A growing number of overseas professionals are choosing to return to Hong Kong, attracted by its competitive tax framework, thriving capital market, and revitalized urban lifestyle.
Theo Bertrand, a 27-year-old quant engineer from France, relocated back to Hong Kong last year after a stint working in Amsterdam. Though Hong Kong's daily living expenses are relatively high, its far lower personal tax burden delivers clear financial gains—unlike the high bonus tax rates in the Netherlands. He first studied in Hong Kong a decade ago and came back to reunite with his partner. Compared with alternatives such as Dubai, he believes Hong Kong offers stronger long-term appeal amid shifting geopolitical landscapes in the Middle East, describing the city as the top destination for global professionals in the coming years.
Hong Kong's expat workforce is staging a notable recovery after a period of population outflow between 2020 and 2022, when many bankers, lawyers, and skilled talents departed the city. Today, white-collar specialists from across the globe are resettling here, driven by a buoyant IPO pipeline, planned tax incentives for private equity and hedge fund managers, and a more dynamic city atmosphere overall. The rebound can be seen across multiple market indicators: rental prices for premium expat residences have climbed, and elite international schools now face long waiting lists for admission.
Official immigration data confirms the momentum. Hong Kong approved 31,278 employment visas for foreign nationals last year, more than double the figure recorded five years prior, with major applicants hailing from Japan, South Korea, and the United Kingdom. Foreign work visas issued to financial services practitioners rose by 17% year-on-year to hit a post-2022 high.
Global financial institutions have voiced strong confidence in Hong Kong's outlook. Bank of America and HSBC are actively expanding their senior teams in the city: Bank of America will transfer Thorsten Pauli from Zurich to lead its Asia-Pacific capital markets division in Hong Kong, while HSBC's group chief people and governance officer Aileen Taylor plans to move from London to Hong Kong to bolster local senior leadership. HSBC CEO Georges Elhedery also spent an extended work stint in Hong Kong earlier this year, where the group employs roughly 20,000 staff.
Industry analysts note the revival of capital markets is a core draw. Hong Kong hosted Zhongji Innolight's landmark USD 6.8 billion IPO last week, the city's largest new listing in seven years, with Goldman Sachs and Morgan Stanley acting as joint lead managers. Supported by steady listings of mainland enterprises, Hong Kong has reclaimed its standing as the world's leading offshore wealth management hub, surpassing Switzerland in this category recently. The Hong Kong government has also tabled new legislation to eliminate taxes on performance-linked income for fund managers, further sharpening the city's competitiveness for asset management professionals.
Many professionals who previously relocated to rival Asian financial hubs like Singapore now plan to move back to Hong Kong. A senior asset management executive shared that frequent cross-border commutes between Singapore and Hong Kong for core business meetings had become unsustainable, and basing himself in Hong Kong would grant him much closer access to regional decision-making networks.
Recruiters report surging interest from overseas candidates. William Bown, partner at executive search firm Maven Partnership, revealed that senior banking professionals based in London, Dubai, and Sydney are actively interviewing for managing director roles in Hong Kong's investment banking sector. The commercial property market also mirrors this uptick: landmark Grade A office towers including The Henderson and Cheung Kong Center II have seen occupancy rates jump sharply, with major asset management firms signing long-term leases.
John Tozzi, an American recruitment consultant, took a nominal base salary cut to move back to Hong Kong from New York in January 2025. Thanks to Hong Kong's low-tax system, his net disposable income is effectively higher than what he earned in the US, and he has witnessed a steady stream of fellow expats following the same path. He also highlighted Hong Kong's revitalized cultural and entertainment scene, with major international artists now regularly staging events in the city.
Two key market shifts define this new wave of expat arrivals. Over the past three years, nearly three-quarters of approvals under Hong Kong's various talent admission schemes went to mainland Chinese professionals, while overseas expats now face more targeted hiring criteria: candidates without fluent Mandarin or Cantonese are expected to hold niche specialist expertise or qualify as senior internal corporate transfers to secure roles.
Residential and education markets fully reflect the influx of returning foreign residents. Luxury neighborhoods favored by expats, such as Mid-Levels East and The Peak, recorded year-on-year rental growth of 14% and 13%, respectively, in June, outpacing the city's average rental inflation rate. In international education, total student enrollment has risen roughly 10% over three years to exceed 48,000, while the number of available school places grew by less than 5%. Top international schools now maintain year-long waiting lists, and school debentures no longer guarantee admission for popular campuses.
Local expat residents observe subtle shifts in Hong Kong's multicultural fabric. French returnee Theo Bertrand noted a larger presence of European and mainland Chinese professionals across the city, alongside tighter standards for overseas job seekers that reward specialized skill sets. While the urban atmosphere differs from his first stay in 2017, he says Hong Kong has bounced back markedly from its quietest phase during the pandemic period.
(Source: Bloomberg)
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