- Selling costs include estate agent’s commission, solicitor’s fees and stamp duty. They may also include a penalty-period fee, compensation for breach of contract and profits tax.
- Agent’s commission is usually 1% of the sale price. Solicitor’s fees for an ordinary residential sale are about HK$5,000 to HK$10,000.
- Special Stamp Duty (SSD) and Buyer’s Stamp Duty (BSD) were abolished in 2024. Ad Valorem Stamp Duty (AVD) remains.
- The buyer must pay stamp duty within 30 days of signing the agreement or the assignment. If payment is more than 2 months late, the penalty can be up to 10 times the duty.
Selling a property in Hong Kong involves legal documents, signing deeds and calculating tax. Solicitor’s fees are an important cost that sellers cannot ignore.
Below we explain the costs of selling, solicitor’s fees for a sale and stamp duty.
Costs of selling and arranging the estate agent’s commission
Selling a property is not just waiting to be paid. The owner also has to prepare for costs, including agent’s commission, solicitor’s fees and stamp duty.
This article sets out a “selling cost checklist” to help owners plan their selling expenses better.
Many owners use an estate agent to sell, to save time and effort. We suggest using a licensed agent and signing an Estate Agency Agreement. When signing, check these points:
- How long the agreement lasts
- When the commission is paid
- The type of appointment (such as “sole agency” or “non-exclusive agency”)
Agent’s commission is usually 1% of the sale price. The actual amount depends on what both sides agree, and the owner should include the commission in the selling budget.
Please note
- With a sole agent, the sole agent may still charge the owner commission even if the sale is completed through another agent.
- Find out whether the agent acts for both buyer and seller. If so, the agent must disclose to both sides the amount or rate of commission received.
Not clear about the agent’s commission arrangement?
If in doubt, feel free to contact our dedicated consultants.
How solicitor’s fees for selling a property in Hong Kong are worked out
In Hong Kong, a solicitor handles the legal documents in a property sale. The fee is generally around HK$10,000, depending on how complicated the transaction is.
Other costs include land search fees, the fee for registering the release of the mortgage and other small charges (such as travel and printing).
A solicitor’s main tasks are:
-
Preparing the sale and purchase agreement
Prepares the provisional and formal sale and purchase agreements for both sides, making sure the terms are clear and comply with the law
-
Checking the title deeds
Checks the title deeds and carries out a land search, confirming the seller has the legal right to sell the property and that it has no unresolved legal disputes
-
Declaring stamp duty
Helps declare and pay the stamp duty
-
Registering the assignment
Once the deal is completed, registers the assignment of the property, making sure the buyer becomes the new legal owner
-
Handling the mortgage documents
If the buyer needs a mortgage loan, the solicitor also handles the mortgage documents and makes sure they meet the bank’s requirements
Please note
- If the property still has a mortgage, a fee to redeem it must also be paid.
- As the seller, you must make sure the title records are complete. If title documents are missing, the solicitor will help apply to the Land Registry to make up the gap, usually at a cost of a few hundred Hong Kong dollars.
What affects solicitor’s fees
Solicitor’s fees depend on several factors, mainly:
- Property value: the higher the value, the higher the fee usually is, because a high-value property involves more complex paperwork and more potential risk
- Complexity of the deal: multi-party agreements, unresolved legal disputes or special tax issues add noticeably to the solicitor’s workload, so the fee will naturally be higher
- The solicitor’s experience and reputation: experienced solicitors can usually offer a higher quality of service, but charge more
- Location: in core areas of Hong Kong, for example, demand for transactions is high, so solicitor’s fees may be higher
How solicitor’s fees are changing in the Hong Kong market
Generally, the solicitor’s fee for an ordinary residential deal is about HK$5,000 to HK$10,000. For high-value or commercial property, fees can rise significantly.
As competition grows, some providers use more flexible pricing, such as charging in proportion to the transaction value, or offering package services at a discount.
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Types of stamp duty in Hong Kong, including Special Stamp Duty
The government charges stamp duty on property transactions. The main types are Ad Valorem Stamp Duty, Special Stamp Duty and Buyer’s Stamp Duty.
Under the Stamp Duty Ordinance (Cap. 117), the buyer must pay stamp duty to the government. If it is not paid, the transaction documents have no legal effect and the court may not accept them.
| When it applies | Current position | |
|---|---|---|
| Ad Valorem Stamp Duty (AVD) | Rate depends on the property value and the buyer’s status | Still in force |
| Special Stamp Duty (SSD) | Resale of a property within a short time | Abolished in February 2024 |
| Buyer’s Stamp Duty (BSD) | Buyers who are not Hong Kong permanent residents, and buyers purchasing residential property in a company’s name | Abolished in 2024 |
Ad Valorem Stamp Duty (AVD): a cost every buyer pays
Ad Valorem Stamp Duty (AVD) is a tax payable when property is transferred. The rate depends on the buyer’s status:
- Hong Kong permanent residents buying their first home qualify for lower rates, from 0.01% to 4.25%, depending on the property value. For example, for a HK$7 million home the rate is 3.75%, so the stamp duty is HK$262,500
- In the past, Hong Kong permanent residents who were not first-time buyers paid up to 7.5% stamp duty. With the policy change on 28 February 2024, this higher rate for non-first-time buyers has been abolished
- Under the latest adjustment, the scope of Standard Rate 2 has been widened further: the concession that used to apply only to properties of HK$3 million or below now covers properties up to HK$4 million
- In 2025, the Hong Kong Government adjusted AVD in the 2025 Budget: for all transactions at HK$4 million or below, AVD is now a flat HK$100
Special Stamp Duty (SSD) for short-term flipping is now history
Special Stamp Duty (SSD) was one of the government’s “cooling measures” introduced to curb short-term speculation.
SSD applied when the seller had held the property for less than three years, with the rate depending on how long it was held: 20% for 6 months or less, 15% for 6 to 12 months, and 10% for 12 to 36 months.
With the policy change in February 2024, SSD has been formally abolished, so owners selling a property no longer need to consider a restriction period.
Even while SSD was in force, exemptions were available in some cases, for example:
- Transfers between close relatives. Close relatives include a spouse, parents, siblings and children. Grandparents and grandchildren are not treated as close relatives unless the parents have died and the Inland Revenue Department gives special approval
- Transfers made under a court order (such as in a divorce or the distribution of an estate)
- Transfer of name or gift of a Home Ownership Scheme flat
Buyer’s Stamp Duty (BSD) and how the different duties add up
Buyer’s Stamp Duty (BSD) used to be charged on buyers who were not Hong Kong permanent residents and on buyers purchasing residential property in a company’s name, at 7.5% of the price.
In the past, AVD, SSD and BSD were calculated separately. For example, before they were abolished, a Hong Kong permanent resident buying an HK$8 million home in a company’s name had to pay:
| Rate | Duty | |
|---|---|---|
| Ad Valorem Stamp Duty | 7.5% | HK$600,000 |
| Buyer’s Stamp Duty | 7.5% | HK$600,000 |
| Total duty | Equal to 15% of the price | HK$1.2 million |
On 28 February 2024, the Financial Secretary announced the immediate abolition of Buyer’s Stamp Duty (BSD), Special Stamp Duty (SSD) and New Residential Stamp Duty (NRSD).
Abolishing BSD makes little difference to ordinary Hong Kong buyers, but for overseas investors and company buyers it lowers the barrier to entering the Hong Kong property market.
At the same time, first-time buyers can still enjoy the concessionary AVD rate, lowering the barrier to home ownership further.
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Not sure which stamp duty applies to you?
Feel free to check your situation with us.
What affects stamp duty on a property sale in Hong Kong
Stamp duty depends mainly on four factors: the property price, the buyer’s status, whether the property is residential, and how long it has been held.
How property type and buyer status affect stamp duty
Non-residential property pays AVD at Standard Rate 2. The calculation is the same whether the buyer is a first-time buyer or already owns other property.
| Rate | Stamp duty | |
|---|---|---|
| Non-residential property (a HK$2.4 million car parking space) | Standard Rate 2, 1.5% | HK$36,000 |
| Hong Kong first-time buyer (HK$6 million home) | Standard Rate 2, 2.25% | HK$135,000 |
| Already owns other property (also HK$6 million) | Standard Rate 1, 7.5% | HK$450,000 |
| Non-resident, or buying in a company’s name (HK$6 million) | 7.5% AVD plus 7.5% BSD, a combined rate of 15% | HK$900,000 plus HK$900,000, HK$1.8 million in total |
How long you hold the property and the tax effect
If you plan to sell a residential property, pay attention to how long you have held it, because it directly decides the rate of Special Stamp Duty (SSD):
| Rate | |
|---|---|
| Held for 6 months or less | 20% |
| Held for 6 to 12 months | 15% |
| Held for 12 to 24 months | 10% |
For example, if a property is sold for HK$8 million, SSD within 6 months is as high as HK$1.6 million, while after 12 to 24 months it is only HK$800,000. The first is twice the second.
Non-residential property such as industrial buildings, commercial buildings, shops and car parking spaces does not pay Special Stamp Duty (SSD).
Consequences of paying stamp duty late
The buyer must pay stamp duty within 30 days of signing the agreement or the assignment. Late payment carries these penalties:
| Penalty | |
|---|---|
| Up to 1 month late | 2 times the duty payable |
| More than 1 month but not more than 2 months late | 4 times the duty |
| More than 2 months late | 10 times the duty |
If the buyer can give a reasonable explanation showing the delay was not deliberate, the Stamp Office may, at its discretion, reduce part of the penalty.
A reduction is usually calculated as “14% x stamp duty payable x days overdue / 365 days”, with a minimum penalty of HK$500.
For example, if the stamp duty payable is HK$100,000 and payment is 45 days late, the penalty would be HK$1,726.
Please note
- The buyer must apply in writing to the Stamp Office to have any chance of a reduction.
- Stamp duty is only part of the cost of buying a home, but the amount bears directly on the overall budget, so buyers should be well prepared.
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Profits tax on speculative sales, penalty-period fees and the risk of compensation for breach of contract
Selling a property needs careful costing. From solicitor’s fees and stamp duty to possible penalty-period charges and compensation, owners should plan ahead.
Profits tax on speculative sales
Under the Inland Revenue Ordinance (Cap. 112), if a sale is judged to be speculation in the nature of a business, profits tax is payable. This depends on several factors, including:
- The seller’s trading background
- Motive
- Financial arrangements
- How long the property was held
If a property deal is treated as speculation, the profit will be taxed, so owners should plan carefully when selling.
Watch out for penalty-period fees
If the property being sold has a mortgage, the owner should check whether it is still in the penalty period, during which early repayment is charged. Under most mortgage contracts, the bank charges a percentage fee if you repay early during the penalty period.
Please note
- The penalty period is usually 1 to 3 years. The cost depends on the mortgage amount and the bank’s terms, and the owner should include it in the selling budget.
The risk of compensation for breach of contract
If a seller changes their mind after signing the provisional sale and purchase agreement, they may be liable for breach of contract. The buyer can sue and claim double the deposit, the buyer’s agent’s commission, solicitor’s fees and more.
Think carefully before signing, to avoid unnecessary loss.
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Worried about the risk of compensation for breach of contract?
Get in touch, and a dedicated consultant will first understand your situation.
FAQ: the cost of selling a property in Hong Kong
What are the main costs of selling a property?
The main costs are agent’s commission, solicitor’s fees, stamp duty, possible penalty-period fees and other charges such as the cost of supplementing the title deeds.
What are solicitor’s fees, and why must I pay them when selling?
They are the fee for handling the sale and purchase agreement, registration of the deed and other legal documents, usually about HK$5,000 to HK$10,000.
What stamp duty is involved in selling a property?
The main one is Ad Valorem Stamp Duty (AVD). If a property is sold after being held for under three years, Special Stamp Duty (SSD) may be payable.
If the property still has a mortgage, is there anything extra to pay when selling?
Yes. If the property still has a mortgage, a redemption fee is payable, and the bank may charge a penalty-interest fee on top, especially if you repay early during the penalty period.
What is Special Stamp Duty (SSD), and when is it payable?
SSD applies when a property is held for less than three years, at a rate between 10% and 20% depending on how long it was held, but it was abolished in 2024.
What should I watch for when signing an estate agency agreement?
Check how long the agreement lasts, how the commission is paid, and whether it is a sole agency. A sole agent may ask for commission even if the sale was not completed.
