Planning a move from the UK to Hong Kong
Hong Kong remains an important international centre for finance, professional services, trade, technology, investment and regional business.
For professionals, entrepreneurs, investors and families considering a move from the UK, however, the relocation can involve considerably more than obtaining permission to live and work there.
You may need to consider immigration status, employment, family residence, UK and Hong Kong tax, business interests, property, investments, banking and what you intend to retain in the UK.
Knightsbridge helps clients consider these issues as part of one coordinated international relocation plan.
Our role is to understand what you are trying to achieve, identify the areas that require attention and coordinate the appropriate immigration, tax, property and professional advice around the move.
Why are you moving to Hong Kong?
The appropriate route depends heavily on the reason for relocating.
You may be moving because you are:
- accepting employment in Hong Kong;
- relocating with an international employer;
- taking up a senior executive position;
- establishing or joining a business;
- expanding a UK company into Asia;
- investing in Hong Kong;
- moving with your family;
- seeking a regional base for your business;
- managing assets or investments internationally; or
- considering longer-term residence.
Different objectives can lead to different immigration, tax and business structures. The starting point should therefore be the outcome you want the relocation to achieve.
Hong Kong visa and residence options
Hong Kong operates a number of immigration routes for professionals, entrepreneurs, investors and qualifying talent.
Depending on your circumstances, these may include:
- the General Employment Policy;
- investment as an entrepreneur;
- the Top Talent Pass Scheme;
- the Quality Migrant Admission Scheme;
- the New Capital Investment Entrant Scheme;
- technology and specialist talent routes;
- dependant visas; and
- longer-term residence in qualifying circumstances.
The correct route should be considered alongside your intended work, family circumstances, financial position and longer-term plans.
Employment in Hong Kong
For many professionals, relocation begins with an offer of employment.
A work-led relocation may also require consideration of:
- salary and bonuses;
- equity or share options;
- housing;
- medical insurance;
- pensions;
- family residence;
- schooling;
- tax;
- UK property; and
- the timing of departure from the UK.
For senior professionals and executives, these wider considerations may be just as important as the visa itself.
Talent and professional routes
Not every relocation needs to begin with a conventional employer-sponsored application.
Hong Kong operates immigration routes designed to attract qualifying talent and highly skilled professionals.
Depending on your background, income, qualifications and experience, it may therefore be appropriate to consider whether a talent-based route provides a better structure for the move.
This can be particularly relevant for:
- senior executives;
- highly paid professionals;
- specialists;
- entrepreneurs;
- internationally mobile professionals; and
- individuals seeking greater flexibility when establishing themselves in Hong Kong.
The route should be selected according to the longer-term objective rather than simply whichever visa appears easiest to obtain.
Entrepreneurs and establishing a business
Hong Kong can also be attractive to entrepreneurs and founders seeking an Asian base.
A move may involve:
- establishing a Hong Kong company;
- joining or investing in an existing business;
- creating a regional headquarters;
- expanding a UK company;
- entering Asian markets; or
- relocating senior management.
The business structure may need to take account of:
- ownership;
- commercial activity;
- funding;
- local operations;
- staffing;
- taxation;
- banking; and
- the founder’s immigration position.
For business owners moving from the UK, the corporate and personal relocation should therefore be planned together.
Keeping a UK business while living in Hong Kong
Some clients do not intend to relocate their entire business.
They may move personally while continuing to own or manage a UK company.
That can create additional questions around:
- company management and control;
- directorships;
- salary;
- dividends;
- UK employees;
- Hong Kong operations;
- business travel;
- tax;
- intellectual property; and
- transactions between companies in different jurisdictions.
Moving the shareholder or director does not automatically move the company.
Where substantial business interests are involved, both the corporate and personal positions should be reviewed before departure.
Investment migration
Hong Kong also provides an investment-based residence framework for qualifying applicants. For individuals with substantial assets, this can form part of a wider residence and investment strategy. However, investment migration should not be considered purely as an immigration exercise.
It can involve:
- investment structure;
- tax;
- liquidity;
- banking;
- family residence;
- property;
- asset allocation; and
- longer-term financial planning.
Where regulated investment advice is required, it should be provided by an appropriately authorised professional.
Knightsbridge can help identify where specialist advice is required and coordinate that advice around the wider relocation.
Moving to Hong Kong with your family
Family arrangements should be considered from the outset. Depending on the principal applicant’s immigration category, qualifying family members may be able to accompany them to Hong Kong.
The family plan may need to consider:
- dependant visas;
- employment for a spouse or partner;
- children’s residence;
- schooling;
- housing;
- healthcare;
- documentation; and
- the timing of the move.
For dual-career households, the ability of a spouse or partner to work can materially affect whether the overall relocation is practical.
Schools and education
Families relocating from the UK may need to consider schooling relatively early. Hong Kong has a substantial international-school sector, including British and international curriculum options.
Questions may include:
- curriculum;
- admissions;
- school fees;
- waiting lists;
- location;
- transport;
- term dates; and
- proximity to home and work.
School availability can affect both the location and timing of the wider relocation.
Tax when moving from the UK to Hong Kong
Hong Kong’s tax system differs substantially from the UK’s. However, relocating to Hong Kong does not automatically end your UK tax residence.
Your UK position may still depend on factors including:
- the date you leave;
- the number of days you continue to spend in the UK;
- accommodation;
- family connections;
- employment;
- property;
- business interests; and
- other continuing ties.
The important question is therefore how the UK and Hong Kong tax positions interact in your particular circumstances.
Tax planning should ideally begin before the move.
Income and business taxation
Professionals and business owners may continue to receive income from several jurisdictions after relocating.
This might include:
- Hong Kong salary;
- UK salary;
- dividends;
- rental income;
- business profits;
- investment income;
- pensions; or
- income from international businesses.
The source and nature of that income can be important. Where clients have interests in both the UK and Hong Kong, both tax systems should therefore be considered together.
Property in Hong Kong
Housing can represent a significant part of the relocation budget.
You may be considering:
- renting initially;
- purchasing a permanent home;
- buying investment property;
- maintaining a UK property alongside accommodation in Hong Kong; or
- acquiring property as part of a wider wealth strategy.
Before purchasing, it may be necessary to consider:
- legal ownership;
- mortgage finance;
- transaction costs;
- taxes and duties;
- rental potential;
- management costs;
- resale;
- tax; and
- the interaction with your wider residence and investment plans.
For many new arrivals, renting initially may provide greater flexibility while they become familiar with different areas.
Where to live
The right location will depend on your work, family circumstances and lifestyle.
Factors may include:
- commuting;
- schools;
- public transport;
- proximity to business districts;
- housing size;
- access to outdoor space;
- family facilities; and
- budget.
For families, the relationship between school, work and housing can become particularly important.
Banking and moving money to Hong Kong
A move may require new banking arrangements. You may need to consider:
- opening Hong Kong bank accounts;
- retaining UK accounts;
- receiving salary;
- international transfers;
- investment accounts;
- business banking;
- property funds;
- currency; and
- source-of-funds requirements.
Business owners and investors may require more extensive banking arrangements than employees. Where substantial sums are being transferred internationally, supporting documentation should be prepared in advance.
Investments and wealth
Hong Kong is a major international financial centre. Clients relocating there may already hold:
- investment portfolios;
- pensions;
- ISAs;
- company shares;
- property;
- private businesses;
- trusts;
- cash holdings; or
- assets in several jurisdictions.
Changing residence can affect how some UK financial arrangements operate. It may also create new banking and investment opportunities overseas. Where regulated investment or pension advice is required, this should be provided by an appropriately authorised professional.
Knightsbridge can help identify which areas require specialist advice and coordinate the wider process.
UK property after you move
Many clients relocating to Hong Kong retain property in the UK.
You may decide to:
- sell;
- rent the property;
- retain it for future use;
- allow family members to live there; or
- maintain homes in both jurisdictions.
That decision can interact with:
- UK tax residence;
- rental income;
- capital gains;
- mortgages;
- insurance; and
- your continuing connections with the UK.
The UK property decision should therefore form part of the overall relocation strategy.
Longer-term residence
Not every move to Hong Kong is temporary. Some professionals and business owners eventually establish a longer-term base. Where that is the objective, the immigration strategy should consider more than the initial visa.
Questions can include:
- extension requirements;
- continuity of residence;
- dependant status;
- employment changes;
- business activity; and
- eventual eligibility for permanent residence.
Long-term plans should therefore be considered from the beginning rather than shortly before an initial visa expires.
How Knightsbridge helps
We approach a move to Hong Kong as a wider international relocation rather than simply a visa application. We can help you:
Assess
Understand why you are moving and which immigration options may fit your circumstances.
Plan
Identify the immigration, tax, property, family, business and investment issues involved.
Prepare
Coordinate the immigration and documentation process within the appropriate professional framework.
Coordinate
Work alongside Hong Kong-based professionals where local legal, tax, property, corporate or other specialist expertise is required.
Review
Consider how your Hong Kong arrangements interact with the UK position you are leaving behind.
Before you move to Hong Kong
Hong Kong can provide an important base for professionals, entrepreneurs, investors and internationally active businesses. But a successful relocation involves more than securing permission to live there.
Your immigration route, employment or business structure, family arrangements, tax position, property and UK interests should support the same longer-term objective.
If you are considering moving from the UK to Hong Kong, tell us what you are trying to achieve, who will be moving with you and what UK property, business or financial interests you intend to retain.
We can help identify the areas that require attention and build the next steps around your proposed relocation.
