Earlier this year, the Hong Kong government introduced the new Capital Investment Entrant Scheme (CIES) as part of its efforts to boost the local economy. By the end of June, the scheme had already attracted over 3,700 enquiries and 339 applications. Of these, 88 applications received approval-in-principle, with three receiving formal approval.
What is the Capital Investment Entrant Scheme (CIES)?
The CIES is an investment migration programme that was first introduced in 2003 to stimulate Hong Kong's economy during a recession. It was suspended in January 2015 but has now been reintroduced as part of the 2023-2024 Budget to aid economic revitalisation.
Under the new CIES, high-net-worth individuals can secure residency in Hong Kong for themselves and their dependants (including spouses and unmarried children under 18) by investing a minimum of HK$30 million in approved investment assets.
Key Features of the New CIES
The new scheme accepts applications from individuals aged 18 or older, including foreign nationals, Chinese nationals with permanent residency in another country, residents of Macau, and Chinese residents of Taiwan.
Applicants must demonstrate that they have held net assets of at least HK$30 million (or equivalent in foreign currency) for at least two years prior to their application and must invest the same amount in permissible assets. Of the total investment, at least HK$27 million must be placed in financial assets and non-residential real estate, while a minimum of HK$3 million must be allocated to a dedicated CIES Investment Portfolio.
Successful applicants and their dependants who reside continuously in Hong Kong for at least seven years may apply for permanent residency. Those unable to meet the continuous residence requirement may still be eligible for unconditional stay after seven years, at which point they are free to dispose of their investment assets, subject to relevant conditions.
Financial eligibility for the scheme is assessed by Invest Hong Kong, while entry, visa, and residence applications are managed by the Immigration Department.
Implications of the New CIES for Employers
Employers should be aware that individuals with a CIES visa have the right to work in Hong Kong without needing a separate employment visa, potentially easing the hiring process.
Additionally, the scheme opens up a new pathway to residency, potentially expanding the pool of top-tier talent available to employers. Businesses recruiting or relocating high-level staff whose compensation packages meet the scheme's financial criteria may find that the CIES makes the role more attractive by offering a path to permanent residency for candidates and their families.
The new CIES is expected to draw more top talent to Hong Kong, providing employers with access to a larger and more diverse workforce. This could not only support recruitment efforts but also offer new opportunities for secondment and long-term settlement in Hong Kong, helping companies retain their top employees.
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