Hong Kong's Property Rates Concessions: Eligibility and Application Process
Key Facts at a Glance
- No Application Required: Concessions apply automatically to all rateable properties
- 2024-25 Concession: Up to HK$1,000 for Q1 (April-June 2024) only
- 2025-26 Concession: Up to HK$500 for Q1 (April-June 2025) only
- Universal Coverage: Applies to ALL properties (domestic and non-domestic)
- No Eligibility Criteria: All property owners and occupiers benefit automatically
- Multiple Properties: Each property receives a separate concession
- Rates Only: Concession applies to rates, NOT government rent
- Vacant Properties: Also eligible for concessions
What Are Property Rates Concessions?
Property rates concessions are temporary reductions in the rates payable on properties in Hong Kong. They are announced by the Financial Secretary as part of the annual Budget Speech, typically delivered in February each year. These concessions are designed to provide financial relief to property owners and occupiers during specific quarters.
The concessions are administered by the Rating and Valuation Department (RVD) and are reflected directly in the quarterly demand notes sent to ratepayers.
Rates vs. Government Rent: Understanding the Difference
It's crucial to understand that property rates concessions apply only to rates, not to government rent:
- Rates: A tax levied on properties based on their rateable value, currently charged at 5% per annum
- Government Rent: A charge payable by property owners, typically 3% of rateable value for most properties
Current and Recent Concessions
2025-26 Financial Year
The 2025-26 Budget announced a rates concession of up to HK$500 for the first quarter only (April to June 2025). This represents a decrease from previous years, reflecting the government's fiscal position.
2024-25 Financial Year
The 2024-25 Budget provided a rates concession of up to HK$1,000 for the first quarter only (April to June 2024).
Historical Rates Concessions (2020-2026)
The following table shows the rates concessions announced in recent years, demonstrating how the relief measures have evolved, particularly during and after the COVID-19 pandemic:
| Financial Year | Concession Amount | Quarters Covered | Total Annual Relief | Context |
|---|---|---|---|---|
| 2020-21 | Up to HK$5,000 | All 4 quarters | Up to HK$20,000 | COVID-19 pandemic relief |
| 2021-22 | Up to HK$5,000 | All 4 quarters | Up to HK$20,000 | Continued pandemic support |
| 2022-23 | Up to HK$1,000 | All 4 quarters | Up to HK$4,000 | Gradual reduction as economy recovered |
| 2023-24 | Up to HK$1,000 | All 4 quarters | Up to HK$4,000 | Continued support |
| 2024-25 | Up to HK$1,000 | Q1 only (Apr-Jun) | Up to HK$1,000 | Reduced coverage to 1 quarter |
| 2025-26 | Up to HK$500 | Q1 only (Apr-Jun) | Up to HK$500 | Further reduction in relief |
Eligibility: Who Qualifies?
One of the most important aspects of Hong Kong's property rates concessions is their universal application. There are no eligibility criteria to meet, no income tests, and no restrictions based on property type or ownership status.
Key Eligibility Points
- All Properties Qualify: Both domestic (residential) and non-domestic (commercial, industrial) properties receive concessions
- No Income Test: Your personal or household income is irrelevant
- Owner or Occupier: Whether you own or rent the property, you benefit (the person liable for rates receives the concession)
- Multiple Properties: If you own or are liable for rates on multiple properties, each property receives its own separate concession
- Vacant Properties: Even if your property is empty, it still qualifies for the concession
- Property Value: No maximum or minimum rateable value restrictions
- Nationality: Your citizenship or residency status doesn't matter
Application Process: How to Claim
Here's the most important information about "applying" for rates concessions:
You Don't Need to Apply
The rates concession is applied automatically by the Rating and Valuation Department. There is no application form, no deadline to meet, and no administrative process required from ratepayers.
How Concessions Are Applied: Step-by-Step
-
Budget Announcement
The Financial Secretary announces rates concessions in the annual Budget Speech (usually in February). The announcement specifies the concession amount and which quarters it covers.
-
RVD Processes the Concession
The Rating and Valuation Department updates its systems to automatically apply the concession to all rateable properties for the specified quarters.
-
Demand Notes Issued
Quarterly demand notes are sent to ratepayers showing the rates payable AFTER the concession has been deducted. The demand note clearly shows the concession amount.
-
Automatic Deduction
If your quarterly rates are less than or equal to the concession cap, your rates payable for that quarter will be $0. If your rates exceed the cap, you pay the difference.
-
Payment (If Required)
You only pay the amount shown on the demand note after the concession has been applied. If it shows $0 for rates (you may still owe government rent), no payment is needed for the rates portion.
Practical Examples: How Concessions Work
Example 1: Small Flat - Rates Fully Covered (2024-25 Q1)
Property: Small residential flat with rateable value of HK$60,000
Quarterly Rates = HK$3,000 ÷ 4 = HK$750
Q1 (April-June 2024):
Rates before concession: HK$750
Concession (up to HK$1,000): -HK$750
Rates payable: HK$0
Government Rent (still payable): HK$60,000 × 3% ÷ 4 = HK$450
Total Q1 payment: HK$450 (government rent only)
Result: The entire quarterly rates are covered by the concession. You only pay government rent.
Example 2: Luxury Apartment - Partial Concession (2024-25 Q1)
Property: Luxury flat with rateable value of HK$120,000
Quarterly Rates = HK$6,000 ÷ 4 = HK$1,500
Q1 (April-June 2024):
Rates before concession: HK$1,500
Concession (up to HK$1,000): -HK$1,000
Rates payable: HK$500
Government Rent: HK$120,000 × 3% ÷ 4 = HK$900
Total Q1 payment: HK$1,400
Result: The concession reduces the rates by HK$1,000, but you still pay HK$500 in rates plus the full government rent.
Example 3: Comparison Across Quarters (2024-25)
Property: Mid-range flat with rateable value of HK$80,000
Quarterly Rates = HK$4,000 ÷ 4 = HK$1,000
Quarterly Government Rent = HK$80,000 × 3% ÷ 4 = HK$600
Q1 (Apr-Jun 2024) - With HK$1,000 Concession:
Rates: HK$1,000 - HK$1,000 = HK$0
Government Rent: HK$600
Total: HK$600
Q2, Q3, Q4 (Jul 2024-Mar 2025) - No Concession:
Rates: HK$1,000
Government Rent: HK$600
Total: HK$1,600 (per quarter)
Result: You save HK$1,000 in Q1, but pay full rates for the remaining three quarters of the year.
Example 4: Multiple Properties (2025-26 Q1)
Scenario: Owner with 3 properties
Quarterly Rates = HK$40,000 × 5% ÷ 4 = HK$500
Concession: HK$500
Rates Payable: HK$0
Property B (Residential Flat): RV HK$70,000
Quarterly Rates = HK$70,000 × 5% ÷ 4 = HK$875
Concession: HK$500 (maximum cap)
Rates Payable: HK$375
Property C (Office): RV HK$30,000
Quarterly Rates = HK$30,000 × 5% ÷ 4 = HK$375
Concession: HK$375
Rates Payable: HK$0
Total Savings Across 3 Properties: HK$1,375
Result: Each property receives its own HK$500 concession cap, providing greater total savings for multiple property owners.
What If I've Already Paid?
In most cases, the concession is reflected in your demand note before you make payment, so this isn't an issue. However, if you've overpaid for any reason:
- Concessions are NOT refundable in cash if you've already paid the full amount before the concession was applied
- However, you can apply for an adjustment to your account
- The overpayment can be credited toward future quarters' rates
- Contact the Rating and Valuation Department to request an adjustment
How to Request 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
- Mail: Write to the Rating and Valuation Department
Understanding Your Demand Note
Your quarterly demand note will show:
- The full rates amount before concession
- The rates concession deducted (if applicable for that quarter)
- The net rates payable after concession
- The government rent (unaffected by concession)
- The total amount due
Frequently Asked Questions
Important Reminders
- Concessions Vary by Year: Don't assume the same concession will apply every year. Always check the latest Budget announcement.
- Concessions are NOT Grants: They reduce what you owe; they don't provide cash refunds.
- Government Rent is Separate: You still must pay government rent in full, even with a rates concession.
- Check Your Demand Note: Verify that the concession has been properly applied each quarter.
- Quarter-Specific: Recent concessions only apply to specific quarters (e.g., Q1 only), not the full year.
Contact Information
If you have questions about your rates, concessions, or demand notes:
- Rating and Valuation Department Website: www.rvd.gov.hk
- General Enquiry Hotline: 2152 0111
- Email: [email protected]
- Office Hours: Monday to Friday, 8:45 AM - 6:00 PM (except public holidays)
Key Takeaways
- Hong Kong's property rates concessions are automatic - no application required
- The 2025-26 concession is up to HK$500 for Q1 (April-June 2025) only, down from HK$1,000 in 2024-25
- All properties qualify - residential, commercial, vacant, or occupied
- Multiple property owners receive separate concessions for each property
- Concessions apply to rates only, not government rent
- If quarterly rates are less than the concession cap, you pay HK$0 in rates for that quarter
- Historical concessions during COVID-19 (2020-2022) were significantly higher at HK$5,000 per quarter
- The concession is reflected directly in your quarterly demand note from the RVD
- No eligibility criteria - all ratepayers benefit regardless of income, property value, or status
- Always verify the concession has been applied by checking your demand note carefully
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