Hong Kong

Hong Kong operates a territorial tax system: as a rule, only profits that arise in or are derived from Hong Kong are subject to profits tax, and offshore-sourced profits are not taxed in Hong Kong. The Inland Revenue Department (IRD) emphasises that the principle is clear but the source analysis can be contentious in practice.

For individuals, salaries tax is charged at progressive rates from 2% to 17% on net chargeable income, with a standard-rate cap. From year of assessment 2024/25 onwards, the standard rate is two-tiered at 15% on the first HKD 5.0M of net income and 16% on the remainder. Hong Kong does not levy capital gains tax, does not impose withholding tax on dividends and interest, and has no estate duty.

Hong Kong is not in the EU and not part of the Schengen Area. Immigration matters are handled by the Hong Kong Immigration Department, and residence permission is typically obtained through work, business, investment-related, family, or study-based entry arrangements rather than through a direct "golden visa" style investor program.

The practical constraint for "offshore" outcomes is evidence and substance. The IRD's sourcing approach focuses on the profit-producing operations and where they take place, so taxpayers relying on offshore treatment need to be able to document transaction flows, contracting, and where key functions are performed.