There is no inheritance tax in Hong Kong, and no estate tax, making it one of the most favorable jurisdictions for passing on assets.
For foreigners, expats, residents, and non-residents, the focus is on legal ownership, documentation, and probate procedures, rather than tax rates.
This article covers:
- How does inheritance work in Hong Kong?
- What is the maximum amount you can inherit without paying tax?
- Are you taxed if you inherit money?
Key Takeaways:
- Hong Kong has no inheritance tax, regardless of the value of the estate.
- Foreigners and non-residents are treated the same as local residents for inheritance purposes.
- Taxes may arise later only if inherited assets generate income or are sold.
- Proper legal documentation and probate procedures remain essential.
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The information in this article is for general guidance only. It does not constitute financial, legal, or tax advice, and is not a recommendation or solicitation to invest. Some facts may have changed since the time of writing.
What are the rules for inheritance in Hong Kong?
Assets in Hong Kong are inherited according to a valid will or, if none exists, under statutory intestacy rules. It is governed by common law and the Probate and Administration Ordinance.
If the deceased left a valid will, assets are distributed according to that will (testate succession).
Without a will, Hong Kong’s intestacy rules apply, prioritizing spouses, children, and parents.
Foreigners owning property or other assets in Hong Kong can pass them on, but probate is required for property registration and transferring bank accounts.
Non-residents may need to provide additional documentation to prove identity and entitlement.
Is there inheritance tax in Hong Kong?
No, inheritance tax does not exist in Hong Kong for anyone, including foreigners and non-residents.
Assets inherited from a Hong Kong resident or located in Hong Kong are not subject to estate tax.
Foreign heirs do need to comply with probate requirements, property registration, and bank account formalities.
However, there is no direct tax liability on the inheritance itself.
Is there estate duty in Hong Kong?
No, there is no estate duty in Hong Kong. Estate duty was abolished on February 11, 2006, ending what had previously been a tax on the total value of a deceased person’s estate.
Since then, residents, non-residents, and foreigners can inherit assets in Hong Kong without paying any estate or inheritance tax, making the jurisdiction highly favorable for wealth transfer.
What is the tax if you inherit money in Hong Kong?
There is no tax on inherited money in Hong Kong.
Bank accounts, cash, or securities received from a deceased estate do not trigger any inheritance or estate tax.
However, future income generated from inherited assets, such as interest, dividends, or rental income, may be subject to Hong Kong income tax under standard rules.
Do you have to pay to receive an inheritance in Hong Kong?
No, heirs do not pay tax to receive an inheritance in Hong Kong.
However, receiving an inheritance can involve administrative and legal costs, depending on the size and complexity of the estate.
Common costs include:
- Probate or letters of administration fees payable to the court, which are calculated based on the estate’s value.
- Legal fees may also apply if solicitors are engaged to prepare probate documents, administer the estate, or resolve disputes.
- If property is inherited, land registry and transfer registration fees are typically required to update ownership records.
- Additional costs may arise for document notarization, asset valuation, or handling overseas beneficiaries.
How Hong Kong’s Tax-Free Inheritance Compares to Other Asian Jurisdictions
Hong Kong stands out in Asia as a jurisdiction with no inheritance tax or estate duty, making it highly favorable for expats and foreign investors.
Unlike Hong Kong, several nearby countries do impose inheritance or estate taxes that can significantly reduce what heirs receive.
- Taiwan: Inheritance (estate) tax is progressive, with current top rates of up to 20% after exemptions and deductions.
- Japan: Japan inheritance tax is one of the highest globally, with top rates around 55% on large estates.
- South Korea: South Korea’s highest inheritance tax rate is around 50%, making its system one of the most burdensome among OECD countries.
- Mainland China: There is currently no formal inheritance tax in China, but the legal and probate process can be complex and uncertain.
- Singapore: Like Hong Kong, Singapore has no inheritance tax, but property transfer costs and stamp duties may affect real estate investments.
For expats comparing options, Hong Kong’s absence of inheritance taxes coupled with clear probate procedures, allows more wealth to pass to heirs compared to Taiwan, Japan, or South Korea, where steep taxes can significantly reduce estates.
Even though property and administrative fees still apply in Hong Kong, they are typically far lower than the percentage‑based inheritance levies seen in neighboring jurisdictions.
Conclusion
Hong Kong removes tax from the inheritance equation, but it does not remove legal friction.
The absence of inheritance tax shifts the real risk to paperwork, probate timing, and asset structure.
For families with international ties or Hong Kong property, clarity before death, not tax planning after it, is what ultimately determines how smoothly wealth passes on.
FAQs
Is there a double taxation agreement with Hong Kong?
Yes, Hong Kong has double taxation agreements with several countries, which mainly address income and corporate tax.
Which country has the highest inheritance tax?
Japan currently has the highest inheritance tax in the world, with top marginal rates reaching around 55% for large estates, followed by South Korea and France.
What countries do not have inheritance tax?
Several jurisdictions have no inheritance or estate tax, including Hong Kong, New Zealand, and Australia, making them attractive for wealth planning and cross-border inheritance.
How to avoid probate in Hong Kong?
You cannot fully avoid probate in Hong Kong.
However, it can be reduced or simplified through joint ownership, beneficiary designations, and careful estate planning.
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