Hong Kong serves as a magnet for business innovators, professionals, and families from across the globe. This allure is fueled by its low crime rates, exceptional quality of life, advanced infrastructure, and comparatively modest tax rates. The city boasts a sizable and dynamic expatriate community.
Distinguished as a Special Administrative Region (SAR), Hong Kong stands as a more easily reachable destination than mainland China. It operates under the “one country, two systems” principle. This framework ensures that Hong Kong maintains separate constitutional governance from the People’s Republic of China, fostering an image of greater liberalism, international diversity, and a laid-back atmosphere.
Despite its intense population density, foreign residents are enticed by the rich cultural tapestry, vibrant street markets, delectable cuisine, and booming economy. The city is home to a multitude of corporations that frequently bring in international employees.
While the Capital Investment Entrant Scheme is no longer active, there remain multiple pathways to obtain Hong Kong residency. These include avenues through business investments, employment opportunities, or visa categories tied to specific skills.
Residence Options Through Investment
The former Capital Investment Entrant Scheme, initiated in 2003 and halted in 2015, has paved the way for diverse pathways for skilled foreign individuals to seek residency permits. These applications are evaluated utilizing a points-based system.
There exist three primary avenues to attain residency:
- The Quality Migrant Admission Scheme caters to expatriates possessing talents or skills that contribute to Hong Kong’s economy. However, citizens of certain specific countries, such as Cuba, Laos, and Korea, are excluded.
- The General Employment Policy encompasses a broader spectrum and is accessible to applicants relocating to Hong Kong for professional employment roles.
- Entrepreneurial investment under the General Employment Policy enables foreign nationals to apply for residency by either establishing a new business venture or becoming part of an existing one.
Applicants who succeed must accumulate a minimum of 80 points from a potential maximum of 225. They navigate through five qualification categories based on age, qualifications, work experience, proficiency in Cantonese, and familial ties to Hong Kong.
Foreign individuals garnering exceptional awards or notable accolades for their accomplishments can pursue application through a distinct Achievement-Based Points Test and potentially earn the highest attainable points.
Travel
After residing in Hong Kong for seven years, residents can apply for permanent residency. Although residency status itself doesn’t bestow specific travel freedoms, expatriates can engage in investment and trade activities within mainland China.
Visas
For UK citizens journeying to Hong Kong with intentions of staying for up to six months without employment, studies, or business pursuits, a visa is unnecessary. Conversely, other foreign nationals must possess a valid visa and permit to both reside and work in Hong Kong.
An array of visas and entry permits are available, contingent upon factors such as the applicant’s profession, age, and employment offer. Typically, work visas are granted to individuals with recognized skills, qualifications, or expertise that aren’t readily accessible in Hong Kong.
Work visa applicants generally need to hold at least a degree, secure a confirmed job offer, and receive a compensation package encompassing income, medical coverage, and housing in alignment with prevailing standards.
Taxation
Hong Kong classifies individuals as tax residents if they spend 183 days or more within the country in a year and mandates taxation on their worldwide income. Nevertheless, the tax framework in Hong Kong segregates income into three distinct categories:
- Profits tax: Imposed on business or trade-related income.
- Salaries tax: Applied to earnings from employment and pension benefits.
- Property tax: Derived from income generated by rental properties.
Recently arrived residents must complete registration with the Hong Kong Inland Revenue Department (HKIRD). Their assessment hinges on factors such as their duration of stay in Hong Kong, primary source of income, and employment status, rather than the possession of residency permits.
Cost of Living
Living expenses in Hong Kong closely parallel those in London, although they are marginally more affordable. Consumer costs, on average, stand around 9.9 percent lower, and rental rates are approximately 9.4 percent cheaper.
Relative to UK averages, goods are priced about 15.5 percent higher, while groceries carry a 57.1 percent premium. However, dining out in Hong Kong costs about 27.8 percent less than in Britain.
For an average family of four, sustaining general expenditures – exclusive of accommodation – requires an estimated £3,073 per month. Meanwhile, an individual typically needs around £865 per month. After-tax, the mean net monthly salary is HKD 22,458 (£2,273), compared to £2,319 in the UK.
Real Estate
Foreign nationals are permitted to purchase property in Hong Kong for personal use or as rental investments. The majority of property transactions necessitate a five percent deposit upon signing initial agreements, with the remaining balance due within eight weeks.
Rental housing options span throughout Hong Kong, predominantly in densely populated areas, and rental prices are often negotiable. Premium rental properties within complexes frequently offer communal amenities and services. Among the districts, Central Hong Kong has the highest average rental costs, followed by Kowloon.
Prospective tenants generally need to submit a deposit equivalent to two months’ rent along with one month’s advance payment before commencing their lease.
- One-bedroom apartment in the city center: HKD 17,663 / £1,786
- One-bedroom apartment outside the city center: HKD 12,733 / £1,287
- Three-bedroom apartment in the city center: HKD 34,905 / £3,529
- Three-bedroom apartment outside the city center: HKD 22,916 / £2,317
Source: Numbeo
Conclusion
For expats who are considering moving to Hong Kong I’ve written a short guide on how to get yourself started. Similar to moving anywhere as an expat, there are aspects to navigate before you get to Hong Kong.
If you have any questions, please contact me using the button below.
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