[ohchk2001]

I moved to Hong Kong from the United States. I am here on an Investment Visa.

My primary reason for coming here is because I love Asian culture, especially Chinese culture. I came from a suburban town which seriously lacked this, and HK totally 110% fits the bill. I am totally satisfied in this regard, and I am really enjoying my life here because of this.

My secondary reason for coming to HK is because of the economic freedom and low taxes that HK has, making it a great place to run my business.

Since I run an Internet based business, it's quite easy to move it as long we the location I'm moving it has good Internet connectivity, especially to U.S. servers. (This would rule out most of mainland China, even the good areas can't compare to HK in this regard)

Anyway I've been living here for almost a year in Ma On Shan.

My question for you guys is, how does the cost of living compare to the low taxes? Is all the money you saved in taxes eaten up by extra living expenses? Is HK really that expensive?

Lets take a look at a few things:

1. Rent

A lot of expats need to live on the island so their rent is sky high. This particular question is targeted to expats who live in the NT where rent is much more reasonable.

How does it compare to your previous location? Compared to where I used to live in the states, rent is around 35% more expensive here. *BUT* back in the states, I couldn't deduct it from my taxes....while here my business can deduct my rent from my taxes saving me even more in taxes.

2. Food

How does food compare to the U.S. and other countries?

Am I the only one who thinks that the super markets are a little bit more expensive, but that the wet markets actually make food costs LOWER in Hong Kong compared to the states? I'm a little fuzzy on my food costs back in the U.S., I didn't really pay attention to the prices as much as I should have.

My girlfriend's family spends around $HK 6000 a month for food on a family of five. They mostly buy stuff from the wet market, and also buying sparingly from the supermarket. This doesn't include eating out, which they rarely do.

Restaurants - This is a mixed bag. Western restaurants can be pricey, but a lot of local places can be really cheap. Sushi in HK is really inexpensive compared to where I used to live where a full sushi meal costs around HK$ 900 for two people.

3. Health care

Going to the doctor (private hospital) or dentist is 50% cheaper here compared to the states. I only had to go once to the doctor for strep throat, but I had several experiencesn with the dentist. All have been excellent.

4. Internet and telephone

Internet service is over 50% cheaper compared to what I got back in the states. Telephone service is also inexpensive and IDD calling is very cheap. Stuff like Skype phones drive the price down even further.

5. Clothes

Not sure about this aspect, what are your guys experiences on this? I didn't really buy that many clothes here, and I'm not a person who constantly needs new clothes.

6. Electronics

I was a little disapointed with this aspect.

Back in the states I used to buy everything from newegg.com which sold top quality computer hardware at rock bottom prices.

The Mong Kok computer center in comparison is on average around 4% to 6% more expensive even after I do some hard haggeling. This is a little disapointing. I was hoping that the prices would at least be exactly the same. Although it is convenient that I can just walk in and buy all my computers needs rather than wait for it to get shipped to me.

I haven't compared prices in the golden computer center yet in Sam Shui Po. Would those prices there be even cheaper?

What are your thoughts on the cost of living in HK (assuming you don't need to live on the island)?

Also what were some of your reasons for moving to Hong Kong.

[HKFella]

*BUT* back in the states, I couldn't deduct it from my taxes....while here my business can deduct my rent from my taxes saving me even more in taxes

Strange that the US won't let you deduct rentals. in Canada, a reasonable portion of your home rental could be tax-deducted to support a business run from home.

That said, I'll defer responses to your questions to those who know the US better.

[ohchk2001]

Well you can deduct a portion of your rental, but only if you are doing business in the apartment.

In HK you can deduct the entire balance by making it an allowance that the company pays.

[wahansa]

Hi, I'm considering moving to HK and one main reason is the lower taxes. I am also curious about the cost of living, especially food. I grew up in HK and my family used to shop from the open air markets (not sure if these exist anymore). Anyway, this time I am planning to move back with my Swedish husband, which means that part of our meals will be European. And that entails shopping in specialty stores like Oliver or City Super, etc. Can anyone give me a rough idea of what the food budget is like for a couple with half Chinese, half Western meals (not counting eating out)?

I read from the article here about cost of living that 1 litre milk costs HK$23. That is insane! (Here in Sweden, it costs about HK$7 per litre... but then of course the supply and demand are both higher than in HK, I suppose). Here in Sweden we don't eat out very much because it is so expensive (in relation to our salaries). Our monthly food budget is around the equivalence of HK$ 2500.

By the way, ohchk2001, I am surprised to hear that the computer hardware prices in HK are not so cheap compared to U.S. prices. My husband, who is a hardware freak ;-) is looking forward to buying cheap hardware in HK. Does anyone know if there are good places to shop for cheap computer stuff across the border in Shenzhen or Guangzhou?

[ohchk2001]

Originally Posted by wahansa

By the way, ohchk2001, I am surprised to hear that the computer hardware prices in HK are not so cheap compared to U.S. prices. My husband, who is a hardware freak ;-) is looking forward to buying cheap hardware in HK. Does anyone know if there are good places to shop for cheap computer stuff across the border in Shenzhen or Guangzhou?

I am interested in this as well. Do any of these Shenzhen and Guangzhou shops offer shipping to Hong Kong?