Hong Kong – Buying Property

Can foreign nationals legally buy and own property in Hong Kong?

Hong Kong imposes no nationality-based restrictions on the purchase or occupation of real estate, meaning that foreign nationals — like local residents — may own residential and commercial property outright, including shareholdings in property-owning companies. This positions Hong Kong as considerably more accessible than many regional markets; in mainland China, for instance, foreigners are subject to significant buying restrictions and typically must have lived or worked there for at least a year before they are eligible to purchase.

Under the government’s “Hong Kong Property for Hong Kong People” initiative, selected residential sites are subject to additional land lease conditions limiting the sale of units on those sites exclusively to Hong Kong permanent residents. This restriction applies for a 30-year period from the date of the relevant land grants. Such restricted sites form only a small segment of the overall market, and the overwhelming majority of private residential properties remain freely accessible to overseas purchasers.

Certain categories of publicly subsidised housing — including Housing Authority properties — are set aside for citizens and permanent residents and are not available through the open market. Since you will be purchasing through private channels, this is unlikely to have any practical bearing on your search.

The Stamp Duty (Amendment) Ordinance 2024 brought a landmark shift: any instrument executed on or after 28 February 2024 relating to the sale, purchase, or transfer of residential property is no longer subject to Buyer’s Stamp Duty (BSD). Before this reform, non-permanent residents were liable for a 15% BSD surcharge on top of the standard duty — a substantial additional cost that has now been entirely removed. The Hong Kong Inland Revenue Department (IRD) is the official authority on stamp duty matters, while the Land Registry holds the authoritative record of property ownership.

What are average property prices in Hong Kong, and how do they vary by region?

Despite recent improvements in affordability driven by a market-wide price decline, Hong Kong retained its position as the world’s least affordable housing market for the fourteenth consecutive year, according to the Demographia International Housing Affordability Survey 2025. Average home prices stood at 14.4 times the gross annual median household income in 2024, compared with 16.7 times the previous year.

For smaller apartments under 40 sqm, average prices reached HK$131,305 (approximately US$16,885) per square metre as of October 2025. Premium central districts and larger units attract even higher per-square-metre figures. On a global basis, this places Hong Kong well above cities such as London, Sydney, and New York in terms of residential real estate costs.

Price levels differ considerably across the territory’s districts. Properties on Hong Kong Island — especially in Central, Mid-Levels, The Peak, and along the southern coastline — command a marked premium over other areas. Kowloon occupies a mid-tier position, with neighbourhoods like Ho Man Tin and Kowloon Tong historically drawing family buyers. The New Territories — covering areas such as Sai Kung, Tuen Mun, and Sha Tin — generally carry lower per-square-metre prices than the urban core. The outlying islands, including Lantau, Lamma, and Cheung Chau, can offer relative value and more generous living spaces, though transport connections vary considerably.

For the most up-to-date listings and reliable statistical data, consult the Rating and Valuation Department (RVD), which produces regular price indices and transaction reports. Property values fluctuate frequently, and any figures quoted in this article should be treated as indicative benchmarks only.

Where are the most popular locations to buy property in Hong Kong?

The right location will depend on your individual priorities — lifestyle preferences, commuting needs, budget, and family circumstances all play a role. Several districts are particularly favoured by expatriates and overseas buyers on account of their amenities, transport links, and established international communities. Nestled between Victoria Peak and the Central business district, Mid-Levels offers a concentration of upscale apartments and serviced residences. The famous Mid-Levels escalator — the longest outdoor covered escalator in the world — provides direct access to Central, making the area a natural draw for professionals working in finance and law.

Hong Kong Island: The Peak remains the territory’s most prestigious address, offering sweeping harbour panoramas and a limited number of exclusive low-density homes. Wan Chai and Happy Valley are consistently popular for their vibrant restaurant and bar scenes, proximity to good schools, and well-used recreational facilities. The South Side — encompassing Stanley, Repulse Bay, and Shouson Hill — attracts buyers seeking a more tranquil coastal lifestyle without being cut off from city amenities, and is home to a sizeable share of Hong Kong’s international community.

Kowloon: Kowloon Tong is a well-established family neighbourhood characterised by spacious houses, highly regarded international schools, and convenient MTR access. Ho Man Tin and Kadoorie Hill provide a blend of luxury apartments and older properties with distinct character. Tsim Sha Tsui and Hung Hom deliver urban convenience at price points somewhat below their Hong Kong Island counterparts.

New Territories and Sai Kung: Sai Kung is particularly sought after by buyers looking for a semi-rural way of life. Its waterfront seafood restaurants, extensive hiking trails, and scenic coastline make it one of the most coveted locations for those wanting more living space. Discovery Bay on Lantau Island functions as a purpose-built international enclave served by its own ferry network and a largely car-free environment, making it especially appealing to families.

Are there any emerging or up-and-coming areas worth considering in Hong Kong?

The Hong Kong government’s flagship Northern Metropolis development initiative is set to transform the New Territories near the mainland border. Alongside the Northern Metropolis, projects such as the Lantau Tomorrow Vision are designed to add substantial new housing supply to the territory. The Northern Metropolis plan covers areas including Hung Shui Kiu, Yuen Long, and the broader northern New Territories corridor, with new rail connections and commercial hubs earmarked to accompany large-scale residential development.

Kai Tak — occupying the footprint of Hong Kong’s former international airport in Kowloon — has become one of the most closely watched regeneration zones in recent years. A new generation of residential towers, a cruise terminal, and planned sports infrastructure have turned the district into a contemporary urban neighbourhood. It attracts buyers seeking newer buildings with harbour access at price points that are relatively more accessible than established addresses such as Kowloon Tong or Ho Man Tin.

Tung Chung on Lantau Island has expanded markedly in tandem with the airport and the Hong Kong-Zhuhai-Macao Bridge. Ongoing town expansion, new retail outlets, and enhanced transport links are drawing buyers who place greater weight on affordability than on central location. Lohas Park in the eastern New Territories is another large-scale residential development that has become popular with families and first-time buyers seeking modern housing stock at prices below those prevailing in the urban core.

What are the current trends in the property market in Hong Kong?

Hong Kong’s residential property price index edged up by 1.13% in October 2025 compared to the same month a year earlier — a marked turnaround from the year-on-year decline of 9.63% recorded in October 2024. This represented the second successive month of year-on-year price growth following an uninterrupted slide that ran from February 2022 through to August 2025. The tentative recovery follows a multi-year correction during which Hong Kong property values fell by nearly 30% from their 2021 peak.

Residential completions surged by 75.1% year-on-year to 24,261 units during 2024, recovering sharply from a 34.6% annual decline in 2023. Notwithstanding this improvement in supply, Hong Kong continues to grapple with a structural housing shortage that has persisted for more than two decades — an imbalance between demand and available stock that underpins the market’s long-term price floor.

Reporting by the South China Morning Post indicates that government policy measures may be taking effect: Hong Kong property transactions reached a five-month high in April 2025, and the total value of real estate sales climbed by 9.8%.

Growing buyer awareness of environmental considerations has generated rising interest in eco-friendly and sustainable developments. Another defining characteristic of the Hong Kong market is the consistently high demand for compact, efficiently designed living spaces — a direct consequence of the territory’s severe land constraints, which have led developers to concentrate on smaller units that make the most of every available square metre.

For the most current market data, refer to the Rating and Valuation Department, which releases monthly property price indices and transaction statistics.

Is buying property in Hong Kong a good investment?

Hong Kong is broadly regarded as a worthwhile destination for international property investment, though there are meaningful advantages and drawbacks to weigh carefully. Rental yields are relatively modest by global standards, averaging around 3.9% as of the second quarter of 2025. Price volatility is another factor to consider — the market has historically experienced sharp swings in both directions. By comparison, many markets across Southeast Asia or parts of Europe offer gross yields of 5–7%, although few can match Hong Kong’s legal transparency, market liquidity, or institutional stability.

Between 2008 and 2013, Hong Kong dwelling prices surged by 134%, fuelled by an influx of capital following the global financial crisis. After a brief pause, values rose again by 41.5% from the second half of 2016 to the first half of 2018. The subsequent correction — culminating in a near-30% decline from the 2021 peak — underscores the cyclical nature of the market. Long-run capital appreciation has historically been considerable, but short- to medium-term returns are far from assured.

The Hong Kong dollar is maintained within a tight peg of 7.75 to 7.85 against the US dollar. This arrangement offers a degree of currency stability for buyers whose assets or income are denominated in US dollars, but introduces exchange rate exposure for those working in euros, sterling, or Australian dollars. Currency fluctuations can significantly affect the real return on a Hong Kong property investment when measured in other currencies.

There is no specific capital gains tax on real estate for individuals or locally incorporated companies. However, if the tax authorities determine that a buyer is engaged in systematic property trading rather than long-term investment, any profits generated may be treated as business income and become subject to profits tax. The absence of a capital gains tax is a notable structural advantage for long-term investors compared with jurisdictions such as the United Kingdom or Australia, where gains on disposal are taxed.

As with any investment in real estate, risk is inherent. Obtaining independent financial advice from a qualified adviser with expertise in both Hong Kong and your country of residence is strongly recommended before you commit to a purchase.

What types of property are commonly available to buy in Hong Kong?

Land scarcity in Hong Kong means the residential market is dominated by high-rise apartments. Understanding the main property categories will help you calibrate your expectations before starting your search in earnest.

• High-rise residential apartments: The predominant property type across Hong Kong Island, Kowloon, and the New Territories. Unit sizes span the spectrum from micro-apartments (sometimes below 20 sqm, commonly referred to as “nano flats”) through to spacious multi-bedroom units in prestige tower developments. Pre-1990s blocks may feature lower ceiling heights and fewer shared facilities, whereas modern developments typically include clubhouse amenities, concierge services, and car parking.
• Serviced apartments: Concentrated mainly in Central, Admiralty, and Wan Chai, these fully furnished properties are operated along hotel lines and are popular with recently arrived buyers and tenants, or those on short-term assignments. Some serviced apartments are available for purchase as investment assets.
• Townhouses and low-rise houses: Uncommon and keenly sought. Primarily found in The Peak, the South Side, Sai Kung, and parts of the New Territories. Detached and semi-detached village houses in rural New Territories settings can offer generous space but carry specific legal constraints — see the pitfalls section below for further detail.
• Village houses (丁屋): Three-storey indigenous village houses dispersed across the New Territories, traditionally built by male indigenous villagers. Second-hand village houses may be purchased on the open market, but title complications are relatively common and thorough due diligence is essential before proceeding.
• Commercial and industrial units: Foreigners face no restrictions on the type of property they may acquire, including offices, retail premises, and industrial spaces. Industrial loft conversions have gained popularity in recent years as an alternative residential option.
• Car parking spaces: A surprisingly active investment sub-market given the city’s constrained road network and high car ownership costs. Parking spaces in prime locations can change hands for several million Hong Kong dollars.

What is the typical step-by-step process for buying property in Hong Kong?

Hong Kong’s conveyancing process is founded on common law and will feel broadly familiar to buyers from other common law jurisdictions such as the UK, Australia, or Singapore — though several important local distinctions apply. Unlike civil law countries in continental Europe, no mandatory notary is involved; the transaction is handled exclusively by solicitors. A typical purchase follows the sequence below:

1. Engage a solicitor and estate agent: Appoint a Hong Kong-qualified solicitor before making any offer. Both the seller and the buyer are required to have separate legal representation in almost all standard transactions, except in limited circumstances such as transactions between blood relatives or where the consideration does not exceed HK$1,000,000. Select a licensed estate agent holding registration with the Estate Agents Authority (EAA).
2. Make an offer and sign the Provisional Sale and Purchase Agreement (PSPA): Once a purchase price is agreed, both parties execute a Provisional Sale and Purchase Agreement — a legally binding preliminary contract. An initial deposit of approximately 5% is customarily paid at this stage, with the outstanding balance settled six to eight weeks later once title documentation has been prepared at the solicitor’s office. Withdrawing after signing the PSPA will ordinarily result in forfeiture of this deposit.
3. Instruct your solicitor to carry out due diligence: The buyer’s lawyer will review title information furnished by the seller’s lawyer — encompassing all title deeds and associated documents — and will conduct a series of searches, including a Land Registry search to identify any adverse entries such as registered charges or other encumbrances. This is the critical stage for uncovering any title defects before the transaction progresses.
4. Sign the formal Sale and Purchase Agreement: The formal agreement sets out the full and detailed terms of the transaction, building on the provisional agreement. It is ordinarily drafted by the seller’s solicitor and approved by the buyer’s solicitor. Both parties sign after receiving legal advice on the terms.
5. Arrange your mortgage (if applicable): Hong Kong banks extend mortgage facilities to foreign nationals and non-residents, although overseas buyers may encounter requests for additional documentation or face more stringent lending criteria. The maximum loan-to-value ratio is currently set at 70% regardless of property value, intended use, or first-time buyer status (as of 2024).
6. Pay stamp duty: The buyer’s solicitor submits the executed formal agreement to the Stamp Duty office for stamping and then lodges the stamped agreement at the Land Registry for registration. Residential purchasers pay Ad Valorem Stamp Duty (AVD) at Scale 2 rates, ranging from HK$100 to 4.25% of the higher of the market value or the consideration paid (as of 28 February 2024). Always verify the current rate schedule on the IRD website.
7. Completion: On the agreed completion date, the buyer remits the balance of the purchase price to their solicitor and receives the assignment executed by the seller, all other title deeds including any release of the seller’s mortgage, and the keys if the property is being sold with vacant possession.
8. Register the assignment at the Land Registry: The buyer’s solicitor must ensure the assignment is duly stamped and registered at the Land Registry. It is important to note that Hong Kong operates a deeds registration system that records instruments affecting a property — including title documents — and gives priority to interests registered first over those registered subsequently, but does not confer conclusive proof of title.
9. Additional fees to budget for: Beyond stamp duty, allow for legal fees (typically 0.1–1% of the purchase price, varying with complexity), estate agent commission (ordinarily 1% of the purchase price, payable by the buyer), and mortgage arrangement fees. Always request a written fee estimate from your solicitor in advance.

Do I need a lawyer to buy property in Hong Kong, and how do I find a reputable one?

Separate legal representation for the buyer and the seller is mandatory in the vast majority of Hong Kong property transactions — this is not simply advisable, but is effectively a legal requirement in almost all standard cases. Your solicitor will be responsible for conducting title searches, drafting and reviewing contracts, managing stamp duty filings, and ensuring that the assignment is properly registered at the Land Registry.

Because Hong Kong operates a deeds registration system that provides a record of instruments affecting land rather than conclusive proof of ownership, it is necessary in every transaction to scrutinise the full history of title documents to verify ownership. This complex title investigation process makes instructing an experienced property solicitor indispensable — not a matter of preference.

Legal fees for a routine residential transaction typically fall within the range of HK$8,000 to HK$30,000 or more, depending on the property value and the complexity of the matter. Fee levels differ between firms, so always ask for a written cost estimate before instructing. Confirm current rates directly with your chosen solicitor, as these figures may change over time.

All solicitors practising in Hong Kong must be enrolled with the Law Society of Hong Kong. You can search for qualified solicitors and verify their registration through the Law Society’s official website: Law Society of Hong Kong — Find a Solicitor. The Law Society may also be reached at: 3/F, Wing On House, 71 Des Voeux Road Central, Hong Kong. Tel: +852 2846 0500.

What are the most common pitfalls and problems expats encounter when buying property in Hong Kong?

Title defects and village house complications: Because Hong Kong’s deeds registration system does not confer conclusive evidence of title, every transaction requires a thorough review of the complete chain of historical title documents to verify ownership. Village houses in the New Territories are particularly susceptible to title complications arising from indigenous villager rights, unauthorised extensions, or ambiguous succession. Always instruct a solicitor to carry out comprehensive title searches before committing to any agreement.

Unlicensed estate agents: Every practising estate agent in Hong Kong must hold a licence issued by the Estate Agents Authority (EAA). It is strongly advisable to work exclusively with qualified and professionally accredited agents, solicitors, and property advisers — and to verify credentials and professional membership before engaging anyone to assist with your purchase. You can confirm an agent’s current licence status on the EAA website.

Off-plan purchase risks: Purchasing a property before construction is complete (buying off-plan) is common in Hong Kong, particularly in new residential developments. The risks involved include developer insolvency, construction delays, and the possibility that the finished property may differ from what was shown in the sales showroom. Ensure the developer has a sound track record, scrutinise the sales brochure carefully (it carries legal weight as a binding document), and have your solicitor verify that pre-sale consent has been obtained from the Lands Department.

Undisclosed charges and encumbrances: Mortgages, charges, or legal proceedings registered against a property may not be apparent without a formal Land Registry search. Your solicitor should carry out these searches as a matter of course, but always request written confirmation that they have been completed before you proceed to sign the formal agreement.

Currency transfer risks: Overseas buyers acquiring property in Hong Kong dollars while holding funds in another currency are exposed to foreign exchange risk. Consider using a specialist currency transfer service and exploring hedging options if your purchase funds are denominated in a different currency. The Hong Kong dollar is pegged to the US dollar within the band of 7.75 to 7.85, providing stability for USD-based buyers, but buyers in other currencies face ongoing exchange rate exposure.

Tax obligations in your home country: Rental income earned in Hong Kong is subject to Hong Kong Property Tax, but it may also need to be declared to the tax authorities in your country of residence. Some jurisdictions also tax offshore capital gains. Non-compliance in either territory can result in substantial penalties; consulting an international tax specialist is strongly recommended.

Stamp duty changes: The tax framework surrounding property transactions can shift quickly in response to economic conditions and government policy. Always verify the current stamp duty position with your solicitor at the time of purchase, and check the IRD stamp duty page for the latest applicable rates.

Can I buy property in Hong Kong through a company, and is it worth doing?

Property in Hong Kong may be purchased either in an individual’s own name or through a corporate vehicle, with no restrictions based on the buyer’s nationality or residency status. Hong Kong-incorporated private limited companies are the most widely used structure for corporate property acquisitions. Purchases through offshore companies are also possible, though these may attract more careful scrutiny from mortgage lenders and the IRD.

Potential advantages of a corporate purchase include greater flexibility for estate and succession planning — transferring shares in a company can be simpler in some circumstances than formally conveying real property — and the ability to accommodate multiple co-investors through their respective shareholdings. That said, transferring shares in a limited company involves more complex procedures than a conventional property transaction: solicitors will be more extensively engaged in conducting due diligence to confirm that the company carries no undisclosed liabilities, and in drafting share purchase agreements including representations, warranties, and indemnities.

Disadvantages include higher upfront legal costs, ongoing corporate compliance obligations, and annual maintenance expenses payable to the company secretary and accountant for tasks such as filing annual returns, convening annual general meetings, preparing audited accounts, and submitting tax filings. These costs should be factored into any comparison with direct personal ownership.

In terms of stamp duty, the same Ad Valorem Stamp Duty at Scale 2 rates — ranging from HK$100 to 4.25% — applies to real estate purchases by corporate buyers as it does to individuals, for all nationalities and all property types, with effect from 28 February 2024. Independent legal and tax advice is essential before deciding whether a corporate structure is appropriate for your circumstances.

What taxes and ongoing costs should I budget for when owning property in Hong Kong?

Ad Valorem Stamp Duty (AVD): Payable at the point of purchase. Buyers pay AVD under Scale 2 rates, which range from HK$100 to 4.25% of the transaction value. These rates now apply equally to residential and non-residential property transactions of all types. The Scale 2 thresholds were adjusted as of 2025; always check the official IRD stamp duty rates table for the current schedule, particularly as further changes have been proposed in the 2026–27 Budget.

No capital gains tax: Hong Kong levies no specific tax on real estate capital gains for individuals or locally incorporated companies. Frequent buying and selling activity may be reclassified by the IRD as a trading business, making profits subject to profits tax — take professional advice if you intend to transact regularly.

Property Tax on rental income: Rental receipts are liable to Hong Kong Property Tax, calculated at 15% of net rental income after deducting allowable expenses. In practice, a statutory deduction of 20% of assessable value — intended to cover repairs and outgoings — is applied before the 15% rate is charged, yielding an effective burden equivalent to 15% applied to 80% of net rent. Owners who occupy their property and receive no rental income are ordinarily exempt. Full details are available on the IRD Property Tax page.

Rates and Government Rent: Property owners are liable for both rates and government rent. Rates are an indirect tax levied on properties across Hong Kong, while government rent is payable by lessees of government leases in consideration of the right to occupy and use the land. Both are calculated by reference to the rateable value of the property. Rates are currently set at 5% of rateable value per annum; government rent is typically 3% of rateable value for leases granted after 1997. These are relatively modest annual outgoings compared with council tax or municipal rates in many other countries.

Management fees: The majority of private residential developments in Hong Kong are administered either by an Owners’ Corporation or a professional property management company. Monthly management fees range widely — from a few hundred to several thousand Hong Kong dollars — depending on the scale of the development, the facilities provided, and the location. Always request the current management fee schedule before proceeding with a purchase.

No estate duty: Estate duty was abolished in Hong Kong in February 2006 and has not been reintroduced. This makes the territory an attractive destination from an inheritance and estate planning perspective, especially when compared with jurisdictions such as the UK where inheritance tax can reach 40%.

What are the official sources I should consult when buying property in Hong Kong?

When purchasing property in Hong Kong, it is essential to verify all information against authoritative official sources. The key bodies and their websites are set out below:

Frequently asked questions about buying property in Hong Kong

Can a foreigner buy property in Hong Kong without any restrictions?

Yes. Foreign nationals may own and occupy real estate in Hong Kong without any nationality-based restrictions. The only meaningful limitation for overseas buyers is that certain government-designated residential sites are reserved exclusively for Hong Kong permanent residents under the “Hong Kong Property for Hong Kong People” initiative, and publicly subsidised housing is not available on the open market. Outside those specific categories, the private market is completely open to international purchasers.

Do I still need to pay Buyer’s Stamp Duty as a foreigner?

No. The Stamp Duty (Amendment) Ordinance 2024 abolished Buyer’s Stamp Duty (BSD) for all instruments executed on or after 28 February 2024 relating to the sale, purchase, or transfer of residential property. Every buyer — regardless of nationality or residency — now pays the same Ad Valorem Stamp Duty at Scale 2 rates, which range from HK$100 to 4.25% of the property value (as of 2025). Always check the IRD website for the latest applicable rates.

How much deposit do I need to buy property in Hong Kong?

An initial deposit of approximately 5% is customarily paid on signing the Provisional Sale and Purchase Agreement, with the outstanding balance due six to eight weeks later once title documentation has been prepared. For mortgage purposes, the maximum loan-to-value ratio is set at 70% (as of 2024), meaning a minimum cash deposit of 30% is required. Foreign buyers without a Hong Kong income history or local credit profile may face stricter lending conditions from banks.

Is there capital gains tax when I sell my Hong Kong property?

Hong Kong does not impose a capital gains tax on real estate for individuals, provided the transaction is not considered to constitute a trading activity. Should the IRD determine that a buyer is engaged in regular property trading rather than long-term investment, any profits realised may be reclassified as business income and become subject to profits tax. For long-term individual investors, the absence of a capital gains tax is a material advantage compared with markets such as the UK or Australia where gains are taxed on disposal. Always seek professional advice from tax specialists in both Hong Kong and your country of residence.

Can I get a mortgage in Hong Kong as a foreign national?

Yes. Hong Kong banks offer mortgage products to foreign nationals and non-residents, though applicants may be asked to supply additional documentation or face more rigorous lending criteria than local residents. A loan-to-value ratio of up to 70% is generally achievable, requiring a substantial upfront deposit. Physical presence in Hong Kong will be required to sign mortgage documents. Mortgage access improved following the relaxation of lending requirements in 2024, which also eased income qualification thresholds.

Do I need a lawyer to buy property in Hong Kong?

Yes, in almost every case. Separate legal representation for the buyer and the seller is effectively mandatory in standard property transactions. Your solicitor will conduct title searches, draft and review all contracts, handle stamp duty submissions on your behalf, and ensure the assignment is registered at the Land Registry. Given that Hong Kong’s deeds registration system does not provide conclusive evidence of title, engaging an experienced property solicitor is not optional. All solicitors practising in Hong Kong must be enrolled with the Law Society of Hong Kong.

How long does the property buying process take in Hong Kong?

For a standard secondary market transaction, the typical period from agreeing a price to completion is approximately six to ten weeks. The process generally moves more quickly than in many other jurisdictions: the Provisional Sale and Purchase Agreement is signed soon after a price is agreed, and completion ordinarily follows around six to eight weeks later once title investigations and mortgage arrangements have been concluded. Purchases of off-plan properties in new developments may involve longer timelines depending on the project’s stage of completion.

What are property taxes on rental income in Hong Kong?

Rental income is subject to Hong Kong Property Tax at a rate of 15% applied to net rental receipts after deducting certain allowable expenses. In practice, a statutory deduction of 20% is first applied to gross rent to account for repairs and outgoings, before the 15% rate is charged — giving an effective tax rate equivalent to 12% of gross rental income. Landlords are required to declare rental receipts to the Inland Revenue Department. Your rental income may also be taxable in your country of tax residence; seeking professional advice on your individual circumstances is strongly recommended.