Hong Kong remains one of Asia's pre-eminent financial and business centres despite significant changes since 2020. For internationally mobile professionals in finance, law, professional services, and trading, it continues to offer a unique combination of a highly competitive tax regime, extraordinary connectivity with mainland China and the rest of Asia, world-class infrastructure, and a genuinely energetic city lifestyle. This guide covers what UK nationals need to know about living and working in Hong Kong in 2026.
The Political Context: What Has Changed Since 2020
It would be misleading to write a guide to Hong Kong without acknowledging the significant changes since the implementation of the National Security Law (NSL) in June 2020. The NSL criminalises secession, subversion, terrorism, and collusion with foreign forces — with penalties including life imprisonment. The practical application of the law has had substantial effects: the media landscape has changed, civil society organisations have been dissolved, and the political opposition has been largely dismantled following the 2021 legislative elections conducted under a reformed electoral framework.
For the majority of expats — those in finance, professional services, or international business who are not involved in political activity — day-to-day life is largely unchanged from before 2020. The city remains safe, efficient, and commercially dynamic. However, the fundamental change in the legal and political environment since 1997 has accelerated and some long-term expats and institutions have relocated or are considering doing so. This is a personal risk assessment that every individual must make for themselves.
The UK government's foreign travel advice for Hong Kong should be reviewed before relocating.
Visa Types
General Employment Policy (Employment Visa). The primary route for skilled professionals. Requires a confirmed job offer from a Hong Kong employer. The employer typically applies on your behalf. The application is submitted to the Immigration Department; processing typically takes four to six weeks. Employment visas are valid initially for one to two years and are renewable.
Dependant Visa. Spouses and unmarried dependent children under 18 of employment visa holders can apply for dependant visas. Holders may work and study freely.
Investment Visa. For entrepreneurs and investors establishing or joining a business in Hong Kong. Requires evidence of investment, a viable business plan, and that you will make a meaningful contribution to the economy.
Top Talent Pass Scheme (TTPS). Launched in late 2022, the TTPS allows top talent to enter Hong Kong without a prior job offer. Eligibility is based on income (annual income of HKD 2.5 million or above in the 12 months before application) or education (degree from a top 100 global university). Successful applicants receive a two-year visa with the right to work; those who secure employment can extend for two years at a time.
Immigration Arrangements for Non-Local Graduates (IANG). UK nationals who have completed a full-time degree at a recognised Hong Kong university can apply to stay for one year after graduation under the IANG, with the right to work and no requirement for a job offer at the point of application.
Territorial Tax: A Major Attraction
Hong Kong operates a territorial tax system — one of the most attractive in the developed world. Only income sourced in Hong Kong is subject to Hong Kong tax. Foreign-source income — dividends from overseas holdings, capital gains, income from overseas employment performed outside Hong Kong — is not subject to Hong Kong Salaries Tax, Profits Tax, or other levies.
Salaries Tax is levied on employment income earned in Hong Kong at progressive rates from 2 per cent up to 17 per cent on net chargeable income, but the total is capped at the standard rate on net assessable income. From 2024/25 the standard rate is two-tiered: 15 per cent on the first HKD 5 million of net income and 16 per cent on the excess. There is no capital gains tax, no inheritance tax, and no GST/VAT in Hong Kong.
For UK nationals: relocating to Hong Kong does not automatically break UK tax residency. The UK Statutory Residence Test must be applied carefully to your circumstances. If you are genuinely non-UK-resident, Hong Kong's territorial system means that investment income from UK assets continues to be assessed by HMRC under UK rules (until you are non-resident), and once genuinely non-resident, your UK-source income may still be subject to UK withholding taxes depending on its nature. UK-qualified tax advice is essential.
MPF — Mandatory Provident Fund
The Mandatory Provident Fund (MPF) is Hong Kong's compulsory pension saving system, established in 2000. Both employer and employee contribute 5 per cent of relevant income (up to a maximum relevant income cap of HKD 30,000 per month, so maximum monthly contribution is HKD 1,500 from each party). Contributions are invested in regulated MPF funds chosen by the employee.
For expatriates on short-term assignments, the MPF obligations still apply. On leaving Hong Kong permanently, foreign nationals (non-permanent residents) can withdraw their MPF accrued benefits once they make a statutory declaration that they have departed, or will depart, with no intention to return for employment or resettlement, supported by documentary evidence. The withdrawal is not subject to tax in Hong Kong, though you should check whether your new country of residence taxes the lump sum as foreign pension income.
Cost of Living and Accommodation
Hong Kong is one of the most expensive cities in the world for accommodation. Residential property prices — despite significant corrections from the 2021 peak — remain among the highest globally. Rental costs reflect this: a two-bedroom flat in a central area (Mid-Levels, Happy Valley, Wan Chai) typically ranges from HKD 25,000 to HKD 50,000 per month. The New Territories and Kowloon offer more affordable options.
Most expat packages provided by large firms include housing allowances that partially or fully offset rental costs. For individuals without such packages, the accommodation market is a significant budget item. Domestic helpers (primarily from the Philippines and Indonesia) are common in HK households — the law regulates their employment, minimum wage, and accommodation requirements.
Other costs are moderate: public transport is excellent and cheap (Octopus card), food ranges from very affordable (dai pai dong street stalls, cha chaan teng) to premium, and utilities (air conditioning is a major cost) are the main variable.
Healthcare
Hong Kong has two parallel healthcare systems:
Public (Hospital Authority). Heavily subsidised and accessible to all Hong Kong residents. Fees for eligible persons are very low (HKD 100 per day for inpatient care). However, waiting times at public hospitals and specialist clinics can be very long for non-emergency care, and public hospitals can be extremely busy.
Private. A large and well-developed private sector provides immediate access to specialists, modern facilities, and shorter waits. Major private providers include Hong Kong Sanatorium and Hospital, Canossa Hospital, and the Matilda International Hospital. Private healthcare costs are high without insurance — a single specialist consultation can cost HKD 800–2,000. Comprehensive private health insurance is standard for expat packages and strongly advisable for self-funded expats.
How Global Investments Can Help
Hong Kong's territorial tax system makes it an attractive base for internationally mobile professionals with significant foreign-source investment income — but the benefits require careful planning relative to UK tax residency obligations. Global Investments can help you assess whether Hong Kong fits your overall wealth and tax strategy, connect you with Hong Kong-based advisers who specialise in cross-border UK-HK tax matters, and ensure your global portfolio is structured to make the most of your time there.
Contact our team to discuss Hong Kong as part of your international wealth planning.
This guide is for general information only and does not constitute financial, legal or tax advice. Rules, fees and regulations change frequently; verify current requirements with a qualified adviser before acting.