Hong Kong Investment Immigration

The Hong Kong Government has introduced a new investment immigration scheme in the third quarter of 2003 to attract all foreign nationals, including those from Macau SAR residents and Taiwan nationals to obtain residency in Hong Kong. In July 2003, the government already relax admission requirements for mainland Chinese talents and professionals from various fields to work in Hong Kong.

However, it is believed that this new investment immigration scheme does not apply to mainland Chinese residents because of the foreign-exchange controls in China. This investment immigration is available to all individuals from around the world for as long as they meet the basic requirements or threshold.

The investment threshold under the new investment immigration scheme is set at HK$6.5 million (US$833,333). This amount can be invested in specified list of permissible investment assets, such as  real estate, equities, debt securities, certificate of deposits, government bonds, mutual funds or approved unit trusts. The investors need not have to operate a business themselves.

Another requirement is that, the investment amount will have to be remained invested for a minimum of seven years, which is mandatory. During this period, the applicants will neither be allowed to cash in any capital appreciation of their investment portfolio nor have to top up the value if their portfolios fall below the original level of HK$6.5 million. But the applicants are allowed to switch their investments from one permissible class to another permissible class within the specified list. The Hong Kong Security Bureau said it believes the threshold of HK$6.5 million provides a proper balance between making Hong Kong attractive in the global competition for capital investors and ensuring that these investors are of an appropriate quality.

If the applicant's application is successful, then they can bring in their dependents including spouse and unmarried dependent children aged below 21 years old. The scheme does not require the applicants to reside for a fixed period before they can be considered for citizenship, unlike other countries with similar scheme. The applicants can apply for permanent residency if they keep their investment for seven years.

As indicated above, this scheme is extended to all individuals from around the world. Indeed, the assumed HK$6.5 million threshold is not too high for many successful business entrepreneurs or mangers who wish to take residency in Hong Kong as a base for developing their business into China.

The government will begin to accept application from 27th October 2003.

The above is just a brief introduction of the new scheme and for your information only. It represents the views of the writer and should not be taken as an advice. If you wish to know more, you are advised to seek professional advice or obtain more information from the Immigration Department.

Written by: Gilbert Loke, FCCA, FAIA, CMIIA, FHKSA, CPA, ATIHK, RFC, CFP

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