In view of the rapid increase in the number of Hong Kong people's investment immigration cases in recent years, the Investment Commission of Taiwan Ministry of Economic Affairs has tightened the threshold for investment immigration this year in order to block "false investment and real immigration", including lengthen the operation or investment period requirement from 1 year to 3 years, and at least 2 Taiwanese employees are hired every year. According to the statistics of the Investment Commission, Hong Kong has accounted for 54.6% of the total overseas investments in the first quarter of 2020, and the wholesale and retail industries accounted for the highest proportion and amount of investment. The total investment amount was USD 85,277,000, a decrease of 66.2% compared with the same period last year.

Originally, if Hong Kong and Macau residents would like to immigrate to Taiwan by investment, they are required to invest TWD 6 million only (approx. HKD 1.5 million) and live in Taiwan for a certain period of time to legally obtain Taiwan citizenship. However, starting from 2020, investment immigration in Taiwan, in addition to the above conditions, the Hong Kong and Macau immigrants the invested business operates stably for 3 years and must hire at least 2 Taiwanese employees every year.

Most Hong Kong and Macau residents immigrate to Taiwan through franchised beverage stores or restaurants. However, according to the analysis of 104 Human Resources Bank, the average business “survival days” of catering businesses such as bubble tea shops and deep-fried chicken cutlet shops are less than 30 days. The entry threshold of the catering industry is low, and the competition is fierce. To start the business, owners must bear the costs such as store rental, and manpower. If the operation does not go well, the business will easily be eliminated by the market. Investors who choose to invest in other existing companies must confirm whether they understand the company's industry, goods, services and operating conditions. In order to meet the immigration requirements, the immigrants should ensure the company will hire a least 2 Taiwanese employees every year.

Regardless of whether the investor chooses to start his own business or invest in an existing company, if he/she meets the residency qualification, he/she can still obtain a Taiwan ID card and passport within 18 months at the earliest. If the two aforementioned requirements, which is 3 years operation and hiring 2 Taiwanese employees are not fulfilled, then the obtained Taiwan ID and passport may be cancelled. Investors from Hong Kong and Macau who want to set up their own companies or have already targeted the investing company should pay special attention to the newly added policies.

The comparison between the old and new investment immigration policies for Hong Kong and Macau residents are as follows:

Items	Old	New
Investment Period or Operating Period	1 Year	3 Years
Number of Taiwanese Employees	Nil	At least 2 every year
Physical Office	Nil	Required