Global investors prefer investing in Hong Kong

Hong Kong has emerged as one of the leading destinations in the world for global investors. Foreign entrepreneurs have also been entering the city all the time and going for Hong Kong incorporation of a new company. While Hong Kong is recognized as a leading global business hub, it also has some extremely business friendly laws because of which investors are always attracted to this special administrative region of the People’s Republic of China.

Firstly investors prefer setting up a Hong Kong offshore company as there is the territorial system of taxation in Hong Kong whereby any income which is sourced from outside the city is completely tax free even if that income is brought inside Hong Kong.

The next big advantage for investors especially for those who invest in real estate is the fact that there are no capital gains taxes in Hong Kong. Also given the scarcity of land in this city and the density of its population, real estate is always in demand and fetch good returns to those investors who can stay invested for a few years. Given that there are no capital gains taxes, the profit from sale of real estate is also completely tax free.