Hong Kong Tax Savings Boost Indian Couple's Wealth
An Indian couple living in Hong Kong estimates annual tax savings of ₹7.5 lakh compared to India, leveraging higher incomes and lower tax rates for wealth growth.
Hong Kong's Financial Appeal for Expats
An Indian couple has found Hong Kong offers greater financial savings despite its reputation as one of the world's most expensive cities. Aarushi Sharma and her husband, who moved to Hong Kong in 2025 and February 2026 respectively, report higher incomes and lower tax rates contribute to their increased savings.
Mercer's 2024 ranking identified Hong Kong as the most expensive city globally for expatriates, contrasting with Mumbai's 136th position. Sharma, a venture capital professional who later launched a jewellery business, noted initial concerns about high costs, but found the overall financial picture more favourable.
Significant Tax Advantages
Hong Kong's tax structure provides a substantial advantage for professionals like Sharma and her husband. The Hong Kong Inland Revenue Department (IRD) calculates individual income tax using either a progressive rate system (2% to 17% after allowances) or a standard flat rate of 15%, automatically applying the lower amount.
For an estimated annual income of ₹50 lakh, the couple pays approximately ₹3.57 lakh in Hong Kong taxes. This compares to an estimated ₹11 lakh for the same income in India, resulting in an annual tax saving of around ₹7.5 lakh. This differential significantly contributes to their overall wealth accumulation.
Managing High Living Expenses
Despite high living costs, the couple manages their expenses effectively. Their 550 square foot apartment rent accounts for about 20% of their household income, which Sharma considers reasonable locally, though some peers spend up to 50%. Public transport, costing ₹80-₹250 per ride with eligible monthly subsidies, helps control commuting costs.
Utilities, groceries, and transport together represent about 10% of their income. While imported goods and fashionable venues are expensive, local eateries and public sports facilities, such as swimming pools at around ₹200 per visit, offer more affordable alternatives. Sharma also runs her jewellery business primarily online to avoid high office rents and administrative overheads.
Diversified Investment Strategy
The couple maintains a savings rate comparable to their time in India, attributing this to higher salaries, lower taxes, and low inflation in Hong Kong. Their investment portfolio includes Indian mutual funds and exchange-traded funds (ETFs). Additionally, 40-50% of their investments are directed towards American and Chinese markets through ETFs.
Their long-term financial objective is to achieve financial independence by age 45, supported by passive income and a debt-free status. They are currently exploring other countries before deciding on a permanent settlement.
This article is journalism, not investment advice; consult a licensed professional before making financial decisions. Market data is indicative, may be delayed, and should be verified with your broker or exchange before use.
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