In Hong Kong, one of the first things Aarushi Sharma, 26, had to recalibrate was her idea of what money should buy.
A monthly HK$15,000-25,000 (about ₹1.8-3 lakh) gets an apartment on rent measuring around 300 sq. ft. A gym or yoga session costs upwards of HK$120 ( ₹1,400) per visit, and imported groceries can inflate regular supermarket bills. For someone accustomed to Indian prices, Sharma initially found herself converting every expense into rupees.
“The hardest part is unlearning the instinct to measure everything against Indian prices, because by that yardstick almost nothing here feels ‘worth it,” Sharma said.
The price tag shock isn't merely anecdotal. Mercer’s 2024 Cost of Living City Ranking placed Hong Kong as the world’s most expensive city for expatriates, ahead of Singapore and Zurich. Mumbai, the most expensive Indian city in the list, ranked 136th.
Hong Kong presents an unusual financial paradox. High rents are partly offset by higher salaries, lower taxes and affordable public transport. “Our savings rate is roughly the same as what it was when we were working in India,” she said.
Sharma moved to Hong Kong in February, joining her husband, Sai C. Araveti, 30, who had relocated a year ago. Both come from venture capital, though Sharma has since started a jewellery business.
“We have made peace with the fact that our money simply buys less space but more convenience here than it would in India.” As part of Mint’s series on Indian expats, the couple shares their experience.
Housing and lifestyle
Mercer compared prices of more than 200 items across housing, transport, food, clothing and entertainment, with expensive housing among the factors driving costs in top-ranked cities.
Housing is also where Sharma feels the difference most acutely. The couple rents a roughly 550 sq. ft apartment, which Sharma describes as fairly spacious for two people by Hong Kong standards. “We pay about 20% of our income in rent, which is reasonable when we see it as a proportion of our total income, as new, young professionals here end up shelling out half of their salaries just on rent,” she said. It still pinches, as you would get a very spacious in India at the same cost, she added.
Sharma and her husband use public transport for all their commute. A ride typically costs them the equivalent of ₹80-250, and the government also partially refunds amounts spent in excess of HK$500 ( ₹6,000). “As part of Hong Kong's Public Transport Fare Subsidy Scheme, you can get a one-third refund on your monthly public transport expenses that exceed HK$500, up to a maximum cap of HK$400 per month,” Sharma said.
That helps keep utilities, groceries, and the daily commute together at about 10% of household income. “We end up spending slightly more on groceries as we shop at supermarkets that mostly stock imported fruits, dairy and Indian staples,” she said.
Eating out at neighbourhood noodle shops and cha chaan tengs, or Hong Kong-style cafés is reasonably priced, however coffee at trending cafés and drinks at bars are priced on the higher end. Also, professional services such as domestic help, tailoring, gym, yoga classes and salons visits feel like a luxury compared with India, Sharma said.
For fitness, however, there are inexpensive alternatives. Hong Kong’s network of government-subsidised sports facilities, including swimming pools and basketball courts, is world-class and easily accessible. “These are world class facilities and a visit, say to the public swimming pool, costs about ₹200.”
Although the couple’s absolute spending has risen considerably since moving, their savings rate has not fallen, which Sharma attributes mainly to higher salaries, lower taxes and low inflation. "So the math works differently than a straight conversion suggests,” Sharma said.
Lower taxes change the math
Hong Kong’s low-tax regime is perhaps the biggest counterweight to its high cost of living. Salaries are taxed at progressive rates of 2%, 6%, 10%, 14% and 17% on net chargeable income. Since 2024-25, tax liability is also calculated at a standard rate of 15% on the first HK$5 million of net income and 16% on the amount above that, with the lower liability applying.
Sharma estimates the couple’s effective tax rate at around 15%.
The difference is substantial for high earners. In India, income above ₹24 lakh is taxed at 30%, with surcharge and cess pushing the maximum marginal rate to 39% for incomes above ₹2 crore. Even with progressive slab rates, the net tax rate is considerably higher.
For example, income in India equivalent to HK$5 million after adjusting for purchase price parity (PPP) is about ₹1.8 crore. At this level, the effective tax rate is about 32.9% in India, against 15% in Hong Kong.
“We love paying low taxes here,” Sharma laughed. For the couple, lower taxes effectively help finance the higher cost of living.
She said low taxes don’t mean residents have to privately fund most essential services. Apart from public transport, access to a cheap public healthcare system is another advantage. “Public hospitals, including OPD, here are quite commonly used by everyone. Waiting times can be long, but you can visit a private general practitioner and get referred into the public system.”
Sharma and her husband also have employer-sponsored insurance covering private treatment.
There are smaller subsidies that affect everyday life too. Public sports facilities are inexpensive, while subsidised Cantonese and Mandarin courses are available to ethnic minorities, which include Indian expats. One programme, she said, costs roughly ₹1,200 for 30 classes, refundable subject to attendance.
For families planning to stay longer, public education is another benefit. Children get free schooling, unlike in India where private schooling is more prevalent.
Career opportunities
Hong Kong offers opportunities in finance, banking and luxury retail, according to Sharma. Venture capital, the field in which both she and her husband have worked, is relatively smaller because much of the region’s technology and VC ecosystem is in mainland China.
“For expats, work visas are usually tied to an employer sponsoring you, so the easiest path is arriving with a role in hand or working in a field that is in demand. It gets harder to find a job outside finance or for local-facing roles where knowing Cantonese matters,” she said.
For accompanying spouses, however, one advantage is that eligible dependents can generally work without having to secure separate employer sponsorship, widening the career options available to expat couples.
For Sharma, starting a business was surprisingly easy. “It’s one of the easiest places I've come across to set up a business,” she said. Incorporation was quick and largely online, with a registration expense of around HK$1,500 ( ₹18,266), part of which is refundable. “There was no minimum capital requirement, and full foreign ownership is allowed.”
However, while there is no friction in setup, day-to-day running is challenging as office space is expensive and businesses need a local company secretary and registered address. “For my jewellery venture, the obvious solution was to stay lean and operate largely online,” she said.
Investing towards freedom at 45
Even after moving abroad, Sharma and her husband continue to invest in the Indian stock markets through ETFs and mutual funds. Around 40-50% of their portfolio is exposed to the US and Chinese capital markets through ETFs.
Their primary goal is to achieve financial freedom by 45 years of age. “Financial freedom for us means creating a strong passive income and being debt-free.”
The couple is yet to decide whether Hong Kong will be the place where they eventually settle. “We love the city and its proximity to India as well as its global and local culture,” Sharma said. “However, we want to explore as many different countries as possible before we have kids and hence would not want to settle here immediately. It is a tough one for us, given all the convenience, opportunities and family in India, but Hong Kong is a top candidate for us to eventually settle.”
Note: This article reflects the personal experiences of Aarushi Sharma and Sai C. Araveti living and working in Hong Kong. Costs, income, lifestyle choices and financial priorities may vary for others based on individual circumstances and goals.