Hong Kong Expands Tax Breaks to Include Crypto in Bid for Family Office Dominance
Hong Kong is overhauling its tax regime to explicitly include digital assets, precious metals, and commodities as qualifying investments for family offices. The move, announced in the 2026-27 Budget, aims to solidify the city's position as a global wealth management hub amid fierce regional competition.
Financial Secretary Paul Chan unveiled the reforms Wednesday, signaling Hong Kong's commitment to digital finance leadership. The government will amend tax laws by mid-2026 to eliminate ambiguity around crypto holdings—a long-standing hurdle for wealthy investors.
The changes extend beyond cryptocurrencies. Officials are broadening the definition of "fund" to encompass funds-of-one, the preferred vehicle for single-family offices. Industry leaders like Raffles Family Office's Chi Man Kwan applaud the clarity but warn sustained growth requires policies supporting both single and multi-family structures.
