Hong Kong - Luxagacy

Hong Kong is a dynamic, world-class metropolis where East meets West. Known for its business-friendly environment, advanced infrastructure, and low taxation, it is a premier destination for international investors and professionals. Its open economy and strategic location make Hong Kong one of the leading global finance and trade hubs.

About Hong Kong

The Hong Kong Special Administrative Region (HKSAR) is a highly cosmopolitan city with a population of approximately 7.3 million. English, Cantonese, and increasingly Mandarin are widely spoken, supporting a seamless business and social environment.

Situated at China’s southeastern tip, Hong Kong covers Hong Kong Island, Kowloon Peninsula, the New Territories, and 235 outlying islands, encompassing a total area of 1,110 km². Established as a British colony in 1841, Hong Kong returned to Chinese sovereignty on 1 July 1997, operating under the “one country, two systems” principle, maintaining its economic, legal, and social systems with autonomy. Hong Kong is consistently recognized as one of the world’s freest economies and top international trading hubs, ranking first in the 2019 Index of Economic Freedom.

Living and Working in Hong Kong

Hong Kong combines a high standard of living with an excellent legal, business, and social environment:

Legal framework : Based on English common law, Hong Kong offers a transparent legal system with efficient administration and robust protections for businesses and residents.
Business environment : English is the primary language of business and law. The government fosters economic freedom with policies of “maximum support, minimum intervention.”
Financial stability : The Hong Kong dollar is pegged to the US dollar (HKD 7.80 = USD 1) with no exchange controls. The region is a key gateway to China, strengthened by the Closer Economic Partnership Agreement (CEPA).
Infrastructure : Communications and telecommunications are efficient and cost-effective. Civil aviation, shipping, travel, and logistics are world-class.

Economy

Hong Kong is an international finance and trading center with a service-driven economy:

Major sectors include banking, insurance, investment management, venture capital, civil aviation, shipping, tourism, and trade-related services.
The real estate sector dominates, both locally and overseas.
Historically a manufacturing hub for textiles, electronics, and consumer goods, Hong Kong’s economy has transitioned largely to high-value services.
Multinational corporations often choose Hong Kong for their regional headquarters, benefiting from strategic access to China and wider Asia.

Hong Kong maintains independent membership in global organizations such as the WTO, and for most international purposes, it operates as a separate economic and legal entity from mainland China.

Contact Luxegacy Private Solutions

For guidance on residence by investment in Hong Kong, tailored investment strategies, or a detailed cost breakdown for your family, contact Luxegacy Private Solutions. Our advisors ensure a seamless and strategic relocation experience.

Hong Kong Residence by Investment

Hong Kong is a premier global metropolis, offering a unique blend of Eastern and Western influences. Strategically positioned as the gateway to mainland China, it provides world-class infrastructure, a free-market economy, and one of the most business-friendly environments globally.

About Hong Kong

The Hong Kong Special Administrative Region (HKSAR) has multiple residence programs for highly skilled individuals, entrepreneurs, and investors seeking to establish a presence in Asia’s financial hub. With a population of approximately 7.3 million, the region is multilingual (Cantonese, Mandarin, English) and culturally diverse, providing a cosmopolitan lifestyle and global connectivity.

Hong Kong Residence by Investment Overview

Since September 2003, the HKSAR Government has offered structured pathways for residence through investment, including the Capital Investment Entrant Scheme (CIES). Previously, residency through investment was facilitated under the Employment Visa Based on Investment.

Key Advantages of Living and Investing in Hong Kong:

Economic and political stability with strategic regional positioning
Transparent legal system based on English common law
Premier gateway for trade and investment to and from mainland China
Freest economy in the world with no capital flow restrictions
Convertible and stable currency pegged to the US dollar
Favorable taxation for individuals and businesses
Access to excellent international schools and universities
World-class communications infrastructure, international airport, and busiest container port

Hong Kong Residence by Investment Options

Quality Migrant Admission Scheme (QMAS)

Attracts highly skilled or talented individuals to enhance Hong Kong’s economy. Applicants are assessed via:

General Points Test: Covers age, education, work experience, language proficiency, and family background (passing mark: 80/225).
Achievement-Based Test: For exceptional achievers with awards, global recognition, or lifetime industry contributions.

Top Talent Pass Scheme (TTPS)

For individuals with:

A bachelor’s degree from an eligible university
Minimum annual income of HKD 2.5 million in the preceding year

General Employment Policy (GEP)

Professionals with skills, knowledge, or experience not readily available in Hong Kong may apply if:

They have a relevant first-degree qualification
There is a genuine job vacancy
Employment terms match market standards

Investment as Entrepreneurs

For applicants who:

Hold relevant qualifications
Establish or join a start-up contributing substantially to Hong Kong’s economy
Meet criteria regarding business plan, turnover, financial resources, local job creation, and new technology or skills

Capital Investment Entrant Scheme (CIES)

For individuals who:

Invest at least HKD 30 million in Hong Kong
Maintain the investment for at least seven years
Maintain net assets of at least HKD 30 million for six months within the two years before application

Procedure for Residence by Investment

Applicants must submit relevant forms and supporting documentation to the Immigration Department.

Taxation in Hong Kong

Hong Kong follows a territorial tax system:

Companies are taxed at 17.5% on Hong Kong-sourced profits
No capital gains tax or taxes on dividends
Withholding tax on royalties is 5.25% for non-residents (16.5% for related parties)
Companies with overseas operations or property holdings outside Hong Kong may benefit from tax exemptions

This favorable taxation environment supports international business, trade, and investment.

Contact Luxegacy Private Solutions

For tailored guidance on Hong Kong residence by investment, family relocation, or investment planning, contact Luxegacy Private Solutions for a comprehensive consultation.

CEPA Hong Kong Agreement

Hong Kong is a vibrant global metropolis, combining Eastern and Western traditions, and serving as a leading center for international finance and trade. The Closer Economic Partnership Arrangement (CEPA), a bilateral free trade agreement between Hong Kong and mainland China, came into effect on 1 January 2004, offering early and preferential market access to qualified Hong Kong-based companies, regardless of nationality or size.

CEPA provides Hong Kong companies with sustainable advantages beyond China’s World Trade Organization (WTO) commitments, enhancing opportunities for trade, investment, and first-mover access to the mainland market.

Key Areas of CEPA

CEPA covers three main areas:

Trade in Goods

273 categories of Hong Kong-made goods can be exported to mainland China tariff-free.
For other products, zero-import tariffs may apply upon application by local manufacturers, provided they meet CEPA rules of origin (ROO).
Rules of origin require that products be substantially produced in Hong Kong, incorporating local labor, raw materials, or intellectual property development.
Value-added requirements and principal production processes ensure high-value and innovative Hong Kong products can access the mainland market with preferential tariffs.

Trade in Services

CEPA covers 18 service sectors, including management consultancy, logistics, real estate, construction, legal, banking, insurance, audiovisual, tourism, medical, and accounting services.
To qualify, a Hong Kong service company must:

Be incorporated in Hong Kong
Pay profits tax in Hong Kong
Employ at least 50% of staff locally
Maintain substantive business operations for 3–5 years, depending on the sector

These requirements ensure that service companies have a meaningful presence in Hong Kong while gaining preferential access to the mainland market.

Trade and Investment Facilitation

CEPA promotes cooperation in eight areas, including:

Customs clearance and quarantine
Quality assurance and food safety
SME cooperation
Chinese medicine and medical products
E-commerce, trade, and investment promotion
Transparency in laws and regulations

This framework helps companies navigate cross-border operations efficiently and benefit from the preferential market access provided under CEPA.

Benefits of CEPA for Investors

Early and preferential access to mainland China markets
Tariff-free exports for qualified Hong Kong-made goods
Enhanced opportunities for service providers with a substantive presence in Hong Kong
Facilitation of trade, investment, and regulatory cooperation
Strategic advantage for regional expansion and first-mover positioning

Application Process

Expert Advisory: Luxegacy Private Solutions provides bespoke guidance to ensure each application is meticulously prepared. Early informal approvals from key ministries are obtained prior to investment.
Government Submission: Applications undergo background checks and are reviewed by Austrian authorities.
Citizenship & Passport: Upon approval, applicants receive full Austrian citizenship and passports can be issued within days.
Privacy Assurance: All citizenship grants are confidential and are not disclosed to other countries.

Contact Luxegacy Private Solutions

For detailed guidance on leveraging the CEPA Hong Kong Agreement for your business, investments, or family relocation, contact Luxegacy Private Solutions for tailored support.