Crypto tax in Hong Kong S.A.R.
How is cryptocurrency taxed in Hong Kong S.A.R.?
Cryptocurrency is exempt from tax in Hong Kong S.A.R., with a specific exemption for long-term holdings.
Common questions
- Are there capital gains taxes on crypto in Hong Kong S.A.R.?
- No, cryptocurrency is exempt from tax in Hong Kong S.A.R. This includes long-term holdings.
- What is the Hong Kong S.A.R. tax system?
- Hong Kong S.A.R. operates a territorial tax system, meaning only locally sourced profits are taxed.
Hong Kong S.A.R. is crypto-friendly.
Treatment
not taxed
Long-term
Tax-free
Headline rate
0%
For an individual relocating to Hong Kong and holding or occasionally trading crypto on a private investment basis, disposal gains are generally not taxed because Hong Kong has no capital gains tax and such gains are usually treated as non‑taxable capital rather than income.
““Gains or losses arising from the disposal of capital assets are not chargeable to profits tax.” and “Where a person purchases and sells securities (including, where applicable, digital tokens) as a private investment, the profits arising therefrom are capital in nature and not chargeable to profits tax. Whether a person is carrying on a trade in securities is a question of fact, to be determined having regard to the frequency, level of organization and reasons for the transactions and other relevant factors.”” — Inland Revenue Department, Hong Kong SAR Government
Reflects the treatment of an individual's crypto disposals. Estimate — confirm against the linked source. See methodology.