Family Offices in Hong Kong: Frequently Asked Questions

No. The SFC states that the Securities and Futures Ordinance does not define "family" or "family office". The Inland Revenue Ordinance defines only an "eligible single family office" for the purpose of the tax concession: a private company at least 95% owned by the family, normally managed or controlled in Hong Kong, providing services to the family's vehicles. In any document, check which definition is in use.

Only estimates exist, because single family offices are not registered. InvestHK-commissioned studies estimated over 2,700 single family offices at end-2023 (published 18 March 2024) and over 3,380 at end-2025 (published 10 February 2026). Separately, InvestHK had facilitated over 200 family offices setting up or expanding by 15 September 2025. The two figures measure different things.

Family members hold at least 95% of the vehicle; the vehicle is normally managed or controlled in Hong Kong; it is managed by an eligible single family office; Schedule 16C assets managed by that office for the family total at least HK$240 million; the vehicle has at least two full-time qualified employees and HK$2 million of operating expenditure in Hong Kong. Profits from qualifying transactions are then taxed at 0%. The Ordinance took effect on 19 May 2023 and applies from the year of assessment beginning 1 April 2022.

Per family: the aggregate net asset value of Schedule 16C assets managed by the same eligible single family office for all of the family's vehicles, measured at the end of the vehicle's basis period, or at the end of either of the two preceding basis periods if the current year falls short. Assets held by family-owned special purpose entities count.

No. The 0% rate applies to the vehicle's qualifying transactions. The office's service fees are taxed at the normal profits tax rate (16.5% for corporations; 8.25% on the first HK$2 million under the two-tiered rates), and at least 75% of its assessable profits must come from services to specified persons.

No. The election is made in writing, applies to all subsequent years and is irrevocable. If the conditions cease to be met the concession simply does not apply for that year. Losses from exempt transactions cannot be set off against assessable profits.

Gazetted on 12 June 2026 and read for the first time on 24 June 2026, the bill would add loans and private credit, digital assets, overseas immovable property, insurance-linked securities, precious metals (capped at 20%) and emission derivatives to qualifying assets, remove the 5% incidental-transaction threshold, relax FSPE treatment and apply retrospectively from 2025/26. The IRD said on 12 August 2026 that the Bills Committee had completed its examination and the Government aimed to resume the second reading in the second half of 2026. As at 4 November 2026 no official announcement of the third reading had been found.

That is a misreading. Under current rules, a vehicle that meets every condition, is managed by an eligible single family office and has made the election pays 0% on qualifying transactions. The office's fees, non-qualifying transactions and distributions to family members in their own jurisdictions are taxed under the applicable rules. This site promises no tax outcome.

It depends on three factors that must all be present: the services constitute a regulated activity, they are provided as a business, and the business is carried on in Hong Kong. A genuine single family office that manages only its own family's assets and is not run for profit is generally not regarded as carrying on a business and needs no licence. Serving third parties for a fee can change that.

A multi-family office serves several families as a commercial venture and must be licensed for its regulated activities; vehicles it manages are outside the current concession. A virtual family office outsources functions to banks, lawyers and accountants; it has no entity that could be an eligible single family office, so it cannot access the concession.

A trust decides who holds and who benefits, under a legally enforceable deed. A charter decides how the family deliberates, who sits on the board and how shares transfer; it is generally not an enforceable contract and must be implemented through articles, a shareholders' agreement and the trust deed.

Yes. Since 1 December 2013, new trusts governed by Hong Kong law are free of the rule against perpetuities (previously a fixed period of 80 years) and the rule against excessive accumulations; charitable trusts keep a 21-year accumulation limit. The same reform introduced a statutory duty of care for trustees and allows settlors to reserve investment powers.

In the absence of written rules on four things while the founder is alive: who holds the shares, how major decisions are voted, how profits are distributed and how a member exits. Governance in four layers (family assembly, family council, board with independent directors, dispute-resolution sequence) and share design through trusts, shareholders' agreements and classes of shares are the remedies.

Only if its purposes fall within the four charitable heads and it exists for the public benefit. The IRD's June 2023 guide states that beneficiaries may not be defined by a personal connection such as family relationship, so a foundation benefiting only family members is not a section 88 charity. A recognised charity may hold up to 25% of an FIHV, and donors may deduct approved charitable donations up to 35% of assessable income or profits.

Four things: immediate liquidity on death before probate completes, funding for buy-sell agreements between shareholders, compensation for the loss of a key person, and equalisation when the business passes to one child. Only guaranteed death benefit should be counted; illustrated non-guaranteed bonuses are not promises, and insurers must publish fulfilment ratios annually under the Insurance Authority's GL16.

They are separate regimes. The scheme requires HK$30 million of net assets and HK$30 million of investment in Hong Kong and leads to residence; the concession requires HK$240 million of assets and local substance and leads to a 0% rate. From 1 March 2025, investments made through a wholly owned, Hong Kong-incorporated FIHV or FSPE managed by an eligible single family office count towards the scheme's investment requirement. Meeting one regime does not mean meeting the other.

Five points: documents are signed in Hong Kong (insurance requires signing in person and the Important Facts Statement for Mainland Policyholders); source of funds must be traceable and outbound remittances must comply with Mainland rules; tax residence is not changed by setting up an office or obtaining Hong Kong residence; account, policy, trust and vehicle information is exchanged to the Mainland under the Common Reporting Standard; and anyone promoting Hong Kong services inside the Mainland should be checked for licensing. Obtain advice in both jurisdictions.

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