Why your move to Hong Kong will cost you more than you think
Many expats moving to Hong Kong fail to consider all the financial consequences of their move.
If you are transferring your employer may meet some of your direct costs, but what about the:
- First month, when you are in a serviced apartment, eating out, paying for ad-hoc child-care and using a laundry service
- Setting up a new home with curtains, fixtures, appliances and possibly furniture
- Deposits for housing and school places, possibly with the cost of a debenture
- First tax bill you receive in Hong Kong, which will be both retrospective for salary earned and forward-looking for the forthcoming tax year
Also, have you considered the:
- Loss of earnings, if you leave your employer without a new job and no Government ‘social security’
- Loss of family income if your spouse can’t find work in the expected time-frame, or at all, or of the expected nature
- Impact on your country-of-origin financial planning, taxation, insurances (are they valid in HK?) and investments
- Additional cost-of-living expenses such as club memberships, increased entertaining and ancillary schooling costs (Mandarin tutor, trips, laptop)
- Cost of repatriation when you leave Hong Kong
There will also be the unexpected family flights to attend occasions such as family weddings or Christmas. If your country-of-origin home is rented out, you’ll be staying in a hotel and renting a hire car.
When your kids ‘go home’ for University, will they be treated as non-resident?
For more information, visit workinginhongkong.com
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