What Americans Living in Hong Kong Need to Know in 2025

Living in Hong Kong offers a unique blend of Eastern and Western cultures, a dynamic economy, and a favorable tax environment. However, as an American expatriate, it’s crucial to understand both U.S. and Hong Kong tax obligations to ensure compliance and optimize your financial situation. This guide provides essential information for Americans living in Hong Kong in 2025.

Americans living in Hong Kong: Visa types

Navigating the visa options for permanent residency in Hong Kong can be complex. Below are key pathways tailored for U.S. citizens seeking long-term residence:

Quality Migrant Admission Scheme (QMAS)

Who it’s for: Highly skilled individuals without a prior job offer in Hong Kong.

Overview: QMAS is a points-based system designed to attract talented professionals who can enhance Hong Kong’s economic competitiveness. Applicants are assessed on factors such as age, education, work experience, and language proficiency.

Requirements:

• Points-based assessment: Achieve a minimum score based on criteria like age, academic qualifications, work experience, and language skills.
• Financial stability: Demonstrate the ability to support yourself and any dependents without public assistance.
• Clean criminal record: Provide evidence of no serious criminal offenses.

Investment as Entrepreneurs

Who it’s for: Entrepreneurs aiming to establish or join a business in Hong Kong.

Overview: This visa caters to individuals who plan to invest in and actively manage a business that contributes to Hong Kong’s economy.

Requirements:

• Business plan: Submit a detailed proposal outlining the nature of the business, market analysis, and financial projections.
• Financial resources: Show sufficient capital to support the business and personal living expenses.
• Economic contribution: Demonstrate how the business will benefit Hong Kong, such as job creation for local residents.

Top Talent Pass Scheme (TTPS)

Who it’s for: Highly skilled professionals with substantial work experience and educational qualifications.

Overview: TTPS aims to attract top-tier talent to Hong Kong by offering a streamlined path to residency.

Requirements:

• Category A: Annual income of at least HKD 2.5 million in the year preceding the application.
• Category B: Bachelor’s degree from a top 100 university and at least three years of work experience in the past five years.
• Category C: Bachelor’s degree from a top 100 university within the past five years and less than three years of work experience (subject to an annual quota).

General Employment Policy (GEP)

Who it’s for: Professionals with a confirmed job offer in Hong Kong.

Overview: GEP facilitates the entry of skilled individuals to meet local labor market needs.

Requirements:

• Job offer: Secure employment relevant to your qualifications and experience.
• Salary and conditions: Ensure the remuneration package is commensurate with local standards.
• Local recruitment: Demonstrate that the position cannot be readily filled by the local workforce.

Each of these pathways has specific criteria and application procedures. It’s advisable to consult with immigration professionals or the Hong Kong Immigration Department to determine the most suitable option for your circumstances.

How to apply for a Hong Kong visa as a U.S. citizen

Applying for a Hong Kong visa as an American involves several clear steps. Here’s how you can get started:

1. Identify the right visa pathway

Choose the visa type that best matches your background and goals—whether it’s QMAS, Investment as Entrepreneur, TTPS, or GEP. Review each program’s eligibility requirements thoroughly.

2. Gather your documents

You’ll typically need:

• A valid U.S. passport
• Proof of education and work experience
• Financial records to show your ability to support yourself (and dependents, if applicable)
• Police clearance for your criminal record
• A business plan (for entrepreneur visas) or a job offer letter (for GEP)

3. Complete the application form

Download the relevant application form from the Hong Kong Immigration Department website. Fill it out carefully and honestly.

4. Submit your application

Send your application and supporting documents to the Hong Kong Immigration Department. You can usually apply by mail or through a local sponsor (such as an employer) if required.

5. Wait for processing and respond to requests

Processing times vary by visa type. Be ready to provide more information or attend an interview if the authorities request it.

6. Receive your visa and prepare for arrival

Once approved, you’ll get a visa label or entry permit. Check the details, make travel arrangements, and plan for your move to Hong Kong.

Healthcare options for Americans living in Hong Kong

Navigating healthcare in a new country can be daunting, especially when the system works differently from what you’re used to in the U.S. If you’re an American living in Hong Kong, understanding your healthcare options is essential for peace of mind and your family’s well-being.

How the Hong Kong healthcare system works

Hong Kong offers a dual healthcare system:

• Public healthcare is funded by the government and provides comprehensive services at heavily subsidized rates for residents. Care is delivered through public hospitals and clinics.
• Private healthcare offers quicker access to doctors and specialists, more flexibility in choosing providers, and English-speaking staff, but comes at a significantly higher cost.

Hong Kong’s public hospitals are known for high standards of care, but wait times can be long for non-emergency cases. Private facilities are efficient but can be expensive without insurance.

Healthcare options for Americans living in Hong Kong

As an American expat, you have several healthcare options:

• Enroll in the Hong Kong public healthcare system if you hold a valid visa and Hong Kong ID card, granting you access to subsidized rates.
• Purchase international or local private health insurance—many expats opt for this to cover private hospital costs and ensure access to English-speaking doctors.
• Pay out of pocket for private care, though costs can accumulate quickly for routine or emergency treatment.

Pros and cons to healthcare for American expats living in Hong Kong

Pros:

• High-quality care and modern facilities in both public and private sectors.
• English is widely spoken among medical professionals.
• Public healthcare is affordable for residents,

Cons:

• Public hospital wait times can be lengthy for non-urgent care.
• Private healthcare is expensive without robust insurance.
• Some treatments and medications may not be covered by public subsidies.

Being informed helps you make the best choices for your health while living in Hong Kong. We recommend reviewing your insurance options and understanding how to access both public and private care before you arrive.

Cost of living for American expats living in Hong Kong

Moving to Hong Kong means adjusting not just to a new culture, but also to a different cost of living landscape. While Hong Kong is famous for its dynamic lifestyle and opportunities, it’s also known for being one of the world’s most expensive cities—especially when it comes to housing. We know that budgeting for life abroad is top-of-mind, so here’s a straightforward look at how living costs in Hong Kong compare to what you might be used to in the U.S.

Here’s a simplified comparison to help you get a sense of what to expect:

Expense	Hong Kong (USD, monthly avg.)	United States (USD, monthly avg.)
Groceries	$400–$600	$350–$550
Housing (1BR apt, city center)	$2,500–$4,000	$1,500–$2,500
Public transport	$60–$80 (Octopus card)	$70–$130 (major cities)
Phone plan	$20–$30	$40–$70

Note: Costs vary by neighborhood and personal lifestyle. Hong Kong prices are for central locations; U.S. prices are for major metro areas.

Pros and cons of the cost of living in Hong Kong for American expats

Pros:

• Efficient public transport: The MTR and buses are affordable, reliable, and make it easy to get around without a car.
• Access to international brands and groceries: You’ll find familiar U.S. and global products, especially in expat-friendly areas.
• Low personal tax rates: Hong Kong’s tax system is generally simpler and rates are lower than in most U.S. states.

Cons:

• High housing costs: Rent is the biggest expense and can be a shock, especially for central or larger properties.
• Limited space: Apartments are often smaller than what you might be used to in the U.S.
• Imported goods can be pricey: Some U.S. products and specialty groceries can cost significantly more.
• Healthcare and insurance: While public healthcare is affordable, private insurance and out-of-pocket costs can add up.

We understand that balancing your budget in a new environment is challenging, so it’s important to plan ahead, compare neighborhoods, and make the most of local resources. If you’re relocating with family or have specific needs (like international schooling or larger housing), these costs can increase, so factor those into your financial planning.

Where do American expats tend to live in Hong Kong?

While Americans live all across Hong Kong, a few neighborhoods make it easier to settle in and feel at home:

• Mid-Levels: This popular, centrally located area offers a blend of convenience, green spaces, and easy access to Central’s business district. Many expats appreciate its mix of modern apartments and proximity to international schools and social clubs.
• Repulse Bay and Stanley: If you’re looking for more space and a quieter, family-friendly vibe, these southern districts are favorites. You’ll find waterfront views, international communities, and a more relaxed pace compared to the hustle of downtown.
• Sai Kung: Known for its scenic countryside, waterfront restaurants, and outdoor activities, Sai Kung appeals to those who want a break from the city’s density. It’s especially popular with families and nature lovers.
• Discovery Bay: Located on Lantau Island, Discovery Bay is a planned community with a resort-like feel. Many American expats choose it for its international schools, open spaces, and easy ferry access to Central.

Tax implications for Americans living in Hong Kong

Navigating taxes as an American living in Hong Kong can seem complicated at first, but with the right guidance and a clear roadmap, you can stay compliant and make the most of your unique situation. Let’s break down the key tax obligations and opportunities you need to know about as an expat.

American expat tax obligations

As a U.S. citizen abroad, the IRS still expects you to file and, in some cases, pay taxes. But living in Hong Kong also means you’ll encounter local tax rules, new reporting requirements, and special expat provisions. Here’s what you need to be aware of:

Filing U.S. tax returns

No matter where you live, if you’re an American citizen or green card holder, you must file an annual U.S. tax return if your income is over the IRS threshold—even if you’ve lived in Hong Kong for years or don’t owe any U.S. tax thanks to exclusions or credits. 

The good news? Expats get an automatic two-month extension (until June 15), though any tax owed is still due by April 15. We recommend using a tax professional familiar with both U.S. and Hong Kong tax systems to avoid common pitfalls and missed opportunities.

Hong Kong taxes

Hong Kong’s tax system is refreshingly simple compared to the U.S. There’s no tax on capital gains, dividends, or interest, and only income sourced from within Hong Kong is taxable. If you work for a Hong Kong employer or run a business locally, you’ll likely pay Salaries Tax, which is typically lower than U.S. federal rates. However, because there’s no totalization agreement between the U.S. and Hong Kong, you may face some unique Social Security considerations (which we’ll cover below).

Key things to know about Hong Kong taxes:

• Salaries Tax rates are capped at 15%.
• Income is taxed only if it’s earned in Hong Kong.
• You must file a Hong Kong tax return if you have local income, even if you’re already paying U.S. taxes.

Foreign Earned Income Exclusion (FEIE)

The Foreign Earned Income Exclusion (FEIE) allows you to exclude up to $130,000 (for tax year 2025; this amount is adjusted annually) of foreign-earned income from your U.S. taxable income if you meet certain requirements. To qualify, you must either:

• Pass the Physical Presence Test (spend at least 330 days outside the U.S. in a 12-month period), or
• Meet the Bona Fide Residence Test (be a bona fide resident of Hong Kong for a full calendar year).

This exclusion can significantly reduce or even eliminate your U.S. tax bill on foreign income, but it doesn’t apply to income earned as a U.S. government employee or to passive income like interest or dividends.

Foreign Tax Credit (FTC)

If you pay income tax to Hong Kong, you may be able to claim the Foreign Tax Credit on your U.S. return, dollar-for-dollar, reducing your U.S. tax liability. This is especially useful if your income exceeds the FEIE limit or if you earn types of income not covered by the exclusion.

• You can’t use the same income for both the FEIE and the Foreign Tax Credit—pick the one that gives you the bigger benefit.
• Hong Kong’s lower tax rates mean you may still owe some U.S. tax, but careful planning can minimize double taxation.

Tax treaty

Currently, there is no comprehensive income tax treaty between the U.S. and Hong Kong. This means you don’t get the same protections against double taxation as you might in other countries, but you can still use the FEIE and Foreign Tax Credit to reduce your U.S. tax burden. It’s important to review your situation annually, as changes in income, residency, or employment can affect your best strategy.

Reporting foreign bank accounts

If you have bank or financial accounts in Hong Kong that, combined, exceed $10,000 at any point during the year, you must file an FBAR (Report of Foreign Bank and Financial Accounts) with the U.S. Treasury. This is in addition to your tax return and penalties for missing this can be severe.

• The FBAR is filed electronically and is due April 15, with an automatic extension to October 15.
• Some Americans may also need to file Form 8938 under FATCA if their foreign assets exceed certain thresholds.

Social Security

Social Security can get tricky for Americans in Hong Kong. Unlike many countries, Hong Kong does not have a totalization agreement with the U.S., so if you’re self-employed, you may need to pay U.S. self-employment tax (Social Security and Medicare) even if you pay into Hong Kong’s Mandatory Provident Fund.

• If you work for a Hong Kong employer, you generally don’t pay U.S. Social Security taxes, but your time in Hong Kong may not count toward your U.S. benefits.
• If you’re self-employed, plan ahead for possible double contributions and talk with a cross-border tax expert to avoid surprises.

By understanding these key areas, you can approach your expat tax situation in Hong Kong with confidence and clarity. We’re here to help you make sense of the rules, minimize your tax bill, and keep your financial life running smoothly—no matter where in the world you call home.

Frequently Asked Questions