Expats Flock Back to Hong Kong Seeking Low Taxes, Better Jobs

August 6, 2026 - 12:21

Hong Kong is seeing a steady reversal of the population drain that hit its foreign community over the past few years. After a period when many expatriates left due to strict Covid measures and political uncertainty, a growing number are now coming back, drawn by the city's low tax rates and a rebounding job market.

The exodus began in 2020, when the pandemic led to some of the world's toughest quarantine rules. That, combined with Beijing's increased security legislation, pushed many Western professionals to relocate to Singapore, Dubai, or back to their home countries. At its lowest point, Hong Kong's foreign population dropped by nearly a quarter, with tens of thousands of skilled workers leaving.

Now the tide is turning. With borders fully reopened and quarantine a thing of the past, the city is regaining its appeal. For many, the math is simple. Hong Kong's top marginal tax rate for salaries sits around 15 percent, far lower than what they would pay in London, New York, or even Singapore. That savings matters, especially for senior bankers, lawyers, and tech managers.

Job opportunities are also improving. Banks and financial firms are rebuilding their Asia teams, and the city remains a key hub for wealth management and regional headquarters. Some companies that had shifted staff elsewhere are now asking them to return, while others are hiring fresh talent from overseas.

Still, the recovery is not uniform. Some expats who left have settled permanently elsewhere, and the city's overall foreign population remains below pre-2019 levels. But real estate agents report rising inquiries from overseas renters, and international schools are seeing enrollment climb again.

The return is not without its challenges. Housing costs have stayed high, and the political climate remains a concern for some. Yet for those who prioritize career growth and financial incentives, Hong Kong's pull is proving hard to ignore. As one recruiter put it, people are not coming back because they forgot the politics. They are coming back because the package works.