Perspective | Invest HK$30 million = Hong Kong Permanent Residency? A Comprehensive Look at Hong Kong's New Capital Investment Entrant Scheme

1. Age: Applicants must be 18 years of age or older at the time of application.

2. Applicant Scope (must meet one of the following):

(1) Foreign nationals (excluding nationals of Afghanistan, Cuba, and North Korea);

(2) Chinese citizens who have obtained foreign permanent resident status;

(3) Residents of the Macao Special Administrative Region ；

(4) Taiwanese citizens of Chinese descent.

3. No adverse immigration record.

Applicants must demonstrate that they have continuously held, within six months prior to application, not less than HK$30 million (or equivalent in foreign currency) in net assets or net capital in absolute beneficial ownership (clearly and uncontested assets, over which the owner has the ability to decide and control). When calculating net assets, the portion of net assets jointly owned by the applicant and family members that represents the applicant's individual absolute beneficial ownership may be included in the asset proof. In addition to the current holding method, applicants may also hold assets through a wholly-owned private company, which must meet specified conditions for the entire six-month period prior to the applicant submitting the investment review application.

When applying to the Capital Investment Entrant Scheme Office to verify eligibility for net asset requirements, applicants must hire, at their own expense, a practicing accountant as defined by the "Accountants and Financial Reporting Authority Ordinance" (Cap. 588 of the Laws of Hong Kong) to assist in proving that they meet the net asset requirements.

Applicants must invest at least HK$30 million (or equivalent in foreign currency) in Hong Kong and maintain the investment for 7 years. During the investment period, applicants are allowed to switch investment categories and can allocate and manage funds according to their investment choices. If the HK$30 million investment incurs losses (i.e., the market value of the investment falls below the minimum investment threshold), there is no need to make up the shortfall; if additional profits are earned during the period, the applicant may also withdraw them.

1. Of the HK$30 million investment, HK$3 million must be invested in the government's innovation and technology fund.

There is a lock-up period, no guarantee of value appreciation, established and supervised by Hong Kong Investment Management Limited, investing in companies or projects related to Hong Kong to support the innovation and technology sector and other key sectors that contribute to Hong Kong's long-term economic development.

2. The remaining HK$27 million investment can be allocated to investment categories of the applicant's choice.

(1) Stocks: Must be stocks listed on the Hong Kong Stock Exchange, tradable in Hong Kong dollars or offshore renminbi.

(2) Bonds: One type is bonds listed on the Stock Exchange, such as Chinese government bonds and local government bonds; another type is bonds denominated in Hong Kong dollars or renminbi issued by the Hong Kong government, the Exchange Fund, railway companies, etc.

(3) Certificates of Deposit (Large-Denomination Certificates of Deposit): Purchase of large-denomination certificates of deposit or certificates of deposit issued by banks, with a term of no less than 1 year, the upper limit included in the total investment amount is HK$3 million.

(4) Subordinated Debt : Subordinated bonds issued by Hong Kong commercial banks, also known as AT1 bonds. Subordinated debt is also known as junior debt or subordinated liabilities. If the invested company goes bankrupt, it ranks after bonds in the order of repayment, meaning that the risk is higher than bonds, but the return is also higher.

(5) Qualified Collective Investment Schemes: Specifically include those recognized by the Securities and Futures Commission and managed by licensed operators: ① Unit trusts and Mutual Funds (publicly offered funds); ② ETFs on the HKEX; ③ leveraged and inverse products; ④ closed-end funds; ⑤ real estate investment trusts; ⑥ investment-linked insurance, etc.

(6) Limited Partnership Funds: Privately managed funds registered in Hong Kong, applicable to funds under the Limited Partnership Fund Ordinance, do not require approval from the Hong Kong Securities and Futures Commission, with a total investment cap of HK$10 million.

(1) Non-residential real estate: Office buildings, shops, parking spaces, factories, etc., for commercial or industrial use, but not including land.

(2) Residential real estate: Requires that the transaction price of a single residential property must be HK$50 million or more.

Investment in residential or non-residential real estate can be included in the total investment amount up to a maximum of HK$10 million, even if a residential property worth HK$50 million is purchased, only HK$10 million can be counted.

1. Before submitting an "entry application" to the Immigration Department, the applicant must first apply to the Capital Investment Entrant Scheme Office to verify their eligibility for net asset requirements. After verification of eligibility for net asset requirements, the Scheme Office will issue the applicant with a relevant "Verification Certificate" and notify the Immigration Department of the results. The applicant must submit the "entry application" to the Immigration Department within the validity period of the "Verification Certificate." If the Immigration Department grants the applicant "in-principle approval" after approval from the immigration perspective, it will issue the applicant with a visa/entry permit to allow them to stay in Hong Kong as a visitor for no more than 180 days to make the promised investment.

2. After completing the committed investment within the stipulated investment period, the applicant must first apply to the Capital Investment Entrant Scheme Office for verification of their compliance with the investment regulations. Upon verification of the applicant's compliance, the Capital Investment Entrant Scheme Office will issue a relevant "Verification Certificate" to the applicant and notify the Immigration Department of the results. The applicant must submit the Verification Certificate to the Immigration Department within its validity period. The Immigration Department will then continue to process the applicant's "entry application". If the Immigration Department deems the applicant to meet the eligibility criteria required by the scheme from an immigration perspective, it will grant "formal approval" for their "entry application". Applicants/investors and their dependants (if any) will generally be allowed to stay in Hong Kong for a period not exceeding 24 months, subject to a stay limit, provided that the applicant/investor continues to meet the requirements of the scheme throughout the period.

3. When the 24-month stay period expires, and before applying to the Immigration Department for an extension of stay, no earlier than three months before the expiry of their stay, the investor must first apply to the Capital Investment Entrant Scheme Office for verification of their compliance with the investment management regulations. Upon verification of the investor's compliance with the investment management regulations, a relevant "Verification Certificate" will be issued to the investor, and the results will be notified to the Immigration Department. Even if the investor has not yet obtained the relevant "Verification Certificate", he/she and their dependants (if any) must apply to the Immigration Department for an extension of stay before the expiry of their stay period. Depending on whether the investor can subsequently submit the "Verification Certificate", the Immigration Department will make a decision on the application for extension of stay. If the Immigration Department considers that the investor and their dependants (if any) still meet the eligibility criteria required by the scheme from an immigration perspective, it will generally grant the investor and their dependants (if any) an extension of stay for a period not exceeding three years. Subsequent applications for an extension of stay for a period not exceeding three years should follow the same application procedure.

4. If the applicant and their dependants have ordinarily resided in Hong Kong for not less than seven consecutive years, they may apply to become Hong Kong permanent residents in accordance with the law. If the application is approved, they will be free to dispose of the permitted investment assets invested under the scheme, subject to the terms and conditions of the relevant investment.

Applicants and their dependants may not only invest funds in Hong Kong; they must ordinarily reside in Hong Kong for seven consecutive years or more to apply for Hong Kong residency in accordance with the law. If an applicant has invested for seven years but does not meet the requirement of continuous ordinary residence in Hong Kong and is unable to obtain permanent resident status, they may apply for an unconditional stay visa in Hong Kong after the seven-year period (allowing them to enter and stay in Hong Kong without any conditions or time limits on their stay). If the application is approved, they will be free to dispose of the permitted investment assets invested under the scheme, subject to the terms and conditions of the relevant investment.

Answer: Chinese applicants applying for the Capital Investment Entrant Scheme must provide proof of foreign permanent residency to meet the eligibility requirements; otherwise, the Immigration Department may not approve the application or may require the applicant to provide supplementary proof of permanent residency. For example, some small country immigration programs only provide applicants with a foreign ID card but cannot provide proof of permanent residency, in which case the applicant cannot apply for the Capital Investment Entrant Scheme. In addition, if the foreign identity information is not in Chinese or English, a translated version must be provided.

Answer: No. The net assets or net capital can be assets and capital held by the applicant worldwide, including bank deposits, stocks, bonds, real estate, company equity, etc. After the applicant passes the asset review, the Immigration Department will grant "in-principle approval," after which the applicant can obtain a short-term visa (not exceeding 180 days) during which the applicant can go to Hong Kong to make the committed investment.

Answer: Applicants can only submit documents fulfilling the requirements signed by a Hong Kong practicing accountant to prove that they meet the net asset requirements.

Answer: When considering whether an applicant "ordinarily resides" in Hong Kong, a variety of factors will be considered comprehensively, not just the specific time spent in Hong Kong. According to Section 2(6) of the Hong Kong Immigration Ordinance, the main factors considered by the Hong Kong Immigration Department in reviewing "ordinarily residing" include the following:

(1) Reasons for leaving Hong Kong, frequency, and duration: Explain the reasons for your absence from Hong Kong, as well as the number of times and duration of your departures.

(2) Fixed address in Hong Kong: Whether you have a usual place of residence in Hong Kong, such as a lease agreement, water and electricity bills, etc.

(3) Family members' situation in Hong Kong: Whether your spouse and children reside in Hong Kong.

(4) Employment in Hong Kong-based companies: Whether you are employed by a Hong Kong-based company, as well as the nature of your work and income.

(5) Legal and stable source of income: Whether you have a reasonable income to support yourself and your family.

(6) Timely fulfillment of tax obligations: Whether you have legally and timely filed taxes in Hong Kong.

Answer: An "unconditional stay" in Hong Kong refers to a visa category that allows the holder to enter and stay in Hong Kong without any conditions or time limits on their stay. This is a special stay permit visa established by the Hong Kong government specifically for investment immigration programs.

A Hong Kong permanent resident holds a Hong Kong permanent resident identity card. In addition to the right to an unconditional stay, they can also enjoy various benefits and advantages of permanent residency, including: low tax policies, Hong Kong housing purchase benefits, medical and welfare benefits, a globally recognized Hong Kong passport, and eligibility to apply for civil service positions, etc.

" "One-stop multiple entry" " is a policy launched in November 2024 to facilitate Shenzhen, Zhuhai, and Hengqin residents and residence permit holders to travel to Hong Kong and Macau. The core is: after applying for a "one-stop multiple entry" endorsement, you can travel to Hong Kong/Macau an unlimited number of times within one year, but each stay shall not exceed 7 days.