Hong Kong property recovery faces new risk as China widens offshore tax net

Hong Kong’s property recovery could face a fresh test if China’s expanding crackdown on offshore wealth extends beyond insurance returns to property income, potentially curbing mainland demand for homes and adding pressure to decentralised office markets, according to analysts. The immediate issue is a reported 20 per cent personal income tax on certain returns earned by mainland residents from offshore assets, including gains from Hong Kong insurance policies. While the levy does not currently...