The New Capital Investment Entrant Scheme: a residence route for investors in Hong Kong

New Capital Investment Entrant Scheme Hong Kong Residence Route

The New Capital Investment Entrant Scheme Hong Kong relaunches on 1 March 2024. InvestHK administers this residence route for individuals making qualifying investments in Hong Kong. Eligible applicants and their family dependants secure residence by meeting a defined investment threshold.

Capital Investment Entrant Scheme Hong Kong Requirements

Applicants must meet InvestHK's specific requirements. The scheme is open to individuals not already resident in Hong Kong who hold a valid passport from a country or territory without a bilateral visa-free arrangement with Hong Kong.

At the time of application, an applicant must demonstrate a net asset value of at least HK$30 million in financial assets or other qualifying investments. The investment threshold is set per programme round and is subject to change; verify current figures on the InvestHK website.

Eligible applicants must be at least 18 years old and have no criminal record in Hong Kong or elsewhere. No business experience or specific educational background is required. This distinguishes the scheme from other visa routes such as the Top Talent Pass Scheme. A spouse and unmarried children under 18 may be included as family dependants.

Hong Kong Investment Visa 2024

Formally the New Capital Investment Entrant Scheme, the Hong Kong investment visa 2024 relaunches on 1 March 2024 after a suspension of several years. It offers a residence route for individuals committing capital to qualifying investments in Hong Kong. Unlike the earlier version, the 2024 relaunch focuses on financial assets and excludes real estate.

The application window opened on 1 March 2024 and remains open. InvestHK processes applications and issues approvals for an initial stay of two years. After that period, the applicant may apply for an extension of stay, provided the qualifying investments are maintained throughout the residence period.

New Capital Investment Entrant Scheme Qualifying Investments

InvestHK defines qualifying investments, dividing them into two categories: financial assets and a new capital investment entrant scheme investment portfolio. The scheme requires an investment of at least HK$30 million in qualifying investments.

Eligible financial assets include: - Government bonds issued by the Hong Kong government. - Bonds issued by specified public authorities or statutory bodies. - Shares or debentures of companies listed on the Hong Kong Stock Exchange. - Units of authorised investment funds, including exchange-traded funds. - Deposits with approved financial institutions, subject to a cap of HK$3 million.

The new capital investment entrant scheme investment portfolio is a separate category. It requires an additional investment of HK$3 million in a portfolio managed by InvestHK, designed to support innovation and technology ventures in Hong Kong. This investment is not refundable and is held for the duration of the applicant's residence.

Real estate is excluded. This is a significant change from the earlier version of the scheme, which permitted investment in residential property. Applicants must allocate their capital entirely to financial assets and the investment portfolio.

Hong Kong Residence by Investment

The residence by investment route under the New Capital Investment Entrant Scheme provides a pathway to permanent residency. The initial stay is two years. The applicant may then apply for an extension of stay, granted for three years at a time, subject to maintaining the qualifying investments and meeting residence requirements.

After seven years of continuous residence, the applicant may apply for permanent residency in Hong Kong. The scheme does not require a specific number of physical presence days each year, but the applicant must demonstrate a genuine intention to reside in Hong Kong. Family dependants may also apply for permanent residency after seven years.

The New Capital Investment Entrant Scheme is for individuals who can make a significant capital investment without requiring employment or business operations. It is distinct from other visa routes such as the Top Talent Pass Scheme, which is designed for highly skilled professionals.

Application Process and Asset Management

The application process begins with submission to InvestHK. Applicants must provide evidence of net asset value: bank statements, investment portfolio statements, and other documentation showing financial assets of at least HK$30 million. An approved financial institution must be appointed to manage the qualifying investments.

The approved financial institution verifies the investments and reports their status to InvestHK. Investments must be maintained throughout the residence period. If the value falls below the threshold, the applicant must top up the investments within a specified period.

An extension of stay application requires proof that the qualifying investments have been maintained and that the applicant has complied with the scheme's requirements. InvestHK may conduct periodic reviews.

Comparison with Other Visa Routes

The New Capital Investment Entrant Scheme differs from other Hong Kong visa routes. The Top Talent Pass Scheme is for individuals with high educational qualifications or significant professional experience and requires no capital investment. The Investment for Business Purposes visa is for individuals establishing or investing in a business in Hong Kong, but it requires active involvement in that business.

The New Capital Investment Entrant Scheme is the only residence route allowing residence solely through capital investment. No employment, business operations, or specific educational qualifications are required. This makes it suitable for individuals who wish to reside in Hong Kong without engaging in active business or employment.

Key Considerations for Applicants

The investment threshold and qualifying investments are set per programme round and are subject to change. Verify the current threshold of HK$30 million in financial assets, plus an additional HK$3 million in the investment portfolio, on the InvestHK website before applying.

The scheme does not provide a direct pathway to citizenship. Hong Kong does not offer citizenship by investment. Permanent residency grants the right to live, work, and study in Hong Kong without restriction, but does not confer the right to a Hong Kong passport.

Consider the tax implications. Hong Kong operates a territorial tax system, and income derived from qualifying investments may be subject to tax. Seek professional advice on the tax treatment of investments under the scheme.

Summary of Key Points

The New Capital Investment Entrant Scheme Hong Kong provides a residence route for individuals making qualifying investments of at least HK$30 million in financial assets and an additional HK$3 million in an investment portfolio. Administered by InvestHK and relaunched on 1 March 2024, the scheme allows eligible applicants and their family dependants to apply for an initial stay of two years, with extensions available subject to maintaining the qualifying investments. After seven years of continuous residence, the applicant may apply for permanent residency. Real estate is excluded from qualifying investments. The scheme is distinct from other visa routes such as the Top Talent Pass Scheme.