Hong Kong is the most important financial hub in the Far East, which makes it one of the most important in the entire planet.

Hong Kong is the dream of anyone who believes in the free market. Hong Kong was the freest economy in the world according to the Index of Economic Freedom for 25 years in a row, and just last year it fell to the second place. The city is an example of fiscal health, and even after some time of social unrest, it continues to thrive as a global investment hub.

Why? Aside from its free economy, it is the most solid entryway to the biggest market in the world, China. It is the only place in mainland China that allows free capital flow, and despite some difficulties, it continues to be a semi-autonomous region under the One Country, Two Systems principle. Thus, it has enacted strong business laws paired with a common law system that allows investors to breathe easy knowing their assets are safe in Hong Kong.

Why should you consider Hong Kong?

• One of the best tax systems in the world. Hong Kong only taxes your local income. The income tax goes from 2% to 17% and the corporate tax from 8.5% to 16.5%.

• Hong Kong is the only part of mainland China that allows free capital flow, making it the destination of a large part of China’s FDI.

• Opening a company in Hong Kong takes a couple of days. This, and its tax system makes it a privileged destination for holdings.

• Hong Kong is a reputable licensing destination. E-money institutions, wealth managers, and Forex millionaires have established HK as their headquarters. This allows them to do business freely in the city and enjoy its first level telecommunications and workforce.

• Hong Kong has a first-level banking system with most of the best banks in the world present and highly-liquid, multicurrency, secure banks.

• Hong Kong has the second-freest economy in the world according to the Index of Economic Freedom and led the ranking for 25 consecutive years.

• Hong Kong is the largest free port in the world, which makes it a leading shipping destination in the Far East.

Some history

Hong Kong was part of the Chinese Empire since the third century B.C. and remained part of it until 1842. The UK held it since the First Opium War in 1842, when the Qing Dynasty tried to fight illegal opium trade and started a war with the UK in result. Part of the Treaty of Nanjing said that China would cede the Hong Kong island to the UK in perpetuity. Over the next 50 years, the British took the rest of the Hong Kong region and the final treaty in 1898 ceded the territories for 99 years. 

As you might know, China spent most of the 20th Century in civil war, and then recovering from it. Hong Kong’s story was different. It experienced a fantastic economic boom and became home to thousands of expats. Yet, the treaty was soon to end.

In 1984 China and the UK agreed that China would still give Hong Kong some political autonomy for 50 years, which gave birth to the One Country, Two Systems that still exists.

That means Hong Kong is a Special Administrative Region of China, with its own legal system and democratic rights, while it is still part of China. This system will be kept at least until 2047, when the current system will finish.

What else should you know about Hong Kong?

Hong Kong is a large city with over eight million inhabitants. It has a large expat community that comprises about 8% of the population. More than half are in Hong Kong for work-related reasons.

Hong Kong is probably one of the most expensive places to live in the world, especially due to high renting prices. Plus, you can find international food, but regularly for a higher price.

Yet, this comes with some advantages. First, you should not have any language problems. English is one of the official languages of Hong Kong and most people in Hong Kong at least understand some English and all government info is in English. Also, Hong Kong has one of the best transportation systems in the world. The system has a railway, buses, minibuses, tramways and ferry routes connecting Hong Kong Island to the mainland and smaller nearby islands. You can use an Octopus Card to enjoy these services.

Further, another advantage is that there are thousands of expats from all over the world living in Hong Kong. It’s easy to make friends in this cosmopolitan city. You will get to know hundreds of different cultures in Hong Kong.

Of course, Hong Kong is a beauty to behold. If you are going there for business, it is quite likely you will not have much free time. Still, you can spend some time in Lan Kwai Fong which hosts dozens of cultural festivals including food, beer, and music festivals. Hong Kong is a city that does not rest, which is defined by its East Meets West persona, combining Chinese roots with British influence.