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Introduction to
Hong Kong tax planning guide

With its vibrant culture, world-class infrastructure, and global business environment, Hong Kong offers a unique blend of East and Westโ€”making it a top choice for expats and digital nomads.โ€จโ€จ

In this guide, weโ€™ll walk you through everything you need to know about relocating to Hong Kong from a personal tax perspective, including tax residency, income tax, special tax regimes and tax return obligations. โ€จโ€จ

GTC recommend that you organize your affairs in good time to get ahead and make the most of favorable tax treatment while making sure youโ€™re meeting your tax return obligations.

How you are taxed in Hong Kong
Hong Kong follows a territorial taxation model. You will pay tax on local sourced incomes only, irrespective of your resident status.
Resident
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Local Income
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Foreign Income
Non-Resident
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Local Income
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Foreign Income
Your resident status in Hong Kong
Youโ€™ll be considered tax resident if you satisfy any of the following criteria:
Physical presence

if you spend more than 180 days in Hong Kong during the tax year.

Business

Physical presence

if you spend more than 300 days in Hong Kong during the current and two previous tax years.

Vital interests

Physical presence

Hungarian citizen

if you are a citizen of Hungary unless you have no permanent home in Hungary during the tax year.

Domicile

Spanish nationals

if you are a Spain national who relocated to a tax haven less than five years ago.

Working

Ties

if your ties are located in Mexico and 50% of your income arising in Mexico during the tax year.

Home

EEA citizen

if you are an EEA citizen and you are present in Hungary on more than 182 days during the tax year.

Nationals

Physical presence & work

Family

Citizen

Resident commune

Visa

Income

Physical presence

if you spend more than 180 days in Hong Kong during the tax year.

Business

Citizen

Resident population

if you are registered with the Italian resident population.

Physical presence

Physical presence

if you spend more than 300 days in Hong Kong during the current and two previous tax years.

Hungarian citizen

if you are a citizen of Hungary unless you have no permanent home in Hungary during the tax year.

Domicile

Vital interests

Spanish nationals

if you are a Spain national who relocated to a tax haven less than five years ago.

Working

Home

EEA citizen

if you are an EEA citizen and you are present in Hungary on more than 182 days during the tax year.

National

National

Visa

Physical presence & work

Family

Resident commune

Personal income tax rate in Hong Kong
Residents are subject to progressive tax rates and the highest rate of tax levied on employment income and self employment income is 17%.
Residents are not subject to taxation on personal income.
Global comparison
World highest
World lowest
Denmark
42
56
%
Hong Kong
42
17
%
UAE
42
0
%
Global comparison
World highest
World lowest
Denmark
42
56
%
Hong Kong
42
17
%
UAE
42
0
%
Global comparison
World highest
World lowest
Denmark
42
56
%
Hong Kong
42
17
%
UAE
42
0
%
Special tax regime in Hong Kong
Tax cap
ยฃ200,000 per tax year.
Foreign income
Flat tax rate
Flat tax charge
Earned Income
Taxable income
Business profits
Special tax status
Special tax status
Applied for 15 years.
Other personal taxes in Hong Kong
Residents may be subject to the following personal taxes:
Asset tax
Tax on property and share sales
Wealth tax
Tax on value of owned assets
Death tax
Tax on assets passed to heirs
Social tax
Tax to contribute to state welfare
* It is recommended that you review your affairs and structure accordingly so that you do not end up creating an unexpected tax charge and paying more tax than necessary.
Double taxation agreements in Hong Kong

If you receive incomes overseas while you are living in the Hong Kong, you may find that the source country, as a starting point, continues to tax the income.

Double taxation agreements may remove the source countryโ€™s taxing right and thus, enable you to receive incomes tax free globally.

At present, Hong Kong has 50 double taxation agreements signed.

Global comparison
World highest
World lowest
UAE
42
140
Hong Kong
0
50
Bahamas
42
0
Global comparison
World highest
World lowest
UAE
42
140
Hong Kong
0
50
Bahamas
42
0
Tax obligations in Hong Kong
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What is the deadline to file tax returns and settle tax liabilities?
The tax year starts on 1 April and ends on 31 March.
What is the deadline to file tax returns and settle tax liabilities?
The deadline to file your tax return and settle the tax liability is one month from the date the Hong Kong tax authority issue the tax assessment.
Do you need to make advance payments of tax?
You may be required to make advance payments of tax towards future tax years on top of settling the current tax year liability.