East Asia · Asia

Hong Kong

74good

Overall Score

Hong Kong is a East Asia jurisdiction. operating under a territorial tax system, meaning foreign-sourced income is generally not subject to local taxation. Corporate profits are taxed at 16.5%.

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Corporate Tax

16.5%

Personal Income Tax

17%

Capital Gains

VAT / GST

Overview

Key Data

Taxation

Personal Income Tax (max)17%

Personal Income Tax (min)2%

Corporate Tax Rate16.5%

Capital Gains Tax0%

VAT / GST0%

Dividend Tax Rate0%

Withholding Tax0%

Territorial TaxationYes

Foreign Income Exempt—

Remittance-Based Tax—

CFC RulesNo

Tax Residency Days180 days/year

Tax Treaties—

Residency & Visa

Digital Nomad VisaNo

Golden VisaNo

Retirement VisaNo

Investment VisaYes

EU MemberNo

Schengen AreaNo

EU PassportNo

Min. Days Required / Year—

Min. Monthly Income—

Min. Investment (residency)—

Citizenship Path—

Setup Difficulty—

Business & Cost of Living

Cost of Living Index88/100

Avg. Monthly Cost—

Company Formation Time—

Formation Cost (est.)—

Annual Compliance Cost—

Free Zone AvailableNo

Banking Easeexcellent

Internet Qualityexcellent

Compliance & Reputation

FATF Statuscompliant

EU Blacklist Statusnot_listed

OECD Compliance—

CRS Participant—

FATCA Compliant—

BEPS Participant—

Treaty Network Quality—

Personal Tax Residency

Tax residency in Hong Kong is generally triggered by physical presence exceeding 180 days in a calendar year. The country operates on a territorial basis: income sourced abroad is not subject to local income tax for residents, making it particularly attractive for individuals with cross-border income streams. No statutory CFC rules apply, which can facilitate the use of foreign holding structures without automatic income attribution.

Pure territorial taxation. No capital gains, VAT, or withholding taxes. Top salaries tax at 17%. Corporations pay 8.25% on first HKD 2M profits, 16.5% thereafter. Quality Migrant Admission Scheme.

Company Setup & Business Taxation

The standard corporate income tax rate is 16.5%. The administrative process is considered straightforward, with minimal bureaucratic friction.

Banking & Financial Access

Account opening in Hong Kong can be challenging for foreign nationals or non-resident businesses, and enhanced due diligence is common practice. Internet infrastructure is excellent, with widespread fibre broadband and reliable mobile connectivity across urban and suburban areas.

Compliance & International Reputation

Hong Kong is a member of the Financial Action Task Force (FATF) and meets its anti-money-laundering standards. EU tax blacklist status: not_listed. Structures involving this jurisdiction may attract additional scrutiny or reporting obligations under EU member state rules.

Who This Jurisdiction Works Best For

Based on our scoring model, Hong Kong ranks highest for Founder / Entrepreneur and High Net Worth Individual. It offers an excellent proposition for founder / entrepreneur (score: 81/100). It offers a strong proposition for high net worth individual (score: 78/100).

Legal Notice

The information on this page is for general informational purposes only and does not constitute legal, tax, or financial advice. Tax laws and residency rules change frequently and vary significantly by individual circumstances. Always consult a qualified professional licensed in the relevant jurisdictions before making any decisions.