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HK Government Studying Vacant Property Tax

Friday, May 11, 2018

Hong Kong's Government says it is studying the feasibility of introducing a tax on vacant "first-hand" private residential properties.

Chief Executive Carrie Lam made the statement last week during a Legislative Council question and answer session saying the vacancy tax could help release new residential units to the market, which are currently being purchased and then left vacant or not being released by developers.

Lam said the Government will consider the rationale, feasibility, and the public response to the proposal before deciding on the matter.

She added there is no plan to introduce a capital gains tax on residential properties owned by non-Hong Kong residents, and emphasized the importance of maintaining the special administrative region's simple and low tax regime to remain competitive.