What stamp duty applies to buying property or signing a lease in Hong Kong?
For property instruments signed on or after 26 February 2026, ad valorem duty runs from a flat HK$100 up to HK$4 million to 4.25% for values between about HK$21.7 million and HK$100 million. Above HK$100 million, residential property is charged more (6.5% beyond about HK$109.6 million); non-residential stays at 4.25%. Leases pay 0.25% to 1% of rent depending on term.
Property sales (per GovHK, instruments executed on or after 26 February 2026). Residential property (Scale 1 Part 1 and Scale 2) and non-residential property (the new Scale 3) share the same graduated rates up to HK$100 million, based on the higher of the price or value:
- Up to HK$4,000,000: a flat HK$100.
- Slightly above HK$4 million: HK$100 plus 20% of the excess, until the duty reaches 1.5% of the price (about HK$4.32 million).
- Headline percentages of the whole price: 1.5% (to HK$4.5 million), 2.25% (from about HK$4.94 million to HK$6 million), 3% (about HK$6.64 million to HK$9 million), 3.75% (about HK$10.08 million to HK$20 million), and 4.25% (from about HK$21.74 million to HK$100 million).
- Between those points a slice formula (for example HK$67,500 plus 10% of the excess over HK$4.5 million) smooths the step.
Above HK$100 million. For residential property, duty is HK$4,250,000 plus 30% of the excess over HK$100 million until the duty reaches 6.5% of the price (about HK$109.6 million), and 6.5% of the whole price beyond that. This raised the top rate from 4.25% to 6.5%. For non-residential property, Scale 3 stays at 4.25% above about HK$21.74 million.
Leases of property. Rates depend on the term: 0.25% of rent for up to one year (total rent), 0.5% of yearly rent for one to three years, and 1% of yearly rent for over three years. Key money and similar premiums have separate rates.
Notes
- Other measures (for example duties on early resale) have changed over time; check the IRD Stamp Office pages for your transaction date.
- The Budget also proposed waiving stamp duty on transfers of non-residential property into REITs, which needs legislation.
- Property developers and traders may also face profits tax on sale profits.
Legal basis
- Stamp Duty Ordinance (Cap. 117), Schedule 1
Sources
Applies to As at 2026-10-29 · Last reviewed 29 October 2026
General information for business owners, not legal, tax or professional advice. Rules change, so check the sources or ask a licensed professional before you act.
Related questions
- How much stamp duty do I pay when transferring shares in a Hong Kong company?Since 17 November 2023, stamp duty on Hong Kong stock is 0.1% on each bought note and 0.1% on each sold note, so 0.2% in total, calculated on the consideration or value. The instrument of transfer carries a fixed HK$5. Gifts of shares carry HK$5 plus 0.2% of value.
- Do I have to withhold tax when paying royalties to a non-resident from Hong Kong?Yes, if the royalty is for the use of IP in Hong Kong. The non-resident is chargeable to profits tax on 30% of the royalty and the Hong Kong payer must deduct the tax when paying. That gives an effective rate of about 4.95% for a corporation at 16.5%, or 100% of the payment is taxed if paid to certain associates.
- Does a Hong Kong company pay tax on profits earned overseas?Generally no. Profits sourced outside Hong Kong are outside the profits tax charge, even if the company is incorporated here. The exceptions are certain foreign-sourced passive income received in Hong Kong by members of multinational groups under the FSIE regime, and any profits the IRD finds are actually sourced in Hong Kong.
- Does Hong Kong have VAT, GST or sales tax?No. Hong Kong has no value-added tax, goods and services tax or sales tax. The only taxes on income are profits tax, salaries tax and property tax, plus duties such as stamp duty. The government also confirms there is no capital gains tax and no withholding tax on dividends or interest.
- What is the profits tax rate for a Hong Kong company?Under the two-tiered system, a corporation pays 8.25% on its first HK$2 million of assessable profits and 16.5% on the rest. The lower rate is available to only one entity in a group of connected entities. This applies from year of assessment 2018/19 onwards.