Decision to move?

Have been offered a job in HKG and need help nutting out pros and cons.

My income will cover basics such as accom, food, entertainment etc, but I have a wife and 7 year old in tow and need to cover their income/costs to help balance the budget equation.

Wife is qualified K-6 teacher in Australia, earning about $35k HKD/month. The equivalent teaching jobs in HKG I've seen required lengthy application periods and small application windows which we've probably already missed for the next year. What other options are there for similar work? (Not ESL)

Second problem is education costs for my daughter. The international schools I saw cost big $$$($90k/year). Is there a cheaper alternative that offers comparative education?

ESF schools are under 60k/year for primary and quite comparable to the International schools.


Re: your wife's income, you should assume she will make zero during the first year, while budgeting. There is work in HK, but it may take some time to find. There is some demand for English tutors.


Don't forget to factor in the cost of a helper. You don't absolutely need one but in many ways HK is structured around having a helper so it really helps (heh), plus it is a big lifestyle boost. If you will both work it is pretty much a must. You're talking 4500+ a month at a minimum


Food, and by that I mean "western" food, is much more expensive than in the west. You can get by very cheaply if you eat local food.


If you can cover accommodation in HK that's half the battle so it is probably workable for your family.

Thanks, I've spent a couple of months in HK for work previously so am familiar with most things, just need to look out for the family now.

$60k is big hit for education (especially compared to the near zero cost we pay now :). Although I guess I pay it through higher taxes here so it all works out. On that subject where can I find the actual tax rates? I've read that it's anywhere between 10-20% but would like to more accurate figure if possible (I'd like to avoid surprises).

60k is indeed high compared to zero, but for a private school of the caliber you see in HK it quite low. Equivalent schools in Australia, the UK or the US cost at least double that. In any case you do need to budget for schooling. No way around it.



Tax rates seem hard to find on the IR website. I googled around to refresh my memory. Please correct me if I get any details wrong.


First you deduct allowances from your salary to reach "assesible income". For example you can deduct rental expense (note that your employer has to write your paychecks a certain way to do this). Given HK rents, that can be a BIG chunk. If your rent is paid by your employer, you have to add a portion instead.


The salaries tax rate is the lower of either:

* 16% of "assessable income" after the deduction of allowances or

* A progressive rate levied on "assessable income" after the deduction of allowances. (But see below for later changes.) These progressive rates were:

o Nil to HKD30,000 - 2%

o HKD30,000 to HKD60,000 – 8%

o HKD60,000 to HKD90,000 – 14%

o HKD90,000 upwards – 20%


If you earn a typical expat salary you'll normally end up in the mid teens percentage wise. In any case never higher than 16%.



There is NO sales tax/VAT.



Note 1: unlike in the US, the UK or many other western countries, tax is not deducted from your paycheck. You have to save the money and pay yourself. 25% in the third quarter and the rest in the fourth quarter. So do make sure you set that money aside. A separate account with an automatic transfer is a good idea.


Note 2: Your tax bill is calculated based on your previous year's income, so if you have big changes year on year you'll get adjustments in the subsequent year.

"First you deduct allowances from your salary to reach "assesible income". For example you can deduct rental expense (note that your employer has to write your paychecks a certain way to do this). "


Can anyone give more details about how this must be arranged?


I am in the process of negotiating a contract with the HK office of my company. Given the substantial increase in rent that we will encounter I am keen to mitigate this cost as much as possible.


(Especially as it seems they don't envisage increasing my current salary. Still working on that though....)

As cara says. Using her figures, your payslip will look something like:


- Salary - HK$ 500000

- Housing allowance - HK$ 25000

- Total - HK$ 75000