A Complete Hong Kong Stamp Duty Guide 2025

Hong Kong’s stamp duty plays a major role in regulating both the property and stock markets, influencing everything from residential purchases to corporate share transfers. For international buyers, foreign companies, and global investors, understanding how stamp duty works is essential for accurate cost planning, tax compliance, and strategic decision-making. Recent adjustments to Ad Valorem Stamp Duty (AVD), Buyer’s Stamp Duty (BSD), and Special Stamp Duty (SSD) have reshaped the landscape, making it more important than ever to stay updated. In this blog, we break down the fundamentals of Hong Kong stamp duty, explain who needs to pay it, highlight the latest rule updates, and guide you through the key points.

What Is Stamp Duty in Hong Kong?

Stamp duty in Hong Kong is a government-imposed tax charged on specific legal documents, mainly those related to property sales, leases, and stock transfers. It serves as an essential part of documenting major transactions and ensuring that ownership and contractual terms are properly recorded.

Stamp duty plays an important role in supporting market stability. By regulating how transactions are documented and discouraging short-term speculation, it helps maintain a healthier property market and a transparent environment for both local and international investors. This stability also contributes to a stronger and more predictable tax system.

The tax is regulated under the Stamp Duty Ordinance (Cap. 117). This legislation defines when stamp duty applies, how the amount is calculated, and who is responsible for payment. It forms the legal backbone for ensuring consistent compliance across property, rental, and stock-related transactions.

Several types of activities commonly attract stamp duty in Hong Kong. These include:

• Property transactions such as buying, selling, or transferring residential and commercial real estate
• Lease agreements for residential or commercial rentals
• Stock transfers, including both Hong Kong-listed shares and private company shares

Documents That Require Stamp Duty

Stamp duty in Hong Kong applies to several types of legal documents that formalise property transactions, tenancy arrangements, and stock transfers. Understanding which documents require stamping is essential for global investors, overseas companies, and corporate buyers planning to acquire assets or conduct business in Hong Kong.

Property Sale and Purchase Agreements

A sale and purchase agreement is one of the most common documents subject to stamp duty. It sets out the agreed price, terms, and completion details for a property transaction. Once this agreement is signed, stamp duty becomes payable based on the property value or market value, whichever is higher. Whether you are buying residential units, commercial spaces, or industrial properties, this document must be stamped to ensure the transfer is legally recognised.

Assignment and Conveyance Documents

Assignment and conveyance documents are used to complete the formal transfer of property ownership. These documents confirm the buyer’s legal title to the property. Stamping is required before registration with the Land Registry can take place. For corporate buyers or offshore holding companies purchasing Hong Kong assets, stamping these documents is a mandatory step to secure full legal ownership.

Tenancy and Lease Agreements

Any lease or tenancy agreement for residential, commercial, or industrial property must be stamped within the statutory deadline. The duty amount depends on the rental level and the lease duration. Stamping ensures the contract is legally valid and enforceable, protecting both landlords and tenants. For foreign landlords or global companies renting office space in Hong Kong, stamping the tenancy agreement is necessary for compliance and for resolving potential disputes.

Stock Transfer Forms (Contract Notes and Transfer Forms)

Stamp duty also applies to documents involved in transferring Hong Kong stocks or shares in private companies. These include:

• Contract notes for buying or selling listed shares
• Instrument of transfer when shares are sold, assigned, or gifted
• Transfers on sale or transfers on gift for private company shares

Whether you are acquiring shares in a Hong Kong subsidiary, restructuring ownership among group entities, or gifting shares to another party, these documents must be stamped to validate the transfer.

Why This Matters for Global Corporate Buyers and Offshore Investors

For overseas investors and foreign-owned companies, Hong Kong stamp duty affects more than just property purchases. It influences cross-border tax planning, investment structuring, and compliance processes. Properly stamped documents help ensure:

• Clear legal ownership
• Smooth registration with the Land Registry or Companies Registry
• Protection in commercial disputes
• Transparent tax reporting
• Compliance with Hong Kong’s strict regulatory standards

Who Is Responsible For Paying Stamp Duty?

Understanding who must pay stamp duty is essential for smooth compliance, especially for international buyers, global business owners, and overseas investors entering Hong Kong’s property or financial markets. Responsibilities differ depending on whether the transaction involves property, leases, or stock transfers.

Buyers vs Sellers for Property Transactions

For property sales, both the buyer and seller are generally responsible for paying stamp duty. This includes Ad Valorem Stamp Duty (AVD), Buyer’s Stamp Duty (BSD), and Special Stamp Duty (SSD), depending on the circumstances.

• AVD: Both the buyer and seller are legally liable for AVD, but in practice the cost is usually borne by the buyer unless the parties agree otherwise. If the buyer incorrectly claims a lower rate (for example by misrepresenting HKPR or first-time buyer status), the buyer alone will be liable for any shortfall.
  
• BSD: Only applies to residential property buyers who are not Hong Kong Permanent Residents. BSD is solely the buyer’s responsibility.
  
• SSD: Both parties are liable, although the sale agreement may specify whether the buyer or seller will bear the cost. SSD applies mainly to sellers who dispose of residential property too soon after purchase.

Clear allocation of responsibility should be agreed upon in the sale and purchase agreement to prevent disputes or delays during completion.

Landlord and Tenant Obligations for Leases

For tenancy agreements, both the landlord and tenant are responsible for paying stamp duty based on the lease term and total rental value. However, the law places operational responsibility on the landlord:

• The landlord must submit the tenancy agreement for stamping within 30 days of signing.
• After stamping, the landlord must provide the tenant with a stamped copy.
• If the landlord fails to do so, both parties may face compliance issues and potential penalties. For certain regulated tenancies (such as subdivided units), tenants may have limited rights to withhold rent until a stamped copy is provided. For standard leases, tenants should seek professional or legal advice before withholding rent, as failure to pay rent can itself amount to a breach of the tenancy.

This ensures that both parties have a legally enforceable rental contract and remain compliant with the Stamp Duty Ordinance.

Buyer, Seller, or Agent Responsibilities for Stock Transfers

Stamp duty for stock transfers applies to listed shares, unlisted shares in Hong Kong companies, and share gifts.

Responsibility typically falls on:

• Buyer and seller when contract notes are used for buying or selling shares
• Transferor and transferee when preparing an instrument of transfer
• Agents, such as brokers or custodians, when they submit documents and arrange payment on behalf of clients

If a licensed agent handles the transaction, they usually manage the entire stamping process. When no agent is involved, the buyer and seller must pay and arrange stamping themselves.

Main Types of Stamp Duty in Hong Kong

Navigating stamp duty in Hong Kong can seem complex, but it becomes much clearer when you understand the four main types and when each applies. Here’s a quick snapshot to guide global investors, property buyers, and corporate stakeholders.

• Ad Valorem Stamp Duty (AVD) – Applies to most property purchases and transfers, both residential and non-residential.
• Buyer’s Stamp Duty (BSD) – A surcharge on certain residential purchases that now has a 0% rate for transactions executed on or after 28 February 2024, but still applies to earlier deals at historical rates.
• Special Stamp Duty (SSD) – A tax on short-term resale of residential properties that currently has a 0% rate for disposals on or after 28 February 2024, while historical disposals remain subject to the old rates.
• Tenancy Agreement Stamp Duty – Stamp duty payable on residential, commercial, and industrial leases.

Ad Valorem Stamp Duty (AVD)

What Is AVD?

Ad Valorem Stamp Duty, commonly known as AVD, is a tax levied on property transactions in Hong Kong. Its primary purpose is to ensure transparency in the property market and contribute to government revenue. The amount of AVD you pay is based on either the price of the property or its market value, whichever is higher, making it crucial for buyers and sellers to calculate this cost accurately before completing a transaction.

AVD applies to both residential and non-residential properties and is a key consideration for investors, first-time homebuyers, and companies acquiring property in Hong Kong.

How AVD Is Calculated

AVD can be calculated using two different scales: Scale 1 and Scale 2.

• Historical Context (Pre-2016): Scale 1 had two parts—one for residential properties (homes and apartments) and another for non-residential properties (shops, offices, etc.).
  
• 2016 Update: The Hong Kong government simplified the system by combining the two parts into a single Scale 1 with higher rates, applying to most residential property sales after November 5, 2016.
  
• 2024 Policy Update: As of February 28, 2024, there is no longer a distinction between residential and non-residential properties, nor between Hong Kong Permanent Residents (HKPR), non-residents, or companies. Now, all buyers follow Scale 2 rates, streamlining the calculation process and making compliance easier.

Who Pays AVD?

Both the buyer and the seller are legally liable for AVD, whether under Scale 1 or Scale 2. In practice, the sale and purchase agreement usually specifies that the buyer bears the duty. If a buyer misrepresents their eligibility for any concessionary rate (for example, HKPR status), they alone will be liable for any additional amount of AVD.

It is important for property buyers and sellers to clearly state in their sale and purchase agreement how AVD will be borne to avoid disputes or delays during completion.

AVD Rate Table & Example

6.4.1 Scale 1 Rates (Historical for Residential Property Sales):

• November 5, 2016 – October 24, 2023: 15% of the property’s price or value
• On or after October 25, 2023: 7.5% of the property’s price or value

6.4.2 Scale 2 Rates (Current for Most Property Purchases)

From 26 February 2025, all buyers (individuals and companies, whether HKPRs or non-HKPRs) pay AVD at Scale 2 rates:

• For properties valued at up to HK$4,000,000, a fixed duty of HK$100 is payable.
• For properties valued above HK$4,000,000, AVD is charged at progressive marginal rates, rising to a maximum of 4.25% for properties over HK$20,000,000.

For the latest detailed brackets and worked examples, buyers should refer to the current Scale 2 table issued by the Inland Revenue Department (IRD).

AVD Exemptions & Reliefs

Certain situations may qualify for AVD exemptions, reducing or eliminating the tax liability:

• Transfers between close relatives, even if the recipient is not an HKPR, provided they do not own other properties.
• Inheritance, where property passes according to a will or law after the owner’s death.
• Transfers within group companies, ensuring business restructuring is tax-efficient.
• Government or charitable transactions, such as donations to tax-exempt charities.
• First-time HKPR buyers, under specific conditions, may be eligible for relief.

These exemptions provide flexibility for families, corporations, and charitable organizations while ensuring compliance with Hong Kong tax regulations.

Buyer’s Stamp Duty (BSD)

What Is BSD?

Buyer’s Stamp Duty (BSD) is a tax imposed on non-Hong Kong Permanent Resident (non-HKPR) buyers when they purchase residential property in Hong Kong. Introduced in 2012, BSD aims to control property prices and reduce the impact of speculative and non-local demand on the housing market.

Important update: for residential property transactions executed on or after 28 February 2024, the applicable BSD rate has been reduced to 0%. BSD still exists in the Stamp Duty Ordinance, but no additional BSD is currently payable on new qualifying residential property purchases.

Unlike Ad Valorem Stamp Duty (AVD), which applies to all property buyers, BSD historically targeted non-resident buyers and certain corporate purchasers and now mainly affects historic transactions and assessments.

Who Pays BSD?

BSD applies to any non-HKPR buyer purchasing residential property, unless an exemption applies. It is charged in addition to AVD and, where applicable for earlier transactions, Special Stamp Duty (SSD).

The BSD rate depends on when the purchase agreement was signed:

• 15% BSD for non-HKPR buyers who signed a purchase agreement between 27 October 2012 and 24 October 2023.
• 7.5% BSD for non-HKPR buyers who signed a purchase agreement between 25 October 2023 and 27 February 2024.
• 0% BSD for residential property purchases executed on or after 28 February 2024.

BSD is calculated based on the higher of the property’s price or its market value.

BSD Exemptions

Certain scenarios allow for BSD exemptions, providing relief for eligible buyers and ensuring flexibility in property transactions, particularly for historic cases where a positive BSD rate applied:

• HKPR buyers purchase with close relatives who are non-HKPRs, as long as all parties are buying for their own use.
  
• Transfers to close relatives who are non-HKPRs, provided the property is for personal use.
  
• Court-ordered transfers, such as divorce settlements or legal disputes.
  
• Bank repossessions, where a lender takes ownership due to unpaid loans.
  
• Company-to-company transfers, particularly among connected corporate entities.
  
• Government or charitable involvement, where the property is acquired or transferred by government bodies or registered charities.

These exemptions ensure that BSD primarily targets speculative foreign investment while allowing legitimate family, corporate, and charitable transactions to proceed without additional tax burdens.

Special Stamp Duty (SSD)

What Is an SSD?

Special Stamp Duty (SSD) is a tax levied on residential properties that are resold within a short period after purchase. Introduced to curb speculative property trading, SSD encourages buyers and investors to hold properties longer to stabilise Hong Kong’s housing market and prevent rapid price fluctuations.

Important update: for disposals of residential property executed on or after 28 February 2024, the SSD rate has been reduced to 0%. SSD remains in force in the Stamp Duty Ordinance, but no additional SSD is currently payable on new qualifying disposals; the timing rules now mainly affect historic acquisitions and disposals.

Unlike Buyer’s Stamp Duty (BSD), which targeted non-Hong Kong Permanent Residents (non-HKPRs), SSD applies regardless of residency and focuses on the holding period between purchase and resale.

When SSD Applies

For residential properties acquired before the latest policy changes, SSD is charged when a property is sold or transferred within 24 months of its purchase. The historical rates were:

• Within 6 months: 20% of the property price or market value
• 6–12 months: 15%
• 12–24 months: 10%

These rates mainly applied to disposals before 28 February 2024. For disposals on or after that date, the current SSD rate is 0%, even though the holding-period rules remain on the statute book.

Who Pays SSD

Both the buyer and seller are jointly liable for SSD under the law, but the sale and purchase agreement can specify which party will bear the tax. In practice, many agreements stipulate that the seller pays SSD because it is typically linked to their short-term resale activity. Buyers should always confirm any SSD exposure and allocation in the contract, especially for older properties where an earlier acquisition date means SSD may still be charged by reference to historical rates.

SSD Exemptions

Certain transactions are exempt from SSD, particularly in situations where a positive SSD rate would otherwise apply, ensuring fairness for family arrangements, legal cases, and corporate or charitable transfers:

• Family transfers: Properties transferred to close relatives instead of being sold on the open market.
  
• Court-ordered sales: Transfers mandated by legal proceedings, including divorces or settlements.
  
• Company restructuring: Transfers between connected corporate entities during mergers, acquisitions, or reorganizations.
  
• Government or charity involvement: Transactions where the government or a registered charity acquires or receives the property.

These exemptions allow legitimate transfers while keeping the SSD focused on speculative activity that can disrupt the housing market.

Stamp Duty for Tenancy Agreements

When renting property in Hong Kong, stamp duty applies to tenancy agreements. This tax ensures that rental contracts are legally recognized and helps maintain transparency in the property market. Understanding the rates, responsibilities, and tenant rights is essential for both landlords and tenants.

Rates Based on Lease Length and Rent

Stamp duty for leases depends on the duration of the tenancy and the total rent payable:

• Lease for 1 year or less: 0.25% of the total rent payable over the term
• Lease for more than 1 year and up to 3 years: 0.5% of the yearly or average yearly rent
• Lease for more than 3 years: 1% of the yearly or average yearly rent
• Additionally, extra payments, such as key money or construction fees, are subject to ad valorem stamp duty at the same 4.25% top rate that applies to certain property sales.

Landlord’s Responsibility for Stamping

Once the tenancy agreement is signed, the landlord is legally required to submit it for stamping within 30 days. After the Stamp Office processes the document, the landlord must provide the tenant with a signed, stamped copy. Failure to stamp the agreement can have legal consequences for the landlord.

Tenant Rights if Stamping Is Delayed

Tenants are protected under Hong Kong law if the landlord fails to arrange proper stamping. For regulated subdivided-unit tenancies, tenants may withhold rent until a stamped copy is provided, provided they then repay the withheld rent within the statutory timeframe once the stamped counterpart is received. For other tenancies, landlords and tenants are jointly liable for stamp duty, and tenants should seek professional or legal advice before withholding rent, because an unstamped agreement mainly affects enforceability and registration rather than automatically suspending rent obligations.

Stamp Duty for Stock Transfers

In Hong Kong, stamp duty also applies to transferring stocks in local companies. Whether you are buying, selling, or gifting shares, understanding how stamp duty works ensures compliance and avoids penalties.

When Stock Stamp Duty Applies

Stamp duty is required for the following stock transactions:

• Buying or selling stocks: Both the buyer and seller must pay stamp duty, reflected on the contract note.
• Gifting stocks: When stocks are given without monetary consideration, a transfer document must be prepared.
• Other transfers: Certain administrative transfers, such as corporate reorganizations, also require payment.

Fixed Fee vs Percentage-Based Rate

The stamp duty for stocks depends on the type of transaction:

• Buying or selling stocks: 0.1% of the transaction value per party (0.2% in total).
• Gifting stocks: HK$5 plus 0.2% of the stock value.
• Other types of transfers that are not a sale or gift: A flat fee of HK$5 applies.

This system ensures that high-value stock trades incur proportional tax, while smaller or gift-based transfers remain affordable.

Timeframe for Payment Depending on Location and Type of Transfer

Timely payment is essential to avoid penalties. The deadlines vary depending on where the transfer occurs and the transaction type:

• Buying or selling stocks in Hong Kong: Within 2 days of the transaction.
  
• Buying or selling stocks outside Hong Kong: Within 30 days of the transaction.
  
• Non-gift stock transfers signed in Hong Kong: Before the signing date.
  
• Non-gift stock transfers signed outside Hong Kong: Within 30 days after signing.
  
• Gifting stocks in Hong Kong: Within 7 days of signing.
  
• Gifting stocks outside Hong Kong: Within 30 days after signing.
  

Prompt payment ensures legal recognition of the stock transfer and avoids potential fines.

How Much Stamp Duty Do You Pay?

When conducting property, tenancy, or stock transactions in Hong Kong, understanding how much stamp duty you owe is essential. The amount depends on the type of transaction—Ad Valorem Stamp Duty (AVD), Buyer’s Stamp Duty (BSD), Special Stamp Duty (SSD), tenancy, or stock transfers. Below is a clear summary for global business owners and investors.

Stamp Duty Rates by Transaction Type

1. Residential Property — HK$5,000,000 (transaction and resale on or after 28 February 2024)

• AVD (Scale 2): 2.25% → HK$112,500
• BSD (non-HKPR buyer): 0% → HK$0 (BSD rate is 0% for new residential purchases)
• SSD (resold within 12 months): 0% → HK$0 (SSD rate is 0% for disposals on or after 28 February 2024)

Note: Before 28 February 2024, BSD and SSD were charged at higher rates (7.5%–15% for BSD and 10%–20% for SSD) on qualifying residential transactions. These historical rates may still be relevant for older acquisitions and disposals.

2. Office Property — HK$10,000,000

• AVD (Scale 2): 3.75% → HK$375,000
• BSD: Not applicable for company buyers
• SSD: Not applicable for non-residential properties

3. Tenancy — Annual Rent HK$600,000, Lease 2 Years

• Stamp Duty: 0.5% → HK$3,000

4. Stock Purchase — HK$1,000,000

• Stamp Duty: 0.1% → HK$1,000 per party (HK$2,000 total for both buyer and seller)

5. Gifting Stocks — HK$500,000

• Stamp Duty: HK$5 + 0.2% → HK$1,005

Stamp Duty Payment Deadlines 

Paying stamp duty on time in Hong Kong is crucial to avoid penalties and ensure your property, tenancy, or stock transactions are legally recognized. Deadlines vary depending on the type of transaction. Below is a clear guide for all major transaction types.

Property Transactions

For both residential and non-residential property, the buyer and seller share responsibility for paying the Ad Valorem Stamp Duty (AVD). Buyer’s Stamp Duty (BSD) and Special Stamp Duty (SSD), if applicable, must also be paid within the same period as outlined in the sale agreement.

Tenancy Agreements

The landlord is responsible for stamping the tenancy agreement and providing a stamped copy to the tenant. Failure to do so can lead to penalties and may affect the enforceability of the lease in disputes. Tenants should not assume their rent obligation is automatically suspended unless specific statutory protections apply and should seek advice before withholding rent.

Stock Transactions

Both buyer and seller are typically responsible for stock stamp duty unless an agent is involved. Gifts of stock have a specific short window, making timely action essential.

Penalties for Late Payment

Failing to pay stamp duty on time in Hong Kong can result in:

• Fines and surcharges: The government may impose additional charges based on the unpaid duty.
  
• Legal implications: Documents that are not properly stamped may not be admissible in court or recognized as valid.
  
• Delayed property or stock transactions: Unstamped agreements can hold up ownership transfers, tenancy rights, or investment settlements.

To avoid penalties, always calculate the required stamp duty and ensure payment within the prescribed deadline. Using e-stamping services or submitting documents directly to the Stamp Office can help simplify the process and provide immediate proof of payment.

How to Pay Stamp Duty in Hong Kong

Paying stamp duty in Hong Kong is a crucial step for property, tenancy, and stock transactions. The government provides multiple methods to suit different needs—ranging from convenient online options for international investors to traditional in-person methods for local parties. 

E-Stamping (Recommended for Global Buyers)

E-Stamping allows buyers to submit documents and pay stamp duty online, making it ideal for international investors. This method is fast, convenient, and secure, with automated calculations that minimize errors. The e-stamp certificate is legally valid and holds the same effect as a traditional stamp on the original document, making it suitable for property, tenancy, and stock transactions.

In-Person Stamping (Conventional Method)

In-person stamping involves submitting original documents to the Stamp Office, paying the applicable fee, and receiving a stamped document or certificate. This method provides immediate verification and guidance from staff, ensuring compliance for property, tenancy, and stock transactions. It is preferred by those who require direct handling of official documents.

Paper Application (No Original Document Needed)

Paper applications allow applicants to submit forms and payment without providing original documents, making it suitable for tenancy agreements or situations where originals cannot be presented. The Stamp Office issues a stamp certificate after processing, ensuring legal compliance while keeping the original documents with the parties. 

Read: Share Transfer Stamp Duty and Procedure for Hong Kong Company

Common Mistakes Business Owners Make And How to Avoid Them

Navigating stamp duty in Hong Kong can be complex, and even experienced business owners can make costly errors. One frequent mistake is misinterpreting the differences between Ad Valorem Stamp Duty (AVD), Buyer’s Stamp Duty (BSD), and Special Stamp Duty (SSD). Confusing these can lead to underpayment or overpayment, so it’s essential to check the applicable rates and exemptions carefully. 

Another common issue is incorrectly claiming Hong Kong Permanent Resident (HKPR) status—doing so can trigger penalties if the buyer does not meet the official criteria for first-time or preferential rates. 

Missing deadlines is a risk for overseas-executed stock transfers; stamp duty must be paid within strict timeframes, or interest and fines may apply. Incomplete tenancy stamping is another pitfall—landlords must ensure rental agreements are stamped within 30 days to avoid legal complications. 

Finally, errors in group company transfers can arise when properties are moved between related entities; proper documentation and eligibility checks are critical to benefit from exemptions. 

Conclusion

Navigating Hong Kong’s stamp duty system can be complex, especially for foreign investors and cross-border transactions. Understanding the differences between Ad Valorem Stamp Duty (AVD), Buyer’s Stamp Duty (BSD), and Special Stamp Duty (SSD), as well as meeting deadlines for property, tenancy, and stock transfers, is crucial to avoid penalties. Engaging professional guidance is essential especially for international businesses, to optimize tax obligations, comply with regulations in Hong Kong’s property and corporate landscape.