Mortgage Guide – Stamp Duty in HK
Stamp duty
Stamp duty is a tax paid to the government when you buy a property. Stamp duty is an important determinant of the overall cost of the property you are purchasing, as it can significantly alter the cost. In Hong Kong there are three categories of stamp duty for property purchase and sale:
- Stamp duty / Ad valorem stamp duty (AVD)
- Special stamp duty
- Buyer’s stamp duty
1. Stamp duty / Ad Valorem Stamp Duty (AVD)
Stamp duty is paid by permanent residents of Hong Kong who do not have any property registered in their name at the time of signing the sales or purchase agreement. It is applicable to those buyers who are buying their first house and also for those who are switching homes. Stamp Duty is to be paid at the time of the purchase of the property.
The rates of stamp duty for first-time buyers are as follows -
| Amount or Value of property | Stamp Duty and Rate |
| HK$0- HK$2,000,000 | HK$100 |
| HK$2,000,000 - HK$2,351,760 | HK$100＋10% of excess over HK$2,000,000 |
| HK$2,351,760- HK$3,000,000 | 1.5% |
| HK$3,000,000- HK$3,290,320 | HK$45,000 + 10% of excess over HK$3,000,000 |
| HK$3,290,320- HK$4,000,000 | 2.25% |
| HK$4,000,000- HK$4,428,570 | HK$90,000＋10% of excess over HK$4,000,000 |
| HK$4,428,570- HK$ 6,000,000 | 3% |
| HK$6,000,000- HK$6,720,000 | HK$180,000＋10% of excess over HK$6,000,000 |
| HK$6,720,000- HK$20,000,000 | 3.75% |
| HK$20,000,000- HK$21,739,120 | HK$750,000＋10% of excess over HK$20,000,000 |
| HK$21,739,120 | 4.25% |
On the other hand, any residential property (except that acquired by a Hong Kong Permanent Resident who does not own any other residential property in Hong Kong at the time of acquisition) and non-residential property acquired on or after 5 November 2016, either by an individual or a company, will be subject to the ad valorem stamp duty (“AVD”) with a flat rate of 15%.
2. Special stamp Duty (SSD)
Special stamp duty is paid when you are selling the property. This is applicable to only those property that are acquired on or after 27th October 2012. The rates in SSD are regressive that depends upon the holding period of the property.
| Rate (% of Purchase Price) | Holding period |
| 20% | 6 months or less |
| 15% | More than 6 months but less than 12 months |
| 10% | More than 12 months but less than 36 months |
3. Buyer’s Stamp duty (BSD)
Buyer’s Stamp duty is an additional tax that is charged over and above the existing stamp duty and SSD. BSD is applied on residential property and to be paid by any person (including a company incorporated) except a Hong Kong Permanent Resident. BSD is to be charged at a flat rate of 15%