Definitive Guide to Expat Life in Hong Kong
Mar 2024 | Last Updated
Photo: Hong Kong
Hong Kong, a vibrant metropolis with a rich history of embracing expatriates and foreign professionals, offers an unparalleled blend of culture and commerce. In this in-depth guide, we'll explore everything you need to know about relocating to and living in Hong Kong as an expat.
Introduction
Hong Kong, officially known as the Hong Kong Special Administrative Region of the People’s Republic of China, is a bustling metropolitan area and a special administrative region of China. With its strategic location on the eastern Pearl River Delta in South China, Hong Kong is a magnet for expatriates seeking new opportunities in a diverse and dynamic environment.
In this extensive guide, we'll cover various aspects of expat life in Hong Kong, from the practical considerations of moving and cost of living to job opportunities, taxes, healthcare, and more. By the end of this guide, you'll have a comprehensive understanding of what it's like to live and thrive in Hong Kong.
What to Expect When Living in Hong Kong as an Expat
Population in Hong Kong
As of 2023, Hong Kong had an estimated population of 7.5 million people, making it a bustling and diverse metropolis. Expats will find themselves in a vibrant and multicultural environment where different cultures converge, creating a unique and exciting atmosphere.
Cost of Living in Hong Kong
The cost of living in Hong Kong can vary widely depending on your circumstances. Whether you're relocating alone or with a family, it's essential to understand the cost implications. Here's a snapshot of the cost of living in Hong Kong in 2023, based on Numbeo data:
Monthly expenses for a family of four (excluding rent): £3,167 (HK$31,274)
Monthly expenses for a single person (excluding rent): £894 (HK$8,828)
Hong Kong is approximately 12.7% less expensive than London (excluding rent)
Rent in Hong Kong is, on average, about 11% lower than in London
Hong Kong boasts a safe environment for expatriates. With its advanced economy and low crime rates, it provides a secure backdrop for both work and leisure. While minor incidents like thefts and burglaries can occur, overall crime levels are low and on a downward trend.
“The level of violent crime is very low but pick pocketing and other street crime can occur. You should take extra care of passports, credit cards and money in crowded areas and when checking in and out of hotels. If you intend to hike in Hong Kong’s Country Parks you should stick to marked trails and avoid carrying valuables.
Personal attacks, including sexual assaults, are rare but do occur, including through drinks being spiked. You should take reasonable precautions - don’t leave drinks unattended and avoid accepting drinks from strangers. Women, travelling alone or with female friends, could be at greater risk.”
(source: gov.uk)
Insights into Culture, Politics, and Quality of Life in Hong Kong
Culture and Customs in Hong Kong
Hong Kong offers a unique fusion of Eastern and Western cultures, creating a vibrant cultural tapestry. It's a city of contrasts, with high-end shops, world-class restaurants, and upscale apartment complexes alongside modest living conditions in towering apartment buildings.
Hong Kong, known for its incredible population density, embraces a set of unspoken social norms that enhance the coexistence of its residents in this bustling metropolis. Here's a glimpse into these unspoken rules:
Respectful Conversations: Engaging in loud conversations in public spaces is considered impolite, with locals valuing the tranquility of shared spaces.
Public Transport Etiquette: A customary practice when using public transportation is to allow passengers to disembark before boarding. This ensures a smoother flow of commuters.
Escalator Etiquette: Locals adhere to a well-established rule on escalators: stand on the right and leave the left side free for those in a hurry, promoting efficiency.
Considerate Elevator Use: Travelers with bulky luggage opt for elevators instead of escalators to prevent inconvenience to fellow commuters.
Traffic Rules: For safety reasons, it's crucial to obey traffic lights when crossing the road. Violating traffic regulations can lead to substantial fines.
(source: discoverhongkong.com)
Political Landscape in Hong Kong
Hong Kong operates under the "one country, two systems" framework, as a Special Administrative Region of China. However, political tensions have arisen in recent years, leading to widespread protests. The introduction of the Hong Kong national security law in 2020 has curbed protests, but the political situation remains noteworthy.
“Public deliberation is not repressed but nevertheless infrequent and controlled by ruling elites. The government is highly insulated from civil society actors, especially those that are critical of Hong Kong and mainland authorities. The territory’s government does not consult with them when formulating policy”
(source: freedomhouse.org)
Hong Kong offers a high quality of life with modern amenities, but it's also one of the world's most densely populated cities. It's home to billionaires and luxury experiences, but it's essential to find suitable living arrangements that meet your family's needs.
“Hong Kong is one of the most densely populated territories in the world. In different global cities' ranking systems, Hong Kong is highly ranked in terms of economic prosperity while moderately or even lowly ranked in terms of QoL due to pricy housing and poor living conditions”
(source: ncbi.nlm.nih.gov)
Finding Accommodation in Hong Kong
Selecting suitable accommodation in Hong Kong can be challenging, given the diverse options and varying costs. Depending on your preferences and budget, you can choose from upscale areas like The Peak or more affordable locations in Kowloon or the New Territories. Popular expat neighborhoods like Mid-Levels and Discovery Bay offer proximity to schools and communities. Discover our Hong Kong residential area guide for more information.
Rental Considerations
Most rental accommodations in Hong Kong are unfurnished, although they often include essential appliances. Rent is typically paid monthly in advance, with additional costs such as management fees and government taxes. Additionally, legal fees for tenancy agreements and agency fees may apply. Be prepared to provide an upfront deposit of two to three months' rent. For convenience and ease, you may consider long stay serviced or furnished apartments with simple all inclusive monthly costs while maintaining flexibility from 1 month to 12 month stays. Read our guide on 9 steps to booking a serviced apartment here.
Exploring the Job Market in Hong Kong
Job Opportunities in Hong Kong
Hong Kong's job market is robust, with ample opportunities across various industries. The city is a hub for banking, finance, IT, advertising, and HR, offering enticing prospects for expatriates. Competition for top positions can be fierce, making it advisable to secure a job before relocating.
Salaries in Hong Kong
Experienced expats can expect competitive salaries in Hong Kong. While the minimum wage is lower than in Western countries, average salaries are higher. Finance jobs, in particular, offer some of the highest salaries, with many managers earning well over HK$500,000 per year. Marketing, project management, and software engineering roles also provide attractive compensation packages.
Language Considerations for Expats
While Cantonese is the official language of Hong Kong, English serves as the de facto second language, especially in international workplaces. Many employers expect expats to have proficiency in English. Learning Cantonese is beneficial for interactions outside of work, although Mandarin may be more useful for travel outside Hong Kong.
Visa Requirements and Moving Costs
Applying for a Hong Kong Visa
Securing a visa is a crucial step in your relocation to Hong Kong. The process may take up to six weeks, so it's wise to initiate it early. Both you and your employer must complete the visa application forms. Spouses and children under 18 may also require visas. Importantly, only one work visa is needed per household, allowing your partner to work without a separate visa. Regulations for importing family pets should also be reviewed before bringing them to Hong Kong.
Hong Kong Smart Identity Card
Within 30 days of receiving your visa, individuals aged 11 and above must register for a smart identity card. These cards contain essential identity information and can be used for various purposes, including online identity verification.
Other Considerations
Don't forget to arrange essential communication services, including Wi-Fi and a local mobile phone SIM card upon arrival in Hong Kong.
Costs Associated with Moving to Hong Kong
Breakdown of Moving Costs
The expenses associated with moving to Hong Kong can vary depending on your family's needs. As a minimum, budget for the following costs:
Visas: HK$230 per visa
Accommodation: Anticipate around HK$38,000 per month for a two-bedroom apartment in Mid-Levels, along with a two to three-month rent deposit, management fees, and taxes.
School Fees: Budget approximately HK$108,000 per year for primary school (Year 1-2).
Pet Registration: Plan for a fee of about HK$432, with HK$102 for each additional animal in the same shipment.
Taxes: In general, a person’s income from employment, less allowable deductions and personal allowances, is chargeable to Hong Kong salaries tax at progressive rates ranging from 2% to 17% (source: pwc.com)
Taxation in Hong Kong for Expatriates
Paying Taxes in Hong Kong as an Expat
Hong Kong operates a relatively low personal tax system, offering lower tax burdens compared to many other countries. Income tax in Hong Kong follows a progressive rate structure, starting at 2% and increasing up to 17% for higher salaries. Various allowances and deductions are available, with the option to use a tax calculator provided by the Hong Kong tax authority. It's your responsibility to file tax assessments, with payments due in January and April each year.
In your first tax year, you'll also be required to pay provisional tax for the following year, necessitating a larger upfront payment. To manage your budget, consider opting for regular Electronic Tax Reserve Certificates (TRCs), which allow you to accumulate funds for tax payments.
Healthcare in Hong Kong
Healthcare Quality in Hong Kong
Hong Kong boasts one of the world's top healthcare systems. This remarkable achievement reflects the high-quality healthcare services available in the region, ensuring residents receive excellent medical care.
Healthcare Costs
Expats in Hong Kong can access a subsidized public healthcare system, available to anyone with a smart ID card, including non-permanent residents. The system offers free or affordable treatments, although waiting times can be lengthy. Additionally, there is no guarantee of an English-speaking doctor.
Private medical care is an option for expats seeking shorter wait times and English-speaking doctors. It's also increasingly popular among Hong Kong citizens. However, Hong Kong ranks among the more expensive Asian regions for private healthcare. Considering the potential financial burden associated with healthcare costs, expats are encouraged to secure global health insurance before relocating to Hong Kong.
Making the Move!
Hong Kong is an attractive destination for expatriates, offering a diverse and dynamic environment with abundant opportunities. While the city presents modern luxuries and a high standard of living, it's essential to be well-prepared. Ensure you have secured a job, international health insurance, and suitable accommodation to facilitate a smooth transition and enjoy a fulfilling life in this vibrant metropolis.
*Disclaimer: The information provided in this guide is for general informational purposes only and is based on data available up to September 2023. Please consult updated sources and seek professional advice for the most current information and guidance when planning your move to Hong Kong in 2024/25.*
