Tax ? on a retired US citizen

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  1. #1

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    Tax ? on a retired US citizen

    I have a couple of tax questions regarding a retired US citizen:

    1). Does a RETIRED US citizen who is on a pension and Social Security payment exempt from paying US taxes while residing in HK permanently?

    2). Can an US citizen obtain a HK permanent ID after a continous stay in HK for 7 years even as a tourist but NEVER worked or went to school in HK? Do I understand that all he needs to do is to leave HK every 6 months and to re-enter? Do places like Shenzhen,Guangzhou or Macau count? Any requirements as to how long he must stay outside of HK before returning to get another 6 month stay?

    Thanks for your info.

    Last edited by Renotommy; 09-03-2010 at 10:27 AM.

  2. #2

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    Part 2 - No. As you need to have 7 years of residence and a tourist is not considered a resident.


  3. #3

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    For point 2) that would be a no as an applicant has to show proof of 7-year continuous ordinary residence in Hong Kong immediately before the date of the application, e.g. school documents, employment proof, official receipts, bank statements, income tax receipts, etc. As one cannot be a resident if one is a tourist, one cannot prove ordinary residence and one would not have the required documents.

    Do I understand that all he needs to do is to leave HK every 6 months and to re-enter? Do places like Shenzhen,Guangzhou or Macau count? Any requirements as to how long he must stay outside of HK before returning to get another 6 month stay?
    There is no guarantee on entry. If ImmD catches on to him doing the visa runs, he may be denied entry or given a few days to sort out things before having to leave Hong Kong.

    Finally, he will have to pay full whack at public hospitals so he should good health insurance or loads of dosh.
    Last edited by Claire ex-ax; 09-03-2010 at 10:38 AM. Reason: Heath insurance

  4. #4

    As for 1, there's a multitude of factors: are your pensions or retirement funds tax-free already or not, what is your total earnings, etc. Really, it's best to talk to a tax consultant about this, but remember, if you have the US passport, you pay taxes on earnings no matter where you are in the world.


  5. #5

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    Moreover a US Citizen visiting only gets 3 months per entry. Only Brits get 6 (I can see that Tommy's going to love that )


  6. #6

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    Quote Originally Posted by PDLM:
    Moreover a US Citizen visiting only gets 3 months per entry.
    I forgot that one. That's a visa run every 90 days!

  7. #7

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    On 1) There is a partial exclusion on foreign earned income and rental costs. I don't think (i.e. I am happy to be corrected here) that Social Security and Pension payments from the US necessarily qualify as "foreign".

    The following publication may help
    http://www.irs.gov/pub/irs-pdf/p915.pdf
    Publication 54 (2009), Tax Guide for U.S. Citizens and Resident Aliens Abroad


  8. #8

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    Why would an American that's in good health ( assuming ) want to retire in one of the worlds most polluted cities ? Especially when Hawaii is a state of the USA, with a largish Asian population, ie Japanese and Chinese...

    I can think of 1000 cities I'd consider first for retirement, than HK.

    France would be my first choice, especially on a public health care, and welfare point of view, they look after their old .

    I hear that a lot of Australian Pensioners are moving to Bali, that they can live a luxurious lifestyle there, including a domestic helper, and eat properly, with a little left over. A much better proposition, than pensioners eating cat food back in Aus, who live pretty awful wait to die lives.

    I can't see a foreign pensioner living in HK very long, financial conserations of living in one of the most expensive cities in the world, unless your idea of happy retirement is eating plain boiled race, and living in a Sham Shui Po Cage....

    If you are on a budget and want to live out your twilight years in absolute comfort, BALI, if you are reasonably well off and American, Hawaii, without a second thought. Best lifestyle state in the USA, which is least American he he. Probably why I like it so much lol.

    But hey, that's just my opinion, with an enjoyable ( healthy / active ) old age, in mind.....


  9. #9

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    server hitch - double posted

    Last edited by Skyhook; 09-03-2010 at 12:09 PM.

  10. #10

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    Thanks for all your replies. I was asking this for a friend of mine. He tried to call the IRS but I guess this is the wrong time of the year to call.....IRS was so busy that they wouldn't even put my friend on hold - it told him to call back. He will probably call again after April when the IRS is less busy.

    It is hard to stay in the SF Bay Area when a person is retired and on a fixed income.


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