Heavy! Hong Kong Non-Permanent Resident Purchase Tax Rebate Implementation Rules Announced

label： 2023-04-21

good news!

Hong Kong's "Stamp Duty Bill 2023" was gazetted to implement a talent recruitment measure announced in the "2022 Policy Address", that is, "to refund the additional stamp duty for qualified foreign talents who purchase properties in Hong Kong".

Hong Kong stamp duty

The tax requirements for buying property in Hong Kong are different from those in the Mainland. There are no deed tax, value-added tax and other taxes, and only stamp duty is required.

Hong Kong stamp duty is further divided into ad valorem stamp duty and buyer's stamp duty, and the regular tax rate is 15%.

If you have not yet obtained permanent residency in Hong Kong:

Buying property in Hong Kong requires full payment of two types of stamp duty, with a total tax rate of 30%.

If you already have Hong Kong permanent residency:

Only 15% ad valorem stamp duty is required;

At the same time, if you are buying a property in Hong Kong for the first time, you can also pay ad valorem stamp duty according to the first-time preferential tax rate (1.5%-4.25%).

Summary: After the "Bill" is officially implemented, non-permanent residents in Hong Kong can apply for a refund of the stamp duty paid due to their different status during the property purchase period, so that the overall stamp duty burden is on par with Hong Kong permanent residents who are first-time home buyers.

How much tax can be refunded?

Taking a residential property with a property price of 10 million Hong Kong dollars per unit as an example, non-permanent residents need to pay 3 million Hong Kong dollars in taxes (15% buyer's tax + 15% ad valorem stamp duty).

But now, according to the "Bill", qualified foreign talents who convert to permanent residence status and buy a home for the first time only need to bear the same 3.75% stamp duty as permanent residents, which is 375,000 Hong Kong dollars.

After deducting the overpaid tax of HK$375,000, the remaining HK$2.625 million can be refunded upon application.

Prerequisites for claiming a tax refund

To apply for a stamp duty refund, the following conditions must be met:

① Non-Hong Kong permanent residents who enter Hong Kong with any of the following plans (qualified foreign talents)

High-end Talent Pass Program (Gao Caitong)

Admission of Mainland Talents and Talents Scheme (Professionals)

Quality Migrant Admission Scheme (QMAS)

Technology Talent Admission Scheme

General Employment Policy

Arrangements for Non-local Graduates to Stay/Return to Hong Kong for Employment

Admission of the Second Generation of Chinese Hong Kong Permanent Residents

② The applicant has become a permanent resident of Hong Kong;

③ Purchase of residential property is on or after October 19, 2022;

④ It must be the only residential property held at the time of purchase, except for replacement properties;

⑤ On the date of applying for tax refund, the applicant still holds the residential property;

⑥ The applicant can only apply for a stamp duty refund on one residential property.

The Bill was introduced to the Legislative Council for the first and second readings on April 19.

The Hong Kong government hopes to significantly reduce the cost of property purchases for foreign talents through this "Bill" and attract them to stay in Hong Kong for long-term development.

On the whole, Hong Kong identity can enjoy more advantages and conveniences whether it is buying a house, education, pension, starting a business, etc. in Hong Kong or the Greater Bay Area!

If you intend to plan your Hong Kong identity, please contact Xingyunhai International!

Xingyunhai International is headquartered in Hong Kong, China, occupying regional advantages and possessing strong resources. Professional consultants, senior copywriters, and post-service teams follow up the whole process, providing comprehensive and considerate services such as Hong Kong immigration, further education, and investment.