Bankers say Hong Kong’s new tax concessions to boost city’s status as family office hub

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UBS, JPMorgan and BNP Paribas among key players seeking to attract family offices

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Hong Kong is a good base for family offices because of its proximity to mainland China, according to analysts. Photo: Nora Tam

Enoch YiuandMia Castagnone

Published: 7:00am, 30 Dec 2024

Hong Kong’s plan to expand tax concessions for single-family offices, along with the rapid growth in the number of wealthy people in China and Asia, will elevate the city’s status as a hub for such investment vehicles, bankers say.

In his policy address in October, Chief Executive John Lee Ka-chiu pledged to expand tax concessions for single-family offices. The expansion plan is now being consulted with industry players before a change in law is made.

“We are thrilled with the proposed expansion of the scope of tax-exempt investments to cover a wider range of assets, such as loans, private credit investments and virtual assets,” said Anthony Lau, the Hong Kong leader of Deloitte Private, an advisory platform for high-net-worth individuals.

“The expansion of the tax concession to cover virtual assets is very much welcomed as this makes Hong Kong one of the first movers, considering that a similar tax concession regime in Singapore does not specifically cover virtual assets,” he said.

Hong Kong will continue to attract wealthy families to establish family offices, UBS banker says. Photo: Reuters

Koh Liang Heong, UBS’s head of global family and institutional wealth, also said the new tax concessions will enhance the city’s attractiveness as a family office hub.