Deciding Between a Hong Kong Capital Investment Entrant Scheme and a UK Innovator Founder Visa

Hong Kong’s Capital Investment Entrant Scheme (CIES) reopened on 1 March 2024 with significantly revised thresholds and asset classes, while the UK’s Innovator Founder Visa replaced the old Tier 1 Innovator route in April 2023. For a Hong Kong permanent resident holding a BNO passport or a foreign national seeking to relocate, the choice between these two pathways is no longer a simple cost comparison. The CIES now requires a minimum investment of HK$30 million (approximately £3 million) into permissible assets, with a mandated allocation of at least HK$3 million to the new Capital Investment Entrant Scheme Investment Portfolio. The UK Innovator Founder Visa, by contrast, demands no minimum investment capital if the applicant already holds a UK degree or has secured endorsements from approved bodies. This article sets out the procedural rules, financial thresholds, and permanent residence timelines under each scheme, as they stand in early 2025. The comparison is not a recommendation. Applicants must assess their own circumstances, including visa history, source of funds, and intended length of stay.

Eligibility and Residency Requirements

Hong Kong CIES: Passive Investment, No Active Business

The CIES is governed by the Capital Investment Entrant Scheme Rules (as amended in 2024) and administered by the Immigration Department of Hong Kong. An applicant must be a national of a country that has not been excluded by the Director of Immigration. Nationals of Afghanistan, Cuba, Laos, Korea (Democratic People’s Republic of), Nepal, and Vietnam are not eligible.

Step 1: Confirm net asset threshold. The applicant must prove they have net assets of not less than HK$30 million held continuously for the two years immediately preceding the application. This includes cash, securities, and real estate (excluding Hong Kong property).

Step 2: Make the permitted investment. The investment must be placed into permissible assets within six months of visa approval. The breakdown is:

• At least HK$27 million in permissible financial assets (equities, bonds, eligible investment-linked insurance policies, or the new HK$10 million qualifying debt securities issued by the Hong Kong Monetary Authority).
• At least HK$3 million into the Capital Investment Entrant Scheme Investment Portfolio, which is managed by the Hong Kong Monetary Authority and invests in Hong Kong-related projects.

Residency condition: The visa is granted for two years, renewable for two further periods of two years each (total six years). The holder must maintain the investment throughout the visa period. No physical presence requirement exists, but the holder must not be absent from Hong Kong for more than 180 days in any one year during the visa period. After seven years of continuous residence, the holder may apply for permanent residence under the Cap. 115 Immigration Ordinance, Schedule 1, paragraph 2.

UK Innovator Founder Visa: Active Business, Endorsement Required

The Innovator Founder Visa replaced the Tier 1 Innovator route on 13 April 2023, under the Immigration Rules Appendix Innovator Founder. The key change is the removal of the £50,000 minimum investment requirement for most applicants.

Step 1: Obtain an endorsement from an approved body. The applicant must secure an endorsement from a Home Office-approved endorsing body (e.g., Innovate UK, a UK university, or a business accelerator). The endorsement must confirm that the applicant’s business idea is innovative, viable, and scalable.

Step 2: Meet the English language requirement. The applicant must prove English proficiency at CEFR Level B2 (equivalent to IELTS 6.0 in all skills) or hold a degree taught in English.

Residency condition: The visa is granted for three years. The holder must be actively involved in the day-to-day running of the endorsed business. No minimum physical presence is specified, but the holder must not be absent from the UK for more than 180 days in any 12-month period during the visa. After three years, the holder may apply for indefinite leave to remain (ILR). Settlement is possible after five years of continuous residence (three years on the Innovator Founder Visa plus two years on another qualifying visa).

Permanent Residence and Citizenship Pathway

Hong Kong: Seven Years to Permanent Residence, No Citizenship

The CIES does not lead directly to citizenship. After seven years of continuous residence (counting the visa period), the holder may apply for the Right of Abode in Hong Kong under Cap. 115, Schedule 1, paragraph 2. This status is permanent but does not grant a Hong Kong passport. Hong Kong does not have a naturalisation process for foreign nationals. The holder remains a national of their home country unless they renounce it.

Key deadline: The application for permanent residence must be made within the 28 days before the expiry of the seventh year of residence. The Immigration Department will assess the holder’s absence record. Absences exceeding 180 days in any one year may break the continuous residence period.

UK: Five Years to Indefinite Leave to Remain, Six Years to Citizenship

The Innovator Founder Visa holder may apply for ILR after three years on that visa (plus two years on another qualifying visa, totalling five years of continuous residence). After obtaining ILR, the holder may apply for British citizenship after one further year of residence (total six years from first entry).

Naturalisation requirements under the British Nationality Act 1981, section 6(1):

• The applicant must be aged 18 or over.
• The applicant must have been physically present in the UK for at least 3 years immediately before the application date.
• The applicant must not have been absent from the UK for more than 270 days in those 3 years.
• The applicant must intend to make the UK their main home.
• The applicant must pass the Life in the UK Test and meet the English language requirement (B1 CEFR or higher).

Financial and Tax Implications

Hong Kong CIES: No Income Tax on Investment Gains

Hong Kong operates a territorial tax system under the Inland Revenue Ordinance (Cap. 112) . Investment gains from permissible assets held under the CIES are generally not subject to profits tax, provided the holder does not trade in those assets as a business. The HK$3 million Capital Investment Entrant Scheme Investment Portfolio is managed by the HKMA and returns are capital gains, not income.

Cost of the scheme: The minimum investment of HK$30 million is a hard floor. The applicant must also pay professional fees (legal, accounting, and immigration consultancy), which typically range from HK$100,000 to HK$300,000. The Immigration Department application fee is HK$1,460 (as of 2025).

UK Innovator Founder Visa: No Minimum Investment, but Business Costs

The Innovator Founder Visa does not require a minimum investment if the applicant has a UK degree or a strong endorsement. However, the endorsing body will assess the applicant’s business plan and may require evidence of available funds. In practice, most applicants invest between £50,000 and £200,000 to demonstrate viability.

UK tax regime: The holder is resident in the UK for tax purposes from day one of the visa. The UK taxes worldwide income and capital gains on a residence basis. The first £12,570 of income is tax-free under the personal allowance. Capital gains up to £3,000 are tax-free. The holder must file a self-assessment tax return annually.

Comparative Timeline and Flexibility

Criterion	Hong Kong CIES	UK Innovator Founder Visa
Minimum investment	HK$30 million (approx. £3 million)	None (endorsement-based)
Visa duration	2 years (renewable x2)	3 years
Permanent residence	7 years	5 years (3 years on visa + 2 years other)
Citizenship	Not available	6 years (5 years residence + 1 year ILR)
Physical presence	Max 180 days absence per year	Max 180 days absence per 12 months
Active business required	No	Yes
English language test	Not required	Required (B2 CEFR)

Actionable Takeaways

1. The Hong Kong CIES is a passive-investment route requiring HK$30 million in permissible assets and seven years of minimal physical presence, but it does not lead to citizenship.
2. The UK Innovator Founder Visa requires no minimum investment but demands an active business endorsed by an approved body, with a five-year path to indefinite leave to remain and six years to British citizenship.
3. Applicants with a BNO passport or a UK degree may find the Innovator Founder Visa more accessible than the CIES, given the lower financial threshold and faster settlement timeline.
4. The UK visa requires English proficiency at B2 level and a business plan that meets the endorsing body’s innovation criteria; the CIES has no language or business activity requirement.
5. Tax treatment differs fundamentally: Hong Kong does not tax investment gains, while the UK taxes worldwide income and gains on a residence basis from day one of the visa.

This does not constitute legal advice. Consult a solicitor for your specific case.