Hong Kong has a very lenient system of taxation. The rates are
low and tax is charged only on income which has a Hong Kong source.
Capital gains are not subject to tax and there is no inheritance
tax or estate duty. Very few developed countries offer such a
lenient system. There are places which charge no tax whatsoever.
Residents of the Bahamas, Turks & Caicos Islands, Monaco and
other small island states charge no tax whatsoever but living there
is challenging and facilities are limited. In other areas of the
world such as Gibraltar it's possible to reside on the basis
that you will pay a maximum amount of tax of GBP22,000 per year
irrespective of your worldwide income. A great deal but again
living conditions are not to everybody's taste. If you move
away from Hong Kong, and my do on retirement or after the end of
their contracts, you are likely to face a different system of
taxation with much higher rates. The most popular destinations are
the US, Canada, Australia
