Thirty family offices from Europe are seeking to establish their presence in Hong Kong as the city surpasses Switzerland in terms of cross-border wealth.

      Hong Kong is luring European family offices with tax benefits and access to China’s technology sector after surpassing Switzerland as the leading offshore wealth center. Approximately 30 European family offices have informed Hong Kong’s investment promotion agency, InvestHK, of their intention to establish operations in the city. This interest represents about 19% of the 160 family office cases currently managed by InvestHK and highlights a broader trend of European investment shifting towards Asia due to tax advantages, the tech surge in China, and geopolitical changes.

      Jason Fong, InvestHK’s global head of family office, noted that several Italian families participated in the Wealth for Good in Hong Kong Summit in March 2026 and subsequently engaged in strategic discussions with the agency. “For European families in search of new growth, Hong Kong provides something notably scarce: certainty, resilience, stability, innovation, and opportunity all in one jurisdiction,” Fong remarked to the South China Morning Post.

      The timing is significant. Last year, Hong Kong surpassed Switzerland to become the largest cross-border wealth management center globally, with $2.95 trillion in offshore assets compared to Switzerland’s $2.94 trillion, as indicated in Boston Consulting Group’s Global Wealth Report released in May. BCG forecasts that this gap will increase to nearly $600 billion by 2030.

      Hong Kong’s family office sector has seen notable growth. A Deloitte study commissioned by InvestHK revealed that the number of single-family offices in the city grew by 25% over the past two years, reaching around 3,384 by the end of 2025, contributing roughly $12.6 billion annually to the local economy through operating expenses.

      Tax incentives play a vital role in this attraction. Hong Kong exempts its 16.5% profit tax on earnings from stocks and bonds for single-family offices that maintain an investment portfolio of at least HK$240 million (approximately $30.8 million), employ two staff members in the city, and incur annual operating costs of at least HK$2 million. The government plans to present legislation this month to widen the tax exemption to include additional investment products.

      Jennifer Chan, co-founder of Orientis, a French consultancy that advises wealthy European clients, mentioned that geopolitical tensions have led some investors to reconsider their global investment allocations. “Historically, European family offices have preferred to invest domestically or in the U.S. and the Middle East,” she explained. “However, in recent years, they have started to look towards Hong Kong and other parts of Asia.”

      Chan noted that the escalation of the Middle East conflict in late February has made Hong Kong appear comparatively stable. Orientis has organized eight visits to Hong Kong for affluent families from Germany, France, Switzerland, the Netherlands, Belgium, and Italy in the last 18 months, leading some clients to establish family offices in the city.

      The investment rationale has two main aspects. Firstly, there is the potential of China’s technology sector. International investors have rapidly entered the Chinese tech market since the success of AI startup DeepSeek early last year highlighted the country’s innovation capabilities. Chan, who also serves as a director of the Hong Kong Science and Technology Parks Corporation, mentioned that many family office representatives are meeting with local startups at the science park, and some have already made investments.

      Secondly, there is the Hong Kong property market. Chan stated that European families view the market as having dropped significantly and now showing signs of recovery, which makes it an opportune entry point.

      Government efforts to promote Hong Kong have been vigorous. Financial Secretary Paul Chan Mo-po has conducted European roadshows to enhance the city’s visibility among wealthy families. Hong Kong’s increasingly important role as a financial hub for Chinese tech companies further boosts its attractiveness as a conduit for European investments looking to tap into mainland innovation.

      The institutional infrastructure is also evolving. French insurer AXA launched AXA Global Private in Hong Kong on Monday to cater to high-net-worth individuals and family offices, with CEO Sally Wan expressing confidence that Hong Kong will continue to be the world’s largest offshore wealth center. This platform integrates life insurance, wealth management, and succession services for affluent families across Asia.

      Cliff Ip Wang-hoi, chairman of the financial services committee for Greater China at CPA Australia, stated that Hong Kong acts as a gateway to mainland China and the Greater Bay Area. “The rapid advancement of the artificial intelligence and technology sectors in China offers significant investment prospects for European family offices,” Ip noted.