To calculate the cost of buying an apartment in Hong Kong, you should first know about all the related stamp duties.
To calculate the cost of buying an apartment in Hong Kong, you should first know about all the related stamp duties. Image from Pixabay.

Buying a new home is exciting! Yet in Hong Kong, you better be familiar with the current stamp duty (taxes) policies or you might end up shocked by what you have to pay for a new apartment in this city – already some of the world’s most expensive and unaffordable homes.

What is stamp duty?

Stamp duty is tax to be paid to the government when someone buys a property in any city. This tax can dramatically alter the cost of buying a property.




There are 5 different stamp duties related to selling or buying properties in Hong Kong. HK permanent residents who are buying their first homes are exempted from most of the stamp duties. The government implemented some new stamp duties, known as “cooling measures”, to slow down the drastic rise in home prices since 2010, which many blamed on demand from non-residents and property investors.

After reading this article, you will be able to calculate the cost of buying a house in Hong Kong, including the stamp duties.

Residential Properties Stamp Duty(Ad Volarem Duty [AVD], Old Stamp Duty)

  • AVDs are paid at the time of purchase.
  • Applicable for Hong Kong permanent residents (PR) who are buying their first homes or switching to another property.
  • People who acquire homes under registered companies, instead of as individuals, would also be applicable.
  • People who are switching properties must sell their original and only property within 6 months after they sign the Conveyance on Sale. They could then apply to the Inland Revenue Department for the tax refund.
Exceeds Does not exceed Stamp duty rates
HK$0 HK$2,000,000 HK$100
HK$2,000,001 HK$2,351,760 HK$100 +10% of excess over HK$2,000,000
HK$2,351,761 HK$3,000,000 1.50%
HK$3,000,001 HK$3,290,320 HK$45,000 + 10% of excess over HK$3,000,000
HK$3,290,320 HK$4,000,000 2.25%
HK$4,000,001 HK$4,428,570 HK$90,000 + 10% of excess over HK$4,000,000
HK$4,428,571 HK$6,000,000 2.25%
HK$6,000,001 HK$6,720,000 HK$180,000 +10% of excess over HK$6,000,000
HK$6,720,001 HK$20,000,000 3.75%
HK$20,000,000 HK$21,739,120 HK$750,000+10% of excess over HK$20,000,000
HK$21,739,121 4.25%

 

Residential Properties Stamp Duty(New AVD, New Stamp Duty)

For buyers who don’t qualify under the “Old Stamp Duty” regime above, the rate is a flat 15%.

Applicable for Stamp duty rate
All non-PR  OR 15%
All non-first time buyers/ not switching properties  OR
Acquisition of more than 1 residential property under one single instrument  OR
Acquisition of residential properties not by a company

 

Buyer’s Stamp Duty(BSD)

BSD is an additional upfront tax on non-resident buyers. So non-resident, individual buyers currently pay a total of 30% in upfront stamp duty (New AVD + BSD).

Applicable for Stamp duty rates
All non-PR  OR 15%
Acquisition of residential properties not by a company

 

Special Stamp Duty(SSD)

  • Paid when selling your property.
  • Any properties resold within specific ‘holding periods’ shall be charged.
  • Only applicable for residential properties acquired on or after 27 October 2012.
Holding period Stamp duty rates
6 months or less 20%
More than 6 months but for 12 months or less 15%
More than 12 months but for 36 months or less 10%


Non-residential Property Stamp Duty

For purchases of commercial real estate.

Exceeds Does not exceed Stamp duty rates
HK$0 HK$2,000,000 1.50%
HK$2,000,001 HK$2,351,760 HK$30000 + 20% of excess over HK$2,000,000
HK$2,351,761 HK$3,000,000 3.00%
HK$3,000,001 HK$3,290,320 HK$90,000 + 20% of excess over HK$3,000,000
HK$3,290,320 HK$4,000,000 4.50%
HK$4,000,001 HK$4,428,570 HK$180,000 + 20% of excess over HK$4,000,000
HK$4,428,571 HK$6,000,000 6.00%
HK$6,000,001 HK$6,720,000 HK$360,000 + 20% of excess over HK$6,000,000
HK$6,720,001 HK$20,000,000 7.50%
HK$20,000,000 HK$21,739,120 HK$1500,000 + 20% of excess over HK$20,000,000
HK$21,739,121 8.50%

 

Spacious helps you calculate the total cost of buying a house easily! Simply click here: Spacious Mortgage Calculator to find the total buying cost.

Spacious also has other tools that help you buy or sell your properties quickly and effectively. Go to www.spacious.hk to find your new home, or contact our sales team at sales@spacious.hk to find out the best listing package for you!

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