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