flag Macao SAR, China Macao SAR, China: Investing

FDI in Figures

According to UNCTAD's World Investment Report 2023, FDI flows to Macau stood at USD 4 billion, down from 4.7 billion one year earlier. At the end of the same period, the total stock of FDI reached USD 45.5 billion, representing around 207.3% of GDP. In 2022, according to official statistics, there were 3,878 enterprises engaged in inward direct investment. Of these, 1,509 enterprises received foreign capital from mainland China, while 1,774 enterprises were backed by investments from Hong Kong, and 367 enterprises benefited from funding originating in the British Virgin Islands. In terms of stock, foreign investments are mainly concentrated in the gambling (39%) and banking (26%) sectors, as well as in wholesale and retail trade (10%) and insurance (7.2%); while the main investing countries are Hong Kong (26%), China (22.9%), the British Virgin Islands (19.6%), the Cayman Islands (15.6%), and the U.S. (6.1%).

Macao's liberal economy, free port status, and strategic geographical position in the heart of a dynamic zone offer many attractive features to foreign investors. On the other hand, rising tensions between China and the United States could cause a reduction of investment by the three American casino operators. Macau’s economy has long been facing a dilemma between dramatic economic performance built on its casino and tourism sectors and a lack of variety in its industrial composition. Gaming-related business activities generate almost 50% of the economy's total industrial output. Tourism-related activities such as hotels, retail, restaurants, and entertainment accounted for another 12-15%. In addition to gaming, Macau aspires to position itself as a regional center for incentive travel, conventions, and tourism, though to date it has experienced limited success in diversifying its economy. Foreign investment in Macau faces no restrictions, as there are no specific regulations governing it. Both local and international companies adhere to the same business regulations, including the Commercial Code (Decree 40/99/M). Corporate taxes are minimal, set at 12% for companies earning net profits exceeding USD 75,000, while those earning less are exempt. The Macau Trade and Investment Promotion Institute (IPIM) oversee trade and investment activities on behalf of the government. In 2022, all six of Macau's gambling concessionaires secured their licenses for another decade. To renew their concessions, these operators pledged substantial investments, totaling around USD 15 billion, with 90% earmarked for non-gaming ventures and attracting tourists from abroad.

 

Country Comparison For the Protection of Investors

  Macao SAR, China United States Germany
 
Foreign Direct Investment 202020212022
FDI Inward Flow (million USD) -6,9804,7714,000
FDI Stock (million USD) 37,187.041,554.845,554.8

Source: UNCTAD - Latest available data

Note: * Greenfield Investments are a form of Foreign Direct Investment where a parent company starts a new venture in a foreign country by constructing new operational facilities from the ground up.

 

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Tax Rates

There is no VAT or consumption tax in Macao.
No VAT is levied in Macao.
Company Tax
From 0% to 12%
Withholding Taxes
Dividends: 0%, Interests: 0%, Royalties: 0%.
Social Security Contributions Paid By Employers
MOP 60 per month per employee.
Employers must pay a foreign employee fee of MOP 200 per month for each non-resident employee.
Other Domestic Resources
Financial Services Bureau
Overview of Macao's tax measures in response to Covid-19
 
 

Individual Taxes

Individual Income Tax Progressive rate from 0% to 12%
Below MOP 144,000 0%
Between MOP 144,000 and MOP 164,000 7%
Between MOP 164,000 and MOP 184,000 8%
Between MOP 184,000 and MOP 224,000 9%
Between MOP 224,000 and MOP 304,000 10%
Between MOP 304,000 and MOP 424,000 11%
Over MOP 424,000 12%
 
 

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Investment Opportunities

Tenders, Projects and Public Procurement
Tenders Info, Tenders in Macau
DgMarket, Tenders Worldwide
Useful Resources
Trade and Investment Promotion Institute
Contact the British Embassy in Macao.
Asia Trade Hub
 
 
 

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Latest Update: May 2024

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