Global Mobility
Hong Kong | The first Five-Year Plan and 2026 Policy Address: Key measures to strengthen its position as a global talent hub
Summary
The Hong Kong Chief Executive (CE) announced Hong Kong SAR’s first Five-Year Development Plan (“The Plan”) for Economic and Social Development alongside the 2026 Policy Address (“Policy Address”) today, setting out a strategic roadmap to strengthen the Hong Kong SAR’s long-term competitiveness, drive economic growth, and reinforce its role as a global center connecting the Mainland and the world.
To support long-term growth and maintain Hong Kong SAR’s competitiveness, the Government has introduced measures to attract global talent, promote international exchange, and strengthen the city’s role as a regional hub for innovation, training, and professional development. It has also announced salaries tax and financial measures to encourage childbirth and support working families. These include higher child allowances for second and subsequent children born on or after September 16, 2026, a stamp duty concession for eligible families, and other incentives under its broader fertility and population strategy. The Plan’s strategic direction and the Policy Address’s key immigration and salaries tax measures are summarized below.
The detail
Strategic direction under The Plan
The Plan outlines Hong Kong SAR’s long-term vision to strengthen its position as an international hub for high-calibre talent, deepen integration within the Greater Bay Area and enhance its global competitiveness. The Plan also highlights the importance of Hong Kong SAR’s continued attractiveness as an international business destination, noting that it is ranked the world’s 2nd most competitive economy and 1st in tax policy according to the World Competitiveness Yearbook 2026.
To support future economic growth, The Plan aims to attract global talent, expand international education, strengthen workforce capability, and deepen collaboration across education, technology, and industry. The Government will also continue reviewing its talent attraction measures, including expanding the Talent List where needed, to reinforce Hong Kong SAR’s position as an international hub for high-calibre talent.
Below are the key highlights from the perspectives of talent attraction and mobility:
- Simple tax regime—Maintaining a simple tax regime remains as one of the key competitive advantages of Hong Kong.
- Enhancement to tax regimes—The tax regimes for funds, single family offices, and carried interest are aimed to be enhanced in order to attract more family capital and long-term capital for investment into operations in Hong Kong.
- Facilitation of mobility—Facilitation measures for cross-boundary passenger flow will be implemented to boost immigration clearance efficiency. Technology-enabled tools such as artificial intelligence and face recognition will be adopted to promote clearance facilitation whilst delivering better policing and immigration services to the public.
- Expansion of education outreach—The Government will expand the reach of Hong Kong’s high-quality post-secondary education to attract more non-local students to study in Hong Kong and global top-notch talents and innovation collectives to establish their presence in Hong Kong.
- Talent List—On-going review of the Talent List and talent attraction strategies will be conducted to expand the labor force and improve the demographic structure in Hong Kong.
Attracting and retaining talent with enhanced immigration arrangements
To support Hong Kong SAR’s long-term development and strengthen its position as an international talent hub, the Policy Address introduces immigration measures to attract, retain, and develop high-quality talent, while expanding international exchange and training opportunities. The key measures are outlined below.
- Expanding the Talent List to support artificial intelligence (AI) development
More talent categories related to AI applications will be considered for inclusion in the Talent List, further strengthening talent support in strategic sectors. The current Talent List covers 60 professions facing local manpower shortages, including finance, healthcare, and innovation and technology.
- Supporting technology start-up talent
Requirements for extension of stay under the Top Talent Pass Scheme (TTPS) will be relaxed for technology start-up founders. Recognizing that start-ups often generate limited and unstable income during their initial stages, eligible entrepreneurs supported by designated public sector organizations will be exempt from certain requirements, such as providing proof of company income, when applying for visa extensions. The Government plans to implement this visa-extension facilitation arrangement in the first half of 2027.
- Expanding immigration facilitation arrangements
The Immigration Facilitation Scheme for Invited Persons will be broadened beyond ASEAN Member States to include countries and regions in Central Asia and the Middle East. In addition, all government bureau and departments will be empowered to issue invitations under the scheme, facilitating greater economic, trade, and cultural exchanges.
- Launching a new visa for short-term training
A new visa category will be introduced to enable non-local participants to attend recognized short-term training programs in Hong Kong. This initiative will support the city’s development as a regional training and professional development hub.
- Extending eligibility for campus graduates in the Greater Bay Area (“GBA”)
The Government will extend for two years the pilot arrangement covering graduates from GBA campuses of Hong Kong universities under the Immigration Arrangements for Non-local Graduates (IANG).
- Increasing visa extension approvals for applications filed by talents
To attract talents, the Government will approve at least 50,000 visa extension applications annually for talents admitted through talent admission schemes from 2025 to 2027, an increase of no less than 40% over the annual average from 2021 to 2023.
Enhancing mobility and travel facilitation
- Launch of AUTOS for “contactless on-board clearance”
The Immigration Department will launch the Automated Transportation On-board Clearance System (AUTOS) Pilot Scheme at the Hong Kong-Zhuhai-Macao Bridge Hong Kong Port in December 2026. The system will leverage AI and facial recognition technology to verify the identities of registered eligible cross-boundary private-car drivers and passengers automatically, enabling a seamless “contactless on-board clearance” experience.
- New Huanggang port clearance arrangement
The redeveloped Huanggang Port is expected to commence operations in the fourth quarter of 2026. The new facility will implement both a co-location arrangement; and a new “collaborative inspection and joint clearance” model. These measures are expected to significantly improve passenger clearance efficiency and the overall border-crossing experience between Hong Kong and Shenzhen.
Tax measures for families
The Policy Address continues to propose specific measures aimed at encouraging childbirth and strengthening support for families. Key highlights include:
- Increased child allowance: The child allowance for a taxpayer’s second and subsequent children born on or after September 16, 2026 will increase from HK$140,000 to HK$160,000. The enhanced allowance will be available until the child reaches the age of 25, subject to existing eligibility requirements.
- Enhanced additional child allowance: Eligible taxpayers may continue to benefit from the existing arrangement under which an additional child allowance is available during the first two years following childbirth. For taxpayers whose second and subsequent children are born on or after September 16, 2026, the additional child allowance available during the first two years following childbirth will increase from HK$140,000 to HK$160,000 per year.
Both enhancements will take effect from the 2026/27 year of assessment.
- Stamp duty concession for eligible families: Eligible families with children born on or after September 16, 2026 with either parent a Hong Kong permanent resident may receive a stamp duty waiver of up to HK$20,000 when purchasing a residential property within one year before or two years after childbirth.
Other financial incentives
The Government also announced complementary measures to encourage childbirth, including:
- Extension of the HK$20,000 Newborn Baby Bonus for a further three years.
- Increase of the Newborn Baby Bonus to HK$30,000 for second and subsequent children.
What this means
Together, The Plan and Policy Address reinforce Hong Kong SAR’s commitment to becoming a global talent hub. The measures strengthen the talent pipeline, support families, facilitate mobility, and help employers attract skilled professionals for innovation-led industries.
The enhanced child allowances and financial support will assist eligible taxpayers with growing families. They also advance the Government’s broader goals of supporting family wellbeing, encouraging workforce participation, and strengthening Hong Kong SAR’s appeal to local and international talent.
Employers can reflect these initiatives in their total rewards, talent attraction, and global mobility strategies, positioning Hong Kong SAR as a base for mobility between Mainland China and the rest of the world.
How we can help
Vialto can help companies and employees fully understand the impacts on immigration, individual tax, and talent management brought by the latest measures of the Policy Address, and provide practical solutions tailored to business development needs.
Specifically, we can assist in:
- Assessing immigration options to Hong Kong
Based on the specific circumstances of the company and its employees, we assess suitable talent immigration pathways, assist companies in formulating talent recruitment and international mobility strategies, and improve the efficiency and success rate of key talent mobility.
- Providing tax advisory
We provide expert advice on the applicable conditions, compliance requirements, and potential tax implications of various tax incentives, helping employees and businesses understand the tax benefits they can enjoy and reduce potential tax risks.
- Optimizing talent management and reward mechanisms
In line with the latest policy, we assist companies in reviewing existing talent policies, mobility arrangements, and compensation and benefits structures, assessing the impact of these policies on talent attraction, retention, and incentive mechanisms, and proposing suggestions.
- Providing implementation and ongoing support
We can assist with visa applications, tax filings, employee communication, and policy implementation, ensuring that both companies and employees remain compliant and enjoy initiatives from relevant policies.
Contact us
For a deeper discussion on the above, please reach out to your Vialto Partners point of contact, or alternatively:
James Clemence
Asia Pacific CEO
Bruce Lee
Hong Kong SAR Territory Leader
Adam Chiu
Partner
Steven Lim
Partner
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