Property tax in Hong Kong
See what Hong Kong's tax rules do to your property portfolio.
What Freeholt models for property, income and retirement in Hong Kong, and what it does not.
Free to start. No card. Rules reviewed 22 August 2026.
Modelled here
- Tax on rental income
- Duty on purchase (approximate)
- Annual property or land tax
HKD · Rates as at 22 August 2026 · Estimates, not advice
Rental income pays 15% property tax on rent after a flat 20% allowance (mortgage interest not deductible under property tax). No CGT, no estate duty, and since Feb 2024 no buyer surcharges at all.
How rental income is taxed in Hong Kong
For a resident owner: A flat 15% on gross rent. A statutory deduction of 20% comes off the gross first, so the effective rate on rent is about 12%. For an owner living abroad and renting this out: A flat 15% on gross rent. A statutory deduction of 20% comes off the gross first, so the effective rate on rent is about 12%.
Interest and losses
A rental loss brings no relief: it cannot reduce other income, and it does not carry forward.
Capital gains on a sale
There is no capital gains tax on residential property.
Annual property tax while holding
Charged on the annual rental value of the property rather than its capital value, on a progressive scale.
What it costs to buy
Purchase duty here is more than a single rate, and Freeholt prices the published rules rather than an average. Only ad valorem stamp duty remains (up to ~4.25%). The Special, Buyer's and New Residential stamp duties were all abolished on 28 Feb 2024.
Can a foreign buyer purchase here?
Foreign buyers can generally buy residential property here. No restrictions. And since 28 Feb 2024 no buyer surcharges (all cooling stamp duties abolished). All Hong Kong land sits on long government leases.
A territorial system
Hong Kong taxes income arising here, not worldwide income, so property held in other countries is generally outside its net. That makes the country of residence a bigger lever than usual.
How Freeholt models Hong Kong
Every rate above is priced from Freeholt's own table for Hong Kong and runs through the whole projection: rental income, a modelled sale and the annual holding costs all use the same figures. They cannot be edited yet, so a position that differs from the defaults has to be read with that in mind. The estimate assumes an individual owner rather than a company or trust, and where a rule is not modelled it is listed below rather than quietly priced at zero.
What running this property costs
In Hong Kong this covers rates (~5% of rateable value) and government rent (3%), building management fees, insurance and agency costs.
How borrowing works here
Terms to 30 years; LTV caps are tighter for non residents and high value flats. The HK dollar is pegged to USD.
What actually happened here
This country's own record, one year at a time. Nothing on this page is borrowed from another country. Move across a chart to read a year.
What Freeholt models here
- ModelledTax on rental income
- Resident and non resident rates, with interest and losses treated under the local rule.
- None hereCapital gains on a sale
- No general capital gains tax; the page says what applies instead.
- ApproximateDuty on purchase
- The published scale is priced from the rules in force, which differ by band and are summarised here.
- ModelledAnnual property or land tax
- Charged every year the property is held.
- Not yetIncome tax beyond the rent
- Not modelled for this country yet.
- Not yetDividends, interest and share sales
- Not modelled for this country yet.
- Not yetRetirement savings
- Not modelled for this country yet.
- Not yetInheritance and what happens on death
- Not modelled for this country yet.
What Freeholt does not model here
- Inheritance and estate tax
- Treaty relief between this country and the owner's country of residence
Coverage deepens country by country. Every figure is an estimate, not advice.
Compare with another country
Each page is built from the same table the app runs on, so the figures line up side by side.
Compare Hong Kong with another country — rent, gains, annual tax and duty, side by side.
Questions people ask
- Does Freeholt model Hong Kong property tax?
- Yes. Rental income tax, duty on purchase and annual property or land tax are priced from Freeholt's own rate table for Hong Kong. Duty on purchase carries a simplification that the page names beside the figure. Hong Kong levies no capital gains tax, so there is nothing to price. The rates are not editable yet, so one that differs in a particular case cannot be overridden. Every figure is an estimate, not advice.
- How is rental income from Hong Kong taxed if I live somewhere else?
- A flat 15% on gross rent. A statutory deduction of 20% comes off the gross first, so the effective rate on rent is about 12%. Tax may also be due in the country of residence, with credit for what was paid here. Estimates only, not advice.
- What are the Hong Kong figures as at?
- The rate table for Hong Kong was last reviewed on 22 August 2026. Freeholt date stamps every country rather than implying all of them were checked on the same day. Estimates only, not advice.
Model a property in Hong Kong alongside everything else you own: see the year your portfolio starts paying you back.