A Hong Kong residence recently sold for an estimated $86 million, but somehow, the owner has avoided paying any taxes on the property. Using a method in which an offshore company in whose name the property is registered, the buyer was able to avoid any local taxes. This sale is the latest example of how the ultra rich of Hong Kong are finding legal ways to attain high-priced properties in the world’s least affordable city. Hong Kong recently announced new restrictions that raise the base stamp duty to 15% for all first-time homebuyers. However, under their own rules, buyers using an offshore shell company do not have to pay any taxes.
See Frederik Balfour, Hong Kong Seaside Mansion Buyer Dodges $13M in Taxes, Private Wealth, January 10, 2017.
