Hong Kong: Taxes and Costs
Country Rating » 
In Depth
- Overview
- Price History
- Rental Yields
- Taxes and Costs
- Tax on Rent (Example)
- Buying Guide
- Landlord and Tenant
- Inheritance
- Living There
- Useful Links
- Country Statistics
Directory
Global Statistics
Regional Statistics
- Sq. M. Prices
- Rental Yields
- Rents
- Price/Rent Ratio
- Buy/Sell Costs
- Rental Income Tax
- Capital Gains Tax
- Price Change 1 yr
- Price Change 5 yrs
- Price Change 10 yrs
- Landlord & Tenant Law
- GDP Per Capita
- GDP/Cap Growth 1 yr
- GDP/Cap Growth 5 yrs
- Economic Freedom
- Ec. Freedom 5 yrs
- Competitiveness
- Property Rights Index
- Currency +/- Value
Rental income tax is in middle range in Hong Kong
Effective Tax Rate on Rental Income |
|||
| Monthly Income | US$1,500 | US$6,000 | US$12,000 |
| Tax Rate | 12.2% | 12.2% | 12.2% |
| Click here to see a worked example | |||
Source:
Disclaimer
|
|||
INDIVIDUAL TAXATION
Taxation in Hong Kong is based on the territorial source principle; i.e., where the money was earned. Money derived from outside Hong Kong is not taxed in Hong Kong.
Year of assessment is 01 April until 31 March of the following year.
INCOME TAX
Property Tax

Income derived from renting out property is subject to property tax. Property tax is charged at a standard rate of 16% of the property’s net assessable value. The net assessable value (NAV) is the assessable value (after deduction of rates paid by the owner, if applicable, and irrecoverable rent), and then less an allowance of 20% of that assessable value for repairs and outgoings, regardless of whether or not repairs and outgoings were actually incurred.
Gross Rent
Less: Irrecoverable Rent
Less: Rates Paid By Owners
= Assessable Value
Less: Statutory Allowance for Repairs and Outgoings (20% of Assessable Value)
= Net Assessable Value
Property tax is levied on the owner of the property. The owner is obliged to keep sufficient records of rent received, such as lease agreements and duplicates of rent receipts, receipts for rates, correspondence relating to modification of lease terms and recovery of rents in arrears etc, for at least 7 years.
CAPITAL GAINS TAX
No capital gains tax exists in Hong Kong.
Hong Kong - more data and information
Post a comment
Subscribe to our Newsletter!
Enter your email address to sign up.


Your Comments
Be the first to comment!