Govt adjusts stamp duty rates on property transactions

For properties valued up to $4m, buyers will pay a nominal duty of $100.

Hong Kong introduced a revised Ad Valorem Duty (AVD) structure for property transactions, wherein tax rates will increase based on property value.

For properties valued up to $4m, buyers will pay a nominal duty of $100. However, for properties priced at more than $4m to $4,323,780, the duty will be $100 plus 20% of the excess over $4m.

As values rise, properties in the $4,323,781 to $4.5m range will be subject to a 1.5% tax rate.

Mid-tier properties also face increased taxation. Homes priced between $4,500,001 and $4,935,480 will incur a duty of $67,500 plus 10% of the excess over $4.5m.

Those valued between $4,935,481 and $6m will be taxed at 2.25%, whilst properties in the $6m to $6,642,860 range will face a charge of $135,000 plus 10% of the excess over $6m.

For luxury properties, the tax burden increases significantly. Properties valued between $6,642,861 and $9m will be taxed at 3%, whilst those between $9m and $10,080,000 will incur $270,000 plus 10% of the excess over $9m.

Meanwhile, homes in the $10,080,001 to $20m category will be taxed at 3.75%, and properties exceeding $21,739,121 will be subject to the highest rate of 4.25%.