Complete Stamp Duty Guide: Rates, Exemptions & Calculations

                    What You'll Learn:
                    Types of stamp duty in Hong Kong (AVD, BSD, SSD)
Current rates and how they apply to different buyers
Exemptions and concessions available
How to calculate your stamp duty liability

                

Types of Stamp Duty in Hong Kong

When purchasing property in Hong Kong, you may be subject to one or more types of stamp duty:

1. Ad Valorem Stamp Duty (AVD)

AVD is the basic stamp duty payable on property transactions. There are two scales:

Scale 1 (Higher Rates): Applies to non-first-time buyers and non-permanent residents

Property Value	Rate
Any value	7.5%

Scale 2 (Lower Rates): Applies to Hong Kong permanent residents buying their first residential property

Property Value	Rate
Up to HK$3,000,000	1.5%
HK$3,000,001 - HK$3,528,240	HK$45,000 + 10% of excess over HK$3M
HK$3,528,241 - HK$4,500,000	2.25%
HK$4,500,001 - HK$4,935,480	HK$101,250 + 10% of excess over HK$4.5M
HK$4,935,481 - HK$6,000,000	3%
HK$6,000,001 - HK$6,642,860	HK$180,000 + 10% of excess over HK$6M
HK$6,642,861 - HK$9,000,000	3.75%
HK$9,000,001 - HK$10,080,000	HK$337,500 + 10% of excess over HK$9M
HK$10,080,001 - HK$20,000,000	4.25%
Above HK$20,000,000	4.25%

2. Buyer's Stamp Duty (BSD)

BSD applies to non-Hong Kong permanent residents purchasing residential property:

Rate: 7.5% of property value
Applies to: Non-permanent residents, companies
Exemptions: Hong Kong permanent residents are exempt

3. Special Stamp Duty (SSD)

SSD applies when reselling a property within a certain period after purchase:

Holding Period	Rate
Within 6 months	20%
6-12 months	15%
12-24 months	10%
Over 24 months	Exempt

Who Qualifies for Lower Rates?

To qualify for Scale 2 (lower) AVD rates, you must:

Be a Hong Kong permanent resident
Not own any other residential property in Hong Kong at the time of purchase
Be acting on your own behalf (not as a trustee)

⚠️ Important: If you own property jointly with your spouse, you may still qualify for Scale 2 rates if your spouse is also a first-time buyer and you're purchasing together.

Calculation Examples

Example 1: First-Time Buyer (HK Permanent Resident)

Property Price: HK$8,000,000

AVD (Scale 2): HK$8,000,000 × 3.75% = HK$300,000

BSD: Exempt (HK permanent resident)

Example 2: Second Property Buyer (HK Permanent Resident)

Property Price: HK$8,000,000

AVD (Scale 1): HK$8,000,000 × 7.5% = HK$600,000

BSD: Exempt (HK permanent resident)

Example 3: Non-Permanent Resident

Property Price: HK$8,000,000

AVD (Scale 1): HK$8,000,000 × 7.5% = HK$600,000

BSD: HK$8,000,000 × 7.5% = HK$600,000

Total: HK$1,200,000 (15%)

Payment Timeline

Provisional Agreement: Stamp duty must be paid within 30 days
Formal Agreement: If signed, stamp duty is due within 30 days of signing
Late Payment: Penalties apply for late payment (up to 10× the duty)

Conclusion

Understanding stamp duty is crucial for budgeting your property purchase. Use our Stamp Duty Calculator to estimate your liability based on your specific situation.

📐 Related Tools

Try our Stamp Duty Calculator to estimate your tax costs