Renting out property in Hong Kong: landlord guide

Costs of buying

• Since 28 February 2024 there is no special, buyer's or new residential stamp duty: every buyer, local or foreign, pays only ad valorem stamp duty.
• Ad valorem stamp duty starts at HK$100 for homes up to HK$4 million and rises in steps to 4.25% of the price at the top.
• Budget for legal fees and agent commission, commonly 1% of the price.

Buying as a foreigner

• There are no restrictions on foreigners buying residential property, and foreign buyers pay the same stamp duty as locals.
• Banks lend to non-residents, often at a lower loan-to-value than for local buyers; check with the lender before you commit.

Official guidance: GovHK: Stamp duty rates

How rental income is taxed

• Property tax is 15% of the net assessable value: rent received, less rates you pay as owner, less a 20% statutory allowance for repairs and outgoings.
• Individuals can elect personal assessment, which taxes the rent with their other income at progressive rates and lets them deduct mortgage interest.
• The tax year runs from 1 April to 31 March. The property tax return (BIR57) is issued in early May and is due within one month.

What you can claim against rental income

• Rates you pay as owner are claimable against rental income.
• The 20% statutory allowance, given automatically instead of actual repair costs.
• Rent you could not collect.
• Mortgage interest, only under personal assessment.

Tenancy rules and customs

• The usual deposit is two months' rent plus one month in advance.
• Tenancy agreements must be stamped within 30 days of signing; the landlord and tenant usually share the duty.
• Landlords file a notice of new letting (Form CR109) with the Rating and Valuation Department within one month.

Key dates

• January, April, July, October: Rates and government rent, paid quarterly
• Early May (due within one month): Property tax return BIR57
• Within 30 days of signing: Stamp the tenancy agreement; file Form CR109 within one month

Questions landlords ask

What is a good rental yield in Hong Kong?

Gross yields on flats are commonly around 2.5–4%. With mortgage rates near that level, cash flow is often negative, so check it with the loan in the rental yield calculator for Hong Kong.

Do foreigners pay extra stamp duty in Hong Kong?

Not since 28 February 2024, when the special, buyer's and new residential stamp duties were removed. Everyone pays ad valorem stamp duty only.

How is rental income taxed in Hong Kong?

Property tax at 15% of the rent after rates paid by the owner and a 20% allowance for repairs. Personal assessment can lower the tax if you have mortgage interest.

Can I claim mortgage interest against rental income in Hong Kong?

Only if you elect personal assessment; under property tax alone, mortgage interest is not deducted.

Official sources

• GovHK: Property tax
• GovHK: Stamp duty rates
• Rating and Valuation Department