Calculate ad valorem stamp duty (AVD Scale 2) on a Hong Kong residential or commercial property purchase after the 2024 abolition of BSD, SSD and NRSD.
Take a residential flat bought for HK$6,000,000. Since 28 February 2024 the demand-side duties, Buyer's Stamp Duty, Special Stamp Duty and the higher New Residential Stamp Duty, no longer apply, so only ad valorem duty at Scale 2 is charged. The HK$100 flat band covers prices up to HK$4,000,000, and above that banded rates apply to the whole price. A HK$6,000,000 price falls in the band from HK$4,500,000 to HK$6,000,000, which carries a rate of 2.25 percent. So the duty is 2.25 percent of HK$6,000,000, which is HK$135,000. Adding the duty to the price gives a total cash outlay of HK$6,135,000 before legal fees and the agent commission.
How it is calculated
Stamp duty on a Hong Kong property purchase is now charged only as ad valorem duty at Scale 2, after the 2024 abolition of the demand-side duties that once penalised second-home buyers and non-permanent residents. A flat HK$100 applies to any property valued up to HK$4,000,000, a threshold that the 2025/26 Budget raised to help first-time and lower-priced buyers. Above HK$4,000,000 the rate climbs through bands of 1.5, 2.25, 3, 3.75 and 4.25 percent, and in this simplified table the band rate applies to the whole price rather than only the slice in the band. The official Inland Revenue table adds marginal-relief transition zones just above each boundary, so for a price sitting right on a cliff you should check the exact figure with the IRD. Duty is normally paid by the buyer within 30 days of the agreement.
Frequently asked questions
Do first-time buyers pay less stamp duty in Hong Kong?
Since 28 February 2024 the demand-side duties (Buyer Stamp Duty, Special Stamp Duty and the higher New Residential Stamp Duty) were abolished. All buyers now pay only ad valorem duty at Scale 2. A flat HK$100 applies to properties valued up to HK$4,000,000, after which banded rates from 1.5% up to 4.25% apply on the full price.
When must stamp duty be paid in Hong Kong?
Stamp duty on a property sale and purchase agreement must normally be paid within 30 days of signing the agreement. Late payment attracts a penalty of up to ten times the duty amount. The Inland Revenue Department accepts payment in person, by post, or through designated banks.
What happened to the Buyer Stamp Duty and Special Stamp Duty?
Both duties were abolished on 28 February 2024 as part of the government effort to support the property market. Before abolition, the Buyer Stamp Duty charged an extra 15 percent on non-permanent-resident purchasers, and the Special Stamp Duty penalised resales within two to three years. Neither applies to any purchase completed after that date.
How does AVD Scale 2 differ from AVD Scale 1?
Scale 1 carried higher rates and applied to second-home purchases by Hong Kong permanent residents and to all purchases by companies. It has been abolished along with the other demand-side duties, leaving Scale 2 as the only stamp duty rate for all residential property transactions. Scale 2 tops out at 4.25 percent on prices above HK$21,739,130.