Stamp duty is a tax on certain legal documents in Hong Kong. It applies to property sales, tenancy agreements, and transfers of Hong Kong stocks. If a chargeable document is not stamped, it cannot be admitted as evidence in court and property registration can be delayed.
This guide covers the current rates for all 3 transaction types, who is responsible for payment, key exemptions, how the 2024 policy changes affect buyers today, and the deadlines for stamping each document type. For the broader tax context, see our Hong Kong corporate tax guide.
Highlights of this article
- Stamp duty in Hong Kong is governed by the Stamp Duty Ordinance (Cap. 117) and administered by the IRD Stamp Office.
- As of 28 February 2024, all demand-side cooling measures (Buyer's Stamp Duty, Special Stamp Duty, New Residential Stamp Duty) were abolished. Most property transactions now attract only Ad Valorem Stamp Duty (AVD) at Scale 2 rates.
- AVD on property ranges from HKD 100 (properties up to HKD 4 million) to 4.25% (properties above HKD 21.7 million).
- Stamp duty on Hong Kong stock transfers is 0.13% on the buyer's contract note and 0.13% on the seller's, totalling 0.26%.
- Property sale agreements must be stamped within 30 days of execution. Stock contract notes executed in Hong Kong must be stamped within 2 days.
- Associated company transfers under Section 45 of the Stamp Duty Ordinance may qualify for relief.
Legal framework
Stamp duty in Hong Kong is governed by the Stamp Duty Ordinance (Cap. 117). Duty is imposed on the document itself, not on the underlying transaction. The main chargeable instruments are:
- Agreements for the sale and purchase of immovable property
- Conveyances and assignments transferring property ownership
- Tenancy agreements for residential or commercial property
- Contract notes and instruments of transfer for Hong Kong stocks
Stamp duty is administered by the Stamp Office of the Inland Revenue Department. All parties to a chargeable instrument are jointly and severally liable. In practice, contracts allocate responsibility: buyers typically pay on property purchases, landlords and tenants share duty on tenancies, and both buyer and seller each pay duty on their stock contract notes.
Stamp duty on property
The 2024 policy change
Prior to 28 February 2024, Hong Kong operated 2 AVD rate schedules (Scale 1 and Scale 2) plus 3 additional demand-side measures: Buyer's Stamp Duty (BSD), Special Stamp Duty (SSD), and New Residential Stamp Duty. Scale 1 rates were significantly higher and applied to buyers who did not qualify for preferential treatment (e.g. non-permanent residents, buyers already owning property).
From 28 February 2024, all demand-side measures were abolished. Property acquisitions are now generally subject to AVD at Scale 2 rates regardless of the buyer's residency status or existing property holdings.
Ad Valorem Stamp Duty (AVD): Scale 2 rates
AVD is calculated on the higher of the purchase price or market value:
| Property value | Stamp duty |
|---|---|
| Up to HKD 4,000,000 | HKD 100 |
| HKD 4,000,001 to HKD 4,323,780 | HKD 100 + 20% of amount over HKD 4,000,000 |
| HKD 4,323,781 to HKD 4,500,000 | 1.5% |
| HKD 4,500,001 to HKD 4,935,480 | HKD 67,500 + 10% of amount over HKD 4,500,000 |
| HKD 4,935,481 to HKD 6,000,000 | 2.25% |
| HKD 6,000,001 to HKD 6,642,860 | HKD 135,000 + 10% of amount over HKD 6,000,000 |
| HKD 6,642,861 to HKD 9,000,000 | 3% |
| HKD 9,000,001 to HKD 10,080,000 | HKD 270,000 + 10% of amount over HKD 9,000,000 |
| HKD 10,080,001 to HKD 20,000,000 | 3.75% |
| HKD 20,000,001 to HKD 21,739,120 | HKD 750,000 + 10% of amount over HKD 20,000,000 |
| Above HKD 21,739,120 | 4.25% |
Example: A property purchased for HKD 8,000,000 falls in the 3% band. Stamp duty = HKD 240,000.
AVD exemptions and reliefs
Certain transfers may qualify for stamp duty relief under the Stamp Duty Ordinance:
| Relief | Condition |
|---|---|
| Associated company transfer | Section 45 relief: transferor and transferee are associated companies (90%+ common ownership). Must apply to the Stamp Office with supporting documents. |
| Court-ordered transfer | Transfer pursuant to a court order |
| Government transfer | Transfer to the Hong Kong Government |
| Charitable transfer | Transfer to an approved charitable institution |
| Inheritance | Property passing on death |
Relief is not automatic. The instrument must be presented to the Stamp Office with the relevant supporting documentation. If the associated company relationship breaks down within 2 years of the transfer, the relief is clawed back.
Stamp duty on tenancy agreements
Stamp duty on leases is based on the average yearly rent and the length of the term:
| Lease term | Stamp duty rate |
|---|---|
| 1 year or less | 0.25% of the total rent payable |
| More than 1 year, up to 3 years | 0.5% of the average yearly rent |
| More than 3 years | 1% of the average yearly rent |
Key money, premiums, or other consideration paid upfront may also attract duty. Extra copies of a stamped tenancy agreement cost HKD 5 per copy. Both landlord and tenant are legally responsible for ensuring the agreement is stamped within 30 days of execution.
Stamp duty on Hong Kong stock
Stamp duty applies to every transfer of Hong Kong stock:
| Document | Rate |
|---|---|
| Buyer's contract note | 0.13% of the consideration |
| Seller's contract note | 0.13% of the consideration |
| Instrument of transfer | HKD 5 fixed duty |
The total effective duty on a share transaction is 0.26% of the transaction value (0.13% each from buyer and seller). For transfers without monetary consideration (e.g. gifts or intra-group transfers), duty is assessed on the market value of the shares at the time of transfer.
Stock contract notes executed in Hong Kong must be stamped within 2 business days. Notes executed outside Hong Kong have a 30-day deadline.
Stamping deadlines
| Transaction | Deadline |
|---|---|
| Property sale agreement | Within 30 days of execution |
| Tenancy agreement | Within 30 days of execution |
| Stock contract note (executed in Hong Kong) | Within 2 business days of execution |
| Stock contract note (executed outside Hong Kong) | Within 30 days of execution |
Late stamping results in financial penalties. An unstamped document cannot be used as evidence in court until the duty and penalties are paid.
How to pay stamp duty
E-stamping (online)
The IRD's e-Stamping portal supports electronic payment and issues a stamp certificate for property transfers, tenancy agreements, and stock transfers. A stamp certificate issued by the IRD is legally equivalent to a physically stamped document.
In person at the Stamp Office
Bring the original document to the Stamp Office at Revenue Tower, 5 Gloucester Road, Wan Chai. Complete a stamping request form. The Stamp Office may accept a certified copy in certain circumstances.
Paper application
For certain instruments, stamping can be completed by post or paper application without presenting the original document, subject to IRD requirements.
Impact on company share transfers
For Hong Kong companies, stamp duty on share transfers is a recurring cost whenever equity changes hands. At 0.26% of the transaction value, the duty on a HKD 10 million share acquisition is HKD 26,000. For intra-group restructurings, Section 45 relief (associated company exemption) can eliminate the duty entirely, provided the 90%+ common ownership threshold is met and the relationship is maintained for at least 2 years post-transfer.
Your company secretary typically coordinates the preparation of share transfer documents and submission to the Stamp Office as part of the transfer process. For the full annual compliance calendar, see our annual requirements guide.
Air Corporate handles company secretary services for Hong Kong companies from USD 955/year, including share transfer coordination and Stamp Office submissions. Audit and tax filing starts from USD 580/year. Company secretary | Accounting services
