Stateless

Hong Kong SAR China

HK
Pros
Low tax regime: Maintaining a simple, low-rate tax system with no capital gains or inheritance taxes.
Economic freedom: Operating with minimal state intervention, free trade policies, and high levels of capital mobility.
Infrastructure: Accessing world-class digital connectivity and efficient logistics hubs for seamless global commerce.
Cons
Political landscape: Navigating the erosion of local autonomy and increasing integration with mainland Chinese legal frameworks.
High costs: Managing exorbitant commercial rents and residential living expenses within a highly dense urban environment.
Legal uncertainty: Facing potential risks from broadly defined national security legislation affecting data and speech.

Long story short: In Hong Kong, profit tax caps out at 16.5%, with no VAT and no dividend tax, and you can set up a company in three days without slipping a single bribe.

The catch: since the national security law, Beijing keeps a closer eye on what gets said, even in Central. Banks are rock solid, but endless anti-money-laundering checks make opening an account a slog.

Other than that: infrastructure and transport among the best in Asia, near-total safety in business districts, food that hits hard, but a cost of living and real estate prices that make your head spin.

VERYLOW TAX 6.3/10 HOLDING 6.8/10 DIVIDENDPIPELINE 7.6/10 CRYPTOHAVEN 7.7/10 PRIVACYGRADE 2/10
─ On this page
01 Will Hong Kong SAR China tax what you earn? 02 Will Hong Kong SAR China tax what you own? 03 Is it easy to run a company in Hong Kong SAR China? 04 Is Hong Kong SAR China good for your holding company? 05 What does it cost to come and go from Hong Kong SAR China? 06 Is your money watched in Hong Kong SAR China? 07 Is Hong Kong SAR China itself a liability? 08 Will you feel free in Hong Kong SAR China? 09 Is Hong Kong SAR China connected to the rest of the world?

Will your income be taxed?

Long story short: YES, FAIRLY.
Hong Kong taxes personal income at a middling 17%, but only on what you earn locally.

The territorial regime is your lever: whatever you make abroad while living here stays out of the taxman's reach.

01.1 Income tax
Personal income tax
2 → 17%
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De quoi s’agit-il ?What residents pay on what they earn: salary, freelance income, sometimes dividends too. We show the system (flat or progressive) and the top rate.
Source et informations complémentairesprogressive · 5 brackets
Bracket (USD)Rate
0 – 6,3732%
6,373 – 12,7476%
12,747 – 19,12010%
19,120 – 25,49414%
25,494 +17%
01.2 Tax residence test
A single active rule is enough to make you tax-resident.
183-day rule
Economic interest
does not exist here
Family centre
does not exist here
Habitual abode
Extended-stay test
Income tax simulatori

If you earn a year, you will pay .

Roughly effective, with a marginal rate of .

Will your wealth be taxed?

Long story short: NO.
Hong Kong keeps its hands off what you hold. No capital gains tax, no annual wealth grab, no inheritance regime.

Your portfolio compounds in peace and leaves the way it came in; nobody's standing at the door with their palm out.

02.1 Investment income
Capital gains
0%
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De quoi s’agit-il ?The tax on your profit when you sell something that gained value: stocks, property, crypto, a business. Some countries skip it entirely.
Source et informations complémentairesflat
Dividend tax
0%
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De quoi s’agit-il ?What you pay when your company sends you dividends. It stacks on top of corporate tax, so the combined bill is what really counts.
Source et informations complémentairesflat
Interest income
0%
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De quoi s’agit-il ?The tax on income from savings, bonds and loans. Matters when choosing where to park your cash.
Source et informations complémentairesflat
02.2 Wealth & estate
Wealth tax
NONE
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De quoi s’agit-il ?A yearly tax on what you own above a threshold, whether you sell or not. Most countries scrapped it; a few still run one.
Source et informations complémentairesno annual wealth tax · no real-estate wealth tax · no net-worth assessment
Inheritance system
NONE
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De quoi s’agit-il ?What heirs pay on what they inherit, by category (spouse, children, others), with allowances and top rates. Plenty of countries charge nothing at all.
Source et informations complémentairesno estate tax · no heir-based duties · no succession tax framework. Wealth transfers across heir-classes are not taxed in this jurisdiction. Only standard probate / registration fees may apply.
02.3 Crypto
Crypto · tax regime
ZERO TAX
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De quoi s’agit-il ?How crypto gains are taxed here: zero, flat, progressive or grey zone. Includes whether crypto-to-crypto swaps count as taxable events.
Source et informations complémentairesRate: 0% · Hong Kong does not impose capital gains tax. Gains from crypto-assets held for long-term investment are tax-exempt. If the Inland Revenue Department (IRD) determines the activity constitutes 'carrying on a trade or business' (using the 'Badges of Trade' test), profits are subject to Profits Tax (standard rate 15% for individuals). Source: IRD Departmental Interpretation and Practice Notes (DIPN) No. 39.
Crypto-to-crypto
NEUTRAL
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De quoi s’agit-il ?How crypto gains are taxed here: zero, flat, progressive or grey zone. Includes whether crypto-to-crypto swaps count as taxable events.
Source et informations complémentairesa swap is not a taxable realisation event
FATF travel rule
SIGNED
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De quoi s’agit-il ?Does this country enforce the crypto Travel Rule? If yes, exchanges must identify senders and recipients, like banks do for wire transfers.
Source et informations complémentairescommitted but not yet enforced

Easy to run a company there?

Long story short: YES, BUT TAXED.
Hong Kong takes 16.5% of corporate profits, partly clawed back through an IP-box at 5% for qualifying assets.

How much it hurts depends on how much of your income is IP: for software, licensing or royalty models, the maths can turn downright pleasant.

03.1 Rates
Corporate tax
8.3 → 16.5%
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De quoi s’agit-il ?What companies pay on their profits. The headline rate is a starting point: IP boxes and holding regimes often pull the real rate lower.
Source et informations complémentairesprogressive
Bracket (USD)Rate
0 – 254,9368.3%
254,936 +16.5%
VAT standard rate
NONE
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De quoi s’agit-il ?The sales tax baked into almost everything you buy here. One standard rate, plus reduced rates on things like food or books.
Source et informations complémentairesno general VAT · no consumption tax framework
03.2 Regime & registry
IP Box · Patent Box
5%
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De quoi s’agit-il ?A discounted tax rate on income from patents, software and designs, often 5 to 10%. A magnet for tech and licensing businesses.
Source et informations complémentairespatent box regime · net income · patents · vs. 16.5% corp
Misuse of corporate assets
NO CRIMINAL
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De quoi s’agit-il ?If you spend company money on yourself, is it a crime (prison possible) or a civil matter? Some countries prosecute even sole shareholders.
Source et informations complémentairesno criminal liability · In Hong Kong, the misuse of corporate assets by a sole director who is also the sole shareholder of a solvent company is treated as a civil matter rather than a criminal one. While the company is a separate legal entity, criminal prosecution for theft or fraud under the Theft Ordinance (Cap. 210) requires proof of 'dishonesty.' In a solvent, one-person company, the owner's consent generally negates the element of dishonesty toward the company. Such acts are instead classified as breaches of fiduciary duty or 'unlawful distributions' under Part 6 of the Companies Ordinance, which carry civil consequences such as the personal liability of the director to repay the funds to the company.
Shareholders privacy
PUBLIC PAYWALL
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De quoi s’agit-il ?How visible a company's shareholders and directors are: free public registry, paywalled, restricted or fully private. More privacy, but sometimes warier banks.
Source et informations complémentairesCompanies Registry - e-Services Portal
Directors privacy
PUBLIC PAYWALL
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De quoi s’agit-il ?How visible a company's shareholders and directors are: free public registry, paywalled, restricted or fully private. More privacy, but sometimes warier banks.
Source et informations complémentairesCompanies Registry - e-Services Portal
03.3 Incorporation cost
In this country, the most standard company form is called 私人有限公司 (Private Limited Company). The costs below are for incorporating a company in its simplest form, for reference only.
Companies Registry Incorporation Fee (Electronic Filing)
USD 197
Business Registration Certificate Fee (1-Year)
USD 280
Professional Incorporation Service Fee (Market Average)
USD 765
Total
USD 1,242

A good fit for a holding?

Long story short: YES.
Hong Kong pairs a moderate treaty network (41 signed) with a full participation exemption (100% on qualifying dividends and gains).

A perfectly honest holding base: not the NL/LU/SG first division on treaty count, but the pipes don't leak.

04.1 Substance & exemptions
Territorial · individuals
TERRITORIAL
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De quoi s’agit-il ?Does this country tax only local income (territorial) or everything you earn worldwide? Territorial means your foreign income stays untaxed here. Huge.
Source et informations complémentairesterritorial — foreign-source income generally untaxed
Territorial · corporates
TERRITORIAL
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Source et informations complémentairesterritorial principle — foreign-source profits generally exempt
Participation exemption
100%
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De quoi s’agit-il ?Can a holding company receive dividends from its subsidiaries tax-free? The cornerstone of any serious holding structure.
Source et informations complémentaires5% holding · 12 months min
CFC rules
NONE
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De quoi s’agit-il ?Anti-offshore rules: they tax you at home on your foreign company's profits, even if nothing was distributed. Where they exist, offshore setups get tricky.
Source et informations complémentairesno controlled foreign corporation regime · foreign-source corporate income out of scope
04.2 Withholding tax · non-resident
WHT · dividends
0%
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De quoi s’agit-il ?The cut this country takes when it sends dividends, interest or royalties abroad. Tax treaties can shrink it; blacklists can inflate it.
Source et informations complémentairesnon-resident outbound
WHT · interest
0%
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Source et informations complémentairesnon-resident outbound
WHT · royalties
5%
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Source et informations complémentairesnon-resident outbound
Tax-haven WHT
NONE
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Source et informations complémentairesno punitive rate on record
04.3 Treaty network
Treaties signed
34
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De quoi s’agit-il ?Deals with other countries to avoid double taxation and cut withholding taxes. The bigger the network, the easier your money moves across borders.
Source et informations complémentairesactive
Treaties pending
7
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Source et informations complémentairesin negotiation
Tax treaty network
origin · HK 0% > 0% no treaty
⌖
Inspect a country
Hover any country on the map to read its withholding-tax treaty with HK.
Country Status Dividends Interest Royalties
∅ // no treaties match
treaties /

Easy to come and go?

Long story short: LITTLE.
Coming and going from Hong Kong costs you nothing worth mentioning. Territorial regime (foreign income stays foreign), no exit tax at the door.

You show up with your stuff, you leave with your stuff, plus whatever you earned abroad in between. Borders the way they should all work.

05.1 Exit & dual nationality
Exit tax
NONE
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De quoi s’agit-il ?What the country charges you for leaving: tax on your unrealized gains, as if you'd sold everything at the border. Here you'll see if it exists and when it triggers.
Source et informations complémentairesno triggers active · residence change tax-free · no deemed-disposal mechanism
Dual citizenship
FORBIDDEN
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Source et informations complémentairesnaturalisation requires renouncing existing citizenship
05.2 Citizenship paths
Residence
—
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Source et informations complémentairesnot available
Marriage
—
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Source et informations complémentairesnot available
Birth
—
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Source et informations complémentairesnot available
Descent
—
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Source et informations complémentairesnot available
Investment
—
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Source et informations complémentairesnot available

Is your money watched?

Long story short: YES, CLOSELY.
Hong Kong signed every exchange framework that matters and runs a public corporate registry. Whatever you do here (earn, hold, structure) is reported, searchable, or both.

Your money is watched from every angle; if discretion is part of your plan, this isn't your jurisdiction.

Multilateral reporting frameworks 4/9 active · 3 pending
CRS
2018
CARF
—
FATCA
2014
MLI
2022
BEPS
—
MAAC
2018
GLOBAL FORUM
—
EOIR
—
CRYPTO TRAVEL RULE
—

Is it blacklisted?

Long story short: SOMEWHAT.
Hong Kong shows up on national blacklists only (drawn from FR/ES/PT/BR), despite its FATF membership.

Expect extra KYC/AML questions in those specific corridors: annoying, not disqualifying. No supranational watchdog has flagged it, so the stain stays local.

Blacklist exposure Listed by 3 authorities
EMBARGO
un / us / eu sanctions
FATF
grey / black list
EU
non-cooperative list
FRANCE
ETNC list
SPAIN
tax-haven list
PORTUGAL
favourable regimes
BRAZIL
low-tax list

Do you feel free there?

Long story short: NO.
Press freedom in Hong Kong is locked down (RSF rank #140). Independent media and civic space operate under pressure (when they operate at all), and that kind of grip usually spills over into economic life too.

Small mercy: crypto isn't formally banned.

08.1 Press freedom
Press freedom · RSF index
140/180
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De quoi s’agit-il ?The RSF world ranking of press freedom. A good proxy for censorship and civil liberties. The lower the rank, the freer the press.
Source et informations complémentairesscore 39 · ↓ 5 ranks year-on-year
Central bank digital currencyi
Program Status Cross-border Sources
e-HKD
The Hong Kong Monetary Authority (HKMA) has added a CBDC section to the annual Global Fast Track business competition to encourage research into the use cases of digital currencies.
Hong Kong Monetary Authority
 PILOT — announce →
Cross-border Projects with Brazil & Thailand
Hong Kong Monetary Authority
 RESEARCH YES announce →
Project Ensemble
Project Ensemble forms a key part of the HKMA’s broader portfolio of initiatives to facilitate the development of the tokenisation market, comprising e-HKD and collaboration with the BIS Innovation Hub Hong Kong Centre such as mBridge, Dynamo and Genesis.
Hong Kong Monetary Authority
 RESEARCH — announce →
Project Aurum
Hong Kong Monetary Authority
 RESEARCH — announce →
Sela
Hong Kong Monetary Authority
 RESEARCH — announce →
LionRock
Examining if, where and how distributed ledger technology (DLT) might enhance cross-border payments between commercial banks.
Hong Kong Monetary Authority
 RESEARCH YES announce →
mBridge
mBridge offers a unique opportunity to improve international trade settlement.Given that the total value of international trade transactions between the four participating jurisdictions amounted to more than USD$730 billion according to the World Bank, the mBridge Steering Committee has given priority to this use case. Testing of sample trade settlement transactions across 11 industries has commenced on the trial platform.
Saudi Arabian Monetary Authority, Hong Kong Monetary Authority, People's Bank of China, United Arab Emirates Central Bank, Bank of Thailand
 PILOT YES announce →
Inthanon-LionRock
The two authorities - The Hong Kong Monetary Authority (HKMA) and the Bank of Thailand (BOT) -- agreed to proceed with further joint research work in relevant areas, including exploring business cases and connections to other platforms, involving participation of banks and other relevant parties in cross-border funds transfer trials.
Hong Kong Monetary Authority, Bank of Thailand
 PROOF OF CONCEPT YES announce →
programs 8

Connected to the world?

Long story short: SOMEWHAT CONNECTED.
Hong Kong is only half-plugged in. Stripe works, so you can bill the whole planet from here.

But Amazon won't deliver: no box on the doorstep, and consumer e-commerce won't arrive the way you're used to. 6/11 of the services we track run. Fine for selling out; frustrating for buying in.

Accept payments 4/6 available
Stripe
card payments
PayPal
wallet payments
Adyen
enterprise psp
Mollie
eu payments
GoCardless
direct debit
Paddle
merchant of record
Bank and move money 1/3 available
Wise
multi-currency
Revolut
personal banking
Revolut Business
business banking
Buy and sell on Amazon 1/2 available
Amazon
consumer delivery
Amazon Seller
marketplace selling
SEE ALSO

Other jurisdictions worth comparing

Picked by similarity of strategic profile to Hong Kong SAR China. No editorial ranking — neighbours in the same scoring space.

PROFILE-ADJACENT Same shape, comparable overall friction.
Singapore SG → Gibraltar GI → Malaysia MY →
NOTABLY LESS FAVORABLE Same family of strategies, lower total score.
Gibraltar GI → Malaysia MY → Macao SAR China MO →