Four reasons why Hong Kong matters to luxury brands

The Fraser Institute ranked the Hong Kong Special Administration Region as the world's freest economy in the Economic Freedom of the World 2022 Annual Report. In Hong Kong, taxes are simple (16.5% profits tax for corporates and salaries tax with standard rate of 15%) and the following taxes that you might find in other regions around the world are not imposed here:

• No sales tax or VAT

• No withholding tax on dividends and interest

• No capital gains tax

• No tax on dividends

• No estate tax

There are also generous government grants to support businesses in Hong Kong.  

The city’s free port status and easy customs procedures make it easier for businesses and companies to operate. The Hong Kong International Airport (HKIA) is one of the top two busiest airports by cargo traffic in the world, processing 4.5 million tonnes per year. Since 2015, export air cargo reception takes Hong Kong’s five cargo facilities only 15 minutes to process and import cargo collection takes only 30 minutes to process. All the facilities are automated and equipped with state-of-the-art technology.

More logistics infrastructure is being built at the airport to handle e-commerce, as well as catering for temperature controlled environments for high value goods, food and pharmaceuticals. Furthermore, cosmetic and personal care products generally do not require additional labelling or registration.

Over 9,000 businesses and companies have made Hong Kong their home. Many have placed their strategic functions, including sales, operations, research and development (R&D), distribution, regional headquarters and corporate treasury centres in the city. In addition, half of the world’s population can be reached within five hours by plane. A multi-lingual and internationally minded talent pool calls Hong Kong its home. Both English and Chinese are official languages in the Hong Kong Special Administrative Region.

In the coming months, a series of new retail and lifestyle venues are scheduled to open, with new experiential concepts under development around the Hong Kong International Airport, West Kowloon Cultural District and around the Kai Tak area. Landlords and property developers are actively in discussions to welcome new to Hong Kong brands and retail concepts.   

Even in 2022, and mainly supported by the local residents due to the travel restrictions caused by the pandemic, the value retail sales of physical outlets amounted to around US$45 billion. Retail sales in all categories are expected to rebound with fully opened borders welcoming visitors from around the world. This is only set to increase with travel restrictions being lifted in neighbouring mainland China, a key source of millions of same-day and overnight visitors, with excellent air, high speed rail, sea and land connectivity to Hong Kong.

Find out more about InvestHK at investhk.gov.hk