MOVING TO HONG KONG.

Overview.

Hong Kong is one of a small number of truly global cities, sought after by the world's richest individuals and is now considered Asia's most expensive destination for house hunters.

Figures from Savills show that there has been a 148% price increase in the past five years on well-located, good-quality homes. Gross rents now only account for a 2.6% return making renting a distinctly cheaper option than buying for anyone relocating there.

'There are as many as 500 billionaires resident in Hong Kong but a limited amount of prime housing, only 500 houses on the Peak and 2,400 on Hong Kong Island,' says Simon Smith of Savills Hong Kong.

Typical Property Prices.

Savills figures put the average price of a good two-bedroom apartment at HK$7,800 per square foot rising to HK$85,000 for a substantial four or five-bedroom house.

The best value is in traditional residential areas of Southside and The Peak while emerging areas such as Discovery Bay and Kowloon have potential for would-be house hunters says Savills.

The Purchasing Process.

There are no restrictions on land ownership by foreigners in Hong Kong but all land is held on government leases of up to 999 years. Any prospective buyer should be aware that as a result of the Sino-British joint declaration of 1984 all leases which were due to expire in 1997 were extended for 50 years but what will happen to all leases after 2047 is still a little unclear.

Buying Costs.

Buying costs include:

• Stamp Duty of 0.75% to 3.75%
• Legal fees of 0.5% to 2%
• Estate agent fees of 0.5% to 1%

Taxes.

Hong Kong has one of the world's most attractive tax regimes with no capital gains tax and no estate duty.

There is a special levy on rental income which is subject to property tax at 15% on the net assessable value of the land and buildings.

Overview.

Hong Kong offers the options of either local school or an international school education for ex-pat children.

Local schools.

Local schools usually conduct classes in Cantonese, although most also teach English. Children start school at the very early age of two or three years old and tend to attend either in the morning or the afternoons.

Hong Kong schools are known for being extremely competitive and operate strict codes of discipline. Classes can be large.

Many primary schools in Hong Kong run classes on a half day basis, either mornings or evening classes. On some occasions students are requested to attend school on alternate Saturdays.

Local schools have high standards of education. The curriculum tends to be focused on repetition-based learning.

While schools in Hong Kong are well-regarded academically, it is usual, in this part of the world, for ex-pats to choose private international schools to educate their children.

International schools.

There are many international schools to choose from in Hong Kong and most teach the British, American or Australian curriculum, although other countries are also represented. Tuition varies widely.

Some local students also choose to study at international schools to obtain a foreign education.

The application process for an international school in Hong Kong can include entrance exams and a number of other enrolment criteria. The international school year tends to run from September through to July.

Places at the best schools are snapped up quickly, so it is advisable to put your child's name down on the waiting list as soon as possible. Places are held with a reservation fee.

Some employers bulk-buy places for their employees' children. But if you are paying for your child's education, note in advance that international schools in Hong Kong can be expensive and budget accordingly.

Hong Kong taxes only income earned there. Expatriates and residents are taxed at either a low 2% to 17%, depending on income level, or a standard rate of 15%. However, tax is paid in a lump sum rather than monthly and the first tax instalment will include a provisional amount for the next tax year. Your first tax bill, therefore, can be uncomfortably high.

There is no capital gains tax. A double tax agreement between the UK and Hong Kong came into effect in 2011.