Ultra-Rich Save Millions Exploiting Hong Kong Home Loophole
- At least $1.2 billion in tax lost since 2010: researcher
- Luxury sales via shell companies reached 27% in 2018
When Pan Sutong, the billionaire chairman of Hong Kong investment conglomerate Goldin Group, splashed out a reported HK$2.5 billion ($318 million) for a home in the exclusive enclave of Deep Water Bay last year, he saved himself a cool HK$370 million in tax.
How? The three-story mansion with swimming pool was held via a shell company, meaning the purchase incurred just 0.2 percent in stamp duty. Assuming Pan, a permanent Hong Kong resident, already owns property there, he would have paid a 15 percent levy in a regular transaction.