1. On Sale or Transfer of Immovable Property in Hong Kong
(A) Ad Valorem Stam duty (AVD)
(i) With effect from 1 April 2010, stamp duty on sale of immovable property in Hong Kong is calculated at rates which vary with the amount/value of the consideration or value of the property as follows:
| Amount or value of the consideration | Old Ad Valorem Stamp duty (AVD) Rate (with effect from 1 April 2010) | |
|---|---|---|
| Exceeds | Does not exceed | |
| $2,000,000 | $100 | |
| $2,000,000 | $2,351,760 | $100 + 10% of excess over $2,000,000 |
| $2,351,760 | $3,000,000 | 1.5% |
| $3,000,000 | $3,290,320 | $45,000 + 10% of excess over $3,000,000 |
| $3,290,320 | $4,000,000 | 2.25% |
| $4,000,000 | $4,428,570 | $90,000 + 10% of excess over $4,000,000 |
| $4,428,570 | $6,000,000 | 3% |
| $6,000,000 | $6,720,000 | $180,000 + 10% of excess over $6,000,000 |
| $6,720,000 | $20,000,000 | 3.75% |
| $20,000,000 | $21,739,120 | $750,000 + 10% of excess over $20,000,000 |
| $21,739,120 |
4.25% |
|
(ii) On 22 February 2013, the Financial Secretary announced that the Government would amend the Stamp Duty Ordinance to adjust the ad valorem stamp duty (AVD) rates. The new AVD rates are as follows:
| Amount or value of the consideration | New Ad Valorem Stamp Duty(AVD) Rate (with effect from 23 February 2013) | |
|---|---|---|
| Exceeds | Does not exceed | |
| $2,000,000 | 1.5% | |
| $2,000,000 | $2,176,470 | $30,000 + 20% of excess over $2,000,000 |
| $2,176,470 | $3,000,000 | 3% |
| $3,000,000 | $3,290,330 | $90,000 + 20% of excess over $3,000,000 |
| $3,290,330 | $4,000,000 | 4.5% |
| $4,000,000 | $4,428,580 | $180,000 + 20% of excess over $4,000,000 |
| $4,428,580 | $6,000,000 | 6% |
| $6,000,000 | $6,720,000 | $360,000 + 20% of excess over $6,000,000 |
| $6,720,000 | $20,000,000 | 7.5% |
| $20,000,000 | $21,739,130 | $1,500,000 + 20% of excess over $20,000,000 |
| $21,739,130 | 8.5% | |
(iii) Effective November 5, 2016, the above AVD on residential property transactions will be amended to a flat rate at 15%. This does not apply to an agreement/conveyance for a residential property where the purchaser/transferee is (a) a Hong Kong permanent resident (HKPR) (b) acting on his own behalf and (c) he does not own any other residential property in Hong Kong at the time of acquisition; only the old AVD rates will apply to such agreement/conveyance.
(B) Special Stamp Duty (SSD)
Special Stamp Duty (SSD) is calculated by reference to the stated consideration or the market value of the property (whichever is the higher), at the following rates for different holding periods of the property by the seller or transferor before disposal –
| Any Residential Property resold within the following Holding period | Rate (any residential property acquired between 20 November 2010 and 26 October 2012) | Rate (any residential property acquired on or after 27 October 2012) |
|---|---|---|
| 6 months or less | 15% | 20% |
| More than 6 months but for 12 months or less | 10% | 15% |
| More than 12 months but for 24 months or less | 5% | 10% |
| More than 24 months but for 36 months or less | - | 10% |
(C) Buyer's Stamp Duty (BSD)
For non residents and corporate buyers purchasing residential property in Hong Kong , a flat 15% Buyer's Stamp Duty is payable at the time of purchase, on top of the ad valorem stamp duty and the special stamp duty, if applicable.
2. On Lease of Immovable Property in Hong Kong
Stamp duty is calculated at rates which vary with the term of the lease as follows:
| Term | Rate | |
|---|---|---|
| Not defined or is uncertain | 0.25% x of the yearly or average yearly rent | |
| Exceeds | Does not exceed | |
| 1 year | 0.25% x of the total rent payable over the term of the lease | |
| 1 year | 3 years | 0.5% x of the yearly or average yearly rent |
| 3 years | 1% x of the yearly or average yearly rent | |
| Key money, construction fee etc. mentioned in the lease | 4.25% of the consideration if rent is also payable under the lease. Otherwise, same duty as for a sale of immovable property | |
| Duplicate or counterpart | $5 each | |
Note: Stamp duty is usually shared equally between the Landlord and Tenant.
To find out more information about the stamp duty, click here to view.
Source: Inland Revenue Department
Remarks: The above information is for reference only.