Free zones & incentives

Free zones & incentives in Hong Kong

All of Hong Kong is a free port, so there are no special zones. Incentives instead target specific sectors and innovation.

Quick answer

There are no free zones because the whole territory is duty-free, except for four dutiable commodities. Incentives include concessionary tax rates for treasury centres, funds and shipping, and support from Science Park and Cyberport.

Verified Oct 2026 · Invest Hong Kong

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Free zones

Not needed

Customs duty

Almost none

Dutiable goods

4 types

Tech hubs

HKSTP, Cyberport

What replaces free zones in Hong Kong

Most businesses benefit from the free port status by default; others apply for sector schemes.

Customs

Free port

No customs tariff on imports or exports, apart from liquor, tobacco, hydrocarbon oil and methyl alcohol.

Applies automatically

Tax regime

Corporate treasury centres

Concessionary profits tax rate on qualifying treasury activities.

Half the normal rate

Tax regime

Funds and family offices

Profits tax exemptions for qualifying funds and single-family offices.

Conditions on investors and assets

Sector scheme

Ship leasing and shipping

Concessionary rates and exemptions for qualifying shipping businesses.

Maritime focus

Programme

Science Park (HKSTP)

Incubation, office space and funding for tech start-ups.

Admission is competitive

Programme

Cyberport

Incubation and funding for digital and fintech start-ups.

Grants plus office space

How it works in practice

Importing goods

Most imports need only an import declaration, filed within 14 days. Duty applies only to liquor, tobacco, hydrocarbon oil and methyl alcohol.

Sector concessions

Treasury centres, funds, family offices and shipping businesses can apply for reduced rates or exemptions, with substance conditions.

Incubation programmes

HKSTP and Cyberport offer subsidised space, grants and introductions, but admission is competitive and tied to tech activity.

Editor's note

Free zones solve a problem Hong Kong does not have. If you trade goods, you already pay almost no duty; the useful question is whether your sector has a concessionary tax regime.

Before you start

Goods checked against the dutiable list
Import and export declarations set up
Sector concession eligibility reviewed
HKSTP or Cyberport intake dates noted
Substance plan if claiming a concession

What to watch

Dutiable commoditiesImporting liquor above 30% alcohol, tobacco or fuel needs a licence and duty payment.

Concessions need substanceSector regimes require real staff and spending in Hong Kong.

Programme deadlinesHKSTP and Cyberport admit in rounds; check intake dates early.

Common questions

Is there a special zone for trading companies?

No. Every company already trades without customs duty on most goods.

Can a start-up get government funding?

Yes, through schemes such as Cyberport and HKSTP incubation, and some ITF programmes.

Is there a zone near mainland China?

The Northern Metropolis and Lok Ma Chau Loop are development areas, not tax-free zones.

Local terms

HKSTP: Hong Kong Science and Technology Parks.
ITF: Innovation and Technology Fund.
CTC: Corporate treasury centre.
Free port: No general customs tariff.

Primary sources

InvestHK: incentives↗Customs and Excise: dutiable commodities↗HKSTP↗

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