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Property Tax

Property Tax is payable by the owners of real estate located in Hong Kong . The rate of tax in 2003/04 was  15.5%, in 2004/05 - 2007/08 -16%, now tax rate is set at 15% from the  income derived from rental  of  buildings, facilities and other real estate. The income is considered  as all payments by the tenant to the landlord during the reporting period. The Inland Revenue Department obliges all those concerned to keep all documents proving income over 7 years and to inform authorities about the actual amount received.

Property Tax is also subject to the territorial source principle and is paid only from the income of the rental of property located in Hong Kong. The fact that the owner of the property is a person - non-resident of Hong Kong is not a basis for non-payment of tax.

The following types of property are tax-free:

  1. property of foreign States representations;
  2. property of charitable organizations;
  3. organizations which receive income from letting property for rent, provided that the tax on the income received from rent is paid;
  4. organizations that acquire properties for use in their business.