Hong Kong is a global financial hub, offering a wide range of both local and international banks. Opening a bank account is typically straightforward, regardless of your residency status. This article outlines those simple steps for opening a bank account as well as an overview banking and tax systems in Hong Kong.
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How to open a bank account in Hong Kong
The specific criteria you have to fulfill when opening a bank account in Hong Kong as a non-resident vary from bank to bank. In general, it is much easier to do so in Hong Kong rather than in Europe or the US. The procedure takes up to two weeks and your application is highly unlikely to be denied.
Opening a bank account in Hong Kong
To open a savings or current bank account as a foreigner, you usually need:
- your Hong Kong ID or a valid passport
- proof of address in Hong Kong or your home country (you do not have to be a Hong Kong resident to open a bank account in Hong Kong)
- Hong Kong phone number
- completed application form (available on the bank’s website)
To open a business bank account in Hong Kong, you will need the following:
- Hong Kong ID or passport
- certificate of incorporation
- business registration certificate
- additional documents, such as proof of business activities and a business plan
While some banks do offer an option to apply for a bank account online for non-residents, you will need to visit the branch of your choice in order to complete the process of setting up a bank account in Hong Kong. For some banks, especially online banks, you can open a new account entirely online. The process typically involves:
- downloading the bank’s mobile app or visiting their website
- filling out an application and entering your contact details
- uploading supporting documents
- completing identity verification
Once your application is approved, you can start using your account immediately.
Top banks in Hong Kong
- [HSBC](https://www.hsbc.com.hk/international/banking-in-hong-kong/
- DBS Bank
- Citibank
- Standard Chartered
- Hang Seng Bank
- Bank of East Asia
- Bank of China
- OCBC Wing Hang Bank
- ICBC
- Nanyang Bank
Some popular licensed online banks in Hong Kong include:
The prestigious Euromoney Awards for Excellence, which recognize outstanding performance and innovation in banking and financial institutions, honored the following banks in Hong Kong:
- Best Bank: HSBC
- Best Digital Bank: Standard Chartered
- Best Bank for Consumers: China Construction Bank (Asia)
- Best Private Bank: HSBC
- Best Trust Administrator: Futu Trustee
Banking in Hong Kong
Obtaining a credit card should not be a problem; however, there may be different requirements regarding your credentials and annual salary for various types of cards and credit limits. In addition to the above-mentioned documents, you will also need to present a proof of your salary or your salary statements from the last several months in order to get a credit account. In Hong Kong, credit cards are widely used, especially for online shopping and major purchases. Debit cards are mainly used for ATM withdrawals, daily spending and contactless payments in Hong Kong
In addition to traditional debit and credit cards, other popular payment methods in Hong Kong include:
Octopus Card: A stored-value smart card, initially intended for public transportation, is now widely accepted at shops, restaurants, and vending machines.
Mobile wallets: Digital wallets like AlipayHK, WeChat Pay HK, Apple Pay, and Google Pay are gaining significant traction and are widely used, especially for microtransactions in shops and cafes
Paper Checks:
Although paper checks are no longer common in Hong Kong, they may still be required for certain services, such as
- school payments
- transactions with older businesses
- rental agreements
Bank account services in Hong Kong
All banks in Hong Kong offer you the services you would generally expect from institutions with an international standing. Both product information and account statements are usually available in English or Chinese. Services you get at nearly any bank include:
- Savings and current accounts
- Fixed deposit accounts
- Foreign currency accounts
- Standing orders
- Money transfers
- Credit
- Currency exchange
- Direct debit
- Investment advice
- Insurance services
What are common bank account fees?
Most banks in Hong Kong don’t charge for account maintenance for personal accounts, but truly fee-free accounts are rare. Common charges include ATM withdrawals, transfers, and foreign currency exchanges, typically ranging from 50 to 150 HKD (approx. 6.40 to 19.20 USD) each month. The exact fees depend on your account type—premium and business accounts usually incur higher charges— as well as your regular income or the average balance.
Keep in mind that some accounts might also require minimum deposits. It will depend on the bank of your choosing as well as the type of account you wish to open. Some savings accounts ask for 10 HKD (approx. 1.30 USD) as initial deposit, while others might require you to start your account with 200,000 HKD (approx. 25,740 USD).
Most banks also charge other service fees, such as for closing an account, keeping an inactive account with less than a certain lump sum, and changing standing orders. The fee the bank charges you for overdrawing your account largely depends on the type of account you hold.
What are the telephone and online banking options?
Most Hong Kong banks offer telephone and online banking services free of charge, with many available 24/7. These services allow you to:
- Pay utility bills
- Pay government fines
- Transfer money between accounts
- Manage your finances remotely
Mobile banking is also widely available. Contact your bank for details on their mobile app and services.
Payment Systems
- PPS (Payment by Phone System): PPS is a 24-hour bill payment service that lets you pay bills via internet or phone.
How to register: Visit any PPS terminal located throughout Hong Kong. For more information, visit the PPS website.
- FPS (Faster Payment System): You can do the following with this payment system:
- Instant transfers: Money moves between banks and e-wallets immediately
- Free service: No charges for local transfers
- Multiple currencies: Supports Hong Kong Dollars and Renminbi
- 24/7 availability: Transfer anytime, any day
- Versatile use: Send money to individuals or pay merchants
Most residents and expats now use FPS for everyday payments instead of checks. Transfer fees may still apply to:
- International wire transfers (SWIFT/Telegraphic Transfer)
- Express services (CHATS) at bank branches
ATMs in Hong Kong
ATMs are located all over the city. Often, they can be used for more than just withdrawing cash. For example: paying bills or depositing checks or cash. Using an ATM is typically free of charge if you withdraw from an ATM whose network your own bank belongs to. Otherwise, you pay a service charge.
What is the tax system in Hong Kong?
When expats try to understand Hong Kong’s tax system, it’s important to note that only income earned in or from Hong Kong is subject to tax, due to the territorial principle. If you have a long-term visa and are a fiscal resident, you must pay income tax on your Hong Kong-sourced earnings, just like any other resident. Income earned outside Hong Kong is generally not taxed.
The Hong Kong tax system
Tax rates in Hong Kong deserve their reputation of being competitively low. They rise progressively with higher salaries. Nevertheless, the maximum rate, even for the top tax bracket, is only 17%. To avoid double taxation, Hong Kong has concluded negotiations with a number of countries regarding double taxation relief. These agreements ensure that fiscal residents aren’t taxed twice on the same income earned abroad.
Keep in mind that the following information does not constitute any legal advice. For more detailed questions on taxation in Hong Kong, contact the Inland Revenue Department (IRD). We would also recommend you talk to a trustworthy tax advisor for advice on your individual situation.
Types of taxes in Hong Kong
Salaries, Property, and Profits taxes constitute the direct tax you or your employer will have to file at the end of the fiscal year. Stamp and Betting are indirect taxes of Hong Kong. The tax year starts on 1 April and continues until 31 March next year.
Salaries tax
Salaries tax will probably be the biggest tax burden for you when living in Hong Kong. All wages, salaries, and director’s fees are subject to this tax. Additionally, the large majority of all other benefits you might receive from your company are also taxable. Such taxable benefits include
- bonuses
- commission and rebates
- leave pay
- end-of-contract gratuities
- and others.
Any shares or options that are part of your remuneration are also taxed, as is accommodation provided by your employer. Furthermore, it does not matter when these payments are made or whether they exceed your terms of employment.
If you travel to Hong Kong for work irregularly, and spend less than 60 days there doing so, you should be exempt from these taxes.
How to calculate salaries tax
Salaries tax can be calculated either at progressive rates on your net chargeable income or standard rates on your net income—whichever one is lower. Follow the formulas to calculate them both:
Total Income – Deductions = Net Income Total Income – Deductions – Allowances = Net Chargeable Income The deductions constitute:
- Self-education expenses
- Charitable donations
- Depreciation
- Loss
- Home loan interest
- Elderly care
- Interest on rental income properties
- Mandatory retirement scheme and provident fund contributions
You are not required to provide evidence about your deductions. However, you will be required to provide proof of the deductions if your tax files are being reviewed. That is why it is advisable to keep payment receipts and other documents for six years after you file the forms.
Claimable allowances include:
- Basic allowance (every tax payer’s allowance)
- Spouse allowance (doubles the basic allowance for the household)
- Child allowance
- Single parent allowance
- Dependent allowance (sibling, parent, grandparent, or a disabled person)
- Personal disability allowance
You can claim your allowances when filing your tax return either online or by mail. Just like with deductions, you are not required to provide evidence for your allowances; however, you should keep the appropriate receipts.
The tax brackets in Hong Kong
These are the progressive tax rates in Hong Kong. The standard (fixed) tax rate here is 15% on accessible income less deductions.
| Income HKD | Income USD | Progressive Rate (%) |
< 50,000 | < 6,430 | 2 |
50,001–100,000 | 6,430–12,870 | 6 |
100,001 | 12,870–19,300 | 10 |
150,001–200,000 | 19,300–25,730 | 14 |
200,000 < | 25,730 < | 17 |
To find out how much salaries tax you will approximately have to pay in Hong Kong, check out the online tax calculator for your relevant assessment year under the section “Tax Computation.”
Once you make the calculations, you can file your tax returns online or by post.
Property tax in Hong Kong
If you own property in Hong Kong and earn rental income from it, you are required to pay tax on that income at a flat rate of 15%. To learn more about your tax obligations as a property owner in Hong Kong, check the government’s site on Property Tax.
Self-employment tax in Hong Kong
Self-employment is taxable, too, and, as you can only be self-employed if you set up your own business, it is treated as Profit Tax. Self-employment is defined as “buying and selling of goods” or “providing professional or personal services”. In this case, you are charged profits tax based on the assessable profits of your proprietorship or partnership. Furthermore, there are some other obligations concerning, for example, accounting standards. Profit taxes are also applied to corporations and trustees.
Things to remember about tax system in Hong Kong
Hong Kong is well known for its simple tax system and the absence of many common taxes found elsewhere. Specifically:
- No sales tax or value-added tax (VAT)
- No capital gains tax
- No tax on dividends received
- No estate tax
No withholding tax on dividends and interest payments
The only case in which you have to pay taxes on capital gains is if shares or options are part of your regular remuneration. These are subject to the same Hong Kong income tax as normal salaries.
What is personal assessment?
If you are subject to more than just the salary tax, you can file a tax relief called Personal Assessment. If you wish to do so together with your partner, you can opt for Joint Assessment or Personal Assessment for Married Couples.
In order to be eligible to apply for Personal Assessment, you have to “ordinarily reside in Hong Kong”. Whether or not you get that status depends on:
- How long you are staying in Hong Kong.
- Whether you have permanent dwelling in Hong Kong.
- Whether your relatives are residing in Hong Kong.
- Whether you are working in Hong Kong.
- Whether you own property outside of Hong Kong.
Note that owning a Hong Kong ID card does not mean that you are considered to be a tax paying resident.
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