From dealing with people wanting to move out, were now helping people to return, the person said. I am also really relieved that they will help if I need it during audits. While these non-essential cookies are important to us, we'll only store them in your browser with your explicit content. Although Hong Kongs strict border controls effectively isolated the city from the rest of the world, the special administrative region remains the Western financial systems gateway into Chinaas well as a venue where Chinese firms can raise foreign capital. But any bid to create direct trading links between Tokyo and exchanges in Shanghai and Shenzhen would require support from Chinese financial regulatorsan unlikely prospect. What options do I have to reduce my tax bill?. The Hong Kong Special Administrative Region (HKSAR) under the Framework of "One Country, Two Systems" is closely connected to the Chinese mainland and also extensively connected to the world. We look at how to get coverage with global private medical insurance in Mauritius. Hong Kong 'Get out, no matter what': Quarantine camps, family separations, and a looming. As a general rule, youll need the following to open an account: If youre moving to Hong Kong, the cheapest way to stay connected is buying a local sim card. With H&R Block, you can rest easy knowing youve found the right expertise for U.S. expat taxes in Hong Kong. Only those who received at least one dose of recognized COVID-19 vaccines could dine in, even though authorities had already been giving out booster shots at the time. Under it, countries automatically share basic financial information about each other's expats. It is becoming increasingly unlikely that protest activity will affect the lives of expats living in the city. It is recommended that you make a booking online before going into the Immigration Office as things can get crazy and you arent always guaranteed an appointment simply by showing up. Some professional skill sets may be left as a legacy, and the influx of mainland Chinese firms may partly offset expat departures, he says. Necessary cookies are absolutely essential for the website to function properly. You can even do this as soon as you touch down at Hong Kong International Airport. When asked by reporters in April about the Hong Kong government's approach to controlling the spread of COVID-19, Lam said the government would not relent on the constant tweaking of policies so as to curb the spread. Only 17% of the companies said they don . Hong Kong has a long history of welcoming expats and foreign workers into its rich cultural heritage. Hong Kongs draconian Covid 19 rules prompted thousands of people to leave permanently or to relocate temporarily to more accessible locations, but for many expat bankers the relaxation of rules is proving the catalyst for a return. To make things easier for you, we categorise and explain these non-essential cookies (e.g., advertising, analytics, functional). Tokyo is capital of the worlds third-largest economy, home to the largest pool of pension assets after the U.S., and a leading source of direct investment. This field is for validation purposes and should be left unchanged. The income tax rates range from 2% to 17%. medical treatment can cost away from home? Whether youre still considering moving to Hong Kong and in research mode, or youve just arrived, in which case welcome, heres a check list of all the admin you need to get in place before you can begin to truly enjoy all this amazing city has to offer. As the dust settles and we all fall in line to new norms , things in general have been quite an improvement for HK. Not sure where to start? Nevertheless, its good to know that if you choose to bring your four-legged friends, its not all concrete jungle for them when they land. FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. Wi-Fi is freely and widely available in Hong Kong thanks to the public Wi-Fi brand Wi-Fi.HK, however bear in mind some websites are censored. At least four structural advantagesmainland Chinas deep talent pool thats increasingly capable of filling the finance jobs expats vacate, the likely persistence of Chinese capital controls, the continued growth of the mainland economy, and a dearth of viable regional alternativesall but guarantee Hong Kongs future as Asias financial capital. Thats not to say crime doesnt happen. You will also need to think about your communication essentials. China is wielding more control, and Hong Kong and mainland China have some of the most restrictive COVID policies in the world. Pham said she felt exhausted from listening to Hong Kong's government defend its position at a time when so many other countries chose to start living with the virus. Forth soaked up every minute of his first four years in Hong Kong. juncture is a Prime Video series about the privileged lives of American expats in Hong . He asked that Insider not use his full name to ensure his job security. We also use different external services like Google Webfonts, Google Maps and external Video providers. Local helpers can be hired on a part- or full-time basis. You are not legally entitled to work without a visa but you can land and then set about getting one. Thank you! In response, the Hong Kong government passed the Hong Kong national security law in 2020, which effectively bans acts of protest and also limits foreign interference within the region. On. But people have forgotten it now, and once Covid is finished, Hong Kong won't return to how it used to be," he said. You can lower your U.S. bill and avoid dual taxation with certain tax strategies. And there's no light at the end of the tunnel yet. For Hong Kong-based expatriates thinking of visiting their family and friends elsewhere, such regulations meant having to prepare for the possibility of not returning to the city as planned. At the end of every trip, Tranbarger, who traveled a lot, faced a mandatory weekslong quarantine in a hotel room. The data for expat bankers, which are counted separately from mainlanders, shows visa approvals peaking at 5,507 in 2018. "It feels like we're all in a boat without a skipper, and China is driving us," she added. For that reason, you can expect to find lots of modern-day luxuries such as high-end shops and malls, world-class restaurants and top-of-the-range apartment complexes. Rentals are payable monthly in advance and, serviced apartments aside, are generally exclusive of management fees and government taxes, which could add a further 12-15% on top of rental costs. Hong Kong is infamous for its high cost of living. Travellers from outside mainland China are still required to quarantine for three days upon arrival, but its a vast improvement on the more draconian measures that have been a feature of the last two and half years. The academic arrived in the bustling city at the southern tip of China in 2015 and fell in love with its uniqueness. Among all the possible destinations for US expats, Hong Kong appears near the top of the list in popularity. The outlet quoted a London-based finance industry recruiter who declared that No amount of money is going to convince a candidate to go to Hong Kong.Reuters predicts a wave of expat departures from global banks, asset managers, and corporate law firms based in Hong Kong over the next three months as bonuses are paid. William Russell Ltd is authorised & regulated in the UK by the FCA, reference number 309314, and is registered in England & Wales at William Russell House, The Square, Lightwater, Surrey, GU18 5SS. Singapore has the most vibrant ever changing restaurant scene with the most diverse offerings of any city in Asia. These cookies do not store any personal information. Your Hong Kong pension is not tax-free in the United States. You have reached the maximum number of listings for your package (0). We cover the practical details expats should consider before making the move, including upfronts and living costs, the visa requirements to live and work in Hong Kong, the Hong Kong tax system and where to live. To find out, first calculate your net chargeable income (assessable income less personal deductions and allowances), bearing in mind that the basic allowance for a single person is HK$132,000. Similar to taxes in the U.S., the percentage of tax that you pay increases as your income increases. This allure carried him through his toughest days in the city. The number of domestic helpers in Hong Kong has fallen by an estimated 50,000 during the pandemic, creating an acute shortage of labor relative to demand. All Hong Kong needs now is the deal-flow to support it. If your property is unfurnished, have you found a company that can supply your home with essential furniture ahead of your arrival? Please be aware that this might heavily reduce the functionality and appearance of our site. Hong Kong-based expats told Insider they were frustrated by the city's response to the Omicron wave. Do I Need Income Protection in the Cost Of Living Crisis? We also use non-essential, third-party cookies, which help us to analyse how you arrived at and how you use our site. Even when a bout of turbulent mass protests in 2019 almost brought the city to its knees and sparked months of widespread chaos, Forth stayed on. GURA: Now Tranbarger is preparing to start a new chapter in California. The tax year is different than in the United States. Working visa:Unless you have a Hong Kong Right of Abode or Right to Land, you will need a visa to work in Hong Kong. The key is to put your childs name down at a few schools as soon as you have an inkling you might be moving to Hong Kong. Dependent visa and trailing spouses:Unless your spouse has a job in Hong Kong and a visa in his/her own right, dependent visas are a must for your spouse and children under the age of 18 to be able to live full-time in Hong Kong. Analyst/Senior Analyst, Real Estate Acquisitions, Systematic Trader/ Hedge Fund/ ETFs/Equities/Index Futures/ London, 50 Permanent Change Management Hires Tier 1 Bank, JPMorgan's Daniel Pinto on when banking (and hiring) will recover, Deutsche Bank made an unexpected equities hire from Citi, Ex-UBS head of US electronic trading joins hedge fund, Inside Eisler Capital: the ambitious hedge fund where you may not last, Ex-Credit Suisse bankers are leaving London for Milan. The scheme is open to Hong Kong residents who claimed British National (Overseas), or BNO, status before the handover in 1997. And after 27 years living in Hong Kong, I left without even knowing I was leaving and didn't say goodbye to anybody. Theres a plethora of options in Hong Kong when it comes to schools and curriculums. After seven years of living in Hong Kong, New York native Marty Forth finally had it. Hong Kong Cost of Living Is High. These restrictions quickly turned into administrative and healthcare nightmares for hubs like Shanghai and Xi'an, where residents had to stay put in their homes for weeks while authorities scrambled to find ways to provide them with food and medicine, while also isolating the infected. Hong Kong's pandemic response has been guided by Beijing's COVID-zero strategy, with the aim of achieving "zero infections" in the city. This is partially due to very high rent prices in the city Hong Kong comes second to last for affordable housing, with 91 . In the 2018 Bloomberg Health-Efficiency Index, Hong Kong ranked #1 worldwide, meaning it is one of the best regions for ratio of healthcare spending to life expectancy. With multiple ways to file, weve got a tax solution for you. Fax: (852) 3106 0315 As an American working in Hong Kong, you may have to pay Hong Kong taxes. Expats who intend to make use of the private medical sector are therefore encouraged to take out global health insurance before settling down in the region, as many of the costs associated with healthcare could cause a serious financial burden without the right level of coverage. Your home network will be able to tell you if your device is locked. More important, those stats show that banks are still hiring regardless of the pandemic and the citys onerous quarantine rules. Most banks offer the same generic services such as current, savings, time deposit, and payroll accounts. Tax Rates. maternity care and pregnancy in Hong Kong, Health Insurance In Mexico For US Citizens: How To Get Coverage, Health Insurance In Mauritius: How To Get Covered, International Group Life Insurance: How To Get Started, Best Insurance For Working Abroad (We Compare 6 Providers), Family of four estimated monthly costs are, A single person estimated monthly costs are. Thefts, assaults and burglaries occur as in any other city, and organised crime is a wider issue for the city. You can also apply for the auto top-up so you never run out of credit. "It's a city with a very strong Chinese sense of place and history, yet still a very modern, progressive, clean, and safe city that's a hub for finance, travel, and innovation," he said. This can take up to 6 weeks, so early application is recommended. Though David Graham, executive director of Hong Kongs British Chamber of Commerce, told the SCMP that the reduction to 14 days is just the start of whats needed.. All Rights Reserved. While most US Expats won't owe US taxes, those in Hong Kong earning over $112,000 (or the latest FEIE maximum annual exclusion rate) will probably owe! 2%. Even though Hong Kong's chief executive Carrie Lam announced in March that the city would lift some travel and domestic restrictions, her government also made it clear that the city would still stick closely to Beijing's "COVID-zero" plan. It is an extremely wealthy part of the world and home to the seventh-greatest number of billionaires of any region worldwide. How do my Hong Kong financial accounts affect my filing? Looking at an example of a three-bed apartment in Mid-Levels on Hong Kong Island at around HK$45,000 per month, plus management fees of around HK$2,500, could mean an initial payment of around HK$159,500 for the first month plus taxes and additional expenses. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc. James said. Marketing, project management and software engineering jobs also offer good salaries, many of which are in the region you would expect to find in London, New York and other global cities. The pandemic has accelerated trends away from expatriates, and has probably led to more mainland candidates coming into Hong Kong, particularly in financial services, investment banking, and so on, says Alan Paul, managing director of boutique executive search firm Alan Paul Partners in Hong Kong. A total of 2.9 million people registered and so can apply for the new . Many have become willing to cast their recruitment net wider, especially as working practices have shifted to a more hybrid model. Freedoms have been curtailed as a result," Forth told Insider. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice| Do Not Sell/Share My Personal Information| Ad Choices William Russell Europe SRL is a mandated underwriter for AWP Health & Life SA. The rule was different for bars and clubs, where patrons had to take antigen rapid tests before entering them. Central, Hong Kong SAR, Telephone: (852) 2815 2520 What to expect from life in Hong Kong in 2023? Please note that opting out of having non-essential cookies stored on your browser may affect your browsing experience. The relevant application can be found on the MPF website (mpfa.org.hk). Another banker said that a number of his French colleagues had returned, including a neighbour who had relocated to Singapore. Your H&R Block tax advisor can confirm the best path for you. The total population in Hong Kong was estimated at 7.5 million people in 2020, according to the latest census figures and projections from Census and Statistics Department of Hong Kong. SCOTT HANCOCK: There's a lot less openness in conversation. Of course, living there has tax consequences for US expats. ET on Wednesday to decide whether to return to school or officially be a part of the draft. Singapore is comfortable and cosmopolitan with a British-style legal system. Some banks have hired regional heads in other locations like Sydney and Singapore where they have grown their presence. The UK branch of William Russell Europe SRL is registered at William Russell House, The Square, Lightwater, Surrey, GU18 5SS, UK. Credit and debit cards (known as EPS) are widely used. This certainly should help alleviate some of the stress on cross-border business operations and talent shortages due to the lockdown, George Leung Siu-kay, CEO of the Hong Kong General Chamber of Commerce, said to the SCMP. The scrapping of quarantine rules for locally based airline staff in Hong Kong on September 10 comes as expats bankers are returning to the city. Private equity investor Scott Hancock and his family moved to Hong Kong from Australia in 2012. This article is part of our series of guides to expat life. All rights reserved. Breaking this rule could land an offender up to six months in prison. Further details can be found on the Hong Kong SAR Governments website. Thats partly truedepending on how the term expat is defined. Hong Kong managed to avoid the worst of the pandemic. I had a great experience this year - I used HR Block last year and was very impressed with the efficiency and accuracy and professionalism throughout the whole process. stop it. When Simon Cahill, a chartered financial planner at Octopus. Below, you can see the progressive rates for 2022. She's the outgoing president of the American Chamber of Commerce in Hong Kong, which represents more than 600 U.S. companies. In an infamous move in January, Hong Kong ordered pet shops and owners to surrender their hamsters over fears that they might carry the coronavirus. Beautiful skyline view in Hong Kong / GETTY IMAGES. Various allowances and deductions can be applied, and the Hong Kong tax authority operates a handy tax calculator to assess tax payable. Accuracy and availability may vary. Thats not to say there is no need to learn Cantonese if you are moving to Hong Kong. James relocated back to his hometown in the UK in early June. Some firms are resorting to bumping salaries for new hires far past the usual rate, said John Mullally, regional director for human resource firm Robert Walters. As of August, gatherings of more than four people are still prohibited, including in bars and clubs. And he's not alone. Read below to find out what life in Hong Kong is like in 2023. In the first half of 2022, the city's total population fell by 110,000 almost double the population loss from the entirety of last year. Thanks Rory. The easing of restrictions is encouraging expat bankers to return. They have club membership and servants in Hong Kong, while in London they had a rude awakening., For some who relocated, the move was also intended to be a temporary one, enabling them to travel to see clients and family while China pursued a zero COVID strategy in Hong Kong. Then came Omicron, and cases in Hong Kong surged. I live in Kenya now and run my own online digital marketing business. Check out our latest guide on international career opportunities. Anthony Kwan/Getty Images Hong Kong-based expats told Insider they were frustrated by the city's response to the Omicron wave. Outside of Hong Kong Mandarin will be more useful to you, especially if you expect to travel around, where English literacy rates are far lower. Others are for statistical or marketing purposes. "They keep changing the policies, you never know when they're going to clamp down again," he said. Hong Kong did experience a number of severe spikes in cases throughout 2020 and 2021, but was quick to respond to these. The scrapping of quarantine rules for locally based airline staff in Hong Kong on September 10 comes as expats bankers are returning to the city. You will still need to know a little in order to communicate with people outside of work. The job market if you're living in Hong Kong, Visa requirements and cost of moving to Hong Kong, Your handy "moving to Hong Kong" checklist. Read our guide to the most expat-friendly neighbourhoods to live in Hong Kong. Your Hong Kong taxes are based on income earned within its borders vs. your residency. Good luck settling in, youre going to love it here. Because Hong Kong is a hub of industry and commerce, job opportunities are usually in abundance. Thats a much smaller and more affluent group whose members often receive lucrative expat packages featuring housing stipends, club fees, childrens private school tuition, and top-of-the-line health care. Here is a summary of potential cost of living in Hong Kong in 2023, according to Numbeo: In general, yes. China promised the city wide-ranging freedoms denied to those in mainland China for 50 years, although some say China . If you participate in a Mandatory Provident Fund (MPF) through your employer, you can deduct your contributions from your Hong Kong taxes. On top of facing daily disruptions and travel restrictions, they also feared a loss of freedoms. 23:34 UTC+8, 2023-06-02. Anthony Kwan/Getty Images Hong Kong-based expats told Insider they were frustrated by the city's response to the Omicron wave. Expats may be exiting Hong Kong, but their dwindling numbers wont necessarily threaten the citys viability as a global business hub. But today, Hong Kong is a different place. H&R Block U.S. Expat Tax Services does a really great job! I don't think it will ever be the same place that it was before. Meanwhile, Hong Kong residents were largely spared such harsh lockdowns in the first two years of the pandemic. For decades, Hong Kong has been a financial capital like London and New York, a magnet for millions from around the world. Get started with our made-for-expatsonline expat tax servicestoday! Once you have received your visa, have you registered for a. Its autonomy from China has eroded, and its strict COVID-zero policy has made it a difficult place to do business. Speak to us todayto find out more about how international health insurance could benefit you and your family andgood luck moving to Hong Kong! If you have already been vaccinated for COVID-19, do you have evidence of your evidence such as the batch number of your vaccine? In fact, many companies will expect you to speak English as a first language. H&R Block Expat Tax Services is here to help you get your U.S. taxes in order. Hong Kong's draconian Covid 19 rules prompted thousands of people to leave permanently or to relocate temporarily to more accessible locations, but for many expat bankers the relaxation of rules is . GURA: The quarantine can cost thousands of dollars. Your official ID, such as your passport of HKID card. You can buy a sim card from any mobile phone shop, but the easiest way is to pop into a 7-Eleven. Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. While Hong Kongs economy more closely integrates with the mainland, banks and other financial institutions may place less value on employees who only speak English and instead favor those with the skills to interact with colleagues in the mainland and close deals in Mandarin. During the pandemic, Hong Kong relied heavily on mainland China for policy responses and support. Using this service has helped me save tons of time and energy on my taxes. Expats leaving Hong Kong told Insider that the government's haphazard response to Omicron was the final straw for them. "Hong Kong is not for expats anymore," he added. This site uses cookies. 2023 eFinancialCareers - All rights reserved. He left little doubt that he would be returning to the Boilermakers in a late . The American Chamber of Commerce in Hong Kong's (AmCham HK) 2022 Business Sentiment Survey polled 262 individuals and corporate representatives, many of which have moved to the city from overseas. Do you have all the necessary payment cards to go with your account? However, it is important to note that Hong Kong is one of the expensive regions in Asia for private medical care. In mainland China, Beijing's tactic was to eliminate any trace of the virus through extreme restrictions. "A lot of people see that it has become a Chinese city, already more and more freedoms are being taken," he said. TARA JOSEPH: A lot of people have left. We update this article regularly to keep it useful as possible, but if you want to know more - please seek independent advice. I highly recommend HRB Expat Tax. Another industry that is in particularly high demand is teaching. If you have questions specific to your Hong Kong tax return, its best to speak to an expert on local Hong Kong taxes. Dom McKenzie If you are considering a move home, preparation is key and one of the top priorities is tax. If your spouse will be working too, have you applied for one work visa that will apply to both of you? Ready to file your expat taxes? Visa approvals dropped to 4,719 in 2019the year of the Hong Kong protestsand plummeted to 2,448 in 2020. Those advantages are likely to endure whether the citys expats stay or go. After receiving your Hong Kong ID, you should keep it on you at all times, as Hong Kong police have the authority to stop and demand identity checks from anyone at any time. Hong Kong has such a unique role on the doorstep of mainland China, and the contacts and the connections to China are so important. Travellers from outside mainland China are still required to quarantine for three days upon arrival, but its a vast improvement on the more draconian measures that have been a feature of the last two and half years. We compare six well known insurance companies for working abroad. Expats with a few years experience in a professional occupation can expect to earn a good wage in Hong Kong. Shocked by London, bored by Singapore, expats return to Hong Kong by David Rothnie 13 September 2022 3 minute read It's a new season in Hong Kong. Have you checked the COVID-19 situation and made preparations to undergo regular testing? Terms & Conditions. Then came the COVID-19 pandemic that ripped through Hong Kong in multiple waves. Visit our website terms of use and permissions pages at www.npr.org for further information. Its also worth noting that there are regulations on bringing family pets, so make sure you visit Hong Kongs Ministry of Agriculture, Fisheries and Conservation website before importing any animals. If you would like Wi-Fi in your home, consult with your landlord or property manager ahead of time and ask them to install it. It is also becoming increasingly popular with Hong Kong citizens, with the government incentivising private medical treatment through a Voluntary Health Insurance Scheme. Knowing which tax rules affect you and understanding your options is a lot to stay on top of. Following the detection of the Omicron COVID-19 variant in Hong Kong, restrictions have been placed on the operations of restaurants, bars, schools, museums and a number of other public places. For starters, Americans and U.S. Green Card holders living in Hong Kong should continue to file a U.S. tax return each year. Once a British colony, the UK ceded Hong Kong to Chinese control in 1997. Profits tax: Corporations - 16.5% Others - 15%. Easy online filing designed for expats. If anything, people are returning now, said the senior banker, who said that a member of his team had returned with his family to Hong Kong nine months after moving back to London. Hong Kongs recent moves to combat a fresh COVID outbreak appear to have triggered a secondary epidemicof anguished accounts in Western media warning of an expat exodus sure to bring this once-vibrant global financial center to its knees.Foreign executives in isolated Hong Kong head for the exit, sick of zero-COVID curbs, blared a recent headline in the Wall Street Journal. Restaurants had to abide by a 6 p.m. dining curfew, later extended to 10 p.m. and then midnight.
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