Hong Kong Coins It From Incoming HINWIs

by Mary Swire, Tax-News.com, Hong Kong

13 July 2005

Hong Kong's Capital Investment Entrant Scheme has been declared a success by the Immigration Department, bringing in more than HK4bn from 575 approved applicants since it was inaugurated in March, 2003.

Helen Chan Wing-mui, assistant immigration director for visas and policies, said the actual amount would be higher as new arrivals are required to declare only HK$6.5m. One person given residency under the scheme bought a $40 million house last year without securing a mortgage, said the department.

"Judging from these statistics, we believe the scheme has been successful given it attracted so much investment within such a short period," said Ms Chan.

The objective of the Scheme is to facilitate the entry for residence by capital investment entrants, i.e. persons who make capital investment in Hong Kong but would not be engaged in the running of any business here. The entrant is allowed to make his choice of investments amongst permissible assets without the need to establish or join in a business.

The Scheme is applicable to:

• foreign nationals (except nationals of Afghanistan, Albania, Cuba and Democratic People's Republic of Korea);
• Macao Special Administrative Region (Macao SAR) residents;
• Chinese nationals who have obtained permanent resident status in a foreign country;
• stateless persons who have obtained permanent resident status in a foreign country with proven re-entry facilities; and
• Taiwan residents.

To qualify for admission under the Scheme, the entrant must:

• be aged 18 or above when applying for entry under the Scheme;
• have net assets of not less than HK$6.5 million to which he is absolutely beneficially entitled throughout the two years preceding his application;
• have invested within six months before submission of his application to the Immigration Department, or will invest within six months after the granting of approval in principle by the Immigration Department, not less than HK$6.5 million in permissible investment asset classes;
• have no adverse record both in Hong Kong and country/region of residence; and
• be able to demonstrate that he is capable of supporting and accommodating himself and his dependants, if any, on his own without relying on any return on the permissible investment assets, employment or public assistance in Hong Kong.

Ms Chan also said that the department had approved 6,964 applications under the Admission Scheme for Mainland Talents and Professionals since it was introduced in July 2003. The top earner who entered Hong Kong under the scheme, a mainland entertainer who worked on a short-term project in Hong Kong, received a salary of $600,000 a month, she said.

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