Hong Kong removed property cooling measures: what changed
If you are reading any Hong Kong property guide published before 28 February 2024, the stamp duty figures it gives you are almost certainly wrong. That was the date the government abolished two major cooling measures — the Special Stamp Duty (SSD) and the Buyer’s Stamp Duty (BSD) — for residential property. A later change on 26 February 2026 also reset the Ad Valorem Stamp Duty (AVD) rates upward at the top end. This page tells you exactly what the old rules were, what is gone, and what a buyer actually pays now.
The cooling measures (辣招) — what they were and why they existed
Between 2010 and 2024 the Hong Kong government introduced a series of stamp duty surcharges designed to cool a red-hot housing market. Their stated aims were to curb speculation, limit demand from outside Hong Kong, and give local first-time buyers a better chance. The three main measures were:
- Special Stamp Duty (SSD) — a penalty on sellers who flipped a flat quickly. Introduced 20 November 2010.
- Buyer’s Stamp Duty (BSD) — a surcharge on buyers who were not Hong Kong Permanent Residents, including companies. Introduced 27 October 2012.
- Scale 1 AVD — a higher rate of Ad Valorem Stamp Duty charged to anyone who was not a first-time Hong Kong Permanent Resident buying for their own occupation. This was distinct from the lower Scale 2 rates available to first-time residents.
The single date that changed everything: 28 February 2024
For any instrument of sale, purchase, or transfer of residential property executed on or after 28 February 2024:
- SSD is abolished. There is no longer any holding-period penalty for selling a residential flat.
- BSD is abolished. A non-Permanent Resident buyer and a company now pay exactly the same AVD as a Hong Kong Permanent Resident who already owns property.
Before that date, a non-resident buyer faced a 15% BSD on top of AVD (reduced from 15% to 7.5% between 25 October 2023 and 27 February 2024, but still a heavy surcharge). SSD ranged from 10% to 20% depending on how long the seller held the property, with a 36-month window for properties acquired from 27 October 2012. After 28 February 2024, those charges simply do not apply to residential transactions.
The result: any guide or article written before 2024 that quotes rates including SSD and BSD will overstate your tax liability by a large margin — potentially tens of thousands or even hundreds of thousands of dollars on an average Hong Kong flat.
The later change: AVD reset on 26 February 2026
The Stamp Duty (Amendment) Ordinance 2026 took effect on 26 February 2026. It did two things:
- It raised the top rate of AVD on the most expensive residential properties. For consideration above $100,000,000, the rate increased from 4.25% to 6.5%.
- It introduced Scale 3 for non-residential property, which follows the same band structure as residential up to $21,739,120, and then stays at a flat 4.25% with no higher band.
These rates are a direct change from the pre-2026 scale. If you are looking at a guide written before February 2026, the top rate shown will be too low for properties above $100 million.
What a buyer pays now vs. before — by buyer type
Today (August 2026), AVD is charged under the same bands whether you are a first-time Permanent Resident, an existing owner, a non-Permanent Resident, or a company. The key distinction is which AVD scale applies.
Hong Kong Permanent Resident — first-time buyer, no other residential property in Hong Kong
- Before 28 Feb 2024: Charged under Scale 2 rates (lower). No SSD. No BSD. The most favourable treatment.
- Now: Charged under the current AVD bands. Because Scale 1 and Scale 2 now carry the same rates for residential property, the distinction between "first-timer" and "not first-timer" for AVD rates has effectively disappeared. You pay the standard progressive rates from the table below.
Hong Kong Permanent Resident — already owns a residential property
- Before 28 Feb 2024: Charged under Scale 1, which was materially higher than Scale 2. (The exact percentage has changed over time; the IRD's historical rate tables provide the precise figures for each period.)
- Now: Same AVD rates as a first-timer. No surcharge for multiple ownership.
Non-Permanent Resident buyer
- Before 28 Feb 2024: Paid Scale 1 AVD (higher) plus BSD (15% until 24 Oct 2023, then 7.5% until 27 Feb 2024).
- Now: Same AVD rates as a Permanent Resident. No BSD. A foreign buyer with no Hong Kong property pays exactly what a local first-timer pays on the same price.
Company buying residential property
- Before 28 Feb 2024: Treated the same as a non-resident for BSD purposes — BSD applied at the rates above, plus Scale 1 AVD.
- Now: Same as any other buyer. No BSD. Standard AVD applies.
The current AVD bands for residential property (effective 26 February 2026)
These are the rates published by the Inland Revenue Department as of August 2026. The tax is calculated on the higher of the consideration or the market value.
| Consideration (HK$) | AVD rate / fixed duty |
|---|---|
| Up to 4,000,000 | $100 |
| 4,000,001 – 4,323,780 | $100 + 20% of excess over $4,000,000 |
| 4,323,781 – 4,500,000 | 1.5% |
| 4,500,001 – 4,935,480 | $67,500 + 10% of excess over $4,500,000 |
| 4,935,481 – 6,000,000 | 2.25% |
| 6,000,001 – 6,642,860 | $135,000 + 10% of excess over $6,000,000 |
| 6,642,861 – 9,000,000 | 3% |
| 9,000,001 – 10,080,000 | $270,000 + 10% of excess over $9,000,000 |
| 10,080,001 – 20,000,000 | 3.75% |
| 20,000,001 – 21,739,120 | $750,000 + 10% of excess over $20,000,000 |
| 21,739,121 – 100,000,000 | 4.25% |
| 100,000,001 – 109,574,470 | $4,250,000 + 30% of excess over $100,000,000 |
| 109,574,471 and above | 6.5% |
Worked example (hypothetical): A flat bought for $8,000,000. Under the table, $8,000,000 falls in the $6,642,861–$9,000,000 band, which charges a flat 3%. That is $240,000. Before 28 Feb 2024, if the buyer were a non-Permanent Resident, they would have paid 3% AVD plus 7.5% or 15% BSD — an extra $600,000 or $1,200,000.
What about non-residential property?
Non-residential property (shops, offices, car parks) was always treated differently for BSD and SSD purposes. The 2024 abolition applied only to residential. For non-residential property, the relevant AVD is now Scale 3 (effective 26 February 2026), which mirrors the residential bands up to $21,739,120 and then stays at a flat 4.25% with no top-end increase.
What to do next: verify before you commit
- Check the instrument date. Your stamp duty liability is determined by the law in force on the date the sale and purchase agreement or assignment is executed. If that date is on or after 28 February 2024, SSD and BSD do not apply for residential property.
- Confirm the current AVD rate with the IRD. The rates above are correct as of 26 August 2026, but rates can change. Always verify using the IRD's official stamp duty rates page or the Stamp Duty Calculator on the Government’s e-Stamping system.
- Beware of old advice. Any blog, article, or agent who quotes BSD or SSD as a current cost for a residential purchase is using pre-2024 material. Ask them to confirm the date of their information.
- For non-Permanent Resident buyers: The good news is that you now pay the same AVD as a local. But note that other mortgage restrictions (loan-to-value ratios, stress tests) and the Special Rates for Non-Residents on property tax may still apply — those are separate from stamp duty.
The removal of SSD and BSD is the single largest stamp duty reduction for Hong Kong residential property in over a decade. It makes buying a flat meaningfully cheaper for almost everyone except the first-time Permanent Resident buyer, who already had the low rates. If your purchase is happening now, you are in the most favourable stamp duty environment since 2010 — but only if you use current information.