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Qianhai vs Hetao: how to use the two Shenzhen–Hong Kong low-tax sweet spots

Qianhai and Hetao are two low-tax parks where Shenzhen and Hong Kong overlap; both offer 15% corporate income tax and the Hong Kong-tax cap, but their focus differs: Qianhai leans toward modern services + Shenzhen–Hong Kong youth entrepreneurship (Dream Factory), Hetao toward Shenzhen–Hong Kong tech and innovation. The shared hard thresholds: the breaks require being in a designated zone + on the encouraged list + substantive operations — a nominal registered address won't get them. The policies also have expiry dates, so check whether they've been extended before you act.

This fits you if

You want to build a footprint across Shenzhen and Hong Kong and tap the low-tax and talent breaks of Qianhai / Hetao, and first need to work out how to choose between the two parks and where the thresholds are.

This is not for you if

You have no cross-border or mainland operations and only do business in Hong Kong — the park breaks don't apply; don't set up a mainland entity just to chase them.

Key figures
Qianhai Dream Factory
The Dream Factory has incubated about 1,591 teams to date

(around 1,161 from Hong Kong/Macao/Taiwan or international), raising about RMB 6.8B[S45]

Hetao corporate tax break
Corporate tax 15% through 2027-12-31

enclosed zone + encouraged industry + substantive operations[S46]

Side by side

Qianhai vs Hetao: focus and breaks

The below gives orders of magnitude and direction; check the latest official documents for exact brackets / lists / expiry dates.

Qianhai (modern services + Shenzhen–Hong Kong youth start-ups)
  • Corporate income tax 15% (five encouraged industry categories, now extended to the whole 120.56 km² Qianhai zone)
  • Hong Kong-tax cap: individual income tax above the Hong Kong tax burden is waived (2023-01-01 to 2027-12-31)
  • Twelve measures for Hong Kong: youth employment subsidy up to RMB 5,000/month, start-up award up to RMB 1M, education subsidy, housing / living subsidies
  • A place in the Shenzhen–Hong Kong Youth Dream Factory + the 'Hong Kong People and Enterprises Service Centre' connecting you directly to policy / market / capital
Hetao (Shenzhen–Hong Kong tech and innovation)unverified
  • Corporate income tax 15% (designated enclosed zone + encouraged industry + ≥60% of income from the main business + substantive operations), through 2027-12-31
  • Hong Kong-tax cap (personal tax break)
  • 3-year multiple-entry Hong Kong/Macao endorsement for talent
  • Duty-free 'first-line' entry for research goods; a Shenzhen branch of the Hong Kong Science Park

How to choose

Modern services, Shenzhen–Hong Kong youth start-ups, wanting Dream Factory introductions and subsidies → Qianhai. Research / hard tech, wanting a tech-and-innovation park and easy movement of research goods → Hetao. The tax-break logic of the two is similar, but the applicable industry lists and sub-districts differ — check the list before you commit.

How to move money and goods across the border compliantly

Move funds via ODI / FDI filing, FX purchase/payment, and cross-border RMB; don't run company money through a personal account. For research goods, follow the park's 'first-line / second-line' rules and CEPA. Your cross-border structure affects eligibility for BUD and the like, so work out the ownership structure first.

What the official sites won't tell you

  • A nominal registered address ≠ getting the breaks· First-hand insight in the works

    The double 15% and the Hong Kong-tax cap both require being in a designated zone + on the encouraged list + substantive operations / actually working in the zone; registering without operating won't qualify

  • The policies have expiry dates — check whether they've been extended· First-hand insight in the works

    Several breaks currently run to around 2027-12-31; check the latest documents before you act, and don't plan as if they'll last indefinitely

  • The personal tax breaks often come one-or-the-other· First-hand insight in the works

    The Hong Kong-tax cap generally cannot be stacked with the GBA high-end / in-demand talent tax subsidy; work out which is the better deal

  • Don't trust agents who 'guarantee the breaks / guarantee the rebate'· First-hand insight in the works

    Fraudulently obtaining tax breaks / export rebates is a criminal offence; Shenzhen has already prosecuted cases

Next steps
  1. 01Check the list first → is your industry among Qianhai / Hetao's encouraged industries.
  2. 02Youth start-up / services → go through the Qianhai Dream Factory and use the Hong Kong People and Enterprises Service Centre for introductions.
  3. 03Tech and innovation teams → look at settling into the Hetao park and the ease of moving research goods.
Related pagesShenzhen company vs Hong Kong company: how to choose, how to run bothIncorporate a Hong Kong companyGovernment funding overview: which one should you apply for?Companies

Many policy references and lists are involved; for amounts / expiry dates / scope, follow the latest official documents from the Qianhai Authority and the Hetao Cooperation Zone.

Sources