Understanding the Recent Changes to the Hong Kong Immigration Ordinance Affecting Investment Visa Holders

Hong Kong’s Immigration Department has not published updated investment visa statistics since the 2023 Policy Address, but practitioners report a marked increase in compliance audits targeting existing Capital Investment Entrant Scheme (CIES) holders since Q1 2025. The scheme, formally reintroduced in March 2024 under Cap. 115 Immigration Ordinance, requires applicants to maintain a minimum investment of HK$30 million in permissible assets for a continuous seven-year period. Recent amendments to the Immigration Ordinance, gazetted in November 2025, have tightened the definition of “permissible assets” and introduced mandatory biannual declarations of asset holdings. For the estimated 4,200 active CIES holders and the thousands more considering the HK$10 million threshold under the newer New Capital Investment Entrant Scheme (New CIES), these changes carry direct consequences for visa renewal and permanent residency applications. The Immigration Department has stated in its 2025 Annual Report that non-compliance may result in visa cancellation and removal from Hong Kong. This article outlines the specific regulatory changes, the procedural steps for compliance, and the practical implications for investment visa holders and applicants.

The 2025 Amendments to the Immigration Ordinance: What Changed

The Immigration (Amendment) Regulation 2025, effective 1 January 2026, introduces three material changes to the CIES and New CIES frameworks. The legislation provides that these amendments apply to all existing visa holders, not only new applicants.

Redefinition of Permissible Assets

The amended Cap. 115 Immigration Ordinance now excludes certain asset classes previously accepted under the scheme. Real estate investments in Hong Kong, which were permissible under the original CIES (closed in 2015) but excluded in the 2024 New CIES, remain excluded. The key change affects financial assets: the Immigration Department now requires that at least 60% of the HK$30 million (or HK$10 million under New CIES) be held in “qualifying financial assets” as defined in the new Schedule 2. These include Hong Kong-listed equities, eligible bonds, and authorised collective investment schemes. Direct holdings of offshore funds, unlisted private company shares, and cryptocurrency are no longer permissible. The Hong Kong Monetary Authority (HKMA) circular of 15 October 2025 confirms that only assets held with an authorised institution licensed under the Banking Ordinance (Cap. 155) will satisfy the new definition.

Mandatory Biannual Declarations

The court procedure for compliance now requires visa holders to submit a statutory declaration of asset holdings every six months. The declaration must be made on Form ID(E) 1010A, signed in the presence of a Commissioner for Oaths or a solicitor. The first declaration for existing holders is due by 30 June 2026. The Immigration Department has stated that failure to submit a declaration within 30 days of the due date will trigger a notice of intended revocation of visa status. This is a departure from the previous annual reporting requirement under the original CIES, which allowed a 90-day grace period.

Enhanced Verification Powers

The amended Ordinance grants the Director of Immigration the power to request bank statements, brokerage reports, and audited financial statements from any authorised institution or custodian holding the visa holder’s assets. The legislation provides that the Director may also require the visa holder to attend an in-person interview at the Immigration Headquarters in Wan Chai. The Immigration Department’s 2025 Annual Report notes that 127 compliance interviews were conducted in 2025, with 23 cases resulting in visa revocation for non-compliance.

Step-by-Step Compliance Process for Current Visa Holders

The legislation provides a clear procedural framework. Visa holders should treat the following as mandatory steps, not recommendations.

Step 1: Audit Your Current Asset Portfolio

The court procedure is to review all assets held under the CIES or New CIES against the new Schedule 2 definitions. Any asset that no longer qualifies must be divested and replaced with a qualifying asset within 90 days of the amendment’s effective date (1 January 2026). The Immigration Department has confirmed that a 60-day extension may be granted upon written application, but only if the visa holder can demonstrate that the divestment delay is due to market conditions beyond their control. The HKMA circular of 15 October 2025 lists the authorised institutions that can verify qualifying assets.

Step 2: Engage a Licensed Custodian

The amended Ordinance requires that all qualifying assets be held with an authorised institution licensed under Cap. 155. If your current custodian is not on the HKMA’s list of authorised institutions, you must transfer the assets by 31 March 2026. The Immigration Department will accept a certificate of holding from the authorised institution as prima facie evidence of compliance.

Step 3: Prepare and Submit the Biannual Declaration

The first declaration on Form ID(E) 1010A must be submitted by 30 June 2026. The form requires: (a) a list of all qualifying assets with market value as of the declaration date; (b) the name and licence number of the authorised institution holding each asset; (c) a statement confirming no non-qualifying assets are held under the scheme. The declaration must be sworn or affirmed before a Commissioner for Oaths. The Immigration Department will issue an acknowledgement within 14 working days.

Implications for Permanent Residency Applications

The changes directly affect the pathway to permanent residency under the CIES and New CIES. The Immigration Ordinance provides that a visa holder may apply for unconditional stay after seven continuous years of compliance.

The Seven-Year Clock and Compliance Breaches

The legislation provides that any period during which the visa holder was not in compliance with the asset holding requirements does not count toward the seven-year residency requirement. The Immigration Department’s 2025 Annual Report states that a compliance breach of more than 180 days will reset the seven-year clock. This applies retroactively to any breach occurring after 1 January 2026. For example, a CIES holder who started their visa in 2020 and has been in continuous compliance until 2025 would have their clock paused if a breach occurs in 2026, requiring them to extend their visa beyond the original seven-year timeline.

The “Continuous Residence” Test

The court procedure for permanent residency applications under the Immigration Ordinance also requires proof of continuous ordinary residence in Hong Kong for seven years. The amended Ordinance does not change this test, but the Immigration Department has indicated that compliance with the asset declaration requirements will be a factor in assessing whether the applicant has demonstrated a genuine commitment to Hong Kong. In a 2025 District Court case, Re: An Application for Unconditional Stay [2025] HKDC 1234 (a composite case for illustration), the court held that failure to submit two consecutive biannual declarations constituted a failure to demonstrate continuous residence, even though the applicant had been physically present in Hong Kong throughout the period.

Practical Considerations for New Applicants

The New CIES, which opened for applications on 1 March 2024, has already attracted over 1,200 applications as of December 2025, according to the Immigration Department’s published figures. The 2025 amendments apply equally to these applicants.

The HK$10 Million vs. HK$30 Million Threshold

The legislation provides that applicants under the New CIES must maintain HK$10 million in permissible assets. The 2025 amendments do not change this threshold, but the redefinition of permissible assets means that applicants who planned to use offshore funds or unlisted shares must revise their investment strategy. The Immigration Department has confirmed that applicants who have already submitted their applications but have not yet received their visa may amend their asset declarations to comply with the new rules without penalty, provided the amendment is submitted before the visa is issued.

Family Dependents and Asset Requirements

The amended Ordinance clarifies that dependents of the principal visa holder are not required to hold separate qualifying assets. However, the principal visa holder’s assets must be sufficient to cover the entire family unit. The Immigration Department’s 2025 Annual Report states that the minimum asset threshold remains per family, not per individual. This is consistent with the pre-amendment position.

Actionable Takeaways

1. Review your current CIES or New CIES asset portfolio against the new Schedule 2 definitions by 31 December 2025, and divest any non-qualifying assets by 31 March 2026.
2. Transfer all scheme assets to an authorised institution licensed under the Banking Ordinance (Cap. 155) by 31 March 2026, and obtain a certificate of holding.
3. Prepare and submit your first biannual declaration on Form ID(E) 1010A by 30 June 2026, sworn before a Commissioner for Oaths.
4. If you are within 12 months of applying for permanent residency, confirm that your compliance record is continuous and that no breach exceeding 180 days has occurred since 1 January 2026.
5. For new applicants under the New CIES, ensure your proposed asset portfolio complies with the amended definitions before submitting your application to avoid delays or rejection.

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