Stamp Duty on Property in Hong Kong (Post-2024 Changes)
Published: 2026-04-21
This article reflects Hong Kong law as at 21 April 2026. Hong Kong's property stamp duty regime was significantly amended in 2024, 2025, and 2026 — further rate or band adjustments may follow. Before paying stamp duty, always confirm current rates and the status of pending legislation on the Inland Revenue Department (Stamp Office) website.
Introduction
Stamp duty on property transactions in Hong Kong is governed by the Stamp Duty Ordinance and collected by the Stamp Office of the Inland Revenue Department. Between 2024 and 2026, Hong Kong's property stamp duty regime has undergone what is arguably its most significant restructuring in a decade. This article describes, in general terms, the current architecture and the recent reforms that shaped it — namely the 28 February 2024 abolition of three "demand-side management" duties, the 26 February 2025 adjustment of Ad Valorem Stamp Duty bands, and the 26 February 2026 proposed new 6.5% top rate.
Specific rates and thresholds in this article are marked "as at April 2026" where given. Current rates and formulas are authoritatively published by the Inland Revenue Department.
The Structural Shift — From Five Duties to One
Before 28 February 2024, Hong Kong's property stamp duty regime was complex and multi-layered, potentially imposing up to five different duties on a residential property transaction:
- Ad Valorem Stamp Duty (AVD) — the core duty, on a progressive scale with the purchase price
- Buyer's Stamp Duty (BSD) — a 15% flat duty on non-Hong Kong permanent residents and corporate buyers
- Special Stamp Duty (SSD) — a punitive duty on short-term resale, ranging from 10% to 20% prior to 2024
- New Residential Stamp Duty (NRSD) — for non-first-time residential buyers
- Earlier forms of Doubled Stamp Duty (DSD)
From 28 February 2024: the Government abolished all "demand-side management measures" — BSD, SSD, and NRSD all ceased to apply. AVD at the former Part 1 of Scale 1 (a 7.5% flat rate) was also aligned with the lower Scale 2. The Stamp Duty (Amendment) Ordinance 2024 gave legal effect to these changes (gazetted on 19 April 2024).
The outcome: from 28 February 2024, all residential and non-residential property transactions attract only one duty — Ad Valorem Stamp Duty — calculated at uniform Scale 2 rates. The differential treatment (permanent residents vs non-residents, first-time buyers vs not, individuals vs companies) has been wholly removed from the property stamp duty regime.
This reform represented a wholesale reversal of the "cooling measures" introduced in the early 2010s, in response to weaker property market conditions.
2025 Band Adjustments
From 26 February 2025: the Stamp Duty (Amendment) Ordinance 2025 (passed by the Legislative Council in May 2025, gazetted 16 May 2025) adjusted the Scale 2 bands:
- The HK$100 nominal duty band was extended from properties up to HK$3,000,000 to properties up to HK$4,000,000. That is, a qualifying purchase at HK$4,000,000 or below now attracts only HK$100 in stamp duty.
- Middle and upper bands were correspondingly adjusted. The maximum Scale 2 rate remained 4.25%, applying to properties over approximately HK$21,739,120.
The stated aim was to relieve stamp duty cost for buyers of entry-level and mid-priced properties. The Government estimated the change would benefit around 15% of property transactions, with a revenue cost of around HK$400 million per year.
2026 Proposed Top-Rate Increase — Pending Enactment
From 26 February 2026 (proposed): in the 2026–27 Budget, the Financial Secretary proposed to raise the top AVD rate on ultra-high-value residential property from 4.25% to 6.5%, applying to residential properties valued over HK$100,000,000. A new Scale 3 was also proposed for non-residential property (though the rates there are unchanged — a structural re-lettering).
The Stamp Duty (Amendment) Bill 2026 was gazetted on 6 March 2026 and introduced to the Legislative Council on 18 March 2026. As at April 2026, the Bill has not yet been enacted. The new rate is being collected provisionally under the Public Revenue Protection (Stamp Duty) Order 2026 mechanism — buyers currently pay at the pre-existing rate and must pay the difference within 30 days of the amendment ordinance coming into force.
For buyers signing contracts for ultra-high-value residential property on or after 26 February 2026, the actual final duty depends on whether, and in what form, the Bill is enacted. Buyers in this segment typically require coordinated legal and tax advice.
Core Stamp Duty Concepts
Regardless of rate changes, several fundamental concepts remain unchanged:
Tax base. AVD is calculated on the higher of the purchase price or the market value. Where the contract price is below market, the Stamp Office may assess on market value.
Primary liability. In law, both buyer and seller are jointly and severally liable for stamp duty on their contract. Market practice is that the buyer pays. The sale contract should expressly allocate the liability to avoid disputes.
Payment deadline. Stamp duty must be paid within 30 days of signing the provisional agreement or the formal agreement. Late payment attracts a scaled additional fee — rising steeply with the length of the delay — and may eventually result in enforcement action.
Stamping is a precondition. Unstamped contracts and conveyances cannot be admitted in evidence in court, and cannot be lodged at the Land Registry, until stamp duty has been paid and the document has been stamped. Stamp duty is therefore a practical prerequisite for completing and registering the transaction.
Timing: signing, not completion. Stamp duty is triggered at the time the agreement is signed, not on completion. The obligation arises once the agreement exists, even if completion is delayed or does not occur.
Permanent Residents, Non-Permanent Residents, and Corporate Buyers
Before 28 February 2024: Hong Kong permanent resident (HKPR) first-time buyers enjoyed the lower Scale 2 rates. Non-permanent residents and corporate buyers faced the higher AVD Part 1 of Scale 1 (a 15% flat rate) plus BSD at 15%, potentially approaching a combined 30% of the purchase price.
From 28 February 2024: this differential treatment has been entirely removed. All buyers — permanent residents, non-permanent residents, individuals, and corporate entities — are assessed at the same Scale 2 rate. BSD no longer applies.
For buyers considering corporate ownership (for privacy, estate planning, or particular tax structures), stamp duty is no longer a deterrent. However, other tax and legal consequences of corporate ownership — such as the structure of future share transfers, annual company reporting obligations — should be considered separately with appropriate advice.
Residential vs Non-Residential
Residential Property
Residential property currently attracts AVD only, at Scale 2. If the 2026 proposal to add a 6.5% top-rate for residential above HK$100 million is enacted, it would apply to that ultra-high-value tier.
Non-Residential Property
Non-residential property (offices, shops, industrial buildings, car parks) is also assessed at Scale 2. From 26 November 2020 (effected by the Stamp Duty (Amendment) Ordinance 2021), non-residential AVD was aligned from Scale 1 to Scale 2. The 2026 proposed Scale 3 for non-residential property re-letters the structure but does not adjust the rates.
Details Buyers Often Overlook
- Stamp duty on share transfers. Where a property is transferred indirectly through a share transfer in a property-holding company, the transaction may be subject to stock-transfer stamp duty (typically 0.1% payable by each of buyer and seller, totalling 0.2%). The Stamp Office may examine the substance of the transaction to determine whether it is an avoidance arrangement.
- Intra-group relief. The Stamp Duty Ordinance provides relief for intra-group transfers. The 2026-27 Budget proposes relaxing the eligibility criteria — reducing the minimum association threshold between transferor and transferee from 90% to 75%, and extending eligibility to entities without share capital such as limited liability partnerships. That amendment is also not yet enacted.
- Refund mechanism on replacement properties. HKPRs replacing their sole residential property (selling old, buying new) retain the refund mechanism — preventing double taxation on the interim transaction.
- Late payment surcharges. Delays of 30 days, 3 months, and 6 months attract different surcharge multipliers, potentially reaching ten times the duty payable. Timely payment is critical.