In Hong Kong, hosts offering short-term rentals—defined as accommodations rented for periods of less than 28 consecutive days—are required to obtain a hotel or guesthouse license under the Hotel and Guesthouse Accommodation Ordinance (HAGAO). Operating without this license is illegal.

The licensing process involves submitting an application to the Office of the Licensing Authority within the Home Affairs Department. Applicants must ensure their premises meet specific building and fire safety standards. There is no separate central government database for registration; the licensing procedure serves as the official record.

It's important to note that properties rented for periods of 28 consecutive days or more are exempt from these licensing requirements.

Therefore, to legally operate a short-term rental in Hong Kong, obtaining the appropriate license is mandatory.

In Hong Kong, operating short-term rentals requires compliance with several legal and contractual obligations:

1. Landlord's Consent: Tenants must obtain explicit permission from their landlords before offering short-term rentals. Most tenancy agreements include clauses that prohibit subletting or using the property for commercial purposes without the landlord's approval. Engaging in short-term rentals without consent can lead to breaches of the tenancy agreement and potential legal consequences
2. Building Management Restrictions: Many residential buildings in Hong Kong are governed by a Deed of Mutual Covenant (DMC), which outlines the rights and responsibilities of property owners and occupants. DMCs often contain provisions that restrict or prohibit the use of units for commercial activities, including short-term rentals. Violating these provisions can result in legal action by the building's management or other residents.
3. Government Licensing: Under the Hotel and Guesthouse Accommodation Ordinance (HAGAO), any premises offering sleeping accommodation for a fee for periods of less than 28 consecutive days must obtain a hotel or guesthouse license. Operating without this license is illegal and can lead to fines and imprisonment.

Therefore, to legally operate a short-term rental in Hong Kong, hosts must:

• Secure written consent from their landlord.
• Ensure compliance with the building's DMC or management regulations.
• Obtain the necessary license from the Home Affairs Department.

Failure to adhere to these requirements can result in legal penalties and termination of tenancy agreements.

In Hong Kong, income derived from short-term rentals is subject to Property Tax. This tax is levied at a flat rate of 15% on the net assessable value of the property, which is the rental income after deducting a standard allowance of 20% for repairs and outgoings. There are no exemptions or progressive rates based on income thresholds; the 15% rate applies uniformly to all rental income.

Hong Kong does not impose Value Added Tax (VAT) or Goods and Services Tax (GST). Additionally, there are no specific lodging taxes applicable to short-term rentals.The primary tax obligation for rental income remains the Property Tax.

Regarding local taxes, Hong Kong operates under a unified tax system without separate municipal or city-level taxes. Therefore, the Property Tax is the sole tax applicable to rental income across all districts and cities within Hong Kong.

It's important for property owners to maintain accurate records of rental income and expenses to ensure compliance with tax obligations.

In Hong Kong, hosts offering short-term rentals are not required to contribute directly to national tourism boards or funds. However, they are obligated to comply with specific tax regulations:

1. Property Tax: Hosts must pay Property Tax on rental income at a standard rate of 15% on the net assessable value, which is the rental income after a 20% standard deduction for repairs and outgoings.
2. Hotel Accommodation Tax (HAT): While the HAT was waived effective from 1 July 2008, the Financial Secretary proposed in the 2024-25 Budget to re-impose the HAT at a rate of 3% effective from 1 January 2025. This tax applies to accommodation charges, and hosts will be responsible for collecting it from guests and remitting it to the government.

Therefore, while there is no direct contribution to tourism boards, hosts are required to collect and remit the Hotel Accommodation Tax from guests starting 1 January 2025, in addition to paying Property Tax on their rental income.

In Hong Kong, hosts operating licensed short-term rentals are not required to register or report guest information to national authorities, such as immigration or local police. The Hotel and Guesthouse Accommodation Ordinance (HAGAO) mandates that premises offering sleeping accommodation for a fee for periods of less than 28 consecutive days must obtain a hotel or guesthouse license. However, HAGAO does not impose obligations on hosts to collect or report guest information to authorities.

While there is no legal requirement for reporting guest information, hosts are encouraged to maintain accurate records of their guests for operational purposes and to ensure compliance with other relevant regulations.

In Hong Kong, short-term rental properties are subject to specific health and safety standards to ensure the well-being of guests. Key regulations include:

1. Hotel and Guesthouse Accommodation Ordinance (HAGAO): This ordinance mandates that any premises offering sleeping accommodation for a fee for periods of less than 28 consecutive days must obtain a hotel or guesthouse license. To secure this license, properties must comply with prescribed building and fire safety standards.
2. Building and Fire Safety Standards: Licensed premises are required to meet specific criteria, such as:
   • Fire Safety: Installation of fire alarms, extinguishers, and clear exit routes.
   • Structural Integrity: Ensuring the building's structure is safe and sound.
   • Sanitation: Provision of adequate sanitary facilities and proper waste disposal systems.
3. Occupational Safety and Health Ordinance: While primarily focused on workplace safety, this ordinance also emphasizes maintaining a safe environment in premises where services are provided, which can extend to short-term rental properties.

Compliance with these regulations is essential for operating short-term rentals legally in Hong Kong. Non-compliance can result in penalties, including fines and closure orders.

In Hong Kong, online platforms facilitating short-term rentals, such as Airbnb, are not legally obligated to ensure that listings comply with national laws and regulations. The responsibility for compliance rests with the individual hosts. However, these platforms often encourage hosts to adhere to local laws and may provide resources to assist them. For instance, Airbnb advises hosts in Hong Kong to familiarize themselves with the Hotel and Guesthouse Accommodation Ordinance (HAGAO), which requires premises offering sleeping accommodation for periods of less than 28 consecutive days to obtain a hotel or guesthouse license. Despite this guidance, the onus remains on hosts to ensure their operations are lawful.

In Hong Kong, several anti-discrimination ordinances protect guests in short-term rentals from discriminatory practices:

1. Sex Discrimination Ordinance (SDO): Prohibits discrimination based on sex, marital status, pregnancy, and breastfeeding. This includes the provision of goods, services, and facilities, which encompasses short-term rental accommodations.
2. Disability Discrimination Ordinance (DDO): Prohibits discrimination against individuals with disabilities in various areas, including the provision of services. Hosts must ensure that their properties are accessible and do not discriminate against guests with disabilities.
3. Family Status Discrimination Ordinance (FSDO): Prohibits discrimination based on family status, defined as having responsibility for the care of an immediate family member. This ensures that guests are not discriminated against due to their family responsibilities.
4. Race Discrimination Ordinance (RDO): Prohibits discrimination based on race, color, descent, national or ethnic origin. Hosts must provide equal treatment to all guests, regardless of their racial background.

These ordinances collectively ensure that guests in short-term rentals are protected from discrimination on various grounds, promoting equal access and fair treatment in accommodation services.

As of November 2024, Hong Kong does not have a specific mandate requiring short-term rental platforms to share data with national government authorities. However, platforms like Airbnb have voluntarily collaborated with local governments in other jurisdictions to share transaction-level data, aiming to enhance regulatory compliance and transparency. For instance, Airbnb implemented such data-sharing programs in several U.S. cities, which led to a reduction in overall listings due to increased compliance costs and privacy concerns among hosts.

While Hong Kong has not enacted similar data-sharing requirements, the global trend indicates a move towards greater transparency in the short-term rental market. Platforms operating in Hong Kong may proactively engage with local authorities to ensure compliance with existing regulations, such as the Hotel and Guesthouse Accommodation Ordinance, which mandates licensing for accommodations offered for periods of less than 28 consecutive days.

It's important for hosts and platforms to stay informed about any regulatory changes that may affect data-sharing obligations in the future.

In Hong Kong, there is no legal requirement for hosts to obtain liability insurance for short-term rental properties. However, securing such insurance is highly advisable to protect against potential claims arising from guest injuries or property damage. Many insurance providers offer policies tailored for short-term rental hosts, covering various risks associated with hosting guests. Additionally, some online platforms, like Airbnb, provide host protection insurance, but these may have limitations and should not be solely relied upon. Therefore, hosts should consult with insurance professionals to ensure adequate coverage for their specific circumstances.

In Hong Kong, the operation of short-term rentals in culturally or historically significant areas is regulated to preserve heritage and maintain community integrity. Key regulations include:

1. Hotel and Guesthouse Accommodation Ordinance (HAGAO): This ordinance mandates that any premises offering sleeping accommodation for a fee for periods of less than 28 consecutive days must obtain a hotel or guesthouse license. This requirement applies uniformly across all areas, including those of cultural or historical significance. Operating without this license is illegal.
2. Deed of Mutual Covenant (DMC): Many residential buildings, especially in heritage areas, are governed by a DMC, which sets out rules for property use. These covenants often prohibit commercial activities, including short-term rentals, to maintain residential integrity. Violating these provisions can result in legal action by the building's management or other residents.
3. Heritage Conservation Policies: The Hong Kong government has established policies to protect, conserve, and revitalize historical and heritage sites and buildings. While these policies do not explicitly prohibit short-term rentals, they emphasize that any use of heritage properties should not compromise their historical value. Therefore, operating short-term rentals in such areas may be subject to additional scrutiny and restrictions to ensure the preservation of cultural heritage.

These regulations collectively aim to balance the development of short-term rental markets with the preservation of Hong Kong's cultural and historical heritage.

In Hong Kong, there are no specific nationwide sustainability requirements exclusively for short-term rentals. However, properties operating as short-term accommodations must comply with general environmental regulations applicable to all buildings. Key considerations include:

1. Energy Efficiency: While not mandatory, property owners are encouraged to adopt energy-saving measures, such as using energy-efficient appliances and lighting, to reduce environmental impact. The Hong Kong Housing Authority has implemented sustainability targets, including energy efficiency, in its operations.
2. Waste Management: Proper disposal and recycling of waste are essential to comply with environmental standards. The Environmental Protection Department provides guidelines on waste reduction and recycling practices.
3. Water Conservation: Implementing water-saving fixtures and practices aligns with Hong Kong's initiatives to conserve water resources. The Water Supplies Department offers resources on water conservation.

While these measures are not legally mandated for short-term rentals, adopting them can enhance the property's appeal to environmentally conscious guests and contribute to Hong Kong's broader sustainability goals.

In Hong Kong, tenants are protected from arbitrary eviction through several legal provisions:

1. Landlord and Tenant (Consolidation) Ordinance (Cap. 7): This ordinance outlines the rights and obligations of both landlords and tenants. It specifies that landlords must provide proper notice and have legitimate grounds for terminating a tenancy. Acceptable grounds include non-payment of rent, unauthorized alterations, or illegal use of the premises. Desiring to convert a property into a short-term rental does not constitute a valid reason for eviction under this ordinance.
2. Tenancy Agreements: Most tenancy agreements include clauses that restrict subletting or using the property for purposes other than residential use. Operating a short-term rental without the landlord's approval would likely violate these terms.

Therefore, landlords cannot evict long-term tenants solely to convert the property into a short-term rental. Tenants are entitled to remain in the property as long as they comply with the terms of their tenancy agreement and the relevant laws.

In Hong Kong, operators of hotels and guesthouses are required to collect and maintain specific information about all guests, including foreign nationals, as stipulated under the Immigration Ordinance (Cap. 115), Section 17. This regulation mandates that upon arrival, guests over the age of 15 must provide the keeper of the premises with their full name and nationality. Additionally, foreign guests are required to inform the keeper of their date of arrival in Hong Kong, the name of the ship or airline by which they arrived, and their occupation. Before departure, they must also provide details of their next destination and, if leaving Hong Kong, the ship or airline by which they will depart. The keeper is obligated to record this information and retain it for at least 12 months. While there is no explicit requirement to proactively report this information to immigration authorities, the records must be made available for inspection by immigration or police officers upon request. Non-compliance with these requirements can result in legal penalties. Therefore, it is essential for accommodation providers to adhere to these regulations to ensure compliance with Hong Kong's immigration laws.

In Hong Kong, online platforms facilitating short-term rentals, such as Airbnb, are not legally obligated to verify that properties comply with national regulations before listing them. The responsibility for ensuring compliance with laws, such as obtaining the necessary hotel or guesthouse license under the Hotel and Guesthouse Accommodation Ordinance (HAGAO), rests with the individual hosts. However, these platforms often encourage hosts to adhere to local laws and may provide resources to assist them. For instance, Airbnb advises hosts in Hong Kong to familiarize themselves with the HAGAO requirements. Despite this guidance, the onus remains on hosts to ensure their operations are lawful.

In Hong Kong, several national laws ensure that short-term rental contracts comply with consumer protection standards:

1. Sale of Goods Ordinance (Cap. 26): This ordinance implies conditions and warranties into contracts for the sale of goods, ensuring that goods are of merchantable quality and fit for their intended purpose. While primarily focused on goods, its principles can influence service-related contracts, including short-term rentals.
2. Supply of Services (Implied Terms) Ordinance (Cap. 457): This ordinance implies terms into contracts for the supply of services, ensuring that services are carried out with reasonable care and skill, within a reasonable time, and for a reasonable charge. This directly applies to short-term rental agreements, mandating that the accommodation provided meets acceptable standards.
3. Trade Descriptions Ordinance (Cap. 362): This ordinance prohibits false trade descriptions and misleading statements in respect of goods and services. In the context of short-term rentals, it ensures that property listings and descriptions are accurate and not misleading to consumers.
4. Unconscionable Contracts Ordinance (Cap. 458): This ordinance empowers courts to provide relief in cases where contracts are deemed unconscionable, protecting consumers from unfair terms in rental agreements.

These laws collectively safeguard consumers by ensuring that short-term rental contracts are fair, transparent, and adhere to established standards of quality and accuracy.

In Hong Kong, non-resident property owners offering short-term rentals are subject to specific regulations and taxes:

1. Licensing Requirements: Under the Hotel and Guesthouse Accommodation Ordinance (HAGAO), any premises providing sleeping accommodation for a fee for periods of less than 28 consecutive days must obtain a hotel or guesthouse license, regardless of the owner's residency status. Operating without this license is illegal.
2. Property Tax: Non-resident owners are liable to pay Property Tax on rental income derived from Hong Kong properties. The tax rate is 15% of the property's net assessable value, which is the rental income after a standard deduction of 20% for repairs and outgoings.
3. Stamp Duty: Non-resident buyers of Hong Kong property are subject to higher stamp duties:
   • Ad Valorem Stamp Duty (AVD): Non-Hong Kong Permanent Residents pay AVD at a flat rate of 15% on the property's value.
   • Buyer's Stamp Duty (BSD): An additional 15% BSD is levied on residential property purchases by non-Hong Kong Permanent Residents.

These measures aim to regulate the property market and ensure compliance with local laws, irrespective of the owner's residency status.

In Hong Kong, short-term rentals (STRs) are primarily regulated under the Hotel and Guesthouse Accommodation Ordinance (HAGAO). This ordinance mandates that any premises offering sleeping accommodation for a fee for periods of less than 28 consecutive days must obtain a hotel or guesthouse license. The classification under HAGAO is as follows:

1. Hotels: Establishments providing accommodation with additional services such as food and beverage, housekeeping, and other amenities.
2. Guesthouses: Premises offering sleeping accommodation, which may include services similar to hotels but on a smaller scale.

Both categories require adherence to specific licensing requirements, including safety, hygiene, and building standards. Operating without the appropriate license is illegal and subject to penalties.

It's important to note that while terms like "serviced apartments" and "vacation rentals" are commonly used in the market, they are not distinct legal classifications under HAGAO. Regardless of the terminology, if the accommodation is offered for periods of less than 28 consecutive days, it falls under the purview of HAGAO and requires the relevant license.

Therefore, individuals or entities offering short-term rentals in Hong Kong must ensure compliance with HAGAO to operate legally.

In Hong Kong, there are no specific additional regulations imposed on short-term rentals during national events or holidays. The standard legal framework remains in effect, including:

• Hotel and Guesthouse Accommodation Ordinance (HAGAO): Mandates that premises offering sleeping accommodation for periods of less than 28 consecutive days must obtain a hotel or guesthouse license. This requirement applies uniformly, regardless of national events or holidays.
• Noise Control Ordinance: Regulates noise levels to prevent disturbances, applicable at all times. Hosts are responsible for ensuring that guests do not cause excessive noise, especially during nighttime hours.
• Public Order Ordinance: While this ordinance governs public assemblies and processions, it does not impose curfews or additional restrictions on private accommodations during national events.

Hosts should continue to adhere to these existing regulations and ensure that guests are aware of and comply with local laws and community guidelines, regardless of the timing of their stay.

In Hong Kong, operating a short-term rental without the necessary license under the Hotel and Guesthouse Accommodation Ordinance (HAGAO) can lead to several penalties:

1. Fines and Imprisonment: Operating without a valid license is a criminal offense. Offenders may face a maximum fine of HKD 200,000 and imprisonment for up to two years. Continuing offenses can incur additional daily fines of HKD 20,000.
2. Legal Action: Authorities can initiate legal proceedings against unlicensed operators, leading to court appearances and potential criminal records.
3. Operational Disruptions: Enforcement actions may include immediate cessation of rental operations, disrupting business activities and resulting in financial losses.
4. Reputation Damage: Legal actions and penalties can harm the operator's reputation, deterring potential guests and affecting future business prospects.

Compliance with HAGAO is essential to avoid these severe consequences. Operators should ensure they obtain the necessary licenses and adhere to all relevant regulations.