Tax incentives and a flexible environment attract overseas family offices, making Hong Kong a hotspot for wealth management in the Asia-Pacific region

The Financial Services and the Treasury Bureau, in conjunction with the Invest Hong Kong, jointly announced that according to the "Hong Kong Family Office Market Research" commissioned by Invest Hong Kong and conducted by Deloitte, the number of single-family offices (family offices) in Hong Kong is expected to exceed 3,380 by the end of 2025, an increase of approximately 680 over two years, representing a growth of over 25%.

The Secretary for Financial Services and the Treasury, Christopher Hui, stated that Hong Kong is a leading hub for global asset and wealth management, and the family office industry ecosystem continues to thrive. The continuous growth in the number of family offices reflects the government's efforts in policy promotion and institutional development, which have yielded substantial results. In response to global changes, the family office industry and asset management are evolving rapidly, placing greater emphasis on sustainable growth, intergenerational inheritance, and creating positive social impact. Under "One Country, Two Systems," Hong Kong, backed by the motherland and connected to the world, provides an excellent development environment for family offices that combines predictability and high growth potential.

The government will continue to promote the development of the family office sector through a multi-faceted approach, including optimizing tax arrangements, implementing the "New Capital Investor Entry Scheme," organizing investment promotion activities globally through the dedicated family office team of Invest Hong Kong, and establishing the Hong Kong Wealth Legacy Academy. The bureau plans to submit legislative proposals in the first half of this year to expand the eligible investment scope of the preferential tax regime for funds and single-family offices to include, for example, precious metals, loans, private debt investments, and digital assets. With the support of various policy measures, there is confidence in achieving the new target set in the Chief Executive's 2025 Policy Address to assist over 220 family offices to establish or expand their businesses in Hong Kong by the end of 2026 to 2028.

The Director of Invest Hong Kong, Louis Liu, stated that during the promotion efforts in Europe and Southeast Asia, the dedicated family office team learned that many overseas family offices have a strong interest in Hong Kong's institutional advantages and tax incentives. Hong Kong offers a highly flexible investment environment, and the tax incentive system does not impose restrictions on investment locations, allowing family offices to invest in global assets through Hong Kong. Additionally, single-family offices in Hong Kong generally do not need to apply for licenses, which helps maintain a high level of privacy, all of which are key considerations that overseas family offices particularly value