A comprehensive guide to Hong Kong’s Stamp Duty scheme as well as timely updates and explanations based on latest Government Amendments.
In this article, our Founder and Managing Director Victoria Allan explains stamp duty rates for Hong Kong buyers and investors on residential properties, including how stamp duty is calculated and how much you can expect to pay for stamp duty in Hong Kong.
Stamp Duty & Supply Updates @ 25 February, 2026
Financial Secretary, Paul Chan has announced a targeted adjustment to stamp duty to enhance revenue while maintaining market stability.
Luxury Tax Hike: Ad valorem stamp duty (AVD) for residential transactions exceeding HK$100M is raised from 4.25% to 6.5%. This affects the top 0.3% of transactions, aiming to generate HK$1B in annual revenue.
Housing Supply Pipeline: Land for 98,000 private units will be provided over five years, with a potential supply of 22,000 units this year.
Commercial Sales Paused: No general commercial sites will be put up for sale this year to manage high vacancy rates.
Student Hostel Initiatives: Tenders are being explored for post-secondary student hostel developments across three specific sites.
What are stamp duties?
In the simplest terms, stamp duties in Hong Kong are sales taxes paid to the government by anyone taking part in a property transaction. They can have a significant impact on the final cost of the property for a host of reasons:
- Are the parties Hong Kong permanent residents?
- Is the purchaser a first-time buyer?
- How long has the vendor held the property?
- Is the property a commercial asset?
These are just a few of the host of factors influencing stamp duty rates in Hong Kong.
The Hong Kong Government began implementing a series of increased stamp duties on real estate in 2010, when the property market was heading towards overheating due to rampant speculation. These so-called ‘cooling measures’ were designed to control prices that were being driven up by investors and non-residents. Prices in this high-demand market skyrocketed approximately 400% between 2000 and 2010, forcing many local residents out of the market altogether.
Stamp duties weren’t the only tool: the Hong Kong Monetary Authority set down a new policy for bank lending and loan-to-value ratios as well as strengthening stress tests for buyers. Cooling measures haven’t been repealed, but they have been adjusted regularly since they were put in place, including provisions to allow partial refunds of stamp duty paid for permanent residents of Hong Kong who are upgrading.
What are Hong Kong’s stamp duties?
Currently, mainstamp duty applied to immovable property in Hong Kong residential sales transactions:
- Ad Valorem Stamp Duty (AVD)
- Buyer’s Stamp Duty (BSD)- removed from 28 February, 2024
- Special Stamp Duty (SSD)- removed from 28 February, 2024
- New Residential Stamp Duty (NRSD)- removed from 28 February, 2024
AVD – Ad Valorem Stamp Duty
The Ad Valorem Stamp Duty for residential property (AVD) is payable at a scaled rate ranging from HK$100 for properties under HK$4 million up to 4.25% of the sale price for property over $21,739,120. (From 2026, the tax rate for properties valued at HK$100M or above will be increased to 6.5%.) The AVD is payable by:
- Buyers
- Permanent residents
- Non-permanent residents
- Purchases registered to companies
How are stamp duties in Hong Kong calculated, and when are they paid?
Hong Kong’s stamp duty scheme at a glance, the rates are transparent and easily calculated once vendors and purchasers know where they slot in.
When are Hong Kong stamp duties payable?
Once a property is purchased, the stamp duty is payable within 30 days from the signing of the Provisional Agreement for Sale and Purchase (PASP) unless superseded by a Formal Agreement that is signed within 14 days, in which case stamp duty is payable within 30 days from when the Formal Agreement is signed.
