Hong Kong

By pjain      Published Oct. 17, 2019, 1:54 a.m. in blog Invest   

[TOC] How a SEZ/Tax Haven Got Wealthy - is it losing it now?

Tax policies

No Capital Gains tax

No inheritance taxes

Flat Property Tax

Rental Income limited to 15% max - no separate income tax

Almost half of Hong Kong people live in rental housing as compared to 66%+ ownership in Singapore, USA, etc.

But there is a flat rental income tax no matter if they are renting a luxury house at the prestigious Victoria Peak or a tiny studio in old, decrepit Sham Shui Po, their landlords are taxed at the same 15% of rental income.

For owners renting flats out for a higher margin get to keep huge rental margins..

Even in Singapore a competing tax haven and financial center, rental income is subject to a progressive income tax - can reach 22%.

In the similarly low-tax Singapore, rental income is subject to income tax, which can reach 22% on a progressive scale.

In the U.K., rental profits are also subject to income tax of as much as 45%, and if landlords rent out properties as a business, they need to pay an additional fee.


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