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: all three historical surcharges — the Buyer's Stamp Duty (BSD), the Special Stamp Duty (SSD), and the elevated Ad Valorem Stamp Duty under Scale 1 — have been completely abolished. Every buyer, whether a local permanent resident purchasing a second investment property, a mainland Chinese national, or a foreign entity, now pays the same standard Scale 2 Ad Valorem Stamp Duty (AVD). Nothing else.

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 36 months of purchase.
• New Residential Stamp Duty / Scale 1 AVD: A flat 15% rate (later 7.5%) applied to permanent residents buying a second or subsequent property.

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: Scale 2 AVD Only

Under the current regime, all residential and non-residential property transactions — regardless of buyer type, nationality, residency status, or how many properties the buyer already owns — pay Scale 2 AVD at the following progressive rates:

Note that the 6.50% rate on transactions above HK$100 million is a targeted luxury surcharge introduced in the 2026/27 Budget. It does not affect the vast majority of residential transactions.

Practical Examples

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

Under the old Scale 1 regime, a local permanent resident buying a second property would have paid 7.5% flat = HK$450,000 in stamp duty alone. Today, they pay Scale 2 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)

Pre-February 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: Scale 2 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)

Scale 2 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 Scale 2 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 to raise AVD to 6.50% on transactions above HK$100 million was a demonstration that the government retains the willingness to use stamp duty as a targeted policy tool. 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

Scale 2 AVD is the largest upfront transaction tax, but it is not the only acquisition cost. Budgeting for the full picture matters:

• Stamp duty (Scale 2 AVD): 0.003% to 4.25% 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 3.7%–4.5% of purchase price after adding legal fees and agent commission on top of the 3% AVD. This is substantially lower than the 10%–15% cost that applied to investor purchasers under the old regime, but 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

• All three historical stamp duty surcharges (BSD, SSD, Scale 1 AVD) have been abolished since February 28, 2024.
• All buyers now pay Scale 2 AVD only: ranges from HK$100 flat to 4.25% for properties up to HK$100 million.
• 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.
• Targeted measures remain possible at the ultra-luxury end (above HK$100M), where the rate is 6.50%.

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