A Straightforward Tax System

Another good reason to move to Hong Kong is that it’s home to one of the lowest tax rates in the world. The territory’s tax structure is straightforward and uncomplicated, with a progress rate starting at 2% and ending at 17% on net income after deducting the basic allowance of HK$132,000, or at a standard rate of 15% on net income, whichever is lower. You’ll also receive additional tax allowances if you’re married, have children, or are a single parent, and only income earned in Hong Kong is taxable in the city.

There is no estate duty, which is sometimes referred to as inheritance tax in other countries, and no VAT either, which is why the city is such a haven for shoppers. There are no withholding taxes levied on dividends and interest.

Hong Kong is a free port, meaning there is no tariff on general imports. However, there is duty on liquors, tobacco, hydrocarbon oil, and methyl alcohol, with duties charged at specific rates per unit quantity.