SSD: special stamp duty explained

Special Stamp Duty (SSD) is a tax that was charged on the seller of residential property in Hong Kong when they resold within a short holding period. It was designed to penalise short-term speculation—“flipping”—by making quick resales expensive. The duty was abolished for all instruments executed on or after 28 February 2024, meaning it no longer applies to new transactions. However, it still matters for pre-abolition purchases and for understanding historical price data.

Policy intent: what the government wanted to stop

Before SSD, investors could buy a flat and resell it weeks or months later at a profit, driving up prices without adding housing supply. The government introduced SSD in November 2010 to deter this behaviour. By taxing the seller heavily on early resales, the duty removed the financial incentive for very short holding periods. The longer the seller held the property, the lower the SSD rate fell, until the duty disappeared entirely.

How SSD worked in practice

SSD was payable by the seller, on top of Ad Valorem Stamp Duty (AVD). The holding period was counted from the date of acquisition (the date of the instrument of transfer) to the date of disposal (the date of the new instrument of transfer). The rate applied depended on when the property was acquired, because the rules changed twice.

Original regime: 20 November 2010 to 26 October 2012

For property acquired during this period, SSD was charged at three rates:

• Held 6 months or less → 15%
• Over 6 and up to 12 months → 10%
• Over 12 and up to 24 months → 5%

The maximum holding period that could trigger SSD was 24 months. After that, no SSD was payable.

Revised regime: on or after 27 October 2012

The government tightened the rules significantly. From this date, the rates were higher and the holding window was extended:

• Held 6 months or less → 20%
• Over 6 and up to 12 months → 15%
• Over 12 and up to 36 months → 10%

The window increased from 24 to 36 months. A seller who resold at, say, 30 months still paid 10% SSD. This regime applied to property acquired on or after 27 October 2012 and disposed of before 25 October 2023.

Relaxation in October 2023

On 25 October 2023, the holding window was shortened back to 24 months for instruments executed on or after that date. However, the rates themselves did not change. So for property acquired on or after 26 October 2021 and disposed of on or after 25 October 2023, the SSD window was 24 months, not 36.

What property SSD applied to

SSD applied only to residential property. Non-residential property (commercial, industrial, car parks) was never subject to SSD. The duty was charged on the full consideration (the sale price) or the market value, whichever was higher. The seller was the person liable—not the buyer.

SSD was an additional duty on top of the AVD that the buyer normally pays. So if you sold a flat within 12 months under the revised regime, you could face SSD of 15% on the sale price, and the buyer still paid their AVD. This could wipe out any short-term gain.

SSD abolished: what changed on 28 February 2024

The government abolished SSD for residential property with effect from 28 February 2024. Any instrument of sale, purchase, or transfer of residential property executed on or after that date is no longer subject to SSD. The same abolition applied to Buyer’s Stamp Duty (BSD).

Note carefully what this means: If you bought a flat on 1 March 2024 and sell it on 1 May 2024, you pay no SSD, regardless of the holding period. The duty is gone for all new transactions.

Why SSD still matters today

Even though SSD is abolished for new deals, you cannot ignore it entirely:

• Pre-abolition transactions: If you bought a flat before 28 February 2024 and resell it after that date, you may still be liable for SSD if the resale is within the relevant holding period and the acquisition happened under the old rules. For example, buy in January 2023 and sell in March 2024: the acquisition was before abolition, and the sale may trigger SSD if within 36 months (or 24 months, depending on the exact dates). The abolition applies to instruments executed on or after 28 February 2024, but the duty is determined by the acquisition date and the holding period.
• Historical price data: When you see a resale price from 2019 or 2020, remember that the seller may have paid SSD. The reported “sold price” is the headline figure, but the seller’s net profit after SSD could be much lower. This affects how you interpret price trends in older data.
• Understanding market behaviour: The abolition of SSD may increase short-term turnover, because the cost barrier to flipping has been removed. Price volatility could rise as a result.

Key dates at a glance

SSD in context with other stamp duties

SSD was one of three special duties on residential property. The other two were:

• Buyer’s Stamp Duty (BSD): Charged at 15% from 27 October 2012 to 24 October 2023, then 7.5% from 25 October 2023 to 27 February 2024. It applied to buyers who were not Hong Kong Permanent Residents (including companies) acquiring residential property, on top of AVD. Abolished on the same date as SSD.
• Ad Valorem Stamp Duty (AVD): The baseline duty on all property transactions. For residential property, different scales existed before the 2024 changes. If a buyer was not a Hong Kong Permanent Resident first-time buyer, they were charged under a higher rate scale (historically called Scale 1). The exact Scale 1 percentages varied over time; to verify them for a specific year, check the IRD’s historical rate tables.

For current AVD rates (effective 26 February 2026), see the IRD stamp duty rates page. The top residential rate now reaches 6.5% for consideration above $100 million.

What to check or do next

If you own a residential flat acquired before 28 February 2024 and you are considering selling, you need to determine whether SSD could apply. Check three things:

• The exact date you acquired the property (date of the transfer instrument).
• The date you plan to sell (date of the new instrument).
• Which regime applies based on those dates, and the current holding period.

For a precise calculation, consult the Inland Revenue Department stamp duty rates page or speak to a solicitor or tax professional. The IRD’s published rates are the definitive source, and this guide summarises them as of 26 August 2026. SSD rules can be nuanced, especially if you acquired the property as part of a larger transaction or inherited it.