The Ultimate Guide to Expat Living in Hong Kong

‘You can leave Hong Kong, but it will never leave you’.

The words of Nury Vittachi, science fiction writer and author of The City of Dreams, still ring true and perfectly capture the spirit of this special administrative region (SAR) of China.

In Hong Kong, it’s evident how the East winks at the West: you just have to take one look at the iconic skyline and you will see how skyscrapers cosy up to ancient temples.

To locals, tourists, and expats alike, the city defies definition – a bustling market could be just a stone’s throw away from serene green spaces, both of which transform at night under the glow of a skyline that looks like it was plucked straight out of one of Nury Vittachia’s sci-fi flicks.

The energy here?

Electric.

One minute you’re savouring dim sum with a view, the next you’re diving into futuristic tech havens.

Simply put, Hong Kong is the ultimate paradox – a city that’s been catapulted into the future while gripping tightly to its cultural roots. 

Its duality is what makes Hong Kong a significant business hub on the global stage and a captivating destination for more than 700,000 expats. 

So, whether you are drawn by the business buzz or the promise of adventure, you’ll get what you wish for in a city that’swaiting to surprise you at every turn.

Hong Kong Guide

So, what secrets lie beneath the glow of one of the world’s most iconic skyline?

Quite a few, actually: the region of Hong Kong was incorporated into Imperial China around the 2nd century CE, but the island’s modern history began in 1842 when it was acquired by the UK in 1842 under the Treaty of Nanking after the end of the war with China. 

A strategic location for trade with China, particularly in tea, Hong Kong would soon become a major global trading port and the rapid industrial growth that laid the foundation for its economic boom continued after World War II. 

The handover of Hong Kong from UK to China in 1997 marked a significant chapter in its history and the British influence is still apparent today in Hong Kong’s colonial architecture, culture and legal system. 

The handover introduced the one country, two systems principle, under which Hong Kong is part of China but retains its own economic system and way of life. 

The result?

Hong Kong is a melting pot of cultures, a dynamic destination full of contrasts. The city celebrates Chinese festivals with great fervour while also embracing Western traditions such as Christmas and Halloween. 

The late, great chef, Anthony Bourdain, once opined of this city: “To feel sentimental about the past is unusual for Hong Kong. Hong Kong is always changing, it’s always embraced change”. 

Bourdain’s comments on Hong Kong’s cultural amalgamation and commitment to constant evolution, still remains evident in the food, festivals and daily life of its residents. 

Iconic landmarks such as the Victoria Peak and the Star Ferry tell a story of Hong Kong’s evolution from colonial outpost to modern metropolis. 

Hong Kong’s culinary scene ranges from inexpensive street food like dim sum and delicious bamboo noodles to international award-winning cuisine at places like Yat Lok Roast Goose or the Prince and the Peacock.

The variety is rooted in the city’s multicultural nature. Here, food is a cultural expression that brings people together. 

Moving Abroad to an Asian Tiger

While food and fun certainly play a role in deciding to relocate here as an expat, financial factors are appealing, too.

Known globally as one of the four Asian tigers, Hong Kong’s dynamic economic landscape is characterised by low taxation, free trade and minimal government interference. 

This, along with its strategic geographical location, has made it a thriving hub for business and finance on the global stage.

The Hong Kong Stock Exchange is one of the world’s largest and the city attracts multinational corporations seeking a gateway to Asia. 

As you’d likely know if you have ever visited, Hong Kong is not just about stocks and trade. Its innovation in technology and sustainable development is setting trends globally.

The city is constantly evolving, adapting new technologies that enhance its economic resilience and competitiveness on the world stage. 

Whether for travel, business or living, Hong Kong’s unique charm and dynamic spirit are a testament to the beauty and resilience of its cultural diversity and economic vitality.

The Cost of Expat Life in Hong Kong

Hong Kong is known for its high cost of living and consistently ranks among the most expensive cities in the world. 

Like any city, though, the cost of living in Hong Kong can vary significantly depending on your lifestyle, housing choices and personal spending habits. 

For most people, housing is the most significant expense in Hong Kong as the city has a limited supply of land, which drives up property prices. 

Apartments, especially those in desirable neighbourhoods, are often small and come with high rental or purchase costs.

Many expats live in serviced apartments or housing complexes to manage costs. For example:

• A serviced one-bedroom apartment in the Four Seasons Place, overlooking Victoria Harbour, costs around HKD$62,000 (US$7,940) per month.
• A two-bedroom unserviced apartment in the Southern District (10 kilometres from the centre) costs around HKD$72,000 (US$9,220). 
• A small two-bedroom unserviced apartment in Causeway Bay (4.2 kilometres from the centre) costs around HKD$31,000 (US$3,970) but is unfurnished. 

So, there’s a high degree of variation in terms of price, but generally speaking, you’ll pay a higher premium to be close to the city centre. 

Despite this, according to some estimates, the cost of living in Hong Kong is 29.4% lower than in New York City (without rent) and 34.4% lower when you include rent.

Where you will find you likely spend most of your budget is dining out, transportation, and general entertainment.

Dining out in Hong Kong can be expensive, for example, especially in upscale restaurants and international chains.

However, you can find more affordable dining options at local street markets, food stalls and traditional tea houses. Follow in Bourdain’s footsteps and head to Sun Hing Restaurant for quality dim sum at a great price.

Public transport in Hong Kong is efficient and affordable. The mass transit railway is the backbone of the system. Taxis and rideshare services are available but more expensive.

If you have children, you might consider one of the city’s 54 international schools, which can be quite costly. These schools offer various curricula and tuition fees can be a significant financial burden for expat families. 

Hong Kong has a high standard of healthcare, but it can be expensive so many expats opt for private health insurance to access quality medical services. 

It’s important to note that salaries for expats working in Hong Kong are often adjusted to reflect the high cost of living.

Additionally, some employers offer benefits such as housing allowances or assistance with school fees to help offset these expenses. 

Hong Kong – Language and Culture

How feasible is it to integrate into daily life in Hong Kong? After all, for most Western expats, language, life and culture are quite different.

Well, it depends on your attitude and openness to new experiences.

Most people in Hong Kong are fluent in Cantonese and you’ll find that public signs, official documents and media are predominantly in that language.

Still, English remains an official language in Hong Kong and plays a significant role in business, government and education. 

Many Hong Kong residents, especially in professional fields, are proficient in English, so you should be able to get by with English in most parts of the city.

Regarding culture, Hong Kong is a place where modernity and tradition coexist.

On the one hand, the city’s stunning, futuristic skyline is visible, while on the other hand, ancient temples, traditional markets and cultural festivals are nearby. 

This is what makes Hong Kong so exhilarating for expats – the city is overflowing with unique cultural events, dining options and entertainment, so you can find just about everything here, from shopping to outdoor activities and excellent hiking trails. 

Hong Kong is rightly famous for its fast-paced work environment, though many residents also place a strong emphasis on leisure and relaxation, often spending weekends enjoying the city’s natural beauty, dining out and engaging in leisure activities. 

The city celebrates a variety of traditional festivals, such as the Chinese New Year, Mid-Autumn Festival and Dragon Boat Festival.

Other international events and celebrations include New Year’s fireworks, the Hong Kong Arts Festival and the Hong Kong International Film Festival.

Despite its urban density, Hong Kong offers numerous opportunities for outdoor activities. Hiking and trail walking are popular and the city has lush parks and beautiful beaches for residents to enjoy. 

The bottom line is that whether you’re drawn to the bustling streets of the city, serene hiking trails or its rich culinary scene, there’s something for everyone in Hong Kong. 

As noted above, there’s a significant expat community based here, with numerous clubs, organisations and social groups catering to different interests. 

Expatriate life in Hong Kong can be rewarding, offering opportunities for career growth, investment and personal development.

But thorough research and planning are crucial before making the move to ensure a smooth transition to life in Hong Kong.  

For successful entrepreneurs and investors, Nomad Capitalist’s high-level services are designed to help solve potential problems by reducing taxes, getting second citizenship, investing overseas and living the Nomad Capitalist lifestyle.  

Where To Go in Hong Kong

Tian Tan Buddha

Taking a hike to see the Tian Tan Buddha, one of the largest seated Buddha statues in the world, is an experience to remember.

One of Hong Kong’s iconic landmarks, the Big Buddha, is a huge bronze statue on Lantau Island that symbolises the relationship between man, nature and faith. 

To reach the Buddha, you’ll need to climb 268 steps.

Ngong Ping Cable Car

The Ngong Ping Cable Car offers a 5.7km ride with stunning views of the South China Sea and lush green mountains.

Victoria Peak also gives you a scenic view of Hong Kong at 1,811 feet. Besides the views, you’ll also find hiking trails, restaurants and Madame Tussauds’ wax museum at the peak. 

Tsim Sha Tsui is a neighbourhood where you can shop, eat, and explore high-end shopping malls, upscale bars and fine-dining restaurants. 

Ocean Park

It’s also worth taking a trip to Ocean Park. This is the second largest theme park in Hong Kong, second to Hong Kong Disneyland.

With more than 80 attractions, sea animal encounters and exciting rides, the centrepiece Grand Aquarium features a 360-degree multimedia show with projection mapping and laser effects. 

Best Places to Live in Hong Kong

While plenty of tourist locations are great to visit, they aren’t ideal for putting down roots. The following districts, however, are highly recommended for expat living in Hong Kong:

Happy Valley

Happy Valley is part of the Wai Chai District of Hong Kong, a prominent business district on the island.

It’s the perfect place to establish yourself if you’re seeking opportunities to make connections and create new business. 

It’s not far from several beautiful nature sites, including the following: 

• Jardine’s Lookout to the south
• Causeway Bay to the north 
• Morrison Hill to the west.

Most of the residential areas are upper-tier, meaning you may need to pay a bit more to live here and thrive. However, the convenience, charm and ease of access make it an appealing spot.

Sheung Wan 

The charming district of Sheung Wan is a lovely blend of old–fashioned appeal and modernity.

Known for its many shops and cafes, it’s an ideal spot for anyone seeking to settle in Hong Kong as a freelancer or digital nomad. 

Historic shops and temples stand comfortably beside Western restaurants, with Queen Street Cooked Food Market and Chachawan being some of the best places to dine. 

Mid-Levels

Those seeking a quieter and more sophisticated location should check out Mid–Levels.

This beautiful community sits between the neighbourhoods of Central and the amazing Victoria Peak, equally popular with by expats and locals for its proximity to Central and the overall laid–back environment.

Those who want a relaxed style of life with easy access to the more bustling parts of Hong Kong are sure to love this location. 

Discovery Bay

Discovery Bay is perhaps the most luxurious spot on this list: after all, it’s literally a resort town on Lantau Island, complete with an ice-skating rink and plenty of restaurants. 

The site prides itself on having endless opportunities for visitors and residents to explore, enjoy and immerse themselves.

Access to the town is easy, with aeroplanes, shuttles and ferries to carry you to and from every direction.  

Kowloon and Sham Shui Po

Kowloon is a top foodie adventure spot.

Here, you’ll find streets adorned with Cantonese cuisine stalls of dim sum, grilled meat on sticks, wonton noodles and other classic street food.

One specific area, Sham Shui Po, has a couple of Michelin-starred restaurants, particularly Tim Ho Wan. 

Sham Shui Po is one of the oldest neighbourhoods in Hong Kong: it’s a great place to see historic Hong Kong buildings, get lost in bustling street markets and experience the Golden Computer Shopping Arcade for bargain-basement electronics.

Residence in Hong Kong

Unlike many jurisdictions we talk about at Nomad Capitalist that offer relatively easy second residence, Hong Kong does not fall into that camp.

That’s not to say it’s impossible, but the requirements are now tougher. 

Until 2015, almost anyone could deposit HK$10 million (about US$1.28 million) in a Hong Kong bank, a local company, or a brokerage account and, after seven years, access a right of permanent abode.

Now, however, residence in Hong Kong requires you to start a company or to receive a highly lucrative job offer. 

So, in theory, the easier route to residence is now closed off.

That was until March 2024, when Hong Kong relaunched the Capital Investment Entrant Scheme (CIES) with a residence permit that’s granted for an initial two years.

Under CIES, eligible applicants must show that they have minimum net assets of HK$30 million (US$3.86 million) and meet certain investment requirements:

• A minimum investment of HK$27,000,000 (US$3,475,167) in authorised financial assets and non-residential real estate
• A minimum investment of HK$3,000,000 (US$386129) n a new CIES Investment Portfolio. 

The initial permit is for two years and needs to be renewed after three years: after sevens years if you apply for and receive a permanent residence card and the Permanent Identity Card has been approved, you can dispose of all the investments.

Citizenship in Hong Kong is only possible if you are a Chinese national. 

Taxes in Hong Kong

Hong Kong isn’t a tax haven and, although the system there is relatively complex, it is still possible to pay very little.

For starters, tax on income earned there is progressive and capped at 17%.

Tax here is territorial, so you’ll only be taxed on income generated in or remitted to Hong Kong. if you’re employed or providing services outside Hong Kong, your income is generally tax-exempt.

The corporate tax rate ranges from 8.25%-16.5% on revenue derived from clients within its national borders. There is no capital gains tax, dividends tax or wealth tax. 

For expats who decide to incorporate there, the biggest benefit is Hong Kong’s Offshore Profit Tax Claim. 

• But the requirements are strict:
• You cannot have any revenues from clients within Hong Kong
• Offshore company directors cannot spend more than 60 days in Hong Kong.

This are just a couple of the nuances to pay attention to, though, as having any employee or director located in Hong Kong could result in the opportunity to claim the offshore profit tax claim lost. 

Even a company owner having a personal bank account in Hong Kong could upset the authorities there. 

So, while it is absolutely possible to pay zero tax by setting up an offshore company in Hong Kong, it requires planning because any infraction could result in the loss of your offshore status. 

That’s where Nomad Capitalist can help. Consider setting up a call with our team to discover the best plan of action for you. 

The Ultimate Guide to Expat Living in Hong Kong: FAQs

Living the Dream in Hong Kong

So, you’re thinking about relocating to Hong Kong?

With its iconic skyline, it’s hard not to feel excited about the city’s unique culture and sky-high business potential, so if that kind of thing appeals to you, then moving here could be worth it (certainly considering doing so). 

Yet, like a high-stakes game of mahjong, living here comes with its own set of challenges.

The cost of living and the lack of a real, feasible path to citizenship can be downsides for those wishing to stay long-term.

That means you’ll have to answer some questions when debating whether making a move to Hong Kong is right for your needs.

And that requires careful planning and research – however, working with our team of global experts at Nomad Capitalist can help you make this decision. 

We help seven- and eight-figure entrepreneurs go where they’re treated best, which involves more than just finding the place with the best tax code or highest standards of living. It means having a holistic plan for the future tailored to your specific needs. 

Become a client today and start taking the first steps to true financial and personal freedom.