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5. How much stamp duty is payable for the sale and purchase agreement for a residentialproperty?

The formal agreement must be stamped either: i) within 30 days of the signing of the provisional agreement, or ii) within 30 days of the formal agreement if it is to be signed within 14 days of the provisional agreement. The purchaser's solicitor will take care of this matter.

 

On the basis that (1) the purchaser is a Hong Kong permanent resident who is purchasing the property on his/her own behalf; and (2) does not own any other residential property at the time of purchase, the rate of the ad valorem stamp duty payable varies in accordance with the price/value (whichever is higher) of the residential property as follows:

 

Property Price

Rate

Exceeds

Does not exceed

 

$2,000,000

$100

$2,000,000

$2,351,760

$100 + 10% of excess over $2,000,000

$2,351,760

$3,000,000

1.5%

$3,000,000

$3,290,320

$45,000 + 10% of excess over $3,000,000

$3,290,320

$4,000,000

2.25%

$4,000,000

$4,428,570

$90,000 + 10% of excess over $4,000,000

$4,428,570

$6,000,000

3%

$6,000,000

$6,720,000

$180,000 + 10% of excess over $6,000,000

$6,720,000

$20,000,000

3.75%

$20,000,000

$21,739,120

$750,000 + 10% of excess over $20,000,000

$21,739,120

---

4.25%

 

Example

 

Suppose the purchase price of a residential flat is $3,200,000, then the ad valorem stamp duty payable for the formal sale and purchase agreement is:
$45,000 + 10% of excess over $3,000,000
= $45,000 + 10% of $200,000
= $65,000

 

*Note:
(1) If the purchaser is a non-Hong Kong permanent resident or a corporation, such purchaser would have to pay additional Buyer’s Stamp Duty in additional to the ad valorem duty.

(2) If the purchaser already owns a residential property, the ad valorem stamp duty would be a flat rate of 15% of the purchaser price or the value of the residential property, whichever is the higher.

 

For further details about stamp duty, you can go to the Inland Revenue Department's webpage.

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