Hong Kong Property Guide: Updated Stamp Duty and Mortgage Rules
This article provides a refresher to the stamp duty rates, maximum LTV, and advantages for first-time buyers, based on updates from the Inland Revenue Department and Hong Kong Monetary Authority.
Disclaimer: Jade Land Properties does not guarantee the accuracy or completeness of the information provided. Stamp duty and mortgage policies may change; please verify current terms with the IRD and banks. Mortgage loan applications are subject to bank approval. We recommend consulting independent professional advisors before making any purchase decisions to ensure informed choices.
Hong Kong Stamp Duty: Simplified Policies for Buyers
To stimulate activity in the Hong Kong property market, the government has removed several stamp duties, making homeownership more accessible. The 2024-25 Budget eliminated demand-management measures, creating a buyer-friendly environment for purchasing property in Hong Kong.
Ad Valorem Stamp Duty (AVD)
AVD is the primary duty on property transfers in Hong Kong, calculated on the higher of the purchase price or market value. Since February 28, 2024, all residential transactions in the Hong Kong property market follow the progressive Scale 2 rates, simplifying costs for buyers. The rates are:
| Property Value (HK$) | AVD Rate |
| Up to 4,000,000 | HK$100 |
| 4,000,001 – 4,323,780 | HK$100 + 20% of excess |
| 4,323,781 – 4,500,000 | 1.5% |
| 4,500,001 – 4,935,480 | HK$67,500 + 10% of excess |
| 4,935,481 – 6,000,000 | 2.25% |
| 6,000,001 – 6,642,860 | HK$135,000 + 10% of excess |
| 6,642,861 – 9,000,000 | 3% |
| 9,000,001 – 10,080,000 | HK$270,000 + 10% of excess |
| 10,080,001 – 20,000,000 | 3.75% |
| 20,000,001 – 21,739,120 | HK$750,000 + 10% of excess |
| Over 21,739,120 | 4.25% |
Non-residential properties also follow Scale 2 rates since November 26, 2020. Agreements for sale are stamped at these rates, with subsequent conveyances attracting a fixed HK$100 duty if the agreement was stamped.
Suspension of Buyer’s Stamp Duty (BSD) and Special Stamp Duty (SSD)
- Buyer’s Stamp Duty (BSD): Initially a 15% levy on residential purchases by non-Hong Kong permanent residents, reduced to 7.5% from October 25, 2023, BSD was fully suspended for transactions after February 27, 2024. All buyers now pay only AVD at Scale 2 rates, making it easier to buy property in Hong Kong.
- Special Stamp Duty (SSD): Previously applied to resales within short holding periods (10% to 20% for properties held less than 36 months), SSD was reduced to 0% since February 28, 2024, enhancing flexibility in the Hong Kong real estate market.
Exemptions apply for intra-group transfers of associated companies, subject to IRD approval. Explore our Hong Kong property listings to find your dream home in areas like the Mid-Levels.
Mortgage Loan Policies: Supporting Hong Kong Homeownership
The HKMA regulates mortgage lending to ensure stability while offering favorable loan-to-value (LTV) ratios for buyers in the Hong Kong property market.
What is the Maximum Loan-To-Value Allowed?
The maximum LTV ratios for residential properties, effective for provisional Sale and Purchase (S&P) agreements on or after September 22, 2023, are as follows:
| Property Value# | Maximum LTV Ratio# |
| Up to HK$10 million | 80% or 90%* |
| Above HK$10 million and below HK$11.25 million |
80% or 90%* (subject to a loan cap of HK$9 million) |
| At or above HK$11.25 million and up to HK$15 million |
80% |
| Above HK$15 million and up to HK$17.15 million |
70% – 80% (subject to a loan cap of HK$12 million) |
| Above HK$17.15 million and up to HK$30 million** |
70% |
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*Only applicable to application with (i) all mortgagors not holding any residential properties in Hong Kong at the time of application and (ii) all applicants being regular salaried persons (please refer to the relevant Insurance Eligibility Criteria) **Only applicable for provisonal agreements for sale and purchase before 16 October 2024 |
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- Non-Residential LTV: Capped at 60% for commercial or industrial properties, such as office spaces in Central.
- Loan Tenors: Up to 30 years for residential properties and 25 years for non-residential, with stress tests ensuring repayment capacity under a +2-3% interest rate hike (current prime rate ~5.875%).
- Mortgage Insurance Programme (MIP): Offered by the HKMC, it allows banks to exceed 70% LTV by insuring the excess portion, with financeable premiums based on LTV, tenor, and coverage. Higher LTVs (up to 90%) are available for eligible first-time buyers under specific conditions, including regular salaried income and no prior property ownership. Coverage varies by provisional Sale and Purchase (S&P) agreement signing date: “Existing MIP” for agreements before September 22, 2023, and “New Coverage” for those on or after.
Conclusion: A Prime Opportunity for Hong Kong Homeownership
With relaxed stamp duties and favorable mortgage options, Hong Kong’s 2025 property market offers an inviting environment for homebuyers. First-time buyers in Hong Kong benefit from high LTV ratios and tax incentives, making vibrant areas like the Mid-Levels more accessible. High interest rates and economic factors require careful planning, but the market is ripe for opportunity.
Ready to start your homeownership journey in Hong Kong?
Contact our team at Jade Land Properties today for personalized assistance or to explore exclusive listings tailored to your Hong Kong homeownership goals.
