Advantages of Establishing a Family Office in Hong Kong

Advantages of Establishing a Family Office in Hong Kong

There are numerous advantages to setting up a family office in Hong Kong.

Strategic Positioning


Given its strategic location near Mainland China, Hong Kong acts as a dual gateway, facilitating investment opportunities for Mainland Chinese companies seeking foreign ventures and providing access to international investors interested in China. It serves as a conduit for global investors seeking business or investment prospects within China's market.

Tax Benefit


Hong Kong boasts a low tax rate and a straightforward tax system. Notably, it imposes:

  • No sales tax or VAT;
  • No investment withholding tax;
  • No capital gains tax;
  • No estate tax;
  • No wine tax, and
  • No tax on dividends or interest from savings.


Additionally, Hong Kong has over 40 comprehensive double taxation agreements (DTAs), ensuring tax certainty for family offices and preventing double taxation. These DTAs also enable family offices to benefit from favourable withholding tax rates for cross-border trade and investment.


In addition, various tax concessionary and exemption schemes are available for different market participants, including hedge funds and private equity funds:

  1. Profits Tax Exemptions: All privately offered onshore and offshore funds are granted profits tax exemption for transactions involving specified assets, regardless of their structure, size, or purpose, provided they meet the conditions for exemption.
  2. Enhanced Qualifying Debt Instrument (QDI) Tax Exemptions: Hong Kong's profits tax exempts all interest income and trading profits derived from QDIs issued on or after April 1, 2018, irrespective of their tenor.
  3. ETF Stamp Duty Waiver: Hong Kong waives the stamp duty on the transfer of all ETF shares or units, further boosting the city’s ETF market, which already ranks among the leading markets in the Asia Pacific region.


Absence of Capital Control

Hong Kong consistently ranks at the top for economic freedom and competitiveness. The free movement of capital within, into, and out of Hong Kong is ensured under Article 112 of the Basic Law. Additionally, businesses in Hong Kong enjoy the free flow of information and people.

Strength of Legal System in Hong Kong


Hong Kong’s commitment to the rule of law and judicial independence serves as a cornerstone of its prosperity and stability as a global financial hub.

The judiciary in Hong Kong is renowned for its quality and independence, with the Basic Law ensuring the government's commitment to the rule of law supported by an independent judiciary. Hong Kong's commercial and property laws are trusted, robust, and in line with global standards, facilitating familiarity and ease of navigation for investors engaged in international commercial transactions and disputes.

Prominence as a Financial Hub

Hong Kong stands as a premier banking, asset, and wealth management center, attracting leading hedge funds and private equity firms, along with a significant presence of the world's largest banks and money managers.

  • Hong Kong serves as Asia’s primary hedge fund hub, boasting assets under management totaling $69 billion USD (as of end-2017), triple the size of its closest competitor.
  • It ranks as Asia’s second-largest private equity center, managing capital worth $158.6 billion USD (as of end-2019).
  • Hong Kong solidifies its position as a robust asset and wealth management hub, overseeing $3.1 trillion USD of assets under management, with 62% of funds originating from non-Hong Kong investors (as of end-2018).


World-Class Professional Services

Hong Kong's professional services sector enjoys global recognition for its adherence to professionalism, ethical standards, competence, and international perspective. This robust industry is underpinned by a highly educated and skilled workforce renowned for its adaptability, industriousness, and multilingual proficiency, making them well-suited for handling large-scale and cross-border projects and commercial disputes, among other endeavours.

From banking and fund management to accounting assistance, legal advice, and tax consultancy, family offices in Hong Kong have access to a comprehensive array of services to support their growth and investment initiatives.


Establishing a family office in Hong Kong offers a multitude of advantages that cater to the needs of affluent families and investors. From its strategic positioning as a gateway to Mainland China to its favourable tax environment, absence of capital control, robust legal system, and prominence as a financial hub, Hong Kong provides an ideal ecosystem for wealth management and investment activities.

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