Relocation intelligence

🇭🇰 Moving to Hong Kong SAR China: tax, residency and cost of living

Hong Kong levies salaries tax on a territorial basis, taxing only income arising in Hong Kong. Tax due is the lower of a progressive scale of 2 to 17 percent on net chargeable income after a basic allowance of HKD 132,000, or a two-tiered standard rate of 15 percent on the first HKD 5 million of net income and 16 percent above that. There is no VAT, no capital gains tax, no wealth tax and no inheritance tax.

Thinking of moving to Hong Kong SAR China? Here is the tax, residency, property and quality-of-life picture in plain numbers, with sources.

Key facts

Top income tax
17%
Corporate tax
16.5%
Capital gains
0%
Wealth tax
No
Inheritance tax
No
Cost of living index
77
Safety
9/10
Internet quality
10/10
Visa-free destinations
174
Foreigners can own property
Yes
Residency in
0 months
Citizenship in
0 years

Taxes

Salaries tax uses a lower-of-two method: progressive 2/6/10/14/17 percent after the HKD 132,000 basic allowance, or a standard rate of 15/16 percent on net income. The 5 percent MPF contribution is deductible up to HKD 18,000 per year. Profits tax is two-tiered: 8.25 percent on the first HKD 2 million and 16.5 percent above.

Residency and visas

Work visas (including the Top Talent Pass Scheme) are typically granted within a few weeks. Permanent residency follows after seven continuous years of ordinary residence. A Capital Investment Entrant Scheme exists from HKD 30 million.

Property ownership

Foreigners may freely buy residential property. Since February 2024 all extra stamp duties for non-permanent residents were abolished, so foreigners pay the same stamp duty as local buyers.

Cost of living and quality of life

Hong Kong offers a densely populated, dynamic world city with excellent healthcare, safety and public transport, but very high housing costs and limited living space.

Passport and mobility

The HKSAR passport ranks 14th in the 2026 Henley index with visa free access to 174 destinations. Note that a BN(O) or foreign passport is separate from Chinese nationality.

Why people move to Hong Kong SAR China

  • Low and simple tax system

    Salaries tax is capped at a 15 percent standard rate, with 0 percent capital gains tax, no VAT and no estate or wealth tax, and only Hong Kong sourced income is taxed.

  • Global financial hub

    Hong Kong offers world class banking, excellent connectivity and internet, high safety and a powerful passport with visa free access to 174 destinations.

Honest trade-offs

  • Vastgoed in Hongkong behoort tot het duurste ter wereld en woonruimte is klein en zeer kostbaar, waardoor kopen of ruim huren voor de meeste nieuwkomers financieel zwaar is.
  • Anders dan vaak gedacht kent Hongkong wel degelijk inkomstenbelasting via de salaries tax, met een progressief marginaal toptarief van 17 procent en een standaardtariefplafond van 15 tot 16 procent.
  • Sinds de nationale veiligheidswet van 2020 zijn de burgerlijke vrijheden, de persvrijheid en het recht op protest sterk ingeperkt, wat het politieke klimaat aanzienlijk heeft veranderd.
  • De luchtkwaliteit is regelmatig matig tot slecht door regionale industriele vervuiling en verkeer, en de bevolkingsdichtheid behoort tot de hoogste ter wereld.

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Sources

Other destinations

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