With effect from 20 November, 2010, a new special stamp duty [“SSD”] on transactions for residential properties to address perceived concerns over increases in property prices.

The SSD is imposed on the full value of sales proceeds which were further amended with effect from 27 October, 2012, depending on when the property is brought and sold at the following rates :

(i) 6 months or less - 20%
(ii) more than 6 months but not exceeding 12 months - 15%
(iii) more than 12 months but not exceeding 36 months - 10%

The SSD is effective for residential properties acquired on or after 27 October, 2012 and resold within 36 months and is in addition to the ad valorem rates of stamp duty already imposed.  Both the seller and the buyer will be jointly and severally liable for paying the SSD.

A further Buyer’s Stamp Duty [“BSD”] at 15% is payable on the purchase of residential property by a company or non Hong Kong permanent residents.