Hong Kong: an epicentre for global family offices
As a leading international financial centre, Hong Kong is solidifying its position as the premier destination for establishing family offices
As a top-ranking international financial centre in Asia, Hong Kong provides an ideal environment for family offices and investors looking to tap into investment opportunities in mainland China, Asia-Pacific and global markets.
With more than 2,700 single-family offices already operating, according to a recent market study by Deloitte, Hong Kong provides an ideal environment for wealth management and investment diversification. One of the city’s many benefits is that single-family offices are exempt from licensing requirements, making it easier for them to operate without navigating complex regulatory frameworks.
“Hong Kong has emerged as a premier destination for family offices by offering a combination of regulatory advantages, financial infrastructure and global connectivity,” says Cameron Harvey, CEO of Landmark Family Office, citing factors the office considered before establishing its global headquarters in the city. Among the top considerations that influenced Landmark’s decision were Hong Kong’s broad range of financial products, expert advisory services and flexible investment vehicles.
Favourable ecosystem
As part of the city’s burgeoning ecosystem, these services and benefits facilitate the sophisticated management of assets, ensuring that family offices can navigate local and international markets and secure their financial legacy across generations. “Collectively, these factors enhance investment possibilities, aiding in both the growth and preservation of wealth,” Harvey says.
Hong Kong is home to more than 70 of the world’s top 100 banks. It also has a rich talent pool of financial professionals offering services in accountancy, insurance, international taxation, wealth management and investment advisory.
Landmark also expressed confidence in Hong Kong’s robust legal and regulatory framework and independent judiciary, a major consideration for ultra-high-net-worth (UHNW) individuals based elsewhere in Asia.
Additional factors in the company’s choice to anchor its business in the city include Hong Kong’s status as the world’s freest economy, its vibrant stock market and a favourable tax regime with no sales or value-added tax, no investment withholding or capital gains tax, no estate or inheritance tax and no tax on dividends or interest on savings.
In May 2023, Hong Kong introduced a new tax concession for single-family offices, granting exemptions on profits tax for eligible family-owned investment holding vehicles. Family offices in Hong Kong seeking tax concessions do not need prior approval, and tax exemptions are offered upon meeting the criteria for tax incentives. This makes Hong Kong’s tax regime one of the most attractive in the world for family offices, reinforcing the city’s position as a leading family office hub.
“Corporate tax is capped at 16.5 per cent and personal income tax follows a progressive system, with a maximum rate of 17 per cent, which is highly attractive for families concerned about tax efficiency,” Harvey says. “Overall, the regulatory environment emphasises strong corporate governance, with a focus on compliance, ethical management and accountability. In addition, there are well-established channels for philanthropy and impactful charitable activities.”
Wealth transfer
By 2030, the total amount of intergenerational wealth transfer in the Asia-Pacific region will reach US$5.8 trillion, of which 60 per cent will come from UHNW families, according to McKinsey’s 2024 report, “Asia-Pacific’s family office boom: Opportunity knocks”.
Meanwhile, the UBS “Global Family Office Report 2024” suggests an estimated 1,000 billionaires globally will pass US$1.2 trillion to their children over the next 20 years. At the same time, billionaires aged 70 or more are expected to transfer in the region of US$6.3 trillion to subsequent generations over the next 15 years, according to the UBS “Billionaire Ambitions Report 2025”.
With such a massive generational transfer of wealth, the demand for family offices is expected to climb steadily. Given the complexity of UHNW families’ investment portfolios, Hong Kong is sure to emerge as a premier family office hub serving families in Asia and globally.
“The sector as a whole will grow at an exponential rate and become the most utilised structure and platform for UHNW families and individuals,” Harvey says. “The key is selecting the right set-up for you.”