HK Special Stamp Duty Calculator 2026 (SSD on Resale)

How HK Special Stamp Duty Works

Special Stamp Duty (SSD) was introduced in November 2010 to cool the Hong Kong residential property market by deterring short-term flipping. Originally the SSD applied for 36 months at rates of 5%, 10%, and 15%. The Financial Secretary's 2024-25 Budget delivered on 28 February 2024 cut the regime substantially — abolishing SSD for properties acquired before that date and shortening the holding period to 24 months for new acquisitions, with reduced rates. For a property acquired after 28 February 2024, SSD applies as: 20% if resold within 6 months, 15% if resold between 6 and 12 months, and 10% if resold between 12 and 24 months. After 24 months no SSD applies — only the standard ad valorem stamp duty (Scale 2) on the resale, which is paid by the buyer of the resale, not the seller. Both seller and buyer are jointly liable for SSD payment unless explicitly addressed in the sale and purchase agreement.

SSD vs Ad Valorem Stamp Duty

SSD and Ad Valorem Stamp Duty (AVD) are charged separately. AVD is the standard property purchase stamp duty paid by the buyer at the time of acquisition, scaled from 1.5% on properties under HK$3 million up to 4.25% on properties over HK$21.74 million (Scale 2 for HK permanent residents buying first/only home). SSD is charged on top of AVD when the seller resells within the holding period. Because both seller and buyer are jointly responsible for SSD, the practical effect is the seller absorbs the cost — making short-term resales economically punitive. A HK$8 million flat resold within 6 months of purchase would trigger HK$1.6 million SSD on top of any new buyer's AVD, plus capital gain on the underlying flip — usually making the trade uneconomic.

Exemptions and Reliefs

Several transfers are exempt from SSD: inheritance from a deceased relative, gifts to family members under section 29CA of the Stamp Duty Ordinance (Cap. 117), transfers between spouses, transfers between associated companies (90%+ common ownership held for 2+ years), nominations to a family member without consideration, and court orders for matrimonial property division. Nominee changes after signing the provisional agreement can also avoid SSD if completed before assignment, subject to anti-avoidance rules. Always seek written confirmation from IRD before relying on an exemption — penalties for under-stamping are severe (up to 10× the duty plus 200% surcharge after 6 months). Last updated: 2026, based on Stamp Duty Ordinance Cap. 117 sections 29C-29G as amended by the Stamp Duty (Amendment) Ordinance 2024. Source: ird.gov.hk/eng/tax/sd_overview.htm.

Strategic Implications for Investors

For long-term hold investors (>24 months), SSD is irrelevant. For short-term traders, SSD effectively eliminates flipping margins — a 6-month flip costs 20% of resale value, well above typical price appreciation. Some investors structure purchases through a special-purpose vehicle company and sell shares in the company instead of the property itself, avoiding SSD on direct property transfer; however, anti-avoidance rules under section 29CB and 29CC pierce most such structures. The Buyer's Stamp Duty (BSD) for non-permanent residents and the New Residential Stamp Duty (NRSD) for second-home buyers were also abolished in February 2024, further normalizing the cooling-measure landscape. Today, SSD remains the only short-term anti-flipping rule and applies only within 24 months for post-Feb-2024 acquisitions.