News Hong Kong Property & Finance

Using a Limited Company for property holdings

ORIGINAL POST
Posted by SweetSue 11 yrs ago
As a recently retired UK citizen with HK PR. Is there and what are the advantages of creating a limited company here in HK to transfer ownership to for personal properties owned here





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COMMENTS
OffThePeak 11 yrs ago
There is (an advantage) for whomever charges you fees to set up this structure.


But possibly not for you.

What are you hoping to achieve?

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traineeinvestor 11 yrs ago
Not a good idea at the moment because companies are treated as foreigners and you have to pay additional special stamp duty.


Before the SSD was introduced, owning rental properties through a company meant that they were treated as a business and you were taxed on a different basis than individuals. The main difference was the ability to itemise and deduct various expenses for tax purposes. If the tax savings on the additional deductions exceeded the costs of setting up and maintaining the company, then owning through a company made sense. Given the low tax rate here, you would need a reasonable amount of rental income to come out ahead. Putting one or two small flats into a company will cost you money.


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weirlaw 11 yrs ago
You may be aware of the recent onerous stamp duty changes in Hong Kong.


In certain circumstances, you can move the property to your company without incurring stamp duty – what is the value of the flat? You might contact us with further information. The best starting point is an initial interview at a discounted rate of HK$2,800.


Weir & Associates

Solicitors & Notaries

16th Floor Tak Shing House

20 Des Voeux Road Central

Central

Hong Kong

Tel : 2526-1767

Fax : 2868-3568

Email : WeirLaw@WeirandAssociates.com

www.WeirandAssociates.com

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