Buying a flat and property taxes

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How do property taxes work in Hong Kong? Who exactly pays the 15% yearly (?) property taxes when I buy a flat or other home?

Would I have to pay my flat mortgage in addition to a 15% property tax? I hope not. That would make even a reasonably priced flat expensive.

buying a flat

Property taxes here are known as 'Government Rates'. They are irritatingly expensive (I think around 5% a year of the property's 'rateable value), but they're certainly not as high as 15% -- is it possible you're confusing the salaries tax (i.e. the income tax for us Americans) with property taxes?

The other good news is that your property's 'rateable value' isn't its market sale value; it's (correct me if I'm wrong, those who know more) about the amount you could get in rent for your property in a year, which is of course usually far lower than its actual purchase price.

If you're renting, you'll often find the phrase 'rates included' in ads for rental properties, but you'll have to pay them if the landlord doesn't (this is something to check, if you're flat-hunting).

Re:Buying a flat and property taxes

Wow thanks for clearing that up!

I know that the salaries tax is 16%, but I could have sworn I read something about a 15% property tax.

Re:Buying a flat and property taxes

Just to clarify a little further - the rates will usually be several thousand Hong Kong dollars a year, payable quarterly.

I'm not sure how the rateable value is derived, but the rateable value of my flat is about 5% of what I paid for it, and the rates are 5% of that, or about 0.25% of the purchase price of the flat.

dave

Re:Buying a flat and property taxes

check out the Inland Revenue Dept.'s page: http://www.info.gov.hk/ird/eng/tax/index.htm

dave