The Government launched the new Capital Investment Entrant Scheme (new "CIES") earlier this year, in line with its ongoing efforts to revitalise Hong Kong's economy.
By the end of June, the new CIES had already received over 3,700 enquiries and 339 applications, with 88 of those applications receiving approval-in-principle and 3 applications receiving formal approval.
This article provides a summary of the new CIES and highlight what it means for employers.
What is "CIES"?
The CIES is an investment-migration programme and was first introduced as a stimulus measure in 2003 when Hong Kong's economy was in a recession but it was suspended in January 2015.
As part of the 2023-2024 Budget, the Government announced a series of measures, including a revamped CIES, to revitalise Hong Kong's economy.
Under the new CIES, high-net-worth individuals can obtain residency together with their dependants, including spouses and unmarried children under 18, by making a minimum investment of HK$30 million in permissible investment assets.
Overview of the new CIES
The new CIES accepts applications from eligible persons aged 18 or above, including foreign nationals, Chinese nationals with permanent resident status in a foreign country, residents of Macau and Chinese residents of Taiwan.
Applicants must demonstrate that they have net assets of at least HK$30 million (or equivalent in foreign currencies) to which they are the absolute beneficiaries throughout the 2 years preceding the application.
Applicants must then invest at least HK$30 million in
permissible investment assets. Of the HK$30 million
minimum investment threshold, at least HK$27 million must be
invested in permissible financial assets and non-residential real
estate, and at least HK$3 million must be placed into a dedicated
CIES Investment Portfolio.
Successful applicants and their dependants who have maintained
continuous ordinary residence in Hong Kong of at least 7 years and
meet other requirements may apply to become Hong Kong permanent
residents. Applicants who are unable to fulfil the continuous
ordinary residence requirement may still be eligible to apply for
unconditional stay in Hong Kong after 7 years. After successfully
becoming a Hong Kong permanent resident or obtaining an
unconditional stay, the applicant will be free to dispose of the
Permissible investment assets under the new CIES subject
to the terms and conditions of the underlying investments.
The financial eligibility of applicants under the new CIES is assessed by Invest Hong Kong, while entry, visa and residence applications pursuant to the new CIES are handled by the Immigration Department.
What the new CIES means for employers
Employers should take note of the new CIES as holders of a visa issued under the new CIES have the right to work in Hong Kong and do not need to apply for a separate employment visa sponsored by the employer.
Also, since the new CIES provides another pathway for residency, this should open up a wider and more diversified pool of top-quality candidates for employers to choose from.
Employers who are looking to recruit or relocate talent from abroad to Hong Kong in very senior / high-income positions with remuneration packages that meet the financial thresholds of the new CIES may share details of the new CIES with candidates as this may increase the attractiveness of the job opportunity / relocating to Hong Kong given the potential for the individual and his/her family to obtain permanent residence in Hong Kong.
Key takeaways
The new CIES is expected to attract more top-talent to Hong Kong. This will benefit employers with their recruitment and staffing needs, giving them a larger and more diversified pool of top talent to choose from, and could also serve to incentivise and retain existing employees who may be interested in secondment opportunities or settling in Hong Kong.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.