Last Updated: April 2026
Hong Kong is one of the world's simplest tax jurisdictions to leave: no capital gains tax, no exit tax, no deemed disposal, and a territorial tax system that has only ever taxed Hong Kong-sourced income. For most departing Hong Kong residents, the practical steps are limited to Salaries Tax clearance, MPF management, and property decisions. The significant exception is the Mandatory Provident Fund (MPF) — Hong Kong's compulsory retirement savings system — which offers a clean withdrawal option on permanent departure, providing a meaningful financial benefit to long-term Hong Kong workers.
Hong Kong-to-USA migration has increased significantly, particularly among Hong Kong nationals seeking residency stability post-2020. Key HK-US planning points:
No HK-USA DTA: Hong Kong and the USA do not have a bilateral income tax treaty. US residents with Hong Kong property income pay HK Property Tax (15%) and must declare the income on Form 1040; FTC on Form 1116 for the HK Property Tax paid. Double taxation exists in theory — FTC should largely offset it. Without a DTA, the standard HK non-resident withholding rates apply.
MPF and US tax: The IRS treats MPF contributions and accumulated earnings as a foreign trust or retirement arrangement. MPF employer contributions may create annual PFIC or foreign grantor trust reporting obligations while a US person. On departure: an MPF lump-sum withdrawal is likely treated as ordinary income in the year of receipt for US tax purposes. Withdraw before becoming a US tax resident if possible.
FBAR for HK accounts: Hong Kong bank accounts, brokerage accounts, and MPF accounts with aggregate value exceeding $10,000 must be reported on FinCEN Form 114 annually as a US resident. HSBC HK, Bank of China HK, and Hang Seng accounts all within scope.
HK property and FIRPTA: No FIRPTA equivalent in HK for sellers. US residents selling HK property: only US tax applies on the gain (claim FTC for any HK-side taxes).
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Get International Health Cover from Day One →MPF permanent departure withdrawal process: (1) Contact your MPF trustee(s) — you may have multiple MPF accounts if you had multiple employers; consolidation into one account first can simplify the withdrawal. (2) Request the 'Withdrawal of MPF Benefits on Ground of Permanent Departure from Hong Kong' form. (3) Complete a statutory declaration confirming you are leaving Hong Kong permanently and do not intend to return to reside. The declaration must be witnessed by: a Commissioner for Oaths (solicitor), a Justice of the Peace, or a Notary Public. (4) Submit to your MPF trustee with: the completed form, statutory declaration, copy of your Hong Kong ID, passport, and supporting proof of departure (visa for destination country, employment contract abroad, property rental agreement overseas). (5) Your MPF trustee processes the withdrawal and credits the full balance to your nominated bank account. Timeline: typically 30 days from complete submission. The payment: all vested benefits are paid (both employee and employer contributions plus net investment returns). The funds are paid in HKD — you then convert and transfer internationally. MPF is tax-free in Hong Kong. Note on timing: complete the MPF withdrawal while still in Hong Kong, or grant a Hong Kong solicitor a power of attorney to complete the process after you've left.
Yes — the process involves your employer filing IR56G and the IRD issuing a final assessment. For Salaries Tax (for employees): (1) Tell your employer at least 1 month before your departure date. (2) Your employer files IR56G with IRD. (3) IRD sends you a final Salaries Tax assessment covering income from April 1 (start of HK tax year) to your departure date. (4) Pay the final assessment — IRD may require payment before the clearance certificate is issued. (5) Receive the clearance notice. The Hong Kong Salaries Tax year: April 1 to March 31. The provisional tax system: Hong Kong taxes on a provisional basis — you likely paid provisional Salaries Tax for 2025/26 already. The final assessment reconciles this. For self-employed / sole proprietors: file a final Profits Tax return (Form B) for the period to cessation of business. For property owners: IRD notification of change of address is required; continued annual Property Tax assessments will be issued to your overseas address (or representative). eTAX: Hong Kong's eTAX portal allows all filings and correspondence digitally — keep your eTAX account active for post-departure communications with the IRD.
The optimal timing for MPF withdrawal for BN(O) holders moving to the UK is before establishing UK tax residency — ideally before you arrive in the UK, or before you have been in the UK for 183 days. Why: the UK may treat the MPF lump sum as taxable foreign pension income. Under the Finance Act 2004 and subsequent pension legislation, foreign pension payments received by UK residents are generally subject to UK income tax, with 'foreign service relief' potentially reducing the taxable portion based on years of overseas service. If you withdraw the MPF before becoming a UK tax resident: the withdrawal occurs while you are not subject to UK worldwide taxation — Hong Kong does not tax it; potentially no UK tax either (depending on your specific circumstances and the remittance basis if you have non-UK domicile). The remittance basis: for BN(O) holders with a HK domicile of origin and not yet domiciled in the UK, the remittance basis (pre-April 2025 rules — note the UK ended the remittance basis from April 2025; verify current rules) may affect the treatment. With the April 2025 UK tax reform ending the remittance basis: this planning point has changed significantly. Consult a UK tax advisor specialising in Hong Kong arrivals before making your MPF withdrawal decision.
Annual obligations for non-resident owners of Hong Kong property: (1) Property Tax: 15% of net assessable value (gross annual rental income minus 20% for repairs and outgoings = net assessable value × 15%). Filed annually by April 30 via IRD eTAX. If the property is vacant and not let: no Property Tax is payable in the vacant period — submit a nil return. (2) Rates (差餉 — chāi xiàng): quarterly government rates — typically 5% of estimated annual rental value. Billed and paid via the HK government Rates Assessment. Set up auto-payment from a HK bank account to avoid missed bills. (3) Management fees: payable to your building's owners' corporation (業主立案法團). (4) If you sell as a non-resident: no CGT; Seller's Stamp Duty applies if sold within 3 years of purchase. Legal completion handled by your HK solicitor — net proceeds are freely remittable abroad. (5) Reporting in your new country: Hong Kong rental income and property must be declared in your new country of tax residence. The UK, USA, Australia, and Canada all tax worldwide income — your Hong Kong rental income belongs on your new country's return; Property Tax paid in HK is available as FTC.