Part 2: Hong Kong – Condensed City Profile
Hong Kong has always been a favorite of Expats. If you are considering Hong Kong for relocation but have no previous experience living there. Here is a condensed view for those on the go!
Best Selling Point: Low Taxes
- Low personal and corporate tax rates – average is about 15% for a professional individual
- No capital gains tax
- No VAT or sales tax
- No withholding tax on dividends and interest
- No collection of social security benefits
Worst Selling Point: Extremely Humid and Hot Summers
- Humidity can get up to > 80%
- May need to take multiple showers throughout the day
- Purchasing a dehumidifier is a must
- Having unpleasant skin in the summer
If you are a business and looking for how to incorporate in Hong Kong check out GuidemeHongKong.
Here is the rest:
- Weather: Humid Subtropical, mild winters, hot and humid summers (You can measure the humidity by the number of showers you take). Here is a more comprehensive chart of Hong Kong weather year around from the Hong Kong Observatory.
- Finances: HSBC, Heng Seng Bank, and Bank of China are some of the more popular banks in town. Shop around for the best exchange and interest rates.
- Recreation: There is a Disneyland and Ocean Park if you have a family. Water Sports, Rugby, Horse Racing, and Hiking are some other popular past times.
- Real Estate: Expensive overall, better to live in New Territories, you get more square feet for your money. For more information on renting or buying check out Squarefoot and GoHome.
- Dining: You can find all types of food in Hong Kong. Authentic or not, that is an open question. Before you go, use Openrice for restaurant reviews and reservations.
- Shopping: Upscale shopping centers are everywhere in HK. For moderately priced shopping, try Tai Koo Shing Cityplaza.
- Transportation: Taxis are cheap and easy to get. Red Taxis are Kowloon and Hong Kong island. Green taxis are New Terriroties. Blue Taxis are for Lantau Island. The MTR or Railway system is excellent and inexpensive and well as the extensive bus systems. This is a close second for the Best Selling Point of Hong Kong.
- VISAs: GovHK provides a comprehensive guide on Visas ranging from tourist to professionals.
- Nightlife: Important to the expatriate population. LKF and Soho are popular areas for dining and drinking. On Kowloon side, TST is a favorite hotspot, and various dive bars throughout the New Territories.
- Common Complaints: Super-humid summers, pollution from China, uneducated Chinese mainlanders who have easy access to Hong Kong, high cost of living, and uncertain future (is it part of China or what?)
Next up Singapore.
Mar 18, 2012 @ 03:09:21
So by moving to Hong Kong, do you automatically come under their tax structure and no longer have to pay U.S. taxes?
Mar 18, 2012 @ 04:50:59
Janice, the US doesn’t let go so fast for US citizens, at least. My son in China still files in the US (though expats don’t have to file in a state), but the threshold income level for paying US income taxes is higher for an expat (e.g., something like $90K). However, he has to fill out all kinds of extra forms, now including foreign bank account details and has to verify being out of the US for at least 180 days of the year. He also reports to the US what tax he has paid in another country.
Mar 19, 2012 @ 21:12:23
Hi Janice, Linda is correct.
Check out the IRS guidelines for Expatriates.
Mar 19, 2012 @ 21:12:48
Here is the link
http://www.irs.gov/newsroom/article/0,,id=250788,00.html