A guide to the simple tax system for people coming to work and live in Hong Kong.
Known for its dynamic economy and multiculturalism, Hong Kong stands out as one of the world’s top destinations for global talent to live abroad. From educational to healthcare and professional to leisure services, Hong Kong’s comprehensive infrastructure and rich natural resources are well-equipped to help families thrive:
Hong Kong has emerged as a favoured destination for higher education among both Mainland Chinese and international students. Enrolment in UGC-funded programmes for non-local students has risen significantly, from 16,469 in the 2016/17 academic year to 21,709 in the 2022/23 academic year. As of November 2023, 24,654 non-local graduates, accounting for 95.59% of all applicants, have received approval to stay or return to Hong Kong for employment.
Moving to a new city, especially a fast-paced and dynamic one like Hong Kong, can be exciting. Whether you're relocating for work, family, or personal development, thorough planning is crucial for a smooth transition. To assist you in navigating this journey, here are some practical tips to ensure a stress-free relocation.
For professionals planning careers in Hong Kong, understanding the real-life experience of settling in the city is crucial. Spend a few days visiting Hong Kong to gain a comprehensive understanding of its daily atmosphere and important factors such as workplace surroundings, accommodation options, transportation networks, and dietary habits. Visiting local markets and food centres can provide a direct experience of Hong Kong's lifestyle and culinary culture, helping you prepare thoroughly for your future
Long recognised as a global hub for finance, trade, and innovation, Hong Kong’s dynamic business environment constantly attracts international talent to seek advancement in their career and build fulfilling lives. And yet, beyond the city’s economic prowess and cosmopolitan allure, what truly sets Hong Kong apart is its enduring commitment to the rule of law, fairness and transparency.
Moving to Hong Kong can be an incredibly exciting chapter in your life. While filled with boundless career and personal prospects for you to explore and achieve, this journey, like many others, has its challenges. Newcomers will likely find several common topics they need to address, such as learning a language, adapting to the local working culture, or building new relationships.
Identifying suitable accommodation is a key consideration for individuals moving to a new city. While on the surface the city is constantly ranked amongst one of the most expensive to own or rent a property in, the truth is a lot more nuanced.
Hong Kong's low tax regime has made the city an attractive destination for non-local talent. Due to its laws limiting taxation on outside residents and corporations, Hong Kong is often considered a tax haven. In fact, in 2020, accounting firm PwC ranked Hong Kong second only to Bahrain in terms of having the most tax-friendly tax system. Without taxing capital gains, interest, dividends, or sales tax, Hong Kong benefits investors and shoppers.
So you've got your boxes all packed up, set a moving date and you're ready to start a new chapter in Hong Kong. Before you take off, it's best to get your ducks in a row and take care of everything you can while you're still in your current location. This way, your transition into your new life in Hong Kong will be a breeze. We've put together a list of things to help you out along the way.
Ready to make the move to Hong Kong? There are several factors to consider when seeking accommodation in the city – but first and foremost, you may want a neighbourhood close to work and; or if you’re moving with kids, nearby your favourite schools.
Known for its straightforward and simple income tax system, culturally diverse lifestyle, world-class education, transport infrastructure, healthcare, and more, Hong Kong’s bright lights have long attracted talent. What’s more attractive? Your effort will pay off. Hong Kong has one of the highest-paid job markets in the world, with an annual salary of around HK$780,000 (US$99,450) for managerial roles in Accounting & Finance, and HK$840,000 (US$107,100) for IT Project Managers in Innovation and Technology
It makes sense to find a career that will help you thrive in one of the world’s most vibrant cities. Fortunately, Hong Kong companies are likely to pay top dollar for great talent, be they local or foreign.
It takes a lot to move abroad, but it costs considerably less to live in Hong Kong if you are prepared. The elephant in the room is that housing will probably take a big bite out of your pie, but it’s not as bad as you might think. The cost of living here, with all things considered, is very affordable, considering it’s a global financial centre.
To fully experience Hong Kong, embrace the spirit of Hongkongers: work hard and play harder. Many locals work late and love to drink until even later. Several districts are worth checking out for beers, cocktails, and good times.
Another compelling reason to move to Hong Kong is that it’s home to one of the lowest tax rates in the world. The territory’s tax structure is straightforward and uncomplicated, with a progressive rate starting at 2% and capping at 17% on net income after deducting the basic allowance of HK$132,000, or at a standard rate of 15% on net income, whichever is lower. You’ll also receive additional tax allowances if you’re married, have children, or are single parents.
Whether you want to live in a penthouse with commanding views over Victoria Harbour or prefer the peace of an outlying island like Discovery Bay or Lamma, there are plenty of options for talent moving to Hong Kong. Those moving on their own may enjoy the livelier neighbourhoods like Mid-Levels and Wan Chai, while families may prefer the quieter communities like Sai Kung or Lantau Island.
If you’re looking for a place where you and your family can experience a good lifestyle and enjoy a high disposable income under low tax rates, Hong Kong certainly delivers. The city has some of the highest-paid executives in Asia. According to US data company PayScale, finance managers can expect an annual salary of HK$552,945 (US$71,132), project managers are paid around HK$534,444 (US$68,752), and software engineers receive approximately HK$322,486 (US$41,485).
Housing often causes the biggest headache during your move. To ease your pain, we've compiled some helpful house-hunting tips.
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