Hong Kong Property Stamp Duty: Complete Guide for 2026

If you're buying residential property in Hong Kong, the stamp duty system has changed dramatically since February 2024 — and most online guides still describe the old, punishing regime. Here's what actually applies now.

The short version: the three demand-side measures — the Buyer's Stamp Duty (BSD), the Special Stamp Duty (SSD), and the New Residential Stamp Duty (NRSD) — stopped applying to residential transactions from February 28, 2024. Residential buyers now pay the same AVD rates regardless of buyer type, nationality, residency status, or number of properties owned. For residential instruments, Part 1 of Scale 1 and Scale 2 have the same rates; non-residential instruments use Scale 3.

What Triggered the Change

Between 2010 and 2024, Hong Kong operated one of the most interventionist stamp duty regimes in Asia. The government stacked three taxes on top of each other to cool the market:

• Buyer's Stamp Duty (BSD): A flat surcharge imposed on non-permanent residents and all corporate buyers, at rates that reached 15% before being cut to 7.5% in late 2023.
• Special Stamp Duty (SSD): A punitive resale tax of 10–20% applied to any property sold within 24 months of purchase under the later regime (previously 36 months).
• New Residential Stamp Duty (NRSD) / higher Scale 1 AVD: From November 5, 2016, Part 1 of Scale 1 generally applied to residential-property instruments unless the buyer was a Hong Kong permanent resident acting on their own behalf and did not own another Hong Kong residential property (or an exemption applied). BSD and NRSD rates were reduced from 15% to 7.5% on October 25, 2023; NRSD stopped being charged on February 28, 2024, when Part 1 Scale 1 rates were aligned with Scale 2.

On February 28, 2024, the Financial Secretary announced the immediate removal of all three measures. The decision was driven by a 20%+ price correction from the 2021 peak and collapsing transaction volumes. The policy reset was designed to restore liquidity and stimulate demand.

Current Stamp Duty: Residential AVD Rates

Under the current regime, residential property transactions — regardless of buyer type, nationality, residency status, or how many properties the buyer already owns — use the following AVD rates. The consideration or property value, whichever is higher, determines the duty:

These residential rates took effect on February 26, 2026, and apply under Part 1 of Scale 1 and Scale 2. Non-residential property transactions use Scale 3, which has a maximum rate of 4.25%. The 2026/27 Budget introduced the 6.50% residential rate for values of HK$109,574,471 and above; the band from HK$100,000,001 to HK$109,574,470 uses the formula shown above.

Practical Examples

Example 1: HK$6 million apartment (investor buying second property)

Under the 7.5% Scale 1 rate in effect from October 25, 2023 through February 27, 2024, a local permanent resident buying a second property would have paid 7.5% flat = HK$450,000 in stamp duty alone. Today, they pay AVD at 2.25% = HK$135,000. That's a saving of HK$315,000 on a single transaction.

Example 2: HK$8 million apartment (non-local buyer)

Under the rates in effect from October 25, 2023 through February 27, 2024, a non-permanent resident would have paid Scale 1 AVD (7.5%) plus BSD (7.5%) = 15% combined, totalling HK$1,200,000 in stamp duty. Today: AVD at 3% = HK$240,000. The saving is HK$960,000 — an 80% reduction.

Example 3: HK$3.5 million nano-flat (first purchase)

Residential AVD on anything under HK$4 million is a flat HK$100 regardless of the exact price. This makes sub-HK$4M properties extremely tax-efficient to acquire.

Buyer's Stamp Duty: Fully Abolished

BSD no longer exists in any form. Non-permanent residents — whether overseas Chinese, expatriates, or foreign nationals — acquire Hong Kong residential property on exactly the same footing as local permanent residents. There is no additional tax, no registration surcharge, and no cooling-measure penalty.

This was a significant structural shift. Singapore, by contrast, still imposes a 20–30% Additional BSD on foreign buyers. Hong Kong's complete removal of buyer-based surcharges positions it as one of the more accessible major real estate markets in Asia for international capital.

The abolition also closed the "corporate premium" that previously applied. Holding companies and limited liability vehicles now face the same residential AVD rates as individual buyers, removing a major arbitrage consideration from acquisition structuring.

Special Stamp Duty: Fully Abolished

SSD has been abolished with no replacement mechanism. This has direct implications for investment strategy:

• No minimum holding period. Properties can be sold at any point after acquisition without triggering any resale tax.
• Liquidity restored. Short-term flipping is no longer penalised by tax — though the Inland Revenue Department can still assess profits from frequent short-term transactions as "trading income" subject to Profits Tax. The legal distinction between a capital gain (tax-free) and trading profit (taxable at up to 16.5%) turns on factors like holding period, frequency of transactions, and method of financing.
• Secondary market activity has rebounded. Transaction volumes in the secondary market picked up materially after the SSD removal, as sellers who had been locked in by the tax penalty were finally free to divest.

One Remaining Risk: Targeted Measures

The complete removal of the three surcharges does not mean the stamp duty regime is permanently fixed. The February 2026 budget decision added a higher residential AVD band for values above HK$100 million. The 6.50% rate begins at HK$109,574,471; the intermediate band uses the 30% marginal formula shown above. Investors in the super-luxury segment should price this regulatory risk into their hold strategies.

For the 95%+ of transactions below HK$20 million, the risk of further targeted measures is low — the political calculus runs the other way, and the government needs transaction volumes to support land revenue.

Total Acquisition Cost Beyond Stamp Duty

Residential AVD is the largest upfront transaction tax, but it is not the only acquisition cost. Budgeting for the full picture matters:

• Stamp duty (residential AVD): HK$100 to 6.5% depending on purchase price
• Solicitor / conveyancing fees: 0.1% to 0.5% of purchase price (HK$10,000–HK$30,000 typical for a standard apartment)
• Estate agent commission: 1% of purchase price, paid by both buyer and seller separately (so 1% on your side, not 2% combined)

For a HK$7 million apartment, total acquisition friction sits at roughly 4.1%–4.5% of purchase price after adding legal fees and agent commission on top of the 3% AVD. This is below the 15% combined AVD and BSD that a non-permanent resident paid under the rates in effect from October 25, 2023 through February 27, 2024, before legal and agent fees. It is still enough to erode 2–3 years of net rental income if you plan a short hold.

What This Means for Your Investment Decision

The simplified stamp duty landscape does two things for investors. First, it significantly lowers the breakeven point — you no longer need to hold for years just to recover a punishing entry tax. Second, it levels the playing field for overseas buyers, which explains why mainland Chinese buyer registrations increased 162.8% in the two years following the policy change.

If you are underwriting a Hong Kong investment property acquisition, the stamp duty calculation is now straightforward. The more complex analysis lies in the ongoing tax obligations — specifically the 15% Property Tax on net assessable rental income, the provisional tax double-payment in year one, and the decision between standard Property Tax treatment and electing for Personal Assessment to deduct mortgage interest.

The Hong Kong Investment Property Guide covers all of this in a single reference: stamp duty tables, a net yield calculator, the full mortgage rules under HKMA, tax treatment of rental income, and a step-by-step landlord legal framework.

Key Takeaways

• BSD and SSD were abolished for residential transactions from February 28, 2024, and Part 1 of Scale 1 AVD was aligned with Scale 2 rates.
• Residential buyers pay the same AVD rates under Part 1 of Scale 1 and Scale 2; non-residential property uses Scale 3. Residential AVD ranges from HK$100 to 6.50%, with the top rate applying from HK$109,574,471.
• BSD abolition means non-permanent residents and foreign buyers pay the same rate as locals.
• SSD abolition removes all holding-period resale penalties, restoring investment flexibility.
• Total acquisition costs (stamp duty + legal + agent) typically run 3.5%–5% for a standard residential purchase.
• The 6.50% residential AVD rate applies to values of HK$109,574,471 and above; values from HK$100,000,001 to HK$109,574,470 use the 30% marginal formula shown above.

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