East Asia
Hong Kong: tax at a glance
Hong Kong runs a strictly territorial, low-tax system. Salaries tax caps at 17% (15% standard), profits tax sits at 16.5%, and there is no VAT, capital gains tax, dividend tax, or inheritance tax.
Ways to relocate to Hong Kong
The residency and citizenship routes that lead here, weighed against the tax picture above.
The taxes
- Personal income (top)
- 17%Salaries tax applies only to Hong Kong-source income. Rates are progressive from 2–17%, but capped at a 15% standard rate on net total income.
- Corporate income
- 16.5%
- Capital gains
- Exempt. Hong Kong levies no capital gains tax.
- VAT / None. There is no VAT or GST.
- None
- Dividends (WHT)
- 0%. None.
- Interest (WHT)
- 0%. None.
- Royalties (WHT)
- 4.95% for non-residents, reduced to 2.475% on the first HKD 6.67M.
- Social security (employee)
- MPF at 5%, capped at HKD 1,500 a month
- Social security (employer)
- MPF at 5%, capped at HKD 1,500 a month
- Wealth tax
- None
- Inheritance / estate
- None. Estate duty was abolished in 2006.
- Property tax
- Property tax runs 15% on net rental income, plus rates and government rent.
- Other
- Stamp duty applies to property and share transfers.
How the system works
- Tax system
- Territorial
- Foreign income
- Largely outside scope (territorial)
- Taxes by citizenship
- No
- Exit tax
- No
- CFC rules
- No
- CRS
- Participating
A special regime for new arrivals
Hong Kong runs a two-tiered profits tax: 8.25% on the first HKD 2m of assessable profits and 16.5% above that, or 7.5%/15% for unincorporated businesses. For family offices, the section 16G Family-owned Investment Holding Vehicle concession taxes qualifying FIHV profits at 0%. There is no VAT, no sales tax, and no dividend or interest withholding.
The rates below are indicative headline figures (top marginal, standard, and headline rates), reviewed 2026-07. Brackets, surcharges, and state, provincial or cantonal taxes vary. Treat this as a reference map, not advice.
Sources (3)
Secondary references