Top 10 Expat Mistakes When Moving to Hong Kong and How to Avoid Them | Complete Relocation Guide
- Guillaume Duchêne
- Dec 9
- 17 min read
Updated: 18 hours ago
Author: Guillaume Duchêne, MarCom & Operations Manager
Hong Kong does not slip quietly into your life; it arrives all at once. Neon spills across pavements, trams ring their bells like polite door knockers, and the harbour breathes with the ferries. During my first months here, I learned these lessons the hard way. This is both my story and a practical Hong Kong relocation guide to help you avoid the same pitfalls. Hong Kong is a dynamic city that attracts expats from all over the world; moving here can be exciting, but small mistakes can cause big headaches. As a gweilo (“Western Foreigner”) who has spent four years navigating life here, I want to share insights that keep your move smooth, legal, and enjoyable.
Top Mistakes Expats in Hong Kong Should Avoid
Mistake 1: Working Without a Proper Employment Visa in Hong Kong
When relocating to Hong Kong for work, starting your job before securing the correct employment visa might seem like a harmless shortcut. In reality, it’s one of the most serious mistakes you can make, with consequences that can affect your career, finances, and future opportunities.
What type of visas does Hong Kong provide for work?
First, Hong Kong offers several visa categories for professionals and workers:
Employment Visa (General Employment Policy): For professionals with a confirmed job offer and relevant qualifications.
Training Visa: For individuals undergoing structured training in Hong Kong.
Investment Visa: For entrepreneurs who plan to establish or join a business in Hong Kong.
Quality Migrant Admission Scheme (QMAS): For highly skilled individuals who wish to settle in Hong Kong without securing a job beforehand.
Admission Scheme for Mainland Talents and Professionals: For qualified individuals from Mainland China.
Why working without a visa can be a mistake?
Legal Risks: Hong Kong has strict immigration laws. Working without authorisation is a criminal offence that can lead to fines of up to HK$50,000 and imprisonment for up to two years.
Immediate Deportation: If discovered, you can be deported and barred from re-entering Hong Kong for years.
Employer Liability: Companies that employ individuals without proper visas face heavy penalties and reputational damage.
Loss of Rights: Without a valid visa, you have no formal employment protections; no recourse for unpaid wages, workplace injuries, or disputes.
Future Impact: Breaching visa conditions can affect future applications for work permits or permanent residency and may even impact immigration status in other countries.
Why people take the risk?
Urgency to start quickly or fear of losing the job offer.
Misunderstanding visa conditions (e.g., assuming a tourist or dependent visa allows work).
Employer oversight or pressure to begin before approval.
What can you lose?
Your job and income.
Legal status and ability to remain in Hong Kong.
Professional reputation and future career opportunities.
Access to benefits and protections under employment law.
Is there a better approach?
Start the visa process as soon as you accept the job offer and make the commencement date of the employment contract conditional upon obtaining of a valid employment visa. Hong Kong Immigration requires a signed employment contract and supporting documents from your employer. Processing times can take four to eight weeks, so plan ahead. If you’re on a student or dependent visa, verify whether part-time work is permitted under specific conditions, never assume.
Beware that before a valid employment visa is granted by the Hong Kong Immigration, it is also advisable to refrain from engaging in any employment-related activities in Hong Kong, including but not limited to undertaking training or seminars provided by the employer in preparation for the employment, and attending internal company meetings etc. In case of doubts on whether a specific activity is permissible without an employment visa, please do not hesitate to consult one of our lawyers for more details.
When I extended my stay, I coordinated closely with my employer and immigration authorities before starting any work. It took time, but it gave me peace of mind and ensured compliance.
Mistake 2: Renting a Hotel Room for Months Instead of a Flat in Hong Kong
Hotels seem like an easy solution for newcomers to Hong Kong, especially long-stay hotels offering discounts. They provide convenience: daily housekeeping, fresh towels, complimentary water, and sometimes breakfast. For someone arriving without a plan, it feels safe and hassle-free.
Why renting a hotel long-term can be a mistake?
High cost: Even discounted rates add up quickly compared to renting a flat or serviced apartment.
No homely feel: Hotels lack storage space and personal touches, making it hard to feel settled.
Limited facilities: No kitchen means extra spending on meals every day and less control over diet.
Laundry expenses: Hotel laundry services are costly and inconvenient for long stays.
Why expats choose hotels anyway?
Immediate availability without dealing with lease paperwork.
Flexible check-in and check-out dates.
Central locations close to business districts.
Perceived safety and convenience for first-time visitors.
Is there a better approach?
If you are unsure how long you will stay, consider serviced apartments or short-term rentals. They offer flexibility and a more homely feel. For expats, reliable starting points include Central and Western District, Sheung Wan, Sai Ying Pun, Mid-Levels, Kennedy Town, or Wan Chai.
If you know you will be staying for an extended period, a conventional lease is usually the best option. Keep reading to learn why and how to make it work for you.
Personal Insight
When I first landed in Hong Kong, I booked a discounted long-stay hotel in Sheung Wan. At first, it felt perfect: clean, central, and stress-free. But reality hit quickly and I experienced all of the above: Laundry fees piled up, eating out every day drained my budget, and the lack of a kitchen made me feel like a permanent guest rather than a resident. I wanted to cook, to settle, to belong.
Mistake 3: Relying Only on Facebook Groups and Ignoring Neighbourhood Research in Hong Kong
When searching for housing in Hong Kong, Facebook groups are often the first stop for students, interns, and expats. They’re convenient, fast, and usually avoid agency fees. After deciding to extend my stay, I turned to these groups and eventually found a compact apartment in Sheung Wan with a nice view and enough space to host guests.
Months later, I discovered the unit was inside a commercial building, which meant no domestic rent deduction and raised compliance questions. It wasn’t fancy, but it felt like home. This experience taught me two important lessons:
Why relying only on Facebook groups can be a mistake?
Limited Options: Many landlords prefer professional platforms or agents, so you might miss better properties.
Risk of Scams: Listings aren’t verified, and fraudulent posts are common.
Uncertain Quality: Photos can be misleading, and legal compliance is often unclear.
Intense Competition: Affordable rooms go fast, leaving fewer choices.
Sublet Risks: Subletting without landlord consent can lead to eviction or loss of deposit.
Why neighbourhood research matters?
Hong Kong’s districts have distinct personalities. Choosing the right one impacts lifestyle, commute, and budget.
Lifestyle Fit: Do you want vibrant nightlife, family-friendly areas, or quiet spaces?
Commute Time: Long travel times can affect your daily routine.
Cost Differences: Rents vary dramatically. For example, Mid-Levels can range from HK$22,000 to HK$40,000 for a one-bedroom.
Popular areas to explore
Central & Mid-Levels: International, upscale, close to business hubs.
Sheung Wan & Sai Ying Pun: Trendy, with cafes and boutique shops.
Kowloon: Local vibe, more affordable, but crowded.
Discovery Bay: Family-oriented, quieter, requires ferry commute.
A better approach
Use Facebook groups as one of several tools, not the only one. Combine them with trusted platforms like Spacious, SquareFoot, or university housing boards. Before committing, visit different neighbourhoods to get a feel for their atmosphere and amenities. Factor in transport costs and commute time when planning your budget.
When I moved again, I worked with a real estate agent to secure a larger apartment that met my needs and complied with regulations. This saved time and gave me peace of mind.
Mistake 4: Forgetting About Rental Tax Deduction in Hong Kong
Many expats in Hong Kong do not realise they can claim a tax deduction for domestic rent. Since 2022/23, the Inland Revenue Department (“IRD”) allows taxpayers to deduct rent paid for their principal residence under a qualifying tenancy.
In fact, Rental Tax Deduction doesn’t work if you are living in a commercial building. You can only deduct residential accommodation rental. Before diving into why these matters, it’s important to understand the difference between a commercial building and a residential building in Hong Kong.
Commercial Building (Hong Kong)
In Hong Kong, a commercial building is a property zoned for business use under the Buildings Ordinance and relevant planning regulations. These buildings are intended for offices, retail, or other commercial activities, not for residential living. Renting a unit in a commercial building for residential purposes can lead to legal and practical issues, such as:
No eligibility for domestic rent tax deduction under the Inland Revenue Ordinance.
Different fire safety and building standards compared to residential premises.
Possible non-compliance with lease terms and government regulations.
Residential Building (Hong Kong)
A residential building in Hong Kong is a property approved for habitation under the Buildings Ordinance. These buildings meet housing standards for living, including proper kitchen and bathroom facilities, and are subject to tenancy protections under the Landlord and Tenant (Consolidation) Ordinance. Renting in a residential building ensures compliance with local laws and allows tenants to claim domestic rent deductions where applicable.
Facts about Rental Tax Deduction in Hong Kong
You can claim up to HK$100,000 per year (or HK$120,000 if you meet certain conditions, such as living with a child born after October 2023).
The tenancy must be in writing, stamped under the Stamp Duty Ordinance, and the property must be your main home.
Only rent, rates, and government rent (if paid by the tenant) qualify. Management fees and utilities do not.
Keep your tenancy agreement and receipts because the IRD may request them later.
Claim this deduction when filing your annual tax return under Salaries Tax or Personal Assessment.
This is a great way to save money, but many expats miss it because they assume rent is never deductible in Hong Kong.
Mistake 5: Delaying ID Card Registration in Hong Kong
Anyone aged 11 or above who is permitted to stay in Hong Kong for more than 180 days must register for a Hong Kong Identity Card (“HKID”) within 30 days. Failing to do so can lead to compliance issues and unnecessary inconvenience.
Why Timely HKID Registration Matters?
The HKID is your official proof of identity in Hong Kong and is required for essential tasks such as opening a bank account, signing a lease, and accessing government services. While HKID cards for residents do not expire, older smart cards issued before November 2018 were invalidated in phases during 2025, making timely registration and updates critical.
How to Register for Your HKID?
Booking an appointment is simple and can be done through GovHK or the Immigration Department website. Appointments open up to 96 working days in advance, so book early to secure your preferred time. Arrive at least 15 minutes before your appointment, bring all required documents, and keep your collection slip safe for card pickup.
Tips for a Smooth Process
I avoided this mistake by booking my HKID appointment in my first week in Hong Kong, and the process was surprisingly smooth. Arriving early and having the right documents made everything quick and stress-free. Here are some tips for a smooth process:
Book your appointment as soon as possible after arrival.
Double-check the required documents on the Immigration Department’s official site.
Arriving early helps avoid delays and ensures a hassle-free experience.
Mistake 6: Not Setting Up a Local Bank Account Quickly in Hong Kong
Relying on overseas cards might seem convenient at first, but the foreign transaction fees and currency conversion charges quickly add up. Employers in Hong Kong typically pay salaries into local bank accounts and having one makes everyday life smoother; from paying rent to shopping and dining without extra costs.
Why a Local Bank Account Matters to Expats?
A Hong Kong bank account is essential for:
Receiving your salary (most employers require it).
Avoiding high overseas card fees.
Accessing local payment systems like Faster Payment System (“FPS”) for instant transfers.
Enjoying perks such as cashback and discounts offered by local banks.
How to Open a Bank Account in Hong Kong?
Opening a bank account in Hong Kong is straightforward, but you’ll need to prepare the right documents. Most banks require the following:
Passport and visa page or HKID.
Proof of local address (e.g., tenancy agreement or utility bill issued within the last 3 months).
Proof of employment (job offer or contract).
Initial deposit (varies by bank).
Several banks now offer app-based account opening for eligible customers, making the process faster and more convenient. Popular choices include HSBC, Standard Chartered, and virtual banks like Mox and ZA Bank.
Personal Insight
When I first arrived in Hong Kong, I had no choice but to transfer cash from my hometown bank account to top up my Octopus card, for daily transport and small purchases. Soon after, I opened a debit account with HSBC, as it was required to receive my salary. Later, I added a virtual bank account with Mox for everyday spending and cashback rewards.
Mistake 7: Ignoring Cash and Octopus Card in Hong Kong
Hong Kong is a modern financial hub, but do not assume that cashless payments dominate every corner of the city. While credit cards and e-wallets are common in malls and international chains, many taxis, small eateries, and traditional markets still prefer cash. If you rely only on cards, you may find yourself stuck when trying to pay for a quick bowl of noodles or a tram ride.
The Octopus card remains a cornerstone of daily life. Originally designed for public transport, it has evolved into a multi-purpose stored-value card accepted at convenience stores, coffee shops, supermarkets, and even vending machines. For expats, it is not just a transport card; it is a survival tool for small, everyday transactions.
Why You Need an Octopus Card?
The Octopus card makes commuting effortless, because paying for the MTR, trams, and buses becomes seamless. It also works for ferries and some taxis. Beyond transport, you can use it for quick payments at local shops without fumbling for coins. Adding the card to your smartphone as an e-card brings even more convenience, allowing you to top up instantly and avoid queues at stations. Learn more on the Octopus official site.
Extra Tips for Expats
Top-Up Options: You can reload your Octopus card at MTR stations, convenience stores, or through your bank app if linked to FPS.
E-Card Integration: Apple Wallet and Huawei Pay support Octopus, making it easy to pay with your phone.
Cash Still Matters: Keep at least HK$200 in cash for taxis, street food, and small vendors who do not accept cards or e-payments.
Personal Insight
When I first arrived, I underestimated how essential Octopus was. I could not add my Octopus e-card to my Samsung phone, which was inconvenient. After switching to an iPhone, I added it instantly, and travelling on the MTR, tram, and bus became stress-free. For expats, this is a game-changer. It is not just about convenience; it is about blending into the rhythm of Hong Kong life.
Mistake 8: Overlooking Mandatory MPF Contributions in Hong Kong
Many expats assume their employer will handle all aspects of retirement savings, but the Mandatory Provident Fund (“MPF”) system requires both employers and employees to contribute. This legal obligation applies even to short-term contracts and most foreign workers, unless specific exemptions apply. Failing to comply can lead to penalties and gaps in retirement planning.
Why ignoring MPF can be a mistake?
Legal Requirement: Under the Mandatory Provident Fund Schemes Ordinance (Cap. 485), both employers and employees must contribute 5% of the employee’s relevant income, subject to a maximum income cap of HK$30,000 per month. This means the maximum contribution is HK$1,500 each for employer and employee.
Minimum Income Threshold: Employees earning less than HK$7,100 per month are exempt from contributions, but employers must still contribute.
Penalties for Non-Compliance: Failure to contribute can lead to fines for both parties.
Impact on Employment Terms: If MPF obligations are not clearly stated in your contract, you may face disputes or unexpected deductions later.
Why expats overlook MPF?
They assume exemptions apply to all foreigners.
Lack of clear communication from employers.
Short-term assignments create confusion about eligibility.
Is there a better approach?
Check your employment contract carefully. Confirm whether you qualify for exemptions. If you are required to contribute, ask your employer to set up your MPF account early and keep records of contributions. Popular providers include HSBC, Manulife, and Sun Life.
MPF Investment Options in Hong Kong
Under the MPF system, your contributions are invested in funds managed by your chosen provider. You can select from different types of funds based on your risk appetite and financial goals:
Equity Funds: Higher risk, potentially higher returns. Invest mainly in stocks.
Bond Funds: Lower risk than equities, focused on fixed-income securities.
Mixed Asset Funds: Balanced approach combining equities and bonds.
Money Market Funds: Very low risk, short-term deposits and instruments.
Default Investment Strategy (“DIS”): A regulated option that automatically adjusts risk as you age, starting with more equities and shifting to bonds over time.
Tip for Expats and Locals
If you are staying short-term, you may prefer lower-risk funds to avoid market volatility. For long-term residents, a diversified portfolio or DIS can be a good choice. Always review your provider’s fund fact sheets and fees before deciding.
How many times can you withdraw MPF?
You can withdraw your MPF under specific circumstances, but not multiple times for the same reason:
Permanent Departure from Hong Kong: One full withdrawal when leaving Hong Kong permanently. You must sign a statutory declaration confirming you will not return for employment or residence.
Retirement at Age 65: You can withdraw your MPF in full or in instalments, depending on your provider.
Early Withdrawal: Allowed for early retirement at 60, total incapacity, or terminal illness. Each scenario typically allows one withdrawal per qualifying event.
If you return to Hong Kong after withdrawing MPF, you will need to open a new MPF account and start contributing again. For full details on MPF rules, exemptions, and investment options, visit the official Mandatory Provident Fund Schemes Authority website: MPFA.
Mistake 9: Not Networking early for job opportunities and social connections in Hong Kong
Hong Kong is one of the most competitive cities in Asia, and networking is essential for both career growth and building a social circle. Many job opportunities are shared through personal connections rather than public listings, so starting early can make a huge difference.
Why Networking Matters in Hong Kong?
Hidden Job Market: A significant number of roles are filled through referrals and professional networks.
Social Integration: Networking helps expats settle in faster and feel connected in a fast-paced environment.
Business Culture: Hong Kong values relationships, and trust and credibility often come before deals.
How to Network Effectively?
Based on your nationalist or interest, join Chambers of Commerce or similar organisations, which host events and mixers for professionals.
Attend industry meetups using platforms like Meetup, LinkedIn, or Eventbrite.
Leverage co-working spaces such as The Hive or WeWork which often organise networking sessions.
Personal Tips
Always carry a business card and follow local etiquette:
Offer and receive cards with both hands.
Take a moment to read the card before putting it away to show respect.
At dinners, avoid cultural faux pas:
Never stick chopsticks vertically into rice because it symbolises funerals.
Use the chopstick rest and avoid pointing chopsticks at people.
Respect the concept of saving face by avoiding public criticism or embarrassment.
Mistake 10: Neglecting to Set Up Your FPS (Faster Payment System) in Hong Kong
One of the most common financial mistakes expats make in Hong Kong is ignoring the Faster Payment System (“FPS”). Many assume that traditional banking or international transfers will cover all their needs, but Hong Kong is a highly digital payment environment, and FPS has become a standard for everyday transactions.
Why Expats Often Miss FPS?
Expats frequently overlook FPS because it is not widely promoted by international banks. Many assume that their existing banking apps or credit cards are sufficient. In addition, FPS is relatively new compared to traditional payment methods, so unless someone explains it during account setup, expats may not realise how essential it is for daily life.
Why FPS Is Essential for Expats?
Instant Transfers Across Banks: Unlike traditional transfers that can take hours or even days, FPS allows you to send and receive money instantly, even between different banks. This is especially useful if you’re paying rent to a landlord who uses a different bank or reimbursing friends after a meal.
No Extra Fees: FPS transactions are typically free, saving you from the hidden charges that often come with international transfers or ATM withdrawals.
Bill Payments Made Simple: Many utility companies, telecom providers, and even landlords prefer FPS for quick settlements. Without it, you might face delays or have to rely on slower methods like cheques or cash.
Everyday Convenience: From paying at local restaurants to splitting costs with colleagues, FPS is widely accepted. Some merchants even offer discounts for FPS payments because it’s cheaper for them than credit card processing.
Secure and Reliable: FPS is regulated by the Hong Kong Monetary Authority (“HKMA”), ensuring high security standards and reducing the risk of fraud compared to informal payment methods.
How to Set Up FPS?
Register Your Mobile Number or Email: Link it to your bank account through your bank’s mobile app.
Verify Your Identity: Most banks require a quick in-app verification process.
Start Using FPS: Once registered, you can transfer money instantly without needing account numbers, just use the recipient’s phone number or email.
Bottom Line
In Hong Kong’s fast-paced financial environment, FPS isn’t just a convenience, it’s becoming a necessity. Without it, you risk unnecessary delays, extra fees, and frustration in everyday life. Setting it up takes only a few minutes but saves you countless headaches later.
Conclusion
Planning a move to Hong Kong can be exciting, but preparation is essential to avoid costly mistakes. From securing the correct employment visa to claiming rental tax deductions, registering your HKID on time and setting up a local bank account, these steps will make your relocation smoother and fully compliant. Do not overlook financial essentials such as the Faster Payment System (FPS) and Mandatory Provident Fund (MPF), which are vital for everyday transactions and long-term security.
Take time to research neighbourhoods that match your lifestyle and budget, whether you prefer the international vibe of Central and Mid-Levels, the trendy cafés of Sheung Wan, or the family-friendly atmosphere of Discovery Bay. Set up practical tools like an Octopus card for transport and small purchases and start networking early to build professional and social connections.
By following these Hong Kong relocation tips and avoiding common expat mistakes, you will save money, reduce stress and enjoy everything that makes this city unique; from its vibrant culture and world-class dining to its endless career opportunities.
Need expert guidance for your move?
At Ravenscroft & Schmierer, we help expats navigate Hong Kong’s legal and practical requirements with confidence. From tenancy agreements and tax advice to employment compliance and relocation support, our team ensures your transition is stress-free and fully compliant.
Contact us today to make your move to Hong Kong smooth and secure.
FAQ (Hong Kong Relocation Guide)
What is the biggest mistake expats make when moving to Hong Kong?
Ignoring legal and practical basics such as failing to secure the correct employment visa, delaying HKID registration, or missing the domestic rent deduction. These simple steps save money and prevent compliance issues.
What types of work visas does Hong Kong provide?
Hong Kong offers several visa categories for professionals and workers:
Employment Visa (General Employment Policy) for professionals with a confirmed job offer.
Training Visa for individuals undergoing structured training.
Investment Visa for entrepreneurs establishing or joining a business.
Quality Migrant Admission Scheme (QMAS) for highly skilled individuals without a job offer.
Admission Scheme for Mainland Talents and Professionals for qualified individuals from Mainland China.
Do all tenancy agreements need to be stamped?
Yes. Tenancy agreements are subject to stamp duty and must be stamped within 30 days of signing. An unstamped agreement is not accepted in civil proceedings.
Who qualifies for the domestic rent deduction?
Taxpayers under Salaries Tax or Personal Assessment who pay rent for domestic premises used as their principal residence under a stamped written tenancy. The annual ceiling is HK$100,000, or HK$120,000 if you meet certain conditions such as living with a child born after October 2023.
How soon should I book my HKID appointment?
As early as possible. Appointments can be booked up to 96 working days in advance via GovHK or the Immigration Department website.
Why is the Faster Payment System (FPS) important for expats?
FPS allows instant, fee-free transfers between banks and e-wallets. It is widely used for paying rent, bills and everyday expenses. Without FPS, you may face delays and extra charges.
How do I set up FPS in Hong Kong?
Register your mobile number or email through your bank’s mobile app, complete identity verification, and start using FPS for instant transfers without needing account numbers.
Is an Octopus card still necessary if I have credit cards and e-wallets?
Yes. Octopus remains the easiest way to pay for public transport and small purchases. It can also be added to Apple Wallet or Huawei Pay for convenience.
Do I need to contribute to the Mandatory Provident Fund (MPF)?
Most employees, including expats, must contribute unless exempt under specific conditions such as short-term employment or membership in an overseas retirement scheme. Both employer and employee typically contribute 5% of relevant income.
How can I avoid scams when searching for housing?
Do not rely solely on Facebook groups. Use trusted property platforms and licensed agents, verify tenancy agreements, and ensure the property is zoned for residential use.
Which neighbourhoods are best for expats in Hong Kong?
Popular areas include Central and Mid-Levels for an international vibe, Sheung Wan and Sai Ying Pun for trendy living, Kowloon for affordability, and Discovery Bay for a family-friendly environment.
What documents do I need to open a bank account in Hong Kong?
Typically, you will need your passport and visa page or HKID, proof of local address, proof of employment, and an initial deposit. Some banks offer app-based account opening for eligible customers.
Can I withdraw my MPF when leaving Hong Kong?
Yes, if you are permanently departing Hong Kong. You must sign a statutory declaration confirming you will not return for employment or residence. Withdrawal is also allowed upon retirement or under specific conditions such as incapacity.
Disclaimer: Whilst every effort has been made to ensure the accuracy of this article it is general in nature and does not constitute legal advice of any kind. You should seek your own personal legal advice before taking legal action. We accept no liability whatsoever for loss arising out of the use or misuse of this article.
MarCom & Operations Manager
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