Whether you’re a first-time homebuyer eyeing a flat near Victoria Harbour or a corporate investor expanding your commercial portfolio in Central, understanding Hong Kong’s stamp duty framework is essential for budgeting your property acquisition costs. Following the 2025-26 Budget announcements, the Hong Kong government introduced revised stamp duty structures that continue to shape the property market landscape in 2026.

Hong Kong’s stamp duty system comprises multiple layers designed to regulate property transactions, cool speculative activities, and generate government revenue. For buyers navigating the property market from Kowloon to the New Territories, these costs can significantly impact your total investment, making professional guidance crucial.

Understanding Ad Valorem Stamp Duty (AVD) Rates in 2026

The Inland Revenue Department administers Ad Valorem Stamp Duty as the primary tax on property transactions. The February 2025 budget brought welcome relief for first-time Hong Kong permanent residents purchasing their only residential property. The government raised the ceiling for the concessionary HK$100 stamp duty from HK$3 million to HK$4 million, effective February 26, 2025.

For properties valued at HK$4 million or below, eligible buyers now pay just HK$100 in stamp duty. This measure particularly benefits young professionals and families purchasing starter flats in districts like Tung Chung, Tin Shui Wai, and parts of Sha Tin where property values often fall within this range.

The revised AVD structure for 2026 includes tiered rates that increase with property value:

• Properties HK$3 million to HK$3.5 million: HK$100
• Properties HK$4.5 million to HK$4.935 million: HK$67,500 plus 10% of the excess
• Properties HK$4.935 million to HK$6 million: 2.25%
• Properties HK$6 million to HK$6.643 million: HK$135,000 plus 10% of the excess
• Properties HK$6.643 million to HK$9 million: 3%
• Properties HK$10.08 million to HK$20 million: 3.75%
• Properties exceeding HK$21.739 million: 4.25%

For non-first-time buyers or those who don’t qualify for concessionary rates, properties of any value attract a flat 15% stamp duty rate, a measure introduced to curb speculation and prioritize genuine owner-occupiers.

Buyer’s Stamp Duty and Special Stamp Duty Compliance

Beyond AVD, the IRD enforces additional stamp duties targeting specific buyer profiles and holding periods. Buyer’s Stamp Duty charges a flat 15% on all residential property acquisitions by non-Hong Kong permanent residents and most corporate buyers. This applies regardless of whether you already own other properties.

Special Stamp Duty targets short-term property flipping. If you acquire residential property and resell within 36 months, SSD applies on a sliding scale. Properties sold within 6 months attract 20% SSD, those sold between 6-12 months face 15%, transactions between 12-24 months incur 10%, and sales within 24-36 months are charged 10%. These rates apply to the higher of the actual transaction price or the market value at the time of resale.

Companies must also navigate the New Residential Stamp Duty, charging 15% on residential property transfers unless specific exemptions apply. With Hong Kong’s complex property tax environment, many businesses engage professional accounting support. Just as companies outsource payroll management through specialized payroll services to ensure MPF compliance and accurate salary calculations, property investors increasingly rely on qualified accountants to optimize stamp duty obligations and maintain IRD compliance.

Commercial and Industrial Property Stamp Duty Considerations

While residential properties dominate headlines, Hong Kong’s commercial and industrial sectors represent substantial transaction volumes. According to Land Registry statistics, January 2026 recorded 266 industrial, commercial, and office property transactions valued at HK$2.55 billion. These properties follow different stamp duty scales.

Commercial properties including office spaces in core business districts like Admiralty, shops in Causeway Bay, and industrial facilities across Kwun Tong and Tsuen Wan are subject to AVD based on the regular tiered rate structure. However, they’re generally exempt from BSD and SSD, making commercial acquisitions more straightforward from a stamp duty perspective.

For business owners structuring property acquisitions through corporate vehicles, stamp duty planning becomes particularly complex. Share transfers involving property-holding companies trigger different stamp duty treatments compared to direct property purchases, requiring careful tax structuring and professional advice.

IRD Compliance and Payment Procedures

The Inland Revenue Department requires stamp duty payment within 30 days of executing the agreement for sale or, if earlier, the assignment or conveyance. Late payment attracts penalties starting at the amount of unpaid duty and increasing for continued non-compliance.

Property buyers should work closely with their solicitors and tax advisors to ensure timely stamping. The IRD’s Stamp Office located at the Revenue Tower in Wan Chai processes stamp duty assessments and accepts payments through various channels including cheques, cashier’s orders, and electronic payment for eligible cases.

Under the Stamp Duty Ordinance, both the purchaser and vendor are jointly and severally liable for ensuring proper stamping, though market practice typically sees buyers bearing this cost. Proper documentation and record-keeping prove essential, particularly if you later claim exemptions or refunds under circumstances like replacing your only residential property.

Property Transaction Trends Shaping 2026

Understanding current market dynamics helps contextualize stamp duty planning. The first month of 2026 saw 7,217 total property transactions valued at HK$54.32 billion across Hong Kong, with secondary residential market transactions representing 60.29% of total volume. The New Territories recorded the highest transaction volumes with 2,067 secondary residential deals, followed by Kowloon with 1,403 and Hong Kong Island with 881 transactions.

These statistics reflect ongoing market adjustments following the stamp duty revisions. The increased HK$4 million threshold for concessionary rates stimulated first-time buyer activity in more affordable districts while maintaining cooling measures for investment and luxury segments.

 

Frequently Asked Questions About Hong Kong Property Stamp Duty

Do Hong Kong permanent residents always qualify for lower stamp duty rates?

Hong Kong permanent residents qualify for concessionary AVD rates only if purchasing their sole residential property. If you already own any other residential property worldwide at the time of acquisition, the 15% flat rate applies. Careful timing of purchases and sales proves crucial for optimizing stamp duty costs.

How does stamp duty apply to property inheritance or gifts?

Property transfers through inheritance where no monetary consideration changes hands may qualify for stamp duty exemptions under specific circumstances. Similarly, transfers between close relatives can receive concessionary treatment, though strict conditions apply. The IRD’s Stamp Office assesses these cases individually based on supporting documentation.

Can I claim a stamp duty refund if I replace my property?

Hong Kong permanent residents who paid the 15% rate on a replacement property may apply for a refund of the difference between the 15% rate and the concessionary rate if they sell their original property within six months. This “replacement of property” relief helps genuine homeowners upgrading their accommodation without penalty.

What stamp duty applies to car parking spaces purchased separately?

Car parking spaces purchased separately from residential units attract AVD at the tiered rates applicable to the transaction value. However, they’re exempt from SSD and BSD. Many buyers strategically purchase parking spaces in conjunction with their flats to optimize the stamp duty treatment of their overall acquisition.

Expert Property Tax Guidance for Hong Kong Buyers and Investors

Navigating Hong Kong’s layered stamp duty regime requires current knowledge of IRD regulations, budget measures, and practical compliance procedures. Whether you’re a first-time buyer seeking to minimize costs under the HK$4 million threshold, a landlord managing a portfolio across multiple MTR districts, or a corporate investor structuring commercial acquisitions, professional tax and accounting support proves invaluable.

At Pinetree, our team of qualified Hong Kong CPAs based in Tsim Sha Tsui has helped clients across Central, Wan Chai, Causeway Bay, and beyond navigate complex property tax obligations. We provide comprehensive accounting support encompassing stamp duty planning, IRD correspondence, transaction structuring, and ongoing compliance for property-holding entities.

Our expertise extends beyond property taxes to include full-service solutions from company formation through audit arrangement, bookkeeping, corporate secretarial services, and tax returns. Just as effective property investment requires understanding every cost component, successful business operations demand integrated financial management.

If you’re planning a property transaction in Hong Kong and need clarity on your stamp duty obligations, our Tsim Sha Tsui team is ready to help. Contact us today for a free 15-minute consultation via WhatsApp or phone to discuss how we can optimize your property tax position while ensuring full IRD compliance.