What do US or UK citizens who live in Hong Kong or plan to move there need to be aware of and plan for?
If you’re a US citizen living outside the US, you will still need to file US tax returns and pay US tax on your worldwide income. Similarly, for UK citizens, if you’re a non-resident who owns UK property or has sources of income in the UK, you may still need to file UK tax returns, even if you have moved abroad. You will need to get to grips with your tax filing requirements in your home country and add the tax filing and payment deadlines to your calendar to avoid exposure to penalties.
As well as compliance, you should consider whether your investments are tax favourable assets. Some investments can bring with them large tax bills, so seek advice before you buy!
If you’re moving to Hong Kong for work, will you be on a local contract or paid through your home country payroll? There are pros and cons either way so you should seek advice to find out what this could mean for you, before signing on the dotted line.
If you’re setting up your own business in Hong Kong, selecting the right structure is important in achieving the best tax result and minimising tax filing requirements, so you should loop in an adviser before you set up shop to get the most out of this new opportunity.
Are you familiar with the cost of living in Hong Kong? This may be higher than in your home country so find out how much you can expect to pay before you move - especially accommodation, which is notoriously expensive!