- Hong Kong’s Legislative Council has proposed including Bitcoin purchased from licensed exchanges as part of the city’s reformed investor immigration programme.
- The legislative initiative, led by Assembly member Qiu Dagen of the Science and Technology Innovation Community, aims to expand the scope of assets covered by the program.
- The government had previously stated that only financial products related to real estate, such as real estate investment trusts (REITs), were included under the current framework.
The Hong Kong Legislative Council from the Science and Technology Innovation Society is proposing the inclusion of Bitcoin in the investor migration program.
Bitcoin May be Included in Investor Migration Investment
The legislative initiative led by Qiu Dagen from the Science and Technology Innovation Society proposes the inclusion of Bitcoin purchased from licensed exchanges as part of the city’s revamped investor migration program. The proposal emerged as Hong Kong restarted its investment migration program after an eight-year hiatus, setting an entry threshold of around $3.84 million.
The legislative initiative led by Qiu Dagen from the Science and Technology Innovation Society aims to expand the scope of assets covered under the program. It argues that the trading of Bitcoin on licensed virtual asset exchanges should theoretically be considered as a financial product for investment purposes. This proposal highlights a significant departure from traditional asset classes, emphasizing how investment has evolved in the digital age.
However, the revised program explicitly excludes real estate investments and does not grant eligibility to mainland Chinese citizens. Wang Zhiwei, a partner specializing in family businesses and private wealth tax planning in mainland China and Hong Kong, highlighted the program’s attractiveness due to Hong Kong’s low tax rates and no inheritance tax. He noted that the rule requiring seven years of continuous residence for permanent residence eligibility, despite some applicants requesting a shorter period, is likely to remain unchanged.
Competing in tax incentives and global asset attraction strategies
Calls are being made to expand suitable investments to revive industries, not just limited to Bitcoin. However, the government has clarified that, under the current framework, only financial products related to real estate, such as real estate investment trusts (REITs), are included.
Tax relaxation is another proposed strategy to attract more family offices to Hong Kong. Hong Kong tax partner Wang Xiaoyan advocates expanding the asset and income classes that can benefit from tax incentives. While the existing preferential system covers traditional assets, such as stocks, derivative instruments, and bonds, emerging and alternative investment products like art, wine, and virtual assets are not yet included.
Zeng Peilin, noting that political factors and global trends play a critical role in attracting wealthy individuals and assets, praised the Hong Kong government’s policy guidance. However, he suggested that there is room for further improvement to make their offers more attractive.
Qiu Dagen also pointed out the need to focus on regions such as the Middle East, highlighting the critical role of political factors and global trends in attracting wealthy individuals and assets. According to him, focusing on the Middle East could benefit from the region’s quest for diversified investment destinations.
If implemented, this proposal could mark a significant milestone in integrating digital assets into mainstream investment strategies. It reflects Hong Kong’s growing willingness to adapt to and innovate in an increasingly digital global economy.
