If you’re considering a long-term relocation to Hong Kong, addressing the financial needs of you and your family is an essential part of your planning.

Cost of Living

Hong Kong consistently ranks as one of the most expensive cities in the world for expatriates. In 2025, Hong Kong was ranked as the second most expensive city globally, driven primarily by high housing costs¹. While food and public transport remain relatively affordable, accommodation is the largest expense for most residents.

• Dining: A standard lunchtime meal in downtown Hong Kong averages HK$110 (US$14)¹.
• Rent: Monthly rent for a furnished studio flat in a central location is approximately HK$23,500 (US$3,010). A 900 sq ft furnished apartment in a less expensive area costs about HK$27,000 (US$3,470)².
• Utilities: For a single person in a 480 sq ft apartment, utilities (heating, gas, electricity) average HK$900 (US$115) per month².
• Domestic Help: Hiring cleaning help costs around HK$65 (US$8.30) per hour².
• Transport: A monthly public transport pass is HK$520 (US$67), while a new Volkswagen Golf costs about HK$250,000 (US$32,900)².

Housing Market

The high cost of accommodation is largely due to limited land supply and a population of over 7.4 million people living in just 427 square miles³. Family homes and larger apartments are significantly more expensive, especially in popular districts like Central, Wan Chai, and Mid-Levels. More affordable options can be found in Kowloon and the New Territories, which are increasingly accessible thanks to the Mass Transit Railway (MTR)².

Salaries and Employment

Most expatriates work for multinational companies, which offer competitive salaries. According to the 2025 HSBC Expat Explorer Survey, the average expat salary in Hong Kong is US$152,000, with financial services employing 35% of expats and education 12%³. Salaries for mid-level managers are expected to rise by 5% in 2026. Hong Kong’s work/life balance and career progression opportunities are major draws, with 60% of expats reporting higher disposable income than in their home countries³.

Taxes

Hong Kong’s tax system is among the most favorable in the world. Salaries tax is progressive, with rates of 2%, 7%, 12%, and capped at 17%. There are no inheritance or capital gains taxes, and only income earned in Hong Kong is taxable. Generous deductions are available, including for dependent relatives. Many expats are taxed only on income attributable to services rendered in Hong Kong, and employers can assist with tax queries³.

Shopping and Essentials

Food shopping can be expensive, especially in Western-style supermarkets. Eating out is often more affordable than cooking at home. Basic personal essentials are reasonably priced:

• Deodorant: HK$40 (US$5.20)
• Toilet paper (4 rolls): HK$15 (US$2)
• Chicken breast (450g): HK$52 (US$6.80)
• Milk (1L): HK$25 (US$3.30)²

Clothing and tailoring are affordable, with custom suits ranging from HK$4,000 (US$525) to HK$9,500 (US$1,250) depending on the tailor².

Economizing

Living outside the most expensive districts, using public transport, and shopping at local markets can help manage costs. Kowloon and the New Territories offer more affordable housing and are well-connected by the MTR².

1. “Cost of Living in Hong Kong,” Expatistan, https://www.expatistan.com/cost-of-living/hong-kong, accessed January 9, 2026.
2. “The Best Places to Live in Hong Kong,” ExpatFocus, https://www.expatfocus.com/c/aid=4451/articles/hong-kong/the-best-places-to-live-in-hong-kong/, accessed January 9, 2026.
3. “Hong Kong Salary Guide 2025,” Michael Page, https://www.michaelpage.com.hk/salary-guide, accessed January 9, 2026.