The Path To Hong Kong Residency & Our Fantastic Low Tax Regime
First Published June 4, 2012
Hong Kong has an open and flexible immigration policy that promotes and simplifies the relocation of foreign nationals possessing employment skills, business expertise, and capital to the Hong Kong Special Administrative Region (HKSAR). Moreover, their family members (spouse and unmarried children under 18) are also eligible for residence visas, which allow them to reside, work, and study in Hong Kong. Below is a scheme that highlights the available pathways to Hong Kong Residency so that you can benefit of the low tax regime that HKSAR offers.
No matter what type of Hong Kong visa you have secured, residency in Hong Kong offers fantastic tax benefits!
VisaGeeza.Ai – Making Hong Kong Immigration A Lot Easier
The 30 minute talk was broken down into 24 very easy to digest segments and each of these segments is presented here.
The talk is designed to allow the D-I-Y visa applicant to use the 100% free resources of both the Hong Kong Visa Handbook as well as the Hong Kong Visa Geeza Blog.
The Right of Abode & Permanent Residence For Foreign Children In Hong Kong
What is the situation as regards the Right of Abode& Permanent Residence for foreign children in Hong Kong when they reach 21 years of age? Clearing up the confusion as to HKID cards at 11, 18 and what happens at 21?
The Right of Abode & Permanent Residence For Foreign Children in Hong Kong
There are 2 PR ‘Categories’ to consider where children born or otherwise permanently resident in Hong Kong are not Chinese nationals.
Category D – Is a person not of Chinese nationality who has entered Hong Kong with a valid travel document and has legally and ordinarily resided in Hong Kong for a continuous period of not less than seven years.
* If a child not of Chinese Nationality and born outside of Hong Kong – they need to live legally, ordinarily and continuously in Hong Kong for at least 7 full years to be eligible for a Permanent Hong Kong Identity Card (meaning PR or Right of Abode – it’s all the same thing).
In the case of this Category D child, it means, typically, they hold a dependant visa for 7 years (or sometimes a student visa) and then apply to have their eligibility for a Hong Kong Permanent Identity Card verified after 7 years of continuous ordinary residence in Hong Kong. If they are over 11 at the 7 year mark, they get a Juvenile Permanent HKID Card which needs to be updated at the age of 18. There is no re-verification exercise by the age of 21 for a Category D child (see Category E, below).
Category E – Is a person under 21 years of age not of Chinese nationality who was born in Hong Kong to a parent who is a permanent resident of the HKSAR by virtue of Category D at the time of their birth or at any later time before he/she attains 21 years of age.
* If a non-Chinese child was born in Hong Kong to a Category D parent, the child will automatically obtain the status of a permanent resident at birth or otherwise when one parent subsequently acquires Permanent Residency under Category D. The eligible parent when applying for PR under Category D, can include the child’s application at the same time which will then be approved under Category E. Note that upon attaining 21 years of age, the child ceases to be a permanent resident of the HKSAR under Category E and will then need to apply to the Director of Immigration for the status of a permanent resident of the HKSAR under Category D.
Identity Cards For Children Under Category D or E
Prior to the age of 11 years, children are too young to have ID cards issued to them. During these years their PR status is recorded in a sticker endorsement in their passports. Upon reaching the age of 11, the child can apply for a Juvenile ID card. This ID card will denote the holder having the Right of Abode in Hong Kong. Inherent in this ID card is the Category D or Category E status. At the age of 18, the Juvenile ID card is no longer appropriate and so needs to be updated to an adult ID card.
If the applicant for this adult ID card is Category D, the Right of Abode is maintained with no further ado just so long as he/she is physically present in Hong Kong on at least one occasion in any three year given period.
If the applicant for this adult ID card is Category E, he/she has the option to either (i) seek to change from Category E to Category D PR status by demonstrating continuing ordinary residence in Hong Kong at the time of the adult ID card application, then issue the new adult ID card on this basis OR (ii) defer the application to change from Category E to Category D PR status until they are 21 years old and merely apply for the update to the adult ID card as an administrative exercise [only] in the meantime.
What Happens At 21 For Category E PHKID Card Holders?
The Director of Immigration generally writes to the Category E PHKID Card holder informing them of their need to re-verify their eligibility for the Permanent Identity Card given their impending 21 years as such Category E persons automatically lose their Right of Abode until and unless they reverify their continuing eligibility for the same. The idea is to ensure that anyone who acquires PR in Hong Kong by virtue of their birth in Hong Kong to a non-Chinese PHKID holder under Category D has maintained their connections to Hong Kong.
If they are unable to successfully demonstrate their ongoing connections to Hong Kong they will be downgraded to the Right to Land in the same way a Category D PHKID card holder will be downgraded to the Right to Land if they are absent from Hong Kong for more than 1095 days continuously.
Maintaining Eligibility For The Right of Abode
For Category D PHKID card holders, it is simple. Be physically present in Hong Kong on at least one occasion every 1095 continuous days.
For Category E, PHKID card holders, it is more problematic where connections to Hong Kong have not been maintained.
Generally, if the parents’ family home has been maintained in Hong Kong or otherwise own residential property in Hong Kong, the parents themselves have been ordinarily resident in Hong Kong or otherwise objectively still connected to Hong Kong (say with a very well-established family owned business being operated out of Hong Kong with reasonably frequent parental visits to that business being undertaken) ImmD will conclude that the Category E PHKID holder remains ordinarily resident in Hong Kong even if a lot of time has been spent away from Hong Kong, especially where the Category E >> D applicant has been pursuing an education overseas.
Generally, the problem arises where the whole family has essentially decamped from Hong Kong permanently whilst still retaining their Category D Right of Abode status by making at least one trip back every 3 years. If the Category E>>D applicant can’t demonstrate the requisite continuing connections to Hong Kong, they will fail in their Right of Abode re-verification application and be downgraded to the Right to Land.
A Category E PHKID holder will more than likely fail in his/her application for Category D Right of Abode status if they are back in Hong Kong merely once every 1095 days as this doesn’t really amount to maintaining connections to Hong Kong if the family have otherwise ‘gone home’ or ‘moved on’ from Hong Kong.
However, every such application will be considered entirely on its own merits.
What Is ‘Permanent Residency’ Anyway?
So, you’ve been downgraded to the Right to Land by virtue of absence from Hong Kong as a Category D PHKID holder having been absent from Hong Kong for more than 1095 days continuously.
Or …
You could not qualify for continuing Right of Abode under the Category E>>D reverification exercise at the age of 21.
Given that you are now holding the ‘mere’ Right to Land in Hong Kong, are you still a PR of Hong Kong?
You most certainly are!
Moreover, this status cannot be lost under any circumstances. Right to Land is a functional equivalent to the Right of Abode when it comes to working, studying, starting a business, retiring and sponsoring dependant visas for all qualifying family members, including dependant parents over the age of 60.
Essentially, the Director of Immigration cannot impose any condition or limit of stay on you in Hong Kong.
You literally have the right to land and live here.
Summary: The immigration policies of Hong Kong are strategically designed to prioritize security and prosperity while also attracting global talent and investment. The introduction of the national security risk assessment for visa applicants reflects a global trend in advanced immigration jurisdictions. This approach safeguards national interests while creating an environment that attracts intellectuals, professionals, and entrepreneurs from around the world. The professional handling of visa applications, regardless of the applicant’s field of work, ensures that Hong Kong remains a beacon for diverse talent.
Promoting Fairness and the Rule of Law
Recent visa incidents involving academics and journalists have sparked discussions on the delicate balance between national security and freedom of expression. These cases underline the complexities of immigration policies in the context of global mobility and security concerns. However, the Hong Kong Immigration Department’s transparent and case-by-case evaluation process demonstrates a commitment to fairness and the rule of law. By protecting the city’s security while maintaining openness to diverse ideas and cultures, Hong Kong remains an attractive destination for intellectual exchange.
Welcoming Nature Reflected in the Approval Rate
Statistical data provided by the Immigration Department paints a clear picture of Hong Kong’s welcoming nature. Despite the challenges of the COVID-19 pandemic, the visa refusal rate remains significantly lower than during the pre-pandemic period, indicating the city’s ongoing appeal as a global hub. The recovery of travel to 70% of pre-pandemic levels is a positive indicator of Hong Kong’s resilience and its ability to attract visitors and potential residents.
According to the latest statistics released by the Hong Kong Immigration Department, the city’s visa approval rate stands at an impressive 85%, showcasing the efficiency and effectiveness of the immigration system. This high approval rate is a testament to the Immigration Department’s commitment to balancing security concerns with the attraction of global talent. The data further reveals that the approval rate has shown a gradual increase over the years, highlighting the continuous efforts made by Hong Kong to streamline its immigration policies.
Hong Kong’s proactive stance in attracting world-class talent is exemplified through initiatives such as the Top Talent Pass Scheme and the Quality Migrant Admission Scheme. These programs enhance the city’s competitive edge by attracting individuals who can contribute to its economic, technological, and cultural development. The high approval rates and the substantial number of applications received are evidence of the success of these initiatives.
The Top Talent Pass Scheme is specifically designed to attract high-skilled professionals who possess outstanding achievements or skillsets that can significantly contribute to Hong Kong’s development. Under this scheme, applicants are granted a work visa that allows them to reside and work in Hong Kong for an extended period. The approval rate for this scheme has been consistently high, indicating the city’s attractiveness for top talent from around the globe.
Similarly, the Quality Migrant Admission Scheme aims to attract qualified individuals with exceptional skills or talents to settle in Hong Kong. Applicants are assessed based on a points-based system that takes into account factors such as age, education level, work experience, and language proficiency. The scheme has seen an encouraging approval rate, representing the city’s commitment to fostering a diverse and talented community.
Hong Kong immigration professionals play a crucial role in guiding applicants through the intricacies of the immigration system. These experts provide invaluable assistance, ensuring that applicants are well-informed about the process, requirements, and potential pitfalls. By working with reputable immigration professionals, candidates can optimize their applications and increase their chances of visa approval. The Immigration Department’s long-standing willingness to work with these professionals fosters a trustworthy and reliable ecosystem that benefits both applicants and the city as a whole.
Security Assessments in a Changing International Landscape
Hong Kong’s alignment with the global trend towards stringent background checks and security assessments for visa applicants is a proactive measure to protect the city’s interests. This national security risk assessment aligns the city’s practices with those of other sophisticated immigration jurisdictions worldwide, striking a balance between security concerns and the openness necessary to attract global talent and investment.
The national security risk assessment is a comprehensive evaluation conducted on visa applicants to assess potential risks to Hong Kong’s security. This assessment takes into account several factors, including the applicant’s background, affiliations, and potential risks posed to public safety. While this assessment is part of a global trend, Hong Kong ensures that it maintains transparency and fairness throughout the process. Each application is evaluated on a case-by-case basis to ensure that security concerns are properly addressed without unfairly discriminating against individuals.
Hong Kong Visa Approval Rate as a Barometer
In light of these developments, the “Hong Kong Visa Approval Rate” emerges as a key indicator of the city’s immigration stance and its commitment to security. This metric reflects the efficiency, fairness, and transparency of the immigration process. It also serves as a barometer for Hong Kong’s attractiveness as a global city, measuring its ability to strike a balance between security and openness.
Through continuous efforts to streamline immigration policies, enhance transparency, and combat deceptive practices, Hong Kong aims to maintain its reputation as a premier destination for international talent. The high visa approval rate demonstrates the city’s commitment to welcoming diverse individuals who can contribute to its vibrant community. Moreover, the commitment to transparency and fairness ensures that Hong Kong’s immigration system remains accountable and efficient.
Sustaining Hong Kong’s Position as a Premier Destination
The ongoing efforts to streamline immigration policies, combat deceptive practices by agencies, and maintain a welcoming environment are crucial for sustaining Hong Kong’s position as a premier destination for international talent. As the city continues to navigate the complexities of global immigration trends, its policies and initiatives provide a model for balancing security with openness. The commitment of the Immigration Department to transparency, fairness, and efficiency ensures that Hong Kong remains a vibrant, secure, and attractive place for individuals from all walks of life. This balanced approach fosters an environment where innovation, diversity, and security coexist, contributing to the ongoing prosperity and global standing of the city.
Overall, Hong Kong’s visa approval rate reflects its commitment to security, fairness, and attracting global talent. As the city adapts to changing international dynamics, it continues to refine its immigration policies to strike the right balance between safeguarding national interests and remaining an open and attractive destination for individuals from around the world. With a transparent and case-by-case evaluation process, sustained efforts to combat deceptive practices, and initiatives that prioritize talent and expertise, Hong Kong remains a city that champions prosperity, diversity, and security in its immigration system.
VisaGeeza.Ai – Making Hong Kong Immigration A Lot Easier
Joining In A Side Business In Hong Kong – An Obvious Visa Solution For Certain Types Of Employed Professionals
Thinking about joining in a side business in Hong Kong? Certain foreign national professionals who teach in Hong Kong, especially those at university, often find themselves wishing to participate in their profession whilst educating others. The question is begged as to how they can, from a visa and immigration perspective, go about doing this.
QUESTION
“Hi there.
I’m hoping to discuss gaining a Hong Kong work permit, if possible. My situation is as folllows:
I’ve just arrived in Hong Kong to work. I have a 1-year contract to teach complementary medicine at a university in Hong Kong and who have sponsored my work visa too. This contract may well be open to renewal each year (though it’s not a rolling contract): my department boss informally/verbally indicated that, subject to basic performance requirements, there’d be no reason why it wouldn’t be renewed.
However, besides teaching, I’m also a qualified Reiki practitioner, and this is why I seek advice.
I would like to be able to practice Reiki in Hong Kong, and ultimately for Reiki to become my main or only work here, perhaps alongside some teaching too.
However, as my work visa for this year has been sponsored by the university specifically to teach for them, both they and the Hong Kong Immigration Department would, I understand, need to give me permission to do this work (ie to join an existing clinic or, ultimately, set up my own clinic, have a work permit from the Immigration Department to do so, pay taxes on this work, etc). This current work visa expires in June, 2013.
I have already approached a clinic, and they are willing to take me on, though they also know that I still have the Immigration Department hurdle to deal with.
So my questions are:
(1) Could you advise what the most efficient and effective way would be for me to be able to practice Reiki legally, both as soon as possible and for the long term, whilst also keeping open the possibility in future of teaching in Hong Kong as another money-earning activity?
(2) Should I set up my own company in Hong Kong as a vehicle for my activities here?
(3) Also, may I ask how long the process might take from now to the end? (I ask because the clinic that wants to take me is waiting).
With thanks and kind regards.”
ANSWER
Thanks for your engaging question. Essentially, these are your choices as I see them at this time:
Option One: You secure the consent of the university for you to join in a side business in Hong Kong practicing Reiki with the clinic as an independant contractor. You’d have to register yourself as a Sole Proprietor (as a minimum) with the Inland Revenue Department and secure a Business Registration Certificate to this end AND make an argument with the Hong Kong Immigration Department (“HKID”) as to why this would be beneficial to the HKSAR.
You can expect this process to take between 6 and 8 weeks to complete.
Option Two: You cease working for the university and start working for the clinic as a full time, sponsored employee, with the clinic sponsoring you for full time employment visa permissions. You’d have to make a change of sponsorship application and argue with the HKID that you possess special skills knowledge or experience of value to and not readily available in Hong Kong. As, from my understanding, Reiki is an ‘alternative’ therapy, you should not assume that the HKID will immediately recognize Reiki’s bona fides but in the final analysis it’s all about the argument in the context of the offer of employment on the table and the sophistication of your proposed employer.
Time to finalisation of such an application will be in the region of 4-6 weeks after all the information the Immigration Department have requested has been supplied to allow them to consider and decide on your application.
Option Three: You cease working for the university and go into business for yourself. You would need to apply for a business investment visa. Not an easy challenge as you would for certain have to open clinic premises and anticipate the recruitment of at least one local staff. You would still have the challenge of arguing the bona fides of Reiki as a therapy and go about educating the Immigration Department to this end. You’d need to have a reserve of cash at your disposal to undergo the act of ‘investment’ for the purposes of the approvability test for this visa.
Please refer to the various presentations on the Hong Kong Investment Visa elsewhere in this Blog found here.
A business investment visa normally takes 12-16 weeks to finalise, from beginning to end.
VisaGeeza.Ai – Making Hong Kong Immigration A Lot Easier
How A Hong Kong Right Of Abode Application Plays Out (Reprise)
I am grateful to a user of our websites who has sent me this report of his experience in his right of abode application recently to share with everyone.
28/01/2021ROP145 submitted online (as Chinese citizen holding foreign passport, with one period of continuous absence over 6 months).
04/02receipt of application reference number in the mail (with direct phone number of case officer printed on the letter).
24/02 receipt of letter requesting proof of Chinese citizenship, explanation of the 6+ months absence, and completion of ROP146.
25/02submission of requested documents online.
17/03 called case officer citing processing time over 6-week and need of traveling, officer informed of “speedy process”.
18/03case officer called back informing 1st April verification formality scheduled, online status also updated. (HK IMMD is truly efficient and reliable!)
18/03changed appointment online from 1st April to 22nd March
22/03went to Wan Chai (with online printout only, before receiving appointment letter from IMMD), completed verification formality on 25th floor (10 minutes), permanent ID card application on 8th (10 minutes), and HK passport application on 4th floor (10 minutes)
23/03receipt of IMMD appointment letter, online status changed to “Application approved” .
VisaGeeza.Ai – Making Hong Kong Immigration A Lot Easier
Can I Set Up A Hong Kong Company, Employ My Business Partner & Sponsor An Employment Visa For Him?
The answer to this question is multi-part and ultimately driven by the challenges associated with a New Business Situation…
QUESTION
I am based in Hong Kong and would like your advice on visa applications for a friend.
A friend of mine, who is based in the US and I have been discussing a business opportunity for Hong Kong and I wanted to know the best way for him to secure a working visa.
We had discussed me setting up the company and then employing him and subsequently sponsoring his visa through the company.
Would that work?
The alternative would be for him to apply for an investment visa as he would be the brains behind the operation.
Please can you let me know which option would be best or which would be more successful? Another friend of mine who set up her own recruitment agency here in Hong Kong said that as an expat setting up a company you are unable to employ someone from overseas for the first year of your business being operational.
Is that also correct? Any light you could shed on this would be greatly appreciated.
ANSWER
Okay, what a lovely question with three particular moving parts that I’d like to address.
The first moving part really relates to your own immigration status. I’m going to take the view that you don’t have an immigration problem to participate in this venture, one way or the other. So, for example, because you have a dependent visa, or because you have the right of abode or unconditional stay or right to land or one of the other two types of immigration status that exists that will allow you to participate in this venture with your business partner. So, I’ll assume that there are no immigration applications that in a sense impact on you, because if you were an employment visa holder working for a third-party employer and you wanted to join in this business, there would be an immigration implication arising for you as well as for your business partner, too. But as I say, I’ll just make the assumption that you don’t have that problem in this mix.
Therefore, turning our attention to the second issue, which is what type of mechanism would be suitable for your partner to secure immigration permissions to be in Hong Kong to carry on this business with you.
Well, whether he applies for an investment visa because he’s got the overwhelming majority of the shares in the business or whether, for example, you decide that you’re going to split the business 50/50 between the two of you, the bottom line is that the Immigration Department will be working with a new company or a new business situation. Whether it’s the investment visa or whether it’s an employment visa, because you only own a smaller percentage of the shares, if it’s a new business situation and invariably it is, because in an investment visa scenario it’s a new business per se, then the Immigration Department will apply the approvability test for the investment visa irrespective of how you go about couching the application, all things considered.
That is, in the new business situation, they look to see that the enterprise can make a substantial contribution to the economy of Hong Kong. So, as I say, this would involve the creation of local employment opportunities, it would involve the establishment of a proper office and you need to ensure that you’ve got both funding resources and operational resources. Those are the types of things that are normally present that are driving you to make this investment in Hong Kong in the first place.
All of these facets of the approvability Stiller’s as I’ve couched it, absolutely need to be present, irrespective of whether he takes an employment visa because only got a smaller percentage of the shares than you or it’s an investment visa because he’s got a clear majority of the shares all things considered.
So, one way or the other, it doesn’t really matter, you’re still going to have to pass the essential elements of the approvability test, which I’ve dealt with elsewhere on the blog. So you should be able to find that information when you go looking for it.
Now, the third piece to this is your own friend, who sets up a recruitment agency, who stated it was her experience that in the first year, per se, you’re unable to employ someone from overseas.
Well, that’s not strictly true. Effectively the Immigration Department look at the bona-fide days of the applicant from the perspective of them being able to show they possess special skills, knowledge and experience of value that are not readily available in Hong Kong and that no local person can be expected to do that job. But again, it doesn’t matter the age of the company, if the company is properly resourced, and if the three legs of the approvability stool are all in place, it doesn’t matter the age of the proposed sponsoring entity. If is it a suitable and credible sponsor given the nature of the activities that are going on and the level of resources and availability of local staff to support that business, too.
So, Immigration Department look at it from 39,000 feet. There’s certainly no blanket preclusion that say in the first 12 months, there’s no chance of employing foreigners. It just depends on how strong and well established the business is at the time they make the application.
Okay, I hope you found that useful!
VisaGeeza.Ai – Making Hong Kong Immigration A Lot Easier
