Hong Kong: an epicentre for global family offices

As a prominent international financial hub, Hong Kong is strengthening its status as the top choice for setting up family offices.

As a leading international financial center in Asia, Hong Kong offers an ideal setting for family offices and investors seeking investment opportunities in mainland China, the Asia-Pacific region, and global markets.

With over 2,700 single-family offices already in operation, according to a recent Deloitte market study, Hong Kong provides an excellent environment for wealth management and investment diversification. A significant advantage is that single-family offices are exempt from licensing requirements, simplifying operations by avoiding complex regulatory frameworks.

“Hong Kong has become a top destination for family offices by providing regulatory benefits, financial infrastructure, and global connectivity,” says Cameron Harvey, CEO of Landmark Family Office, highlighting factors considered before establishing their global headquarters in the city. Key considerations for Landmark included Hong Kong’s diverse financial products, expert advisory services, and flexible investment vehicles.

Favorable ecosystem

As part of the city’s growing ecosystem, these services and benefits support sophisticated asset management, ensuring family offices can navigate both local and international markets to secure their financial legacy for future generations. “Together, these factors enhance investment opportunities, aiding in both wealth growth and preservation,” Harvey says.

Hong Kong hosts over 70 of the world’s top 100 banks and boasts 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 strong legal and regulatory framework and independent judiciary, a crucial factor for ultra-high-net-worth (UHNW) individuals based in other parts of Asia.

Additional reasons for the company’s decision to base its operations in the city include Hong Kong’s recognition as the world’s freest economy, its lively stock market, and a favorable 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, providing exemptions on profits tax for eligible family-owned investment holding vehicles. Family offices in Hong Kong seeking tax concessions do not require prior approval, and tax exemptions are granted upon meeting the criteria for tax incentives. This makes Hong Kong’s tax regime one of the most appealing globally for family offices, further establishing the city as a leading hub for family offices.

“Corporate tax is capped at 16.5 percent, and personal income tax follows a progressive system with a maximum rate of 17 percent, which is highly attractive for families focused on tax efficiency,” Harvey says. “Overall, the regulatory environment emphasizes strong corporate governance, with a focus on compliance, ethical management, and accountability. Additionally, there are well-established channels for philanthropy and impactful charitable activities.”

Wealth transfer

By 2030, the Asia-Pacific region will see intergenerational wealth transfer totaling US$5.8 trillion, with 60 percent coming from UHNW families, as reported by McKinsey’s 2024 report, “Asia-Pacific’s family office boom: Opportunity knocks.”

Meanwhile, the UBS “Global Family Office Report 2024” projects that approximately 1,000 billionaires worldwide will pass US$1.2 trillion to their children over the next 20 years. Additionally, billionaires aged 70 or older are expected to transfer about US$6.3 trillion to subsequent generations over the next 15 years, according to the UBS “Billionaire Ambitions Report 2025.”

With such a significant generational wealth transfer, the demand for family offices is anticipated to rise steadily. Given the complexity of UHNW families’ investment portfolios, Hong Kong is poised to become a leading family office hub serving families both in Asia and globally.

“The sector as a whole will expand rapidly and become the most utilized structure and platform for UHNW families and individuals,” Harvey says. “The key is selecting the right setup for you.”

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