(Budget 2026) Enhancing tax regime to attract more family offices and funds set up in Hong Kong

Financial Secretary Paul Chan Mo-po on Wednesday proposed to expand the scope of "fund" in the family offices tax regime to cover specific funds-of-one, as well as classifying digital assets, precious metals, specified commodities, etc. as qualifying investments eligible for tax concessions, aiming to attract more family offices and funds to set up in Hong Kong.

The amendment bill will be introduced in the first half of this year, with a view to effecting the implementation from the year of assessment 2025/26, he added.

Regarding the development of the real estate investment trust market, the government proposed to enable the privatisation or restructuring of REITs and provide a stamp duty waiver for the transfer of non‑residential properties into REITs seeking to list, Chan noted.

Besides, the Integrated Fund Platform under the Hong Kong Exchange will expand its services this year, covering fund sales procedures such as payment and settlement, to enhance market efficiency and lower transaction costs, he said.