March 24, 2015
Hong Kong is located on the southern coast of China at the mouth of the Pearl River Delta. Hong Kong is a Special Administrative Region of the People's Republic of China. China assumed sovereignty under the 'one country, two systems' principle following British rule from 1842 to 1997. Under the 'one country, two systems' principle, the Hong Kong government is in charge of their own internal affairs and external relations, while the Government of the People’s Republic of China is in charge of Hong Kong’s defense and foreign affairs. Hong Kong’s government is financially independent of the Government of China.
Both Chinese and English are acknowledged as official languages; with Cantonese being acknowledged as the de facto official spoken variety of Chinese in Hong Kong, while also accepting Mandarin.
The currency there is the Hong Kong Dollar (HKD). The Hong Kong Dollar (HKD) converts to .13 U.S. dollar. Hong Kong has one of the highest concentrations of banking institutions in the world. Seventy of the largest 100 banks in the world have an operation in Hong Kong. Hong Kong's payment systems allow interbank transfers in the Hong Kong dollar, US dollar, euro, and renminbi.
Foreigners and expatriates who wish to work in Hong Kong are required to possess a work visa from Hong Kong Immigration Services. Applicants need to have a graduate degree, unless they have considerable technical experience in a certain area. In addition, the applicant should have relevant experience in the position they are applying for.
In Hong Kong, personal tax is often referred to as salary tax. Both corporate and personal tax rates of Hong Kong are considered as one of the lowest in the world. Unlike a flat corporate tax rate, Hong Kong’s salary tax rates follow a progressive tax rate system. There are four marginal tax brackets of 2%, 7%, 12%, and 17%.
Expats should take a few things into consideration when searching for a place to live. If you are only planning to stay for a few years, it is advisable to rent rather than buy a home. If you are unfamiliar with Hong Kong’s housing and rent market and not fluent in Cantonese, your best choice is to hire a real estate agent to help you in your search for a suitable home.
Please read more on Country Fact Pages located on our website. As always, our goal is to continue to make it as easy as possible for Western and European businesses to join-and succeed in the thriving Asia markets, and to expand our clients’ reach, and in turn, help to grow their operations at home.
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Founder & CEO, Tiger-Consulting