22.35° N · 114.15° E
Hong Kong Tax Guide
AsiaLast verified June 2026Territorial system
- Top income tax
- 17%
- Capital gains
- 0%
- Corporate
- 16.5%
- VAT / GST
- 0%
- Residency test
- 180 days
Progressive 2-17% or flat 15-16% standard rate
In short
- Hong Kong keeps a low, territorial salaries tax, excellent public transport and dense connections to mainland China and Asia.
- No newcomer tax regime: the standard rates above apply to new residents.
- Watch out: Apartments are tiny and very expensive, and the post-2020 political climate is a material consideration for some residents.
Verified June 2026 · 2 sources
Recent changes
- 2026-10-27 correctionTwo-tier profits tax clarified: corporations 8.25% on the first HKD 2M then 16.5%; unincorporated businesses 7.5% then 15%.
Best for
- Zero capital gains
No CGT on investment, property, or crypto disposals (subject to "investor" classification).
- Foreign income exempt
Territorial system — overseas income generally outside the local tax net.
- No wealth tax
No annual tax on net worth or assets.
- No inheritance tax
Estate and lifetime transfers not subject to inheritance tax.
- Crypto-friendly
0% CGT plus favorable foreign-income treatment make this strong for crypto holders.
Personal Income Tax
Residency, rates, foreign income, capital gains, wealth and inheritance, special regimes+
Personal Income Tax
Residency, rates, foreign income, capital gains, wealth and inheritance, special regimesTax Residency
Income Tax Rates
Foreign Income Treatment
Investment Income
No capital gains tax for individuals
Wealth & Inheritance
Practical Notes
60-day rule for employment - income exempt if in HK ≤60 days/year. No tax on foreign pensions.
Business & Corporate Tax
Corporate rate, withholding, VAT, substance, Pillar Two and treaties+
Business & Corporate Tax
Corporate rate, withholding, VAT, substance, Pillar Two and treatiesCorporate Income Tax
Withholding Taxes
VAT / GST
Compliance & Substance
Notable Regimes
- Two-tiered profits tax
- R&D tax incentives
- IP regime
OECD Pillar Two (15% global minimum tax)
Inland Revenue (Amendment) (Minimum Tax for Multinational Enterprise Groups) Bill 2024 introduces QDMTT and IIR from 1 Jan 2025. UTPR not announced.
See full implementation trackerTax Treaty Network
No US tax treaty (long-standing gap). UK treaty in force. Uses Model 2 FATCA IGA. Smaller treaty network than Singapore but covers major Asia-Pacific partners.
See full treaty matrixBeyond tax
Living in Hong Kong
Hong Kong keeps a low, territorial salaries tax, excellent public transport and dense connections to mainland China and Asia.
- Expat hub
- Hong Kong
- Monthly budget
- ~$5,500
- Climate
- Subtropical, 23°C
- Time zone
- UTC+8
- Tax90
- Cost of living$$$$$
- Safety85
- Healthcare88
- English80
- Internet310 Mbps
- Warm climate90
- Residency access40
- Scores 0-100, higher is better. Editorial composite ratings; see method.
Ways to get residency
- Top Talent Pass SchemeAnnual income of HK$2.5 million+, or a degree from a listed top university
- General Employment PolicyJob offer from a Hong Kong employer
- New Capital Investment Entrant SchemeHK$30 million in permissible assets
Watch out: Apartments are tiny and very expensive, and the post-2020 political climate is a material consideration for some residents.
See how Hong Kong ranks for remote workers, retirees and familiesData Sources
Last verified: June 2026. Always check official sources before making a decision.
FAQ
What is the personal income tax rate in Hong Kong?
+
Hong Kong has a top personal income tax rate of 17%. The tax structure is: Progressive 2-17% or flat 15-16% standard rate. See the detailed breakdown above and verify with official sources.
Do I need to pay tax on foreign income in Hong Kong?
+
Hong Kong uses a territorial system for foreign income. Only Hong Kong-sourced employment income taxed; foreign income exempt even if remitted
What are the residency requirements for Hong Kong?
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Tax residency in Hong Kong generally requires 180 days of physical presence. No strict day count; employment source determines liability. Always verify current rules with official sources.
Is there a wealth tax in Hong Kong?
+
No, Hong Kong does not have a wealth tax. No wealth tax
What is the corporate tax rate in Hong Kong?
+
The corporate tax rate in Hong Kong is 16.5%. Two-tier profits tax: corporations pay 8.25% on the first HKD 2M and 16.5% above; unincorporated businesses pay 7.5% and 15%
US citizen moving to Hong Kong? Read this first.
Hong Kong uses a territorial system for foreign income. For US citizens this often combines well with FEIE.
- •Foreign-source income may be exempt or only taxed on remittance in Hong Kong, but the US still taxes US citizens worldwide. FEIE (~$130k earned income) plus FTC on any Hong Kong tax paid is the standard combination.
- •Self-employment tax (15.3%) is owed in full — Hong Kong has no totalization agreement with the US.
- •Carefully document whether income is "Hong Kong-source" or foreign-source. The classification drives both Hong Kong and US tax outcomes; getting it wrong is the #1 audit risk in this category.
- •Residency requires 180 days. Special regimes may further reduce Hong Kong tax — check the country page for current options.
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