services – coupled with world-class infrastructure and lifestyle amenities – position the city as a long-term destination for ultra-high-net-worth families.

Why Hong Kong?

Access to China: Proximity to mainland markets offers unparalleled business and investment opportunities.

Lifestyle appeal: A blend of urban sophistication, nature, top-tier healthcare, and education attracts global elites.

East-west integration: Hong Kong combines Asian business networks with Western legal and financial frameworks.

With targeted government support and a focus on innovation, Hong Kong is cementing its status as Asia’s premier family office hub, leveraging its unique advantages to sustain growth beyond 2025.

A qualified solicitor in Hong Kong since 2000, Alfred Ip is skilled in helping individuals and their families manage personal and wealth-related matters, including trust and probate (both contentious and non-contentious), family and mental capacity issues. He was also admitted as a Solicitor of England and Wales in 2002.

Hugill & Ip Hong Kong