Hong Kong Budget 2025-2026: Insights For Businesses, Expats, And Investors

The Hong Kong Budget 2025-2026 lays a strategic foundation for recovery, growth, and sustainability in the face of an evolving global economic landscape. With targeted investments, prudent fiscal policies, and initiatives to support businesses, this budget offers an exciting roadmap for enterprises and entrepreneurs operating in or considering Hong Kong as a base.

Let’s explore the key takeaways and understand what this means for you.

Hong Kong fiscal overview

The 2025-2026 Budget reflects a pragmatic approach to managing Hong Kong’s public finances amidst global challenges. The government forecasts a consolidated deficit of HK$67 billion for the fiscal year, improving from last year’s estimate of HKD 87.2 billion. Fiscal reserves are projected to remain robust at HK$47.4 billion by March 2025, reinforcing Hong Kong’s financial stability.

Stringent expenditure controls and a gradual return to surplus are part of the government’s fiscal consolidation program. Operating accounts are expected to show a surplus by 2026-2027, highlighting the administration’s commitment to long-term economic health.

Tax support measures to reduce financial pressure

Hong Kong businesses can expect much-needed tax relief in the coming assessment year. Here’s what the tax support looks like for 2024/25:

• 100% reduction in profits tax, capped at HK$1,500 per business.
• 100% reduction in salaries tax and tax under personal assessment, also capped at HK$1,500 per taxpayer.
• Property rates concession of up to HK$500 for domestic and non-domestic properties in the first quarter of 2025/26.

These measures provide financial breathing room for small and medium enterprises (SMEs), helping them tackle rising costs.

For multinational enterprises (MNEs), however, the introduction of a global minimum tax rate of 15% (affecting groups with annual consolidated revenue of at least EUR750 million) may increase compliance complexities. This includes the Hong Kong minimum top-up tax, building upon the groundwork laid by the 2024 Budget.

Empowering Small and Medium Enterprises (SMEs)

SMEs are a critical pillar of Hong Kong’s economy, and the 2025-2026 Budget recognizes their importance with tailored support:

Introducing the E-commerce Express Program

The Budget has launched the “E-commerce Express” program to boost Hong Kong’s rapidly growing e-commerce sector. Led by the Hong Kong Trade Development Council (HKTDC) in partnership with major digital commerce platforms, the program aims to empower local businesses.

Eligible SMEs can access valuable resources, including personalized consultations and specialized seminars, to help them maximize their e-commerce potential. A key focus of the initiative is assisting local companies in entering mainland China’s thriving online shopping market.

For startups and expanding businesses looking to grow their revenue through e-commerce, this program provides a solid foundation for long-term success.

Enhanced funding for global expansion

The 2025-2026 Budget strengthens financial support for businesses targeting global markets. Among the highlights:

Dedicated fund on Branding, Upgrading and Domestic sales (BUD Fund)

• The funding cap per enterprise has been increased to HK$7 million.
• Designed to help businesses enhance branding, upgrade operations, and explore domestic sales opportunities in mainland China and beyond.

Export Marketing and Trade and Industrial Organisation Support Fund

• Covers up to 90% of approved project costs, with a maximum funding limit of HK$5 million.
• Supports non-profit organizations in driving trade promotion and marketing efforts.

To streamline the experience, improved application processes will be introduced by the Commerce and Economic Development Bureau (CEDB), making access to these funds faster and more efficient. Together, these funding programs aim to empower businesses to expand internationally, easing financial risks and operational burdens along the way.

What this budget means for you

If you’re a local business in Hong Kong, expect ample financial incentives and support to expand operations. Whether it’s through tax relief, global market funding, or innovative programs like “E-commerce Express,” the government is paving the way for sustainable growth.

For expats and investors, the reforms signal Hong Kong’s resilience and forward-thinking approach to remaining a competitive global hub. Improved access to skilled workers, expanded support for AI, and tighter trade ties with mainland China all work together to maintain the city’s global edge.
And if you’re exploring opportunities with e-commerce or advanced technologies, there’s never been a better time to leverage the initiatives outlined in the Budget.

Make the most of the 2025-2026 Budget

This year’s Budget highlights Hong Kong’s commitment to strengthening its business ecosystem, opening doors of opportunity for local businesses and foreign investors alike. Whether it’s through increased government support, innovative funding programs, or expansion into the e-commerce space, the Budget delivers tools to help businesses thrive.

If your business is looking to tap into these opportunities, start planning now. The combination of financial relief, global expansion funds, and focused innovation subsidies offers a strong foundation for growth in an evolving global environment.