Does the acquisition of Hong Kong status mean that the rights and benefits of the Mainland are “one size fits all”?

This is the most worrying and easy to misunderstand issue for many customers when they inquire about the Hong Kong Talent, High Talent Pass or Specialized Talent Scheme. Many people listen to rumors and think that after getting a Hong Kong ID card, they have to cancel their Mainland accounts, clear their social security and confiscate their properties.

As a professional Hong Kong Identity Planning Consultant, I'll break it down for you in an article today:What will Mainland residents “lose” after obtaining their Hong Kong identity? What can be retained in both directions?

I. Core Watershed: Hong Kong Resident Status vs Permanent Resident Status

First of all, we must clarify a concept: getting Hong Kong identity is a gradual process, which is usually categorized intoTwo stages:

1. Hong Kong Resident Status (Non-permanent Resident): It is obtained directly after being approved through the Merit Badge and the High Talent Pass, etc. At this time, you still have the Mainland household registration. At this time, you still have a mainland hukou, and all the rights and interests in the mainland will not be affected in any way.

2. Hong Kong Permanent Resident Status (Permanent Residence): Apply after you have normally resided in Hong Kong for seven years. Even at this point, it does not mean automatic loss of mainland rights and interests.

It is only when you voluntarily cancel your mainland household registration in order to apply for a Home Visit Permit (i.e., a permit for Hong Kong and Macao residents to travel to and from the Mainland) that the real “loss” will occur.

Contact us now for a one-on-one professional identity assessment program. We not only help you to get your identity, but also help you to properly handle the two-way asset planning between the Mainland and Hong Kong.

II. What are the rights and benefits that will be changed if I cancel my Mainland household registration?

If you choose to apply for a Home Visit Permit (HVP) or cancel your Mainland household registration in order to allow your child to sit for the Joint Entrance Examination for Overseas Chinese Students (JEE), or to travel freely between Hong Kong and the Mainland, the following rights and benefits will change in nature:

1. Pensions and social security: not “zeroing out” but “transforming”

Less than 15 years of contributions: You can choose to cancel your account and withdraw the balance in your personal account in one go; or you can choose to keep your account and continue to accumulate it when you return to the Mainland for employment later.

Contributions have been made for 15 years: When you reach retirement age, you can still receive a pension from the Mainland! According to the Interim Measures for Hong Kong, Macao and Taiwan Residents to Participate in Social Insurance in the Mainland, even if you have permanent status in Hong Kong, your retirement benefits will not be affected.

2. Mainland properties: no change in property rights, complicated procedures

Right to hold: Even after the cancellation of your hukou, the house you previously purchased in the Mainland is still owned by you and protected by law.

Transaction process: In the future, if you want to sell your house or inherit, you need to go to a notary public to do a **“proof of the same person ”** (to prove that the previous Mainland ID card and the current Hong Kong ID card are the same person), and the procedure will be a bit more than for ordinary Mainland residents.

3. Eligibility for housing: restricted by the “foreigners” policy

In purchase-restricted cities such as Beijing, Guangzhou and Shenzhen, mainland household registration has a higher quota of home purchase units.

After losing your Mainland household registration, you will be able to purchase a home as a “Hong Kong or Macau resident”. In the Greater Bay Area (e.g. Shenzhen and Guangzhou), there are currently preferential policies for Hong Kong residents to purchase properties, but in non-Global Bay Area cities that restrict purchases, you may be required to meet certain social security or work experience requirements.

4. Inheritance rights: affected by the principle of jus sanguinis

When inheriting from the Mainland, if you are a Hong Kong citizen, the application of laws and notarization of relevant documents will be handled in accordance with the “Foreign/Hong Kong-related” procedures, which is a longer process and requires payment of notarization fees.

Contact us now for a one-on-one professional identity assessment program. We not only help you to get your identity, but also help you to properly handle the two-way asset planning between the Mainland and Hong Kong.

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III. Which rights and interests are actually “false alarms”?

Many of the entitlements that are rumored to be lost actually have proven solutions in reality:

Children's Education: Even if you don't have a mainland hukou, as a Hong Kong student, your child can attend a purely expatriate international school in the mainland, or go to a prestigious school with a very low score through the DSE exam or the Joint Examination for Overseas Chinese Students.

Medical care: You can participate in the urban residents“ medical insurance program in the Mainland with a Hong Kong or Macao Resident Permit, and enjoy the same medical reimbursement treatment as mainland residents.

IV. Expert advice: how to maximize benefits?

For most families, our recommended **“golden solution ”** is:

Early stage (1-7 years): Maintain “Hong Kong Resident Status + Mainland Hukou”, with benefits at both ends, and no interference with assets and work in the Mainland.

Later stage (after 7 years): If you do not have immediate needs (e.g. your child has to sit for the Joint Entrance Examination), you can just get a Hong Kong permanent residence and passport without a Home Visit Permit.

This way you can have a Hong Kong passport with visa-free access to more than 170 countries and still retain your mainland hukou.

Cost: You will need to continue to use your Hong Kong and Macau Travel Permit to travel to and from the mainland, and clearance will be a little slower.

concluding remarks

Hong Kong identity is not a “substitute” but a “value-added item”. The so-called “loss” is more a change in administrative procedures brought about by the change of status than an essential deprivation of rights and interests.

If you are facing the following queries:

I have paid my social security for 10 years, is it cost-effective to apply for a Hong Kong identity now?

I have a property in North China and Shenzhen, how do I apply for the “same person certificate” after I get my permanent residence?

How can I plan so that my child can retain his/her Mainland hukou and enjoy education in Hong Kong at the same time?

Contact us now for a one-on-one professional identity assessment program. We not only help you to get your identity, but also help you to properly handle the two-way asset planning between the Mainland and Hong Kong.

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