Hong Kong Property Tax Reduction: Eligibility and Application Process

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Eligibility: Who Qualifies?

The most important feature of the Hong Kong property rates concession is its universality. There are no specific eligibility criteria, no means tests required, and no restrictions on property types or ownership status.

Key Eligibility Points

• All properties are eligible: Both domestic and non-domestic properties (commercial, industrial) are eligible for the concession.
• No means test: Your personal or household income has no bearing on eligibility for the concession.
• Owners or occupiers: Whether you are an owner or a tenant, as long as you are legally liable to pay rates, you are entitled to the benefit.
• Multiple properties: If you own or are liable to pay rates for multiple properties, each property is eligible for the concession independently.
• Vacant properties: Even if a property is vacant, it remains eligible for the concession.
• Property value: There is no upper or lower limit on the rateable value.
• Nationality: Your citizenship or residency status does not affect eligibility.

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Application Process: How Does It Work?

Regarding "applying" for the rates concession, here is the most crucial information:

You Do Not Need to Apply

The rates concession is automatically applied by the Rating and Valuation Department. Ratepayers do not need to fill out application forms, meet any deadlines, or complete any administrative procedures.

How the Concession is Implemented: Step-by-Step Guide

1. Budget Announcement: The Financial Secretary announces the rates concession arrangements in the annual Budget (usually in February), including the concession amount and applicable quarters.
2. Processing by RVD: The Rating and Valuation Department (RVD) updates its system to automatically apply the concession to the designated quarters for all rateable properties.
3. Issuance of Demand Notes: Quarterly demand notes are sent to payers, showing the net rates payable after deducting the concession, with the concession amount clearly itemized.
4. Automatic Deduction: If your rates amount for the quarter is equal to or less than the concession ceiling, the rates payable for that quarter will be HK$0. If the rates amount exceeds the ceiling, you only need to pay the difference.
5. Payment (if applicable): You only need to pay the net amount shown on the demand note after the concession deduction. If the rates portion shows HK$0 (you may still need to pay Government rent), no rates payment is required.

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Illustrative Examples: How Concessions Work in Practice

Example 1: Small Unit – Full Rates Concession (Q1 2024-25)

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

Result: The rates for the entire quarter are fully waived; you only need to pay the Government rent.

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

Property: Luxury residential unit with a rateable value of HK$120,000

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

Example 3: Owning Multiple Properties (Q1 2025-26)

Scenario: An owner with three properties

Result: Each property is independently entitled to the HK$500 concession cap, bringing greater overall savings to owners of multiple properties.

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What If I Have Already Made the Payment?

In most cases, this issue does not arise because the concession is already reflected on your demand note before you pay. However, if you have overpaid for any reason:

• If you paid the full amount before the concession was implemented, the concession amount will not be refunded in cash.
• However, you can apply for an adjustment to your account.
• The overpaid amount can be used to offset rates payable for future quarters.
• Please contact the Rating and Valuation Department to request an adjustment.

How to Apply for 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
• By Post: Write to the Rating and Valuation Department

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Understanding Your Demand Note

Your quarterly Demand for Rates and Government Rent will show:

• Gross rates before concession
• Rates concession deducted (if applicable for the quarter)
• Net rates payable after concession
• Government rent (not affected by the concession)
• Total amount due

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Frequently Asked Questions (FAQ)

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

No. The rates concession is automatically applied by the Rating and Valuation Department (RVD) to all rateable properties. You do not need to submit any application, form, or document.

Q2: I am renting a property, can I benefit from the rates concession?

This depends on who is legally responsible for paying the rates. Usually, the property owner is responsible for paying rates and will therefore receive the concession. However, if your tenancy agreement specifies that you (the tenant) are responsible for paying the rates, you will benefit from the concession when paying the rates.

Q3: I own multiple properties, can I receive multiple concessions?

Yes. Each rateable property is entitled to the concession independently. If you own 5 properties, the quarterly rates for each property will be deducted by the concession amount.

Q4: Does the concession apply to Government rent?

No. The rates concession applies only to rates and does not apply to Government rent. You are still required to pay the full amount of Government rent shown on the demand note.

Q5: My property is vacant, can I still receive the concession?

Yes. The concession applies to all rateable properties, regardless of whether they are occupied or not.

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

If your quarterly rates are equal to or less than the concession cap (e.g., HK$500 for the first quarter of 2025-26), the rates payable for that quarter will be HK$0. The concession will cover the rates amount in full. However, any "unused" balance of the concession will not be refunded in cash.

Q7: When is the annual rates concession announced?

The rates concession is typically announced by the Financial Secretary in the annual Budget (usually delivered in February). The details are subsequently implemented by the Rating and Valuation Department.

Q8: Is the concession provided across all four quarters?

Not necessarily. Recent budgets (2024-25 and 2025-26) provided concessions for the first quarter only. During the COVID-19 pandemic, concessions were applied to all four quarters. The scope of application depends on the Government's fiscal position and policy priorities each year.

Property rates concession in Hong Kong is one of the most straightforward and widespread tax relief measures, benefiting a broad range of property owners and occupiers. Although the concession amount has been reduced from its pandemic-era peak, it still provides tangible savings for thousands of households and businesses across Hong Kong. Please remember to carefully check your quarterly demand notes, understand that government rent must still be paid in full, and pay attention to the annual Budget announcements to stay informed about future concession arrangements. If you have specific questions regarding your property's rates or the application of concessions, please contact the Rating and Valuation Department directly.