Hong Kong is positioning itself as a leader in the digital assets space by proposing to remove taxes on crypto gains for investment funds and family offices. This initiative is part of an effort to solidify the city’s reputation as a premier wealth management destination.
The Financial Services and Treasury Bureau recently outlined a plan to extend existing tax concessions to include more asset types such as cryptocurrencies. The measure is designed to benefit private investment funds and select family offices, aiming to create a more favorable business climate for asset managers.
Emphasizing the importance of a conducive tax environment, the proposal arrives amid a backdrop of itcoin">Bitcoin’s significant rise in value. With over half of Hong Kong’s 2,700-plus family offices managing sizable assets, the city is leveraging its financial services expertise to attract global capital, competing as a top global finance hub while navigating the intricate dynamics of international geopolitics.
The suggested reforms also consider expanding tax breaks to pension and endowment funds, further expanding the city’s financial services appeal to a diverse range of investors.
