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Stamp duty on transferring (share of) property between HK PRs

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  1. #1

    Join Date
    May 2005
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    33

    Stamp duty on transferring (share of) property between HK PRs

    OK, I'm sure this has been covered, but quick search didn't show anything.
    I'm leaving HK and want to transfer half ownership of my apartment to someone else.
    Property was originally purchased in 2007 if it matters, and we are both Permanent Residents.
    Will Stamp Duty need to be payed on the transaction?
    My interpretation of the rules is that PRs don't have to pay BSD, but would like some confirmation.


  2. #2

  3. #3

    Join Date
    May 2005
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    33

    So does that mean that because i originally purchased it in 2007 no stamp duty needs to be paid on this new transaction? (Sorry to be dense)


  4. #4

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    New owner and new transaction - stamp duty.

    Best to consult with a conveyancing lawyer. Should cost you 5-8K and they can deal with the paper work.. Land registry etc.

    hkpatv likes this.

  5. #5
    bdw
    bdw is online now

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    Feb 2009
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    There is at least 3 types of stamp duty that I know of when transferring property in Hong Kong. AVD (ad valorem stamp duty). BSD (Buyers stamp duty), SSD (Special stamp duty).

    The fact you are both PR, property was originally purchased before 2012, you have owned it for greater than 36 months, etc will eliminate 1 or 2 of these stamp duties. But still you have to pay something. You cannot get out of the basic AVD duty.

    The other thing you can do is lowball the price, declare to the government you are selling it for less than you really are, you will pay less stamp duty when doing this. But don't be too aggressive on this, HK property prices are quite transparent and the government will know if you try to screw them too much.

    chuckster007 likes this.

  6. #6

    Join Date
    May 2005
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    33

    OK, thanks (and sorry for delayed response), if the property was valued at around 8 million, does anyone have experience of successfully breaking transaction into 2 million chunks to take advantage of the $100 cap?