Posted by
ahnjames
16 yrs ago
How are you?
We are from overseas and we bought the house in HK last year. I was wondering the transaction tax system in HK. Currently we have lived in the house but...
We plan to leave HK after 2-3 years and rent the house to someone for a couple of years.
Then if we sell the property in the future(eg. after 5 years from today), do we need to pay the transaction tax if we have the profit?
I try to find firm answers from web sites but "No capital gain tax in HK" seems to be a bit blurred.
Any advise would be appreciated.
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No capital gains tax in Hong Kong means you don't pay tax on the "gain" you got from selling your flat.
If you bought your flat for 4 million and sold it for 10 million, you gained 6 million but you don't have to pay tax! Isn't that great?
Of course you already paid the tax when you bought it, and the buyer when you sell it will pay tax again...
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Dear punter,
Does it mean that "residence" or "investment" do not matter as long as we keep it for over 2 years ownership? Some treads indicated that I might have to pay "profit tax" if we rent the property...
Thanks in advance.
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That's how I understand it. You buy the flat, you pay fees and taxes as the buyer, the seller don't pay anything except for solicitor/lawyer services.
Now, if you rent out the property, you need to pay income tax for the rental amount the tenant pays to you. This is a different matter.
When the time comes that you sell the flat you don't have to pay capital gains tax.
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