A comprehensive guide to Hong Kong’s stamp duty scheme, featuring timely updates, actionable rate tables, and explanations based on the latest government amendments.
In this guide, Victoria Allan, Founder and CEO of Habitat Property, breaks down the exact stamp duty rates for Hong Kong buyers and investors on residential properties, how these property taxes are calculated, and when you can expect to pay them.
Quick Summary of 2026 Budget Changes:
- Luxury Tax Hike: The Ad Valorem Stamp Duty (AVD) for residential transactions valued at HK$100 million or above has been raised to 6.5% (up from 4.25%) to enhance government revenue.
- Abolished Cooling Measures: Major historical cooling measures—including Buyer’s Stamp Duty (BSD), Special Stamp Duty (SSD), and New Residential Stamp Duty (NRSD)—remain completely removed (abolished since February 2024).
What Are Stamp Duties in Hong Kong?
In the simplest terms, stamp duties in Hong Kong are sales taxes paid to the government by parties taking part in a property transaction. These taxes have a significant impact on the final acquisition cost of real estate based on several critical factors:
- Are the parties Hong Kong Permanent Residents (HKPR)?
- Is the purchaser a first-time buyer or a property upgrader?
- How long has the vendor held the property prior to sale?
- Is the property a residential or commercial asset?
Background on Market Cooling Measures
The Hong Kong Government originally implemented a series of aggressive, increased stamp duties starting in 2010 to control a residential market heading toward overheating from rampant speculation. Between 2000 and 2010, property prices skyrocketed by approximately 400%, forcing many local residents out of the market.
To combat this, the Hong Kong Monetary Authority paired adjusted stamp duty scales with tightened bank lending rules, loan-to-value (LTV) ratios, and strict buyer stress tests. While the property landscape has shifted, the government continually reviews these frameworks to support market stability.
Current Hong Kong Stamp Duty Framework
Currently, the primary stamp duty applied to immovable property in Hong Kong residential sales transactions is the Ad Valorem Stamp Duty (AVD) Scale 2.
To provide full clarity on the historical cooling taxes often researched by buyers, here is the official status of Hong Kong's real estate duties:
| Stamp Duty Type | Current Status |
|---|---|
| Ad Valorem Stamp Duty (AVD) | Active (Updated with 2026 Luxury Tier) |
| Buyer’s Stamp Duty (BSD) | Removed (Abolished Feb 28, 2024) |
| Special Stamp Duty (SSD) | Removed (Abolished Feb 28, 2024) |
| New Residential Stamp Duty (NRSD) | Removed (Abolished Feb 28, 2024) |
Current AVD (Ad Valorem Stamp Duty) Rate Table
The Ad Valorem Stamp Duty for residential property is payable at a tiered, scaled progressive rate. Following the 2026 budget adjustment, a new top-tier bracket introduces a 6.5% rate for ultra-luxury properties.
Below is the complete, referenceable AVD rate scale applied to buyers:
| Property Value (HK$) | 2026 AVD Stamp Duty Rate / Calculation |
|---|---|
| Do not exceed $4,000,000 | HK$100 |
| $4,000,001 to $4,323,780 | HK$100 + 20% of excess over $4,000,000 |
| $4,323,781 to $4,500,000 | 1.5% |
| $4,500,001 to $4,935,480 | HK$67,500 + 10% of excess over $4,500,000 |
| $4,935,481 to $6,000,000 | 2.25% |
| $6,000,001 to $6,642,860 | HK$135,000 + 10% of excess over $6,000,000 |
| $6,642,861 to $9,000,000 | 3.0% |
| $9,000,001 to $10,080,000 | HK$270,000 + 10% of excess over $9,000,000 |
| $10,080,001 to $20,000,000 | 3.75% |
| $20,000,001 to $21,739,120 | HK$750,000 + 10% of excess over $20,000,000 |
| $21,739,121 to $100,000,000 | 4.25% |
| $100,000,001 to $109,574,470 | HK$4,250,000 + 30% of excess over $100,000,000 |
| Over $109,574,470 | 6.5% |
Official Government Stamp Duty Reference
Who is Liable to Pay AVD?
AVD is a transparent sales tax applied to the buyer side of transactions. It applies to:
- Hong Kong Permanent Residents (HKPR)
- Non-Permanent Residents
- Corporate entities or purchases registered to companies
When Are Hong Kong Stamp Duties Payable?
Once a property transaction is initiated, the timeline to settle tax liabilities with the Inland Revenue Department is strict.
The stamp duty is payable within 30 days from the signing of the Provisional Agreement for Sale and Purchase (PASP).
However, if the provisional agreement is superseded by a Formal Agreement for Sale and Purchase signed within 14 days of the PASP, the stamp duty payment deadline defaults to within 30 days from the date the Formal Agreement is signed.
Frequently Asked Questions (FAQs)
Who pays the Ad Valorem Stamp Duty in Hong Kong?
The buyer is legally responsible for paying the Ad Valorem Stamp Duty (AVD). This rule applies universally to Hong Kong Permanent Residents, non-permanent residents, and corporate entities acquiring real estate assets.
Are there any remaining property cooling measures active in 2026?
No. All historical property cooling measures—specifically the Special Stamp Duty (SSD), Buyer's Stamp Duty (BSD), and New Residential Stamp Duty (NRSD)—were completely abolished in early 2024 and remain inactive. Only the standard tiered Ad Valorem Stamp Duty (AVD) applies.
How much stamp duty do I pay for a luxury property over HK$100M?
Under the latest 2026 Budget provisions, residential property transactions valued at HK$100 million or greater are taxed at a flat rate of 6.5% of the total purchase consideration.
Related Resources
- Buying Residential Property in Hong Kong: What You Need to Know, Part 1 — Learn the essential steps for buying property, including hiring real estate attorneys and managing transaction workflows.
- Buying Residential Property in Hong Kong: What You Need to Know, Part 2 — Understand property mortgages, financing limits, and navigating formal sales and purchase agreements seamlessly.
