Remote work has become a permanent feature of the global workforce, accelerating the rise of digital nomads after the pandemic. Professionals can now work online while living or travelling across multiple countries, including Hong Kong. However, Hong Kong’s tax system is often misunderstood by remote workers, particularly those who assume that physical location or tax residency alone determines their tax obligations. In reality, Hong Kong operates a territorial tax system, which focuses on where income arises or is derived rather than where an individual lives or holds a passport. For digital nomads, this distinction is critical. Tax exposure depends on where services are rendered and where profit-generating activities take place, not on the number of countries visited in a year. This article explains how Hong Kong tax rules apply to digital nomads, covering Salaries Tax, Profits Tax, common working scenarios, and key compliance considerations to help remote workers understand their Hong Kong tax position more clearly.
Key Summary
Territorial Tax System
Hong Kong taxes income based on source, not tax residency or nationality.
Salaries Tax Rules
Employment income is taxable only to the extent services are rendered in Hong Kong, with a limited 60-day visit exemption.
Profits Tax for Freelancers
Freelancers and business owners are taxed on profits sourced from Hong Kong, not where they travel or reside.
Offshore Claims and Documentation
Offshore income positions require clear evidence of where services, decisions, and operations take place.
Compliance Is Not Optional
Filing obligations, record-keeping, and correct classification are critical even when tax payable is nil.
What Is a Digital Nomad?
A digital nomad is an individual who performs their work entirely online without being tied to a fixed office or long-term location. Instead of working from a single country, digital nomads often move between cities or jurisdictions while continuing to earn income remotely. Advances in technology and flexible working arrangements have made this lifestyle increasingly common, particularly since the pandemic.
Digital nomads work across a wide range of industries. Common professions of digital nomads are:
- IT and software development,
- digital marketing,
- consulting,
- accounting,
- project management,
- design,
- writing,
- teaching,
- sales, and
- recruitment.
Some digital nomads are employed by a single company, while others provide services to multiple clients or run their own businesses online.
From a Hong Kong tax perspective, how a digital nomad is classified matters. Employees typically earn employment income that may fall under Salaries Tax if it arises in or is derived from Hong Kong. Self-employed individuals and freelancers are generally assessed under Profits Tax on profits sourced from Hong Kong. Business owners who operate through a Hong Kong company are subject to company-level Profits Tax, with tax exposure determined by where the company’s profit-generating activities take place. Understanding these distinctions is essential, as Hong Kong does not apply a blanket tax residency test. Instead, the tax outcome depends on the nature of the income and where the relevant activities occur.
Read: Introduction to the Hong Kong Tax System
How Hong Kong’s Territorial Tax System Works
Hong Kong adopts a territorial tax system, which means tax is charged based on the source of income rather than an individual’s tax residency or nationality. Territorial taxation does not mean income is automatically offshore simply because work is remote. The Inland Revenue Department examines where services are performed and where profit-generating activities actually take place. This approach is particularly relevant for digital nomads, as working remotely across borders does not automatically create a Hong Kong tax liability.
No General “Tax Residency” or 183-Day Rule
Unlike many jurisdictions, Hong Kong does not use a general tax residency test or a standard 183-day rule to determine whether income is taxable. Spending a certain number of days in Hong Kong does not, by itself, decide whether tax is payable.
Instead, Hong Kong focuses on the nature and source of the income. A limited exception exists for employment income under the short visit rule. If services are rendered in Hong Kong during visits that do not exceed 60 days in a year of assessment, the related income is generally not chargeable to Salaries Tax, subject to specific conditions.
Core Principle: Income Arising in or Derived from Hong Kong
The key concept under Hong Kong tax law is whether income arises in or is derived from Hong Kong. This principle applies to both individuals and businesses.
When assessing the source of income, the Inland Revenue Department typically looks at:
- Where services are physically performed
- Where profit-generating activities take place
- How business operations are structured and carried out
If income is sourced outside Hong Kong, it may fall outside the scope of Hong Kong Salaries Tax or Profits Tax, even if the taxpayer has some presence in Hong Kong.
Why Source of Income Matters More Than Physical Presence
For digital nomads, physical presence alone is not decisive. Living in Hong Kong or travelling through Hong Kong does not automatically make income taxable. What matters is the connection between the income and Hong Kong.
For example:
- Employment income may be taxable if services are rendered in Hong Kong, even for a non-Hong Kong employer
- Income earned while working entirely outside Hong Kong may be exempt, even if the employer or company is based in Hong Kong
- Business profits are assessed based on where the core profit-generating activities occur, not where the owner is located
Read: Understanding Hong Kong Salary Tax
Do Digital Nomads Pay Salaries Tax in Hong Kong?
Whether a digital nomad is subject to Hong Kong Salaries Tax depends on the source of employment income, not on nationality or the number of days spent in Hong Kong alone. Hong Kong applies a territorial approach, and the Inland Revenue Department (IRD) focuses on where income arises and where services are rendered.
When Salaries Tax Applies
Under Section 8(1)(a) of the Inland Revenue Ordinance (IRO), Hong Kong Salaries Tax is charged on income arising in or derived from Hong Kong from an office, employment, or pension.
For digital nomads, Salaries Tax may apply if:
- The employment is connected to Hong Kong, and
- Services are rendered in Hong Kong, whether in full or in part
The key issue is not where the employee is paid or where they are tax resident, but where the employment income is sourced under Hong Kong’s established sourcing principles.
60-Day Short Visit Exemption
Hong Kong provides a limited exemption for short visits. If a person renders services in Hong Kong for not more than 60 days in a year of assessment, the related employment income is generally exempt from Salaries Tax.
However, this exemption is often misunderstood. Important limitations include:
- The 60-day rule applies to visits, not long-term stays
- Days are counted on a physical presence basis, including partial days
- The exemption does not apply if the individual is “holding an office”
The director versus non-director distinction is critical. If a digital nomad is a director of a Hong Kong company, they are regarded as holding an office. Director’s income is generally taxable in Hong Kong regardless of the number of days spent in the city, and the 60-day short visit exemption does not apply.
Hong Kong Employment vs Non-Hong Kong Employment (DIPN 10)
The IRD distinguishes between Hong Kong employment and non-Hong Kong employment based on Departmental Interpretation and Practice Notes No. 10 (DIPN 10). This classification determines how income is assessed.
In making this determination, the IRD considers multiple factors, including:
- Where the employment contract was negotiated, signed, and enforceable
- Where the employer is resident
- Where remuneration is paid
No single factor is decisive. The overall facts and circumstances are reviewed together.
If employment is classified as non-Hong Kong employment, only income attributable to services actually rendered in Hong Kong is chargeable. This is commonly calculated using the time-apportionment or days-in-days-out basis. Under this method, income is apportioned based on the number of days worked in Hong Kong compared with total working days during the year.
Salaries Tax Rates
Hong Kong Salaries Tax is computed using two methods, and the taxpayer pays the lower amount.
The first method applies progressive rates to net chargeable income after allowances and deductions:
- 2%, 6%, 10%, 14%, and 17%
The second method applies the two-tiered standard rates introduced for 2024/25:
- 15% on the first HKD 5,000,000 of net income
- 16% on the remainder
The final tax payable is the lower of the progressive calculation or the standard-rate calculation.
Basic allowances, dependent allowances, and approved deductions can significantly reduce taxable income. For digital nomads with complex cross-border working arrangements, proper classification of employment and accurate record-keeping are essential to ensure the correct application of Salaries Tax rules.
Read: Foreigners’ Guide To Taxes For Expats In Hong Kong
Profits Tax For Freelance and Self-Employed Digital Nomads
Digital nomads who operate as freelancers, sole proprietors, or through a company may be subject to Hong Kong Profits Tax. As with Salaries Tax, the analysis is source-based. The key question is whether business profits arise in or are derived from Hong Kong.
When Profits Tax Is Charged
Profits Tax is charged when a person or entity is carrying on a business in Hong Kong and earns profits sourced from Hong Kong.
For freelance and self-employed digital nomads, this typically involves two elements:
- Whether the activities amount to carrying on a business in Hong Kong
- Whether the profits are sourced in Hong Kong based on established sourcing principles
Physical presence alone is not determinative. A digital nomad may manage clients remotely and travel frequently, but profits can still be taxable if the core income-producing activities take place in Hong Kong.
Two-Tiered Profits Tax Rates
Hong Kong applies a two-tiered Profits Tax regime, with different rates depending on the business structure.
For corporations:
- 8.25% on the first HKD 2,000,000 of assessable profits
- 16.5% on profits above HKD 2,000,000
For unincorporated businesses, such as sole proprietorships and partnerships:
- 7.5% on the first HKD 2,000,000 of assessable profits
- 15% on profits above HKD 2,000,000
Only one entity within a group can benefit from the two-tiered rates. The remaining profits, if any, are taxed at the standard rate.
Offshore vs Onshore Profits – IRD’s Source Tests
The IRD examines where profits are generated by the following tests:
1. Operations test
The IRD focuses on what activities produce the profits and where those activities are carried out. For example, if profits arise from consulting services, the location where the services are actually performed is highly relevant.
2. Decision-making location
Where key business decisions are made and where day-to-day management occurs may be taken into account, particularly for service-based and online businesses.
3. Antecedent and incidental activities
Activities that are preparatory or supportive, such as marketing or administration, are considered separately from the main profit-generating operations. These alone usually do not determine the source of profits.
4. Overseas business presence considerations
Having staff, offices, or operational substance outside Hong Kong can support an offshore claim, although the absence of overseas presence does not automatically mean profits are onshore.
The IRD assesses each case on its own facts, and no single factor is decisive.
FSIE Regime and Digital Nomads
Hong Kong’s Foreign-sourced Income Exemption (FSIE) regime may affect certain digital nomads operating through corporate structures. The FSIE regime does not change Hong Kong’s territorial tax system for active business income. It specifically targets defined categories of foreign-sourced passive income received in Hong Kong.
Under the FSIE rules, foreign-sourced dividends, interest, disposal gains, and income from intellectual property that are received in Hong Kong by a multinational enterprise (MNE) entity may be deemed taxable unless specific conditions are met.
These conditions may involve:
- Economic substance requirements
- Nexus requirements for intellectual property income
- Participation exemption conditions for certain passive income
The FSIE regime generally targets MNE entities rather than individuals or small independent freelancers. However, digital nomads operating through group structures should be aware of its potential impact. Given the technical nature of the rules, professional advice is recommended to assess applicability and compliance.
Read: A Guide To Hong Kong Foreign Sourced Income Exemption (FSIE)
Common Digital Nomad Scenarios and Hong Kong Tax Outcomes
Digital nomads often ask how Hong Kong tax rules apply in real-life working arrangements. While the principles are well established, outcomes can differ depending on employment structure, where services are rendered, and how business activities are organised. The scenarios below highlight common situations and their typical Hong Kong tax treatment.
Scenario 1 – Working Remotely for a Hong Kong Company
If you are employed by a Hong Kong company but perform your work remotely outside Hong Kong, Salaries Tax does not automatically apply to your full income.
Salaries Tax may still be charged if:
- You hold an office with the Hong Kong company, such as being a director
- Part of your services is rendered in Hong Kong during the year
Where substantial duties are performed outside Hong Kong, you may claim a partial or full exemption based on where services are actually rendered. Time spent working overseas is a key factor, and the IRD generally expects clear travel records and work schedules to support exemption claims.
The 60-day short visit exemption may also be relevant if time spent in Hong Kong is limited and the individual is not holding an office.
Scenario 2 – Living in Hong Kong While Working for a Non-Hong Kong Company
Digital nomads who live in Hong Kong while working remotely for a non-Hong Kong employer are commonly taxed on a time-apportionment basis.
If the employment is classified as non-Hong Kong employment under DIPN 10, only income attributable to services rendered in Hong Kong is chargeable. This is calculated using the days-in-days-out basis, which compares Hong Kong workdays to total working days in the year.
Even where a significant portion of income is exempt, filing obligations still apply. You are generally required to:
- File a Hong Kong Salaries Tax return
- Report full annual employment income
- Claim exemption for the non-Hong Kong portion based on time apportionment
Failure to file or maintain adequate records can lead to disputes with the IRD.
Scenario 3 – Owning a Hong Kong Company While Working Remotely
For digital nomads who own a Hong Kong company, tax exposure needs to be analysed at both the company level and the individual level.
At the company level, Profits Tax depends on whether the company’s profits arise in or are derived from Hong Kong. The IRD will examine where the core profit-generating activities take place, rather than where the owner is physically located.
At the individual level, salaries, director’s fees, or dividends received are assessed under the relevant tax rules. Salaries and director’s fees may be subject to Salaries Tax, while dividends are not taxable in Hong Kong.
The IRD determines profit source by reviewing factors such as:
- Where operations that generate profits are carried out
- Where key business decisions are made
- Whether there is substantive business activity outside Hong Kong
Other Taxes Digital Nomads Should Be Aware Of
In addition to Salaries Tax and Profits Tax, digital nomads may encounter other Hong Kong taxes depending on their income sources, asset ownership, and transaction activities. These taxes are often overlooked but can materially affect overall tax exposure if not properly managed.
Property Tax and Personal Assessment
1. Rental income from Hong Kong property
Rental income derived from property located in Hong Kong is generally chargeable to Property Tax, regardless of where the owner resides or works. This applies equally to digital nomads who live overseas but retain investment property in Hong Kong.
Key points to note:
- Property Tax is assessed on the net assessable value of the rental income
- Allowable deductions include rates paid and a statutory allowance for repairs and outgoings
- Nationality and physical presence in Hong Kong do not affect the tax charge
If rental income arises from Hong Kong property, it falls squarely within Hong Kong’s territorial tax system.
2. Personal Assessment
Individuals with more than one source of income may elect Personal Assessment, which aggregates income subject to Salaries Tax, Profits Tax, and Property Tax into a single assessment.
Personal Assessment may be beneficial where:
- You earn rental income and employment or business income in the same year
- Business losses can be offset against property income
- Personal allowances and progressive tax rates result in a lower overall tax liability
Election is not automatic and must be made in the annual tax return. A comparative calculation is usually required to determine whether Personal Assessment is advantageous.
Property Tax vs Personal Assessment
| Item | Property Tax | Personal Assessment |
| Income assessed | Rental income only | Aggregated income sources |
| Personal allowances | Not applicable | Applicable |
| Loss offset | Not allowed | Allowed (subject to rules) |
| Election required | No | Yes |
Read: Withholding Tax in Hong Kong
Withholding Tax in Hong Kong
No withholding tax on dividends or interest
Hong Kong does not impose withholding tax on dividends or interest. This is a major advantage for digital nomads with investment income linked to Hong Kong.
In practice:
- Dividends paid by Hong Kong companies are received gross
- Interest income is generally not subject to tax deduction at source
This simplifies cross-border income flows and enhances Hong Kong’s attractiveness as a base for remote entrepreneurs and investors.
Royalties for IP used in Hong Kong
Royalties are treated differently from dividends and interest. Where royalties are paid to non-residents for intellectual property used in Hong Kong, the income is deemed taxable under Hong Kong tax law.
Common implications are:
- A portion of the royalty is regarded as Hong Kong-sourced income
- The payer is required to withhold tax and remit it to the IRD
- This often affects software licensing, digital content, trademarks, and branding arrangements
Digital nomads operating IP-driven businesses should pay close attention to how and where their IP is used to manage potential withholding tax exposure.
Ad Valorem Stamp Duty (AVD)
Ad Valorem Stamp Duty (AVD) applies to residential and non-residential property transactions. AVD is calculated based on the consideration or market value of the property. Its applicable rates depend on the nature of the property and transaction. Digital nomads engaging in Hong Kong property transactions should still factor AVD into their cost planning and compliance obligations.
Reporting, Compliance, and Information Exchange
For digital nomads, tax exposure in Hong Kong is not determined by labels such as “resident” or “non-resident”, but by records and reporting. Proper compliance and documentation are essential, especially where offshore claims or cross-border income are involved.
1. Automatic Exchange of Information (CRS / AEOI)
Hong Kong participates in the Automatic Exchange of Information (AEOI) under the Common Reporting Standard (CRS). This framework allows tax authorities to exchange financial account information with reportable jurisdictions.
Financial institutions in Hong Kong are required to collect and report certain account information to the Inland Revenue Department (IRD), including:
- Account holder identification details
- Account balances or values
- Interest, dividends, and other investment income
The IRD then exchanges this information with overseas tax authorities in accordance with CRS rules and local legislation.
2. Why offshore income visibility matters
Many digital nomads assume that offshore income is ‘invisible’ or unreported to the Hong Kong tax authorities. In practice, CRS has significantly increased transparency.
This matters because:
- Offshore bank accounts may still be reported to the IRD
- Information may be shared with your home or other reportable jurisdictions
- Inconsistencies between reported income and tax filings can trigger enquiries
CRS does not create new taxes, but it increases enforcement. Accurate reporting and consistent documentation are therefore critical.
3. Record-Keeping Best Practices
Strong record-keeping is one of the most important compliance tools for digital nomads, particularly when claiming offshore income or time-based exemptions.
3.1 Tracking physical presence
Physical presence in Hong Kong is often a decisive factor for Salaries Tax and time apportionment claims. You should retain:
- Travel records and immigration entry and exit stamps
- Flight itineraries and boarding passes
- Accommodation records where relevant
These documents support claims under the 60-day visit exemption or days-in-days-out calculations.
3.2 Evidence of service location
Where services are rendered determines taxability. Supporting evidence may include:
- Work calendars showing where duties were performed
- Client contracts specifying service locations
- Email records or project management logs
This is especially relevant for remote employees and freelancers with mixed onshore and offshore activities.
3.3 Supporting offshore claims
For Profits Tax and offshore income positions, the IRD focuses on substance. Useful supporting documents include:
- Business process descriptions and workflows
- Records of where key decisions are made
- Evidence of overseas operations or counterparties
Clear and consistent documentation strengthens your position if the IRD requests clarification.
4. MPF Considerations for Employees
The Mandatory Provident Fund (MPF) is a separate compliance obligation from tax and can apply to digital nomads working as employees in Hong Kong.
4.1 When MPF obligations arise
MPF obligations generally arise when:
- You are employed under a Hong Kong employment contract
- You perform services in Hong Kong, even if partly remote
- The employment is not exempt under MPF rules
Short-term or overseas employment arrangements may qualify for exemptions, but this depends on specific facts.
4.2 Employer vs employee responsibilities
MPF compliance involves both parties:
- Employers are responsible for enrolment, ongoing contributions, and reporting
- Employees contribute a mandatory portion of relevant income, subject to statutory caps
Failure to comply with MPF requirements can result in penalties, even where tax exposure is limited or nil. For digital nomads transitioning into Hong Kong-based employment, MPF obligations should be reviewed alongside Salaries Tax exposure to ensure full compliance.
Setting Up A Hong Kong Company As A Digital Nomad
For many digital nomads, setting up a Hong Kong company provides a flexible and internationally recognised business platform. Hong Kong company law allows remote founders to incorporate and manage companies without relocating, but this convenience comes with clear compliance and banking requirements that should be understood upfront.
1. No Physical Presence Required for Incorporation
Hong Kong does not require directors or shareholders to be physically present in the city to incorporate a company. Key points for digital nomads are
- 100% foreign ownership is permitted
- Directors and shareholders can be non-Hong Kong residents
- There is no statutory requirement to maintain a physical office
- The company can be managed remotely
From a tax perspective, incorporation alone does not create tax liability. Whether Profits Tax applies depends on where profit-generating activities are carried out, not where the company is registered.
2. Online Registration Process
Company incorporation in Hong Kong is conducted through the Companies Registry e-Services portal, allowing the entire process to be completed remotely.
The standard incorporation process includes:
- Selecting and reserving a company name
- Preparing incorporation documents
- Appointing at least one director and shareholder
- Appointing a Hong Kong–licensed company secretary
- Providing a Hong Kong registered office address
Once approved, the company will receive:
- A Certificate of Incorporation
- A Business Registration Certificate
These documents allow the company to operate legally and meet statutory filing requirements.
3. Banking KYC Realities for Remote Founders
While incorporation can be completed fully online, bank account opening is a separate and more stringent process.
Banks in Hong Kong apply strict Know Your Customer (KYC) and anti-money laundering requirements. Digital nomads should be aware that:
- Bank approval is not guaranteed
- Detailed information on business activities and expected transactions is required
- Banks assess substance, risk profile, and source of funds
- Additional interviews or documentation may be requested
Importantly, banks conduct their own due diligence independently of the Companies Registry. Having a Hong Kong company does not automatically mean a bank account will be approved.
Common Mistakes Digital Nomads Make With Hong Kong Tax
Hong Kong’s territorial tax system is often seen as digital-nomad friendly, but misunderstandings are common. The following mistakes frequently lead to unexpected tax exposure or compliance issues for remote workers and founders.
Assuming “No Residency = No Tax”
A major misconception is that Hong Kong tax only applies to residents or long-term stayers.
In practice:
- Hong Kong does not apply a general 183-day tax residency rule
- Tax liability depends on where income arises or is derived, not residency status
- Services rendered in Hong Kong, even during short stays, may still be relevant
While the 60-day visit exemption can apply to Salaries Tax, it does not eliminate tax exposure in all situations, especially for business owners or directors.
Ignoring Filing Obligations
Many digital nomads assume that if no tax is payable, no filing is required. This is incorrect.
Common scenarios where filing is still required include:
- Claiming the 60-day visit exemption
- Reporting time-apportioned income under non-Hong Kong employment
- Submitting Profits Tax returns with offshore profit claims
Failing to file required returns may result in penalties, surcharges, or IRD enquiries, even if the final tax payable is nil.
Poor Documentation of Offshore Activities
Hong Kong allows offshore income claims, but the burden of proof rests with the taxpayer. Weak documentation is one of the most common reasons offshore claims fail.
The IRD may request evidence such as:
- Travel records showing where services were rendered
- Contracts and invoices indicating service locations
- Proof of where management and business decisions took place
| Area | Common issue |
| Travel records | Missing or incomplete entry and exit evidence |
| Service delivery | No logs showing work location |
| Management | Unclear decision-making trail |
| Contracts | No geographic scope defined |
Mixing Personal and Company Income
Digital nomads operating through a Hong Kong company often blur the line between personal and corporate finances. Common mistakes include:
- Paying personal expenses from the company bank account
- Treating company profits as personal income without proper salary or dividend declarations
- Inconsistent bookkeeping between personal and business transactions
This can create issues with:
- Profits Tax and Salaries Tax assessments
- Bank reviews and KYC monitoring
- Ongoing compliance and audit readiness
When To Seek Professional Advice
Hong Kong’s territorial tax system is relatively simple, but digital nomads often face complex situations where professional advice becomes important. This is especially true when income, activities, or structures span multiple jurisdictions.
Cross-Border Income and Double Taxation Risks
Digital nomads frequently earn income connected to more than one country. While Hong Kong taxes income based on source, other jurisdictions may apply residence-based taxation. Professional advice is recommended if:
- You work across several countries within the same year
- Income may be regarded as taxable both in Hong Kong and overseas
- You need to assess potential double taxation exposure
Although Hong Kong has a network of comprehensive double taxation agreements, applying treaty relief correctly requires careful analysis of facts and documentation.
FSIE Exposure for Companies and Groups
The refined Foreign-sourced Income Exemption (FSIE) regime can affect digital nomads who operate through Hong Kong companies, particularly those linked to multinational group structures.
Advice should be sought where:
- Foreign-sourced dividends, interest, disposal gains, or IP income are received in Hong Kong
- Economic substance, nexus, or participation conditions may apply
- The company is part of a broader group with overseas operations
Incorrect assumptions under the FSIE rules can lead to unexpected Profits Tax liabilities.
Employment vs Contractor Classification
Misclassifying working arrangements is a common risk area. Professional guidance is advisable if:
- You work for overseas clients while spending time in Hong Kong
- Your role sits between employment and independent contracting
- You are both a shareholder and service provider to a Hong Kong company
The Inland Revenue Department examines substance over labels. Incorrect classification can affect Salaries Tax, Profits Tax, MPF exposure, and filing obligations.
Long-Term Structuring Considerations
As digital nomads scale their income or settle into longer-term arrangements, early structuring decisions can have lasting tax and compliance consequences.
Professional advice is particularly valuable when:
- Transitioning from freelance work to a Hong Kong company structure
- Planning remuneration through salary, director’s fees, or dividends
- Managing personal income alongside business or property income
Conclusion
Hong Kong can be tax-efficient in certain digital nomad structures, but it is not tax-free by default. Whether income is taxable depends on where services are rendered and where profit-generating activities take place, not on nationality or a simple day-count test. Correct classification of income, strong documentation, and timely filing are essential to managing compliance risk. At its core, understanding Hong Kong’s source-based tax rules is the foundation of lawful and sustainable tax planning for digital nomads working across borders.
How FastLane Group Can Help
FastLane Group supports digital nomads and remote founders in structuring and operating compliant Hong Kong businesses, with services covering company incorporation, accounting, bookkeeping, and licensed company secretarial support. Contact us now!
FAQs – Digital Nomads and Hong Kong Tax
1. Does Hong Kong have a digital nomad visa?
Hong Kong does not currently offer a dedicated digital nomad visa. Some individuals explore alternative options such as the Quality Migrant Admission Scheme (QMAS) or Entry for Investment as Entrepreneurs, subject to eligibility and approval. Immigration status and tax treatment are assessed separately.
2. Is there a self-employment tax in Hong Kong?
No. Hong Kong does not have a separate “self-employment tax.”
Instead:
- Employment income is assessed under Salaries Tax
- Freelancers, sole proprietors, and businesses are assessed under Profits Tax
- Property rental income is assessed under Property Tax
Self-employed digital nomads are generally subject to Profits Tax at the two-tiered rates.
3. Do I need to live in Hong Kong to run a Hong Kong company?
No. Directors and shareholders are not required to be physically present in Hong Kong to incorporate or operate a Hong Kong company. Incorporation can be completed remotely, although banks will conduct their own KYC and onboarding reviews.




