Country profile

Hong Kong (SAR)

Best : For Asian trading and services under territorial tax, if exposure to Beijing is acceptable.

A Special Administrative Region of China (about 7.5 million people), Hong Kong dollar pegged to the US dollar, common law inherited from the UK. Territorial profits tax (16.5% standard, 8.25% on the first band), no VAT or capital gains tax, a free port and a leading financial centre.

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International rankings

The main public indices scoring business climate, economic freedom, corruption, peace and domestic safety. Figures copied from the official editions; a weak rank shows where to look closer.

Index Score Rank
Doing Business 2020Banque mondiale / World BankScore 0–100, rank out of 190 economies (1 = best).85.3#3 / 190
B-READY 2025Banque mondiale / World BankThree pillars scored 0–100 (regulatory framework, public services, operational efficiency). No overall rank: the World Bank publishes a quintile per pillar across 101 economies.
  • Regulatory framework 71.0 · 20–40%
  • Public services 65.3 · 20–40%
  • Operational efficiency 71.5 · top 20%
Index of Economic Freedom 2026Heritage FoundationScore 0–100, rank out of 184 countries (1 = freest).Not covered
Corruption Perceptions Index 2025Transparency InternationalScore 0–100 (100 = very clean), rank out of 182 countries.76#12 / 182
Global Peace Index 2026Institute for Economics & PeaceScore 1–5 (lower = more peaceful), rank out of 163 countries.Not covered
GPI 2026 — Societal Safety and SecurityInstitute for Economics & PeaceScore 1–5 (lower = safer), rank out of 163 countries (1 = safest).Not covered
  • Doing Business 2020 : Last published edition (data as of May 2019). The World Bank discontinued the series in 2021 after data irregularities: read it as a historical benchmark.
  • B-READY 2025 : Successor to Doing Business. Sample averages: 66.3 / 54.0 / 60.0. The 2026 edition (over 160 economies) is due by end-2026.
  • Index of Economic Freedom 2026 : Hong Kong has not been graded separately since 2021 (folded into China).
  • Corruption Perceptions Index 2025 : Published February 2026.
  • Global Peace Index 2026 : Overall rank: conflict, domestic safety and militarisation. Day-to-day safety is the next row. Malta and Hong Kong are not covered.
  • GPI 2026 — Societal Safety and Security : Appendix C of the 2026 GPI: homicide, violent crime, terrorism and instability. Excludes armed conflict and militarisation. Malta and Hong Kong are not covered.

Geopolitical risk

Tax by profile

Tax and contributions actually paid on a reference case, for a newcomer who is tax resident in 2026. Where a special regime is open to them, it is applied and flagged. The score out of 10 follows from the effective rate.

Rentier

10/10

Effective rate ≈ 0%

  • No tax on dividends, bank interest or capital gains

Employee

7.5/10

Effective rate ≈ 12%

  • Employee MPF 5% capped at HKD 18,000
  • Progressive salaries tax 2% to 17%, capped at the 15% standard rate

Entrepreneur

8.5/10

Effective rate ≈ 8.25%

  • Profits tax 8.25% on the first HKD 2 million
  • Dividends not taxed
Reference cases and scoring
  • Rentier: €100,000 a year from a foreign portfolio (€40,000 dividends, €20,000 interest, €40,000 gains on listed shares), no other activity.
  • Employee: €60,000 gross a year paid by a local employer, single with no children. Employee contributions included, employer share excluded.
  • Entrepreneur: €100,000 profit from a small local business, fully paid to the owner through the most common route (company and dividends, or sole trader).

Score = 10 minus 0.2 per point of effective rate (0% gives 10, 25% gives 5, 50% or more gives 0), rounded to the half point. Foreign withholding taxes and employer contributions are not counted.

Indicative figures as of October 2026 · Main source : ird.gov.hk. Not tax advice.

Business: incorporating

Hong Kong remains the natural gateway to China: 16.5% profits tax, territorial treatment of offshore income for many structures, and mature banking. Structural cost is high: company secretary, audit, and virtual office are not optional for a credible company.

16,5%

Corporate tax

$1,000–$2,500

Setup

USD, indicative

$1,500–$3,500

Per year

USD, indicative

8.5/10

Ease

Ranking

6.5/10

Banking

Ranking

8/10

CFC

Territorial (limité)

Government formation fees look modest, but company secretary + address + mandatory annual audit dominate: common packages ~$1.5–3k/year for a simple co. All-in setup often ~$1–2.5k. The honest cost is recurring compliance, not the Companies Registry ticket.

Who it fits

  • Trading, services, or holding activity with documented Asia links and regional clients
  • Founders accepting IRD compliance and annual secretary plus audit cost
  • Need for HKD/USD invoicing with strong regional banking credibility

The real drawbacks

  • Shell with no Asia economic link. IRD and banks challenge pure offshore plays
  • Bootstrap seeking Wyoming cost with HK branding
  • Mainland China tax resident without cross-border tax planning

Full business sheet: substance, CFC, setup path, FAQ

Real estate: investing

2.8 %

Net yield

indicative

≈ 520 k€

30 m² studio

Hong Kong Island

~5%

Purchase costs

+60%

10-year prices

-5%

5-year prices

  • Rental income tax : 15%
  • Capital gains (personal holding) : 0% (souvent)
  • Capital gains (via company) : 0% (souvent)
  • Public debt / GDP : 50%
  • Currency : HKD

Reference listings portal : 28Hse

Compare this market in Real-estate Ranking

Moving there: living and residence

4.1/10

Liberty score

equal weights

0–17%

Income tax

0%

Inheritance

Restricted

Homeschool

Residence routes

  • Employment visa (GEP): 1–2 year renewable visa
  • Investment / business visa: Company-linked visa
  • Right of abode (7 years): Right of abode (ROA)

Reference cities

  • Hong Kong Island (cost high)
    Efficient, safe and very dense, with excellent transport. Tiny flats among the world's most expensive, and part of the expat community left after the 2020 National Security Law.
  • Kowloon (cost high)
    More working-class, denser and a bit cheaper than the island. Lively street life, even smaller flats.

All residence routes, steps and costs

Go deeper on Hong Kong (SAR)

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Indicative Liberty Stack data · Methodology · Rankings : Doing Business 2020, B-READY 2025, Index of Economic Freedom 2026, Corruption Perceptions Index 2025, Global Peace Index 2026, GPI 2026 — Societal Safety and Security.