How much stamp duty do you need to pay when buying property in Hong Kong?
As of 2026, Hong Kong has completely abolished all “spicy measures” (property cooling measures), including the Buyer’s Stamp Duty (BSD), Special Stamp Duty (SSD), and New Residential Stamp Duty (NRSD). Currently, whether purchasing residential or commercial properties, all buyers only need to pay the Ad Valorem Stamp Duty (AVD) at “Scale 2 Rates”. For properties valued at HKD 4 million or below, the stamp duty is merely HKD 100; for properties over HKD 4 million, it is calculated on a progressive scale, with a maximum rate of 4.25%. If the property is acquired through a “Company Share Transfer,” the stamp duty can be reduced to as low as approximately 0.2%.

“As the frontline senior advisory team at Midland IC&I, we have personally witnessed the market’s rapid rebound since the government’s complete removal of the cooling measures. Over the past two years, we have assisted hundreds of local and overseas investors in acquiring small-to-medium-sized commercial properties at an extremely low tax rate (HKD 100). Meanwhile, for large transactions exceeding tens of millions, an increasing number of clients have safely completed their deals via ‘Company Share Transfers’ through our professional accounting and legal network, substantially saving up to 4% in transaction costs.”

2026 Key Takeaways on Hong Kong Property Stamp Duty

Here are the core tax points for Hong Kong property transactions in 2026:

• Full Removal of Cooling Measures: Between 2024 and 2025, the Double Stamp Duty (DSD), Buyer’s Stamp Duty (BSD), and Special Stamp Duty (SSD) were officially canceled. Currently, buyers and sellers only need to pay the Ad Valorem Stamp Duty (AVD).
• Unified Tax Rate: Both residential and non-residential (commercial/industrial) properties are now subject to the Scale 2 Rates.
• Extreme Discounts for Low-Priced Properties: For properties with a transaction price or market value of HKD 4,000,000 or below, the stamp duty is a flat rate of just HKD 100.
• Advantages of Company Transfers: By purchasing the shares of a limited company that holds a property (rather than buying the property directly), the stamp duty rate is only about 0.2%, offering higher privacy and potential profits tax benefits.

📊 Current Ad Valorem Stamp Duty (Scale 2 Rates) Table

(Applicable to residential and commercial property transactions following the full withdrawal of cooling measures in 2024 and the implementation of the amended ordinance in 2025)

Double Stamp Duty (Abolished):
Introduced by the Hong Kong government in 2013 to curb speculation, the Double Stamp Duty (formally known as the Doubled Ad Valorem Stamp Duty) doubled the original AVD rates. For example, if the standard AVD rate was 3%, the Double Stamp Duty required the buyer to pay 6%. This tax primarily targeted non-first-time buyers (those who already owned property) or non-Hong Kong permanent residents.

Buyer’s Stamp Duty (Abolished):
The Buyer’s Stamp Duty (BSD) was an additional 7.5% stamp duty levied on the purchase price of residential properties bought by non-Hong Kong permanent residents or under a company name. Under the 2023 Policy Address, eligible incoming talents were allowed a “suspend first, pay later” arrangement, exempting them from BSD initially, only requiring payment if they failed to reside in Hong Kong for 7 years to become permanent residents. However, BSD never applied to non-residential (commercial) property transactions.

Special Stamp Duty (Abolished):
The Special Stamp Duty (SSD) was an additional tax payable if an owner sold a property within two years of purchase. Like the BSD, the SSD did not apply to non-residential property transactions.

V. Transfer via Company Name

Even though Hong Kong fully abolished “spicy taxes” like the Double Stamp Duty, Buyer’s Stamp Duty, and New Residential Stamp Duty by late February 2024—leaving only a single Ad Valorem Stamp Duty (Scale 2 Rates) for residential and commercial properties—some investors still utilize “Company Share Transfers” to purchase the shares of limited companies holding properties as a legal means to save on stamp duty.

Specifically, if a buyer purchases a property directly (property transfer), they are subject to the Scale 2 AVD, with rates ranging from 0.1% up to 4.25%. However, if the buyer acquires the shares of the company holding the property, the transaction is treated as a share transfer, which incurs a stamp duty rate of only about 0.2%—significantly lower than standard property stamp duty rates. This is the main reason behind the popular notion of buying property under a company name for “tax avoidance.”

Beyond saving on stamp duty, holding property via a company offers other operational and tax advantages, such as deducting property-related expenses for tax purposes, calculating rental income under corporate profits tax (which can be as low as 8.25%), and enjoying higher privacy protection (e.g., holding via offshore companies).

However, this approach requires buying the shares of the property-holding company rather than the property itself. Furthermore, holding property under a company name comes with administrative costs, legal liabilities, and relatively more difficult loan applications. Therefore, whether this “tax avoidance” method is reasonable and cost-effective depends on individual circumstances. It is highly recommended to consult professional lawyers or tax advisors.

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❓ Frequently Asked Questions

Q1: Do I still need to pay Buyer’s Stamp Duty (BSD) when buying commercial properties in Hong Kong in 2026?
A: No. The Hong Kong government has completely abolished the Buyer’s Stamp Duty (BSD) and Special Stamp Duty (SSD). Currently, purchasing commercial properties only requires paying the Ad Valorem Stamp Duty at Scale 2 Rates.

Q2: What is a “Company Share Transfer” for buying property? Does it really save taxes?
A: This refers to a buyer purchasing the shares of a limited company that owns a property, rather than buying the property directly. This is classified as a share transfer, which carries a stamp duty rate of only about 0.2%, far lower than the maximum 4.25% property stamp duty. It is a legal tax-saving method, but buyers must be mindful of the company’s hidden debts and administrative costs.

Q3: What is the stamp duty for a commercial shop valued at HKD 3 million?
A: According to the latest Scale 2 Rates, properties valued at HKD 4 million or below are subject to a flat stamp duty of just HKD 100.