For much of the past five years, the story out of Hong Kong was one of departure. Covid-era restrictions, tighter political controls, and fierce regional competition from Singapore saw tens of thousands of foreign professionals pack up and leave, hollowing out the city’s once-thriving expatriate community. That narrative is now shifting into reverse.
The numbers behind the return
According to recent Bloomberg reporting, Hong Kong is experiencing a marked resurgence in its expatriate population, with foreign professionals drawn back by career prospects, the city’s energy, and an attractive low-tax environment – following years in which tighter controls and stringent Covid measures pushed many out.
The scale of the rebound is notable. Government data shows over 31,000 employment visas were approved in the past year, more than double the figure from five years ago, with particularly strong growth in applicants from Japan, South Korea, and the United Kingdom. Financial services have been a standout sector, recording a 17% annual increase in foreign worker visas.
Hong Kong’s government has been actively courting fund managers and wealth professionals, and proposed tax breaks and reforms are making the city more attractive to international firms, with the IPO market showing renewed vitality and global banks expanding their local presence through senior personnel transfers. Separately, Legislative Council proposals would exempt fund managers from tax on carried interest at both corporate and individual level, a move explicitly designed to lure more asset management talent to the city.
Its rivalry with Singapore remains close, with Singapore’s more open immigration stance and broader job market beyond finance continuing to appeal to some talent segments. That said, Singapore’s high cost of living, particularly housing, is prompting some expats to reconsider Hong Kong as the more cost-effective base, even as competitive pressure between the two hubs continues. For employers, that means Hong Kong’s pull is real, but talent will keep comparing its offer against other regional hubs.
What does this mean for HR and hiring managers?
A returning wave of experienced, internationally mobile professionals is good news for any employer competing for talent in Asia, but it also raises the bar. A few implications worth planning around:
- Competition for finance and professional talent will intensify: With banks, asset managers and law firms all chasing the same returning pool, speed and a compelling offer will matter more than ever. Candidates who left during the exodus often have multiple options; employers who move slowly risk losing them to a faster-moving competitor.
- Visa and compliance complexity hasn’t gone away: A near-doubling of employment visa approvals means Immigration Department processing, documentation standards and sponsor obligations are all under greater scrutiny. Getting this wrong, even on a technicality, can cost a business its preferred candidate and, in some cases, its ability to sponsor future hires.
- Not every business wants (or needs) a Hong Kong entity: Testing the market, hiring a single senior lead, or supporting a returning employee’s relocation doesn’t always justify the time and cost of entity setup. This is precisely the gap that Employer of Record (EOR) solutions are built to close.
- Where Employer of Record (EOR) support becomes essential: EOR is often seen as an alternative to setting up a local entity, but it can be just as valuable as an interim solution while a company’s entity and bank account are still being established.
- Rather than waiting months for incorporation to complete, businesses can use EOR to onboard talent almost immediately, ensuring they don’t miss out on the right candidate simply because their entity set-up hasn’t caught up yet. This makes EOR particularly relevant in today’s increasingly competitive hiring landscape, where the ability to move quickly on talent can be the difference between securing or losing a strong candidate.
- It also allows companies to test a new market with confidence, building a presence and proving the business case before, or while, they commit to full entity establishment.
This is exactly where EOR earns its place. It gives employers a pragmatic route in — a way to hire compliantly and move fast, without the overhead of setting up a local entity. In practice, that means being able to:
- Hire and pay staff in Hong Kong compliantly, without registering a local company
- Onboard returning expats and new international hires quickly, while the employer manages day-to-day performance
- Handle visa sponsorship, payroll, MPF contributions, and statutory benefits correctly from day one
- Scale up or down as headcount needs shift, without long-term entity commitments
Employers with an existing local entity can hire expats directly, but the visa sponsorship process still needs to be right the first time. From work visa applications and renewals to dependent visas and compliance with Immigration Department documentation standards, getting specialist support here reduces the risk of delays or refusals that could cost you a preferred candidate.
Paired with recruitment support, this becomes a genuine competitive advantage: sourcing the right candidate and getting them legally, compliantly employed in weeks rather than months. In a market where financial services firms are already reporting double-digit growth in foreign hiring, that speed advantage is not a nice-to-have, it’s what determines who secures the talent.
Hong Kong’s expat resurgence is a genuine opportunity for businesses looking to rebuild or expand their regional footprint, but only for those set up to move quickly and compliantly. Whether you’re relocating a senior hire, testing the Hong Kong market, or scaling a returning team, combining recruitment expertise with EOR infrastructure means you can focus on getting the right people in place, while the compliance groundwork is already covered.
Links supports employers with recruitment, employer of record, visa application solutions across APAC & the Middle East, including specialist experience placing senior and executive-level talent in fast-moving markets like Hong Kong. Get in touch to discuss your hiring plans for the region.
Frequently Asked Questions on Hiring in Hong Kong:
- Does my business need a Hong Kong entity to hire there?
Not necessarily. If you’re testing the market, hiring a team, or supporting a returning employee’s relocation, setting up a local entity may not be worth the time or cost involved. An Employer of Record (EOR) solution allows you to hire compliantly without entity registration.
- What is an Employer of Record (EOR), and how does it help with Hong Kong hiring?
An EOR acts as the legal employer on your behalf, handling visa sponsorship, payroll, MPF contributions, and statutory benefits, while you retain full control over the employee’s day-to-day work and performance. This allows you to onboard talent quickly and compliantly, without the overhead of establishing a local company. In the case that EOR wants to be used while in the midst of setting up an entity, working with an EOR partner can help transition employees during the process when the entity is ready to onboard on their own.
- How quickly can I hire someone in Hong Kong using EOR?
With the right EOR partner, employers can typically get a candidate legally and compliantly employed in a matter of weeks, rather than the months it can take to establish a local entity and manage visa processes independently.
- What are the risks of getting visa sponsorship or compliance wrong?
With employment visa approvals nearly doubling in the past year, Immigration Department scrutiny on documentation and sponsor obligations has increased accordingly. Errors, even minor ones, can jeopardise a preferred candidate’s application and potentially affect a business’s ability to sponsor future hires.