Did you know that as a Hong Kong property owner or occupier, you could be saving hundreds or even thousands of dollars each year without lifting a finger? Hong Kong’s property rates concessions are one of the most straightforward tax relief measures available, applying automatically to every rateable property across the territory. Whether you own a modest flat, a luxury apartment, or a commercial space, understanding how these concessions work can help you maximize your savings and better manage your property expenses.

What Are Property Rates Concessions?

Property rates concessions are temporary reductions in the rates payable on properties in Hong Kong. Announced annually by the Financial Secretary during the Budget Speech (typically in February), these concessions provide financial relief to property owners and occupiers during specific quarters. The Rating and Valuation Department (RVD) administers these concessions, which are automatically reflected in your quarterly demand notes.

Rates vs. Government Rent: Crucial Distinction

Understanding the difference between rates and government rent is essential for property owners:

• Rates: A tax levied on properties based on their rateable value, currently charged at 5% per annum. This is what gets the concession.
• Government Rent: A charge payable by property owners, typically 3% of rateable value for most properties. This is NOT affected by the concession.

Current and Historical Concessions

The government adjusts rates concessions annually based on fiscal conditions and economic priorities. Here’s what you need to know about current and recent concessions:

2025-26 Financial Year

The 2025-26 Budget announced a rates concession of up to HK$500 for the first quarter only (April to June 2025). This represents a decrease from the previous year, reflecting the government’s current fiscal position.

2024-25 Financial Year

The 2024-25 Budget provided a rates concession of up to HK$1,000 for the first quarter only (April to June 2024).

Historical Rates Concessions (2020-2026)

Eligibility: Who Qualifies?

One of the most important aspects of Hong Kong’s property rates concessions is their universal application. There are no eligibility criteria to meet, no income tests, and no restrictions based on property type or ownership status.

Key Eligibility Points

• All Properties Qualify: Both domestic (residential) and non-domestic (commercial, industrial) properties receive concessions
• No Income Test: Your personal or household income is irrelevant
• Owner or Occupier: Whether you own or rent the property, you benefit (the person liable for rates receives the concession)
• Multiple Properties: If you own or are liable for rates on multiple properties, each property receives its own separate concession
• Vacant Properties: Even if your property is empty, it still qualifies for the concession
• Property Value: No maximum or minimum rateable value restrictions
• Nationality: Your citizenship or residency status doesn’t matter

Application Process: How It Works

Here’s the most important information about “applying” for rates concessions:

You Don’t Need to Apply

The rates concession is applied automatically by the Rating and Valuation Department. There is no application form, no deadline to meet, and no administrative process required from ratepayers.

How Concessions Are Applied: Step-by-Step

1. Budget Announcement: The Financial Secretary announces rates concessions in the annual Budget Speech (usually in February). The announcement specifies the concession amount and which quarters it covers.
2. RVD Processes the Concession: The Rating and Valuation Department updates its systems to automatically apply the concession to all rateable properties for the specified quarters.
3. Demand Notes Issued: Quarterly demand notes are sent to ratepayers showing the rates payable AFTER the concession has been deducted. The demand note clearly shows the concession amount.
4. Automatic Deduction: If your quarterly rates are less than or equal to the concession cap, your rates payable for that quarter will be $0. If your rates exceed the cap, you pay the difference.
5. Payment (If Required): You only pay the amount shown on the demand note after the concession has been applied. If it shows $0 for rates (you may still owe government rent), no payment is needed for the rates portion.

Practical Examples: How Concessions Work in Real Life

Example 1: Small Flat – Rates Fully Covered (2024-25 Q1)

Property: Small residential flat with rateable value of HK$60,000

Result: The entire quarterly rates are covered by the concession. You only pay government rent.

Example 2: Luxury Apartment – Partial Concession (2024-25 Q1)

Property: Luxury flat with rateable value of HK$120,000

Result: The concession reduces the rates by HK$1,000, but you still pay HK$500 in rates plus the full government rent.

Example 3: Multiple Properties (2025-26 Q1)

Scenario: Owner with 3 properties

Result: Each property receives its own HK$500 concession cap, providing greater total savings for multiple property owners.

What If I’ve Already Paid?

In most cases, the concession is reflected in your demand note before you make payment, so this isn’t an issue. However, if you’ve overpaid for any reason:

• Concessions are NOT refundable in cash if you’ve already paid the full amount before the concession was applied
• However, you can apply for an adjustment to your account
• The overpayment can be credited toward future quarters’ rates
• Contact the Rating and Valuation Department to request an adjustment

How to Request an Adjustment

• Online: Via the RVD website (www.rvd.gov.hk)
• Phone: Call the RVD hotline at 2152 0111
• In Person: Visit any RVD office
• Mail: Write to the Rating and Valuation Department

Understanding Your Demand Note

Your quarterly demand note will show:

• The full rates amount before concession
• The rates concession deducted (if applicable for that quarter)
• The net rates payable after concession
• The government rent (unaffected by concession)
• The total amount due

Frequently Asked Questions

Q1: Do I need to apply for the rates concession?

No. The rates concession is applied automatically by the Rating and Valuation Department to all rateable properties. You don’t need to submit any application, form, or documentation.

Q2: I rent my apartment. Can I benefit from the rates concession?

It depends on who is liable for paying the rates. Typically, the property owner pays rates, so they receive the benefit. However, if your tenancy agreement states that you (the tenant) are responsible for rates, then you’ll benefit from the concession when you pay the rates.

Q3: I own multiple properties. Do I get multiple concessions?

Yes. Each rateable property receives its own separate concession. If you own 5 properties, each one gets the concession applied to its quarterly rates.

Q4: Does the concession apply to government rent?

No. The rates concession applies only to rates, not to government rent. You must still pay the full government rent amount shown on your demand note.

Q5: My property is vacant. Do I still get the concession?

Yes. The concession applies to all rateable properties regardless of whether they are occupied or vacant.

Q6: What happens if my quarterly rates are less than the concession amount?

If your quarterly rates are less than or equal to the concession cap (e.g., HK$500 for 2025-26 Q1), your rates payable for that quarter will be HK$0. The concession covers the full amount. However, you cannot receive a cash refund for any “unused” portion of the concession.

Q7: When is the rates concession announced each year?

Rates concessions are typically announced by the Financial Secretary during the annual Budget Speech, which is usually delivered in February. The concession details are then implemented by the Rating and Valuation Department.

Q8: Will there be a rates concession in all four quarters?

Not necessarily. Recent budgets (2024-25 and 2025-26) have only provided concessions for the first quarter. During the COVID-19 pandemic, concessions were given for all four quarters. The coverage depends on the government’s fiscal position and policy priorities each year.

Hong Kong’s property rates concessions represent one of the most straightforward and universally accessible tax relief measures available to property owners and occupiers. While the concession amounts have decreased from their pandemic-era highs, they still provide meaningful savings for thousands of households and businesses across the territory. Remember to check your quarterly demand notes carefully, understand that government rent remains payable in full, and stay informed about annual Budget announcements to anticipate future concession amounts. For specific questions about your property’s rates or concession application, contact the Rating and Valuation Department directly.