Hong Kong Prop Trader
- Thread starter tradegen
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I'm living in HK.
One issue you should be aware of is that you need a Visa to stay more than 3 months in HK. Getting a Visa without a sponsor (eg an employer) is close to impossible.
MANY of my friends, even sponsored by respectable employers (investment banks) didn't get their Visa renewed over the past few years and had to leave HK. I'm a bit better off because my wife is HK lady, so it helped me getting my Visa renewed.
Let me put it this way: I see no reason why Immigration would grant you a Visa if you tell them you're a prop trader and have no employer. Your chances are EXTREMELY low. They'll guess why you're here and will stop you from benefitting for free from the more or less free healthcare system we enjoy here. HK is no longer a casino you just walk-in.
I don't mean to discourage you ! HK is a fantastic place to live in and I can tell you I don't plan to leave before a long long while ! The fact that I don't pay capital gain tax is only part of the fantastic things here in HK.
If I were you, I would look very seriously into that Visa thing before planning anything.
ps: by the way, my capital gains are not my primary source of income, so I don't pay tax on them. But if as a prop trader your capital gains are your primary source of income, you'll pay tax. The schedule is the same as a salary from an employer.
One issue you should be aware of is that you need a Visa to stay more than 3 months in HK. Getting a Visa without a sponsor (eg an employer) is close to impossible.
MANY of my friends, even sponsored by respectable employers (investment banks) didn't get their Visa renewed over the past few years and had to leave HK. I'm a bit better off because my wife is HK lady, so it helped me getting my Visa renewed.
Let me put it this way: I see no reason why Immigration would grant you a Visa if you tell them you're a prop trader and have no employer. Your chances are EXTREMELY low. They'll guess why you're here and will stop you from benefitting for free from the more or less free healthcare system we enjoy here. HK is no longer a casino you just walk-in.
I don't mean to discourage you ! HK is a fantastic place to live in and I can tell you I don't plan to leave before a long long while ! The fact that I don't pay capital gain tax is only part of the fantastic things here in HK.
If I were you, I would look very seriously into that Visa thing before planning anything.
ps: by the way, my capital gains are not my primary source of income, so I don't pay tax on them. But if as a prop trader your capital gains are your primary source of income, you'll pay tax. The schedule is the same as a salary from an employer.
I trade HSI Futures exclusively, so no time difference obviously. I know close to nothing of the European and US markets.
By the way I remember that there is a double tax treaty between HK and the US. My American friends who are HK resident must report their income to the US IRS and pay US taxes. Then if I remember correctly, the US IRS pays back a certain amount to the HK Revenue department. Such as for you, as American, you don't benefit from the lower tax system of HK, you just pay exactly the same amount of Tax as if you were working in the USA.
I am French and for some reasons I don't have to report anything to the French Tax department, so I enjoy the low tax rate system. I don't know why the American don't have that benefit.
By the way I remember that there is a double tax treaty between HK and the US. My American friends who are HK resident must report their income to the US IRS and pay US taxes. Then if I remember correctly, the US IRS pays back a certain amount to the HK Revenue department. Such as for you, as American, you don't benefit from the lower tax system of HK, you just pay exactly the same amount of Tax as if you were working in the USA.
I am French and for some reasons I don't have to report anything to the French Tax department, so I enjoy the low tax rate system. I don't know why the American don't have that benefit.
I'm thinking, may be you can look into Macau. The Macau Immigration department could be more flexible than HK. Check their website and call them. The tax system in Macau is more or less the same as HK, and the cost of living is substantially lower than HK.
One issue though is to open your accounts in HK (I doubt many brokers have a branch in Macau). For instance, I don't know if opening an account with IB in HK would be possible if you are living in Macau.
One issue though is to open your accounts in HK (I doubt many brokers have a branch in Macau). For instance, I don't know if opening an account with IB in HK would be possible if you are living in Macau.
def
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It doesn't matter where you live to open an account with IB. We do not offer prop trading but could refer you to a group. if interested, send me a PM. you could trade the equity and future side from macau or HK without any problems. however, if you plan to actively trade FX, HK is one of the few places in the world where an FX license is required. We're in the process of deciding if it makes business sense to go that route.
Taxes: if you are american, it doesn't matter where you live. the only benefit is that your first 80K is tax free to the US.
visa: in our office over the years we've received approval for a number of visas. the criteria is basically that we couldn't find a local to fill a position. the positions we've filled are highly selective have fit the criteria. I don't think you'll find it that easy to fly into HK and hope to obtain a work visa. I have known some people who've done visa runs when their 3 month limit is approaching (visit macau, shenzen, etc) and return to get another 3 month tourist visa. I'm not sure how long you can get away with that but more importantly, i'm not sure if you'll be able to rent a flat, obtain a mobile phone, etc with a work visa. (it might be simple but i'd research many of the things you would often take for granted).
if you have other questions, let me know.
Taxes: if you are american, it doesn't matter where you live. the only benefit is that your first 80K is tax free to the US.
visa: in our office over the years we've received approval for a number of visas. the criteria is basically that we couldn't find a local to fill a position. the positions we've filled are highly selective have fit the criteria. I don't think you'll find it that easy to fly into HK and hope to obtain a work visa. I have known some people who've done visa runs when their 3 month limit is approaching (visit macau, shenzen, etc) and return to get another 3 month tourist visa. I'm not sure how long you can get away with that but more importantly, i'm not sure if you'll be able to rent a flat, obtain a mobile phone, etc with a work visa. (it might be simple but i'd research many of the things you would often take for granted).
if you have other questions, let me know.
You mean WITHOUT a working Visa right ?
What you need to rent a flat or get a mobile phone subscription is a HK ID Card, which you get to the condition that you have a working Visa, or a Dependant Visa.
The trick of going to Macau/Shenzhen to roll over your tourist Visa every 3 months doesn't work any more Def. Custom officers are no longer stupid.
This is a very bad idea. What you risk trying to do that is to get stuck at Macau or Shenzhen custom and not being granted the right to return to HK. Then you look stupid lol !
