Immigration to Hong Kong

Education 

Hong Kong is known for high-quality schooling which is publicly funded. Kindergartens and pre-school start at age 3, however it is not mandatory. All kindergartens are private and the fees vary depending on the institution. The duration is either full day or half-day. The education from primary to senior secondary school (ages 6 through 18) is free in public schools. These public schools are run by government and usually taught in Chinese. There are public schools run by a charitable or a religious organization, which are also free. Apart from these there are private schools subsidized by the government are not free. There are private schools exclusively for Chinese students which are charged and students are admitted is based on their educational excellence. International schools are expensive and are run privately and usually teach in English. There are also private English schools which are partly subsidized by government meant for English-speaking students. Such school requires a fees. 

Home Schooling is also legal in Hong Kong. Parents in Hong Kong can get support from an online school for courses, methods, programs etc. which will make Homeschooling easier. Visit the following blog to find out more about Homeschooling in Hong Kong: internationalschooling.org

Unemployment Rate

Hong Kong’s overall unemployment rate continued to be 3.0% from April to July 2024, thus indicating stability in the labor market. The retail and food service sectors, however, showed slight increase in unemployment and went up to 4.3% and 5.0% respectively. Other sectors, like transportation and insurance, have seen improvements levels. Overall, the labor market in Hong Kong is expected to remain tight, supported by ongoing economic growth.

Economy of Hong Kong

 Hong Kong is one of the world’s freest economies with its open market policies and ability to adapt to the global economic situations. It is a global financial center, a bustling trade hub and a significant player in logistics and services due to its strategic location. One important factor is the Government of Hong Kong does not heavily control or interfere in businesses. Businesses are attracted to Hong Kong for the following reasons:

• Low taxation and business-friendly policies
• Talent and skilled workforce availability
• Resilience amidst global challenges

 The key sectors of Hong Kong Economy are:

• Financial services – The financial service sector accounts for over 20% of its GDP and connects global markets with China. The HKEX (Stock Exchange of Hong Kong) facilitates significant international investment.
• Trade and Logistics – Hong Kong’s port, one of the busiest globally, operates as a free port with no tariffs, making it a key hub for international trade and a distribution center for Asia.
• Tourism – Hong Kong attracts millions of visitors each year which significantly contributes to Hong Kong’s economy
• Real Estate – Hong Kong’s property market, driven by high demand and limited land, is among the world’s most expensive and a key contributor to its economy.

As of now, Hong Kong is focusing on tech and innovation to boost growth. With government backing for startups and research, the city aims to diversify its economy beyond traditional industries.

Renting and buying of real estate for foreigner’s        

Hong Kong has an open real estate market and foreigners have nearly the same rights as the citizens of Hong Kong. The real estate market in Hong Kong is one of the most expensive in the world and attracts international investors from all around the world. 

Buying: 

Buying Property in Hong Kong as A Foreigner: 

• Can foreigners buy real estate in Hong Kong – Yes, foreigners have the same rights as the locals. 

Types of property foreigners can buy in Hong Kong: 

• Residential apartments
• Commercial properties – for starting a business you can buy office space or shops
• New vs. second-hand properties – You can buy new properties directly from developers or second-hand properties in the open market. 

Documents required for buying property in Hong Kong: 

• Identification (passport) – Passport is essential
• Proof of Funds – Any document that shows you have sufficient funds for the purchase.
• Bank account in Hong Kong – It is better to have a bank account in Hong Kong, but not mandatory. 

Process for Buying property in Hong Kong: 

• Find a property to buy property in Hong Kong, make a formal offer
• Hiring an agent or a solicitor for legal work – to check all legal titles and handle paper work.
• Mortgage options for foreigners – There are mortgage options for a foreigner. Around 40-50% of the property value is paid as down payment.
• Sign the agreement and pay the charges. 

Taxes and Fees for buying property in Hong Kong: 

• Stamp duty and additional buyers stamp duty (ABSD) – Stamp duty is the tax payable on the property transaction which is up to 15% plus additional buyers stamp duty of 15%.
• Legal fees – You need to pay the solicitor for handling the transaction.
• Other government charges – if applicable 

Renting: 

Renting Property in Hong Kong as A Foreigner: 

• Availability of rental properties for foreigners – Foreigners can rent for short-term stay or long-term stay. They can choose from luxury apartments to more affordable flats.
• Popular area for expats – Expats prefer to live in areas such as Mid-Levels, Discovery Bay or Repulse Bay. Kowloon Tong is a suburb on the Kowloon Peninsula with many international schools and lots of space for tenants. Tin Hau is a place with more moderate rental budgets and close to MTR stations. Other places are Happy Valley, The Peak, North Point and Clear Water Bay. 

Documents Needed for Renting: 

• Identification and Visa status – A passport or a valid visa showing legal status in Hong Kong.
• Proof of income or employment – Employment Contracts, recent pay slips or tax returns.
• Bank account details – Bank account details to set up automated rental payments.

 Standard Rental Agreement Terms: 

• Lease duration – typically for one or two years. One year is often fixed term, followed by a flexible period, where either the tenant or the owner can give a one or two months’ notice to terminate the contract.
• Security deposit requirements – deposit equivalent to 2 months’ rent is normally taken as security deposit by the owner.
• Monthly rent and other fees – rent is usually paid monthly. Other utilities payment is also to be paid monthly if eligible. 

It is advisable to hire a reputable real estate agent who has complete knowledge and experience in both buying and selling. Do extensive research before finalizing. Make sure you understand all the clauses in the contracts well. Check for all the taxes and documents and legal aspects carefully.

Climate 

Hong Kong has a subtropical climate with distinct seasons. 

• Summers: (June to August) are hot and humid with temperatures from 26°C to 32°C (79°F to 90°F).
• Winters: (December to February) are mild, with temperatures between 12°C and 20°C (54°F to 68°F).
• Spring: (March to May) – weather is pleasant with moderate temperature, lower humidly and clear skies.
• Autumn: (October to November) – weather is pleasant with moderate temperature, lower humidly and clear skies.

Hong Kong experiences Rains from May to September, often accompanied by typhoons, making it this time less ideal for outdoor activities. The typhoon storms mostly occur from May to November bringing strong winds, heavy rainfall and the risk of flooding, especially in the coastal region. Although snowfall is extremely rare, Tai Mo Shan, Hong Kong’s highest peak, can experience frost in winter.

Languages 

The official languages of Hong Kong are Chinese (Cantonese) and English. Cantonese is spoken by around 88% of the population in Hong Kong and used in daily life. English is commonly spoken especially on business, government and legal sectors. About 4.3% of the people in Hong Kong use and speak English as their primary language. Mandarin (Putonghua) has grown in popularity due to Hong Kong’s close ties with mainland China, and many people understand and speak it educational and business contexts. Hong Kong is home to many immigrants. The languages spoken by these immigrants are mostly Tagalog (spoken by Filipino workers), Indonesian, and other South Asian languages like Hindi, Urdu, Punjabi, Nepali etc.

Traffic 

Hong Kong has a well-developed road network, with expressways and highways connecting urban and rural areas. Heavy traffic congestion is common, especially in busy districts like Central, Tsim Sha Tsui, and Mong Kok. Despite the congestion, public transportation options, including buses, trams, and the MTR, help alleviate traffic. Roads are generally well-maintained, but toll fees apply to key tunnels and bridges, such as the Cross-Harbour Tunnel and Tsing Ma Bridge. In rural areas, traffic is lighter, but roads can be narrower, requiring more careful driving. 

Tariffs:

• Tariffs (tolls) are applied to major tunnels and bridges, such as the Cross-Harbour Tunnel (HK$20-30) and the Tsing Ma Bridge (HK$15-30), depending on the type of vehicle.
• Electronic toll collection systems, like Autotoll, are widely used to ease traffic flow at toll gates.

Documents Required for Immigrants and Tourists to Drive in Hong Kong: 

• Tourists need a valid international driving permit (IDP) in addition to their home country’s driving license.
• Immigrants can use their overseas driving license for up to 12 months before applying for a Hong Kong driving license.
• An official translation of the driving license (if not in English), passport, and proof of residency (for immigrants) are also required.
• The minimum driving age is 18 years.
• Drivers must adhere to local traffic laws. Failing to do so can result in penalties, such as:
• Driving without a valid license: Up to HK$10,000 and 12 months’ imprisonment.
• Driving without insurance: A fine of HK$10,000 and possible imprisonment for 3 months. 

Standard Traffic Rules (Rural & Urban): 

• Driving on the left: Drivers must drive on the left-hand side of the road. Failure to comply can result in a fine of HK$450 to HK$1,000.
• Seat belts: Seat belts are mandatory for all passengers. Failure to wear a seat belt may result in a fine of HK$5,000.
• Speed limits: The speed limit in urban areas is 50 km/h, while highways allow up to 110 km/h. Exceeding the speed limit by 15 km/h will incur a fine of HK$450 and 3 demerit points. Exceeding the speed limit by 30 km/h will incur a  fine of HK$2,000 and 5 demerit points.
• Illegal parking: In urban areas, parking violations can result in a penalty of HK$320. More serious violations, like obstructing traffic, may result in a HK$1,000 fine.
• Drink-driving: The legal alcohol limit is 50 mg of alcohol per 100 ml of blood. Violations carry serious penalties. For the first offense, a fine of HK$25,000 and imprisonment for up to 3 years and for the subsequent offenses, a fine of up to HK$50,000 and 10 years’ imprisonment is incurred. 

Renting Cars Options for Immigrants: 

• Immigrants can rent cars from international companies like Hertz, Avis, and local rental providers.
• Required documents include a valid driver’s license, passport, and a credit card.
• Both short-term and long-term rental packages are available, with flexible options for new arrivals.
• It is important to review insurance coverage carefully, as extra fees may be charged for additional coverage.
• Fines may apply if the rented car is returned late or in poor condition. 

Adhering to local traffic laws helps ensure safety and avoid costly fines.  To get the detailed information on Traffic, Licenses and Permits and everything you need to know about transport in Hong Kong, visit the official website: td.gov.hk

Currency

The official currency of Hong Kong is the Hong Kong Dollar, written as HKD having the symbol HK$. It is one of the most traded currencies in the world and is pegged to the US dollar, maintaining a stable exchange rate that fluctuates between HK$7.75 to HK$7.85 per US dollar. The Hong Kong Monetary Authority (HKMA) manages the currency, but HSBC, Standard Chartered Bank, and Bank of China (Hong Kong) are the only banks allowed to print and issue the banknotes. 

The Hong Kong currency are available in banknotes in the following denominations:
HK$10, HK$20, HK$50, HK$100, HK$500, and HK$1,000

The currency is available in coins in the following denominations:
10 cents, 20 cents, 50 cents, and HK$1, HK$2, HK$5, and HK$10.

Notably, two versions of the HK$10 are in circulation: one as a coin and another as a polymer banknote. The strength of the Hong Kong dollar makes it a reliable currency in international trade and finance, providing a stable economic environment for expats and immigrants.

Payment Methods 

In Hong Kong, a wide variety of payment methods are available for traditional and digital means of payments: 

• Cash: Hong Kong Dollars (HKD) remain a widely accepted payment method, especially in local markets, small shops, and taxis.
• Credit and Debit Cards: Major cards like Visa, MasterCard, and American Express are accepted almost everywhere, including restaurants, supermarkets, and hotels.
• Octopus Card: A contactless stored-value card primarily used for public transportation, but also widely accepted in convenience stores, cafes, and vending machines. It’s highly convenient for daily purchases.
• Mobile Payments: Digital wallets like Apple Pay, Google Pay, Samsung Pay, and Huawei Pay are increasingly popular, especially for online shopping and in-store purchases.
• Alipay and WeChat Pay: Commonly used mobile payment platforms, especially among the Chinese community, and accepted by many retailers in Hong Kong.
• Bank Transfers: Used for more significant payments such as rent, utilities, or settling bills. Local bank apps allow easy online transfers. 

These payment methods offer flexibility and convenience for both residents and expats in Hong Kong, with digital and cashless options gaining more popularity.

Apartment rent 

Apartment rents in Hong Kong are known for being among the highest in the world, posing a significant challenge for immigrants and expats. The following rental options are available along with the areas which expats preferred. 

Studio Apartments:

• Common in central districts for single occupants or couples
• Preferred areas – Central, Sheung Wan and Tsim Sha Tsui
• Rent range – HKD 10,000 to HKD 20,000 per month

1-Bedroom Apartments (1 BHK):

• Suitable for individual or couples
• Preferred areas – Central, Sheung Wan Chai and Causeway Bay
• Rent range – HKD 15,000 to HKD 35,000 per month in central areas
• In the New Territories or less central areas – HKD 10,000 to HKD 18,000 per month 

2-Bedroom Apartments (2 BHK):

• Suitable for small families or those requiring more space
• Preferred areas – Kowloon Tong, Discovery Bay and Mid-Levels
• Rent range – HKD 20,000 to HKD 50,000 per month depending on location and amenities 

3-Bedroom Apartments (3 BHK):

• Popular among expat families
• Preferred areas – Happy Valley, Repulse Bay, and Sai Kung
• Rent range – HKD 30,000 to HKD 70,000+ per month particularly in upscale or centrally located buildings 

Serviced Apartments:

• These apartments offer amenities like housekeeping and utilities, preferred by expats for short-term stays.
• Preferred areas – Central, Tsim Sha Tsui, and Wanchai
• Rent range – HKD 25,000 to HKD 60,000+ per month 

Luxury Apartments:

• High-end, spacious units with premium amenities
• Preferred areas – The Peak, Mid-Levels, and Discovery Bay
• Rent range – HKD 50,000 to HKD 150,000+ per month, often in prime locations 

The Housing in Hong Kong is generally expensive and expats need to budget accordingly based on the size, location and type of accommodation they choose. One of the most popular website for expats looking for reasonable rentals in Hong Kong is squarefoot.com

Taxes 

Hong Kong is known for its low tax rates, which is one of the reasons it attracts many immigrants and tourists. Currently there is no sales tax or VAT in Hong Kong. The following types of taxes are currently charged in Hong Kong: 

• Profit Tax: applies to income earned in Hong Kong with a maximum rate of 16.5%.
• Salaries Tax: Charged on income earned by individuals, with progressive rates starting from 2% and capping at 17%. Expatriates can benefit from various deductions and allowances.
• Goods and Services Tax (GST): Tourists pay GST on certain goods and services.
• Property Tax: Applies to property owners, including expatriates who rent or buy property in Hong Kong. Rates are based on the property’s rental value.

Health Insurance

Hong Kong’s health system is renowned for its efficiency and high standard, offering both public and private healthcare options. The public healthcare system in Hong Kong is subsided by the government, making it very affordable for the citizens. For the citizens of Hong Kong, basic healthcare services, including hospital stays and surgeries are nearly free of cost or at a very low cost. However, for non-residents and tourists, the cost can be significantly higher. As an expatriate, you will not be seen in a public hospital unless you have a Hong Kong Identity Card. Public hospitals in Hong Kong have good equipment, but some staff do not speak English. This can cause language barriers for expats, especially if they do not speak Cantonese. The long waiting time for specialist care in public healthcare is very high in Hong Kong, which had led many to opt for private healthcare even though the cost is high. Most public hospitals in Hong Kong provide 24/7 emergency care which is very reliable. Ambulances and emergency services can be available by calling 999.

Private healthcare is more popular in Hong Kong among expats and immigrants. Shorter waiting times and English-speaking medical personnel at private healthcare. The common private hospitals include Gleneagles, Hong Kong Sanatorium & Hospital, and Matilda International Hospital. Some of the most popular private health insurance in Hong Kong which offers comprehensive coverage and is widely used by expats and residents are:

• AXA – offers various health insurance plans tailored for individuals, families and businesses, covering hospitalization, outpatient treatments and specialist consultations.
• Bupa – provides wide range of health insurance plans for individuals, family, and corporate plans. They include hospital care, outpatient services and wellness programs.
• Cigna – offers international health insurance plans. Their policies cover private medical care in Hong Kong as well as medical expenses incurred abroad.
• Allianze – provides international health insurance plans for expats, covering hospital care, outpatient visits, and emergency evacuations.
• Manulife – offers health insurance with various levels of coverage, including hospitalization, surgery and specialist consultations as well as critical illness plans. 

To know more about the healthcare in Hong Kong, visit: i-brokers.com

Important addresses  

Hong Kong International Airport
1 Sky Plaza Road,
Lantau, Chek Lap Kok Island,
Hong Kong
Tel: (+852) 2181 8888
Website : www.hongkongairport.com

United Kingdom Consulate General
No.1 Supreme Court Road, Hong Kong
Tel: (+852) 5505 1000 

Philippines Consulate General
United Centre Building,
14th Floor, 95 Queensway,
Admiralty, Hong Kong
Tel: (+852) 2823 8500 / (+852) 9155 4023

Find out the addresses and contact details of all the consulates and embassies in Hong Kong, visit: protocol.gov.hk

Summary 

Hong Kong located on the southern coast of China, near the South China Sea, is known for its subtropical climate, featuring hot, humid summers and mild winters. As a Special Administrative Region of China, it operates under a “one country, two systems” framework, which allows for a high degree of autonomy and a robust capitalist economy that positions it as one of the world’s leading financial centers. Hong Kong’s cultural landscape is a vibrant mix of Eastern and Western influences, highlighted by rich traditions, diverse festivals, and a renowned culinary scene. The people of Hong Kong are generally friendly and industrious, with Cantonese as the primary language, although English is widely used in business and government sectors. Job opportunities in Hong Kong abound for immigrants, particularly in finance, IT, and education. Hong Kong attracts tourists and new residents for its iconic skyline, excellent public services, and high quality of life. While the cost of living can be high, especially in terms of housing, the city’s low crime rates and overall safety make it an appealing choice for families and professionals looking to relocate.