He has since been under investigation by the city`s Independent Commission Against Corruption (ICAC).
Tsang, 70, who held the leadership post of chief executive for seven years from 2005, will appear in court Monday afternoon.
He would become the highest-ranking Hong Kong official to face a corruption trial.
In a statement issued to the South China Morning Post, Tsang said he had a "clear conscience".
"I have every confidence that the court will exonerate me after its proceedings," he said.
The ICAC said Tsang had been charged with two counts of misconduct in public office.
The charges relate to his failure to disclose his plans to lease a luxury flat in the southern Chinese city of Shenzhen which was owned by a major investor in a broadcaster seeking a licence from the Hong Kong government, the ICAC said.
Tsang also failed to declare that an architect he proposed for a government award was employed as an interior designer on the flat, the ICAC added.
The case comes less than a year after Hong Kong property tycoon Thomas Kwok and the government`s former deputy leader Rafael Hui were jailed for graft after Hui was found guilty of taking bribes from Kwok and Kwok`s brother Raymond.
While serving as chief secretary for administration, Hui was Tsang`s deputy from 2005 to 2007.
Hui was jailed in December for seven and a half years on a total of five graft charges, making him the highest-ranking official in the city`s history to be found guilty of taking bribes.
Prosecutors said Hui had enjoyed an extravagant standard of living that far outstripped his official salary, having spent millions on a mistress in Shanghai, for whom he bought gifts, including bags, watches and even properties.
He was accused of receiving HK$34 million ($4.39 million) to be the Kwoks` "eyes and ears" in government.
Thomas was sentenced to five years over the payments while his brother Raymond was cleared.
As part of mitigation, Tsang wrote a letter to the court pleading for leniency for Hui.
Hong Kong has been seen as relatively graft-free but new cases have fuelled public suspicions over cosy links between authorities and industry leaders.
Concerns have also been raised about the role of the Chinese system of personal connections, or "guanxi", which greases the wheels of business.
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