Hong Kong Property Stamp Duty — AVD, BSD & SSD Planning Guide

It depends entirely on your status and history. A HKPR buying their first residential property pays AVD Scale 2: HKD 67,500 (on the first HKD 2M) + higher tranches, total approximately HKD 225,000 (2.25%). A HKPR buying a second property pays AVD Scale 1: HKD 425,000 (4.25%). A non-HKPR or company buyer additionally pays BSD of 15% = HKD 1,500,000, totalling up to HKD 1,925,000. The difference between first PR buyer and non-PR buyer is approximately HKD 1.7M.

BSD at 15% of the purchase price is payable by: (1) any non-Hong Kong Permanent Resident purchasing residential property; and (2) any company (regardless of whether directors/shareholders are HKPRs) purchasing residential property. BSD was introduced in October 2012 to curb property speculation. Commercial property is not subject to BSD.

Yes, if you paid BSD as a non-HKPR individual and subsequently become a HKPR within a defined period while not owning any other HK residential property, you can apply to the Stamp Office for a refund of the BSD paid. The refund application must be submitted promptly — seek advice as soon as you obtain PR status. There is no time limit specified in the ordinance but applications should be made without delay.

SSD applies to residential property resold within 3 years of acquisition: 20% if sold within 6 months, 15% if sold in months 7–12, and 10% if sold in months 13–36. SSD is charged on the higher of the consideration or market value. To avoid SSD, you must hold the property for more than 36 months (3 years) from the date of acquisition (i.e., from the PASP date, not completion date).

Commercial property is subject to AVD at up to 4.25% but is NOT subject to BSD or SSD. This makes commercial property significantly cheaper in stamp duty terms for non-HKPR buyers and companies — a key reason many investors prefer commercial property. However, the total consideration including fitting-out costs may be included in the dutiable value in some cases.

Transfers between spouses (in the context of marriage or specified family arrangements) are exempt from AVD if certain conditions are met. Transfers to adult children or other family members are fully dutiable and may also trigger SSD if within the relevant window. Any arrangement specifically designed to avoid stamp duty is closely scrutinised by the Stamp Office and may be challenged under anti-avoidance provisions.