1. What a non-resident pays after abolition
From 28 February 2024 Hong Kong abolished Buyer's Stamp Duty (15%), New Residential Stamp Duty and Special Stamp Duty. Non-permanent residents, corporate buyers and local buyers now sit on the same ad valorem (AVD) scale.
On an HK$8M flat that is a difference of more than HK$1.2M in duty. The single largest cost barrier for overseas buyers has gone.
One nuance: the low band (HK$100 up to HK$4M) applies to individual buyers who own no other Hong Kong residential property. It does not depend on permanent residency, but it does depend on not already holding another local flat.
| Buyer type | Before Feb 2024 | Now (2026) |
|---|---|---|
| HK permanent resident, first home | AVD Scale 2 | AVD Scale 2 |
| Non-permanent resident | AVD 15% + BSD 15% | AVD Scale 2 |
| Held through a company | AVD 15% + BSD 15% | AVD Scale 2 |
| Resale within three years | SSD 10%–20% | Abolished |
2. Deposit and LTV: the real barrier
Tax was relaxed; mortgages were not. The HKMA requires lenders to cut the loan-to-value cap by ten percentage points for borrowers whose principal income is not derived from Hong Kong, and to apply a tighter debt-servicing ratio.
In practice, buyers earning abroad are approved at 50%–60% LTV. Reaching 70% usually requires a Hong Kong employment contract, Hong Kong tax returns or income from a Hong Kong company.
The mortgage insurance programme that allows 90% generally requires stable Hong Kong income, so purely overseas income rarely qualifies. Budget from a 50% deposit, not 30%.
| Income source | Typical LTV | Deposit on HK$8M |
|---|---|---|
| Hong Kong salaried, with tax returns | Up to 70% | About HK$2.4M |
| Mainland or overseas income | 50% – 60% | HK$3.2M – HK$4M |
| No verifiable income | Asset-based, usually ≤ 50% | HK$4M or more |
3. QMAS, Top Talent and what status changes
Arrivals under the Quality Migrant Admission Scheme, the Top Talent Pass Scheme or an employment visa are non-permanent residents, but under the current regime they pay exactly the same duty as locals. There is no surcharge and no special concession.
Status matters in two other places. First, a Hong Kong visa plus local salary materially raises the LTV a bank will approve. Second, seven years of ordinary residence opens permanent residency, which makes later upsizing simpler.
Note that the old 'buy now, refund later' mechanism under New Residential Stamp Duty ended with the abolition. There is no retrospective refund on becoming a permanent resident.
4. Full cash table for an HK$8M flat
Assuming a price of HK$8,000,000 at 50% LTV — the typical position for a buyer with overseas income — this is the cash required between signing the provisional agreement and completion.
| Item | Amount (HK$) | Note |
|---|---|---|
| Deposit (50%) | 4,000,000 | Typical LTV on non-local income |
| Ad valorem stamp duty | 240,000 | Scale 2 at 3.00% |
| Agency commission (1%) | 80,000 | Buyer side |
| Legal fees | 12,000 – 20,000 | Including searches |
| Valuation and sundries | 5,000 | Approximate |
| Total cash | About 4,340,000 | Excludes renovation and furniture |
5. The process when you are not in Hong Kong
Start with the ceiling, not the flat. Obtain approval in principle from two banks so you know what your income structure actually supports, then set the price range. Doing this in the wrong order is the most common wasted month.
Viewings and offers can be compressed into one or two days, with a solicitor and a buyer-side adviser handling title searches, comparable checks and the negotiation.
Sign the provisional agreement and pay the deposit, usually 5% of the price, held by a solicitor's firm as stakeholder. If you cannot attend, a power of attorney notarised and attested where you live allows your solicitor to sign.
The formal agreement and mortgage follow within about 14 days, and completion normally lands 45 to 90 days after the provisional agreement.
6. Five common non-resident mistakes
Assuming mortgage rules relaxed alongside tax. They are separate regimes; the LTV cut on non-local income still applies.
Comparing saleable area with gross floor area. Hong Kong quotes saleable area, so a direct price-per-foot comparison with mainland listings overstates value.
Looking only at new launches. Price lists carry the developer's marketing cost; comparable second-hand flats nearby often trade lower per foot.
Ignoring holding costs. Rates, government rent, management fees and sinking-fund contributions together run roughly 0.5%–1% of value each year.
Making offers without transaction evidence. Land Registry prices are public and the seller is reading the same data.
7. FAQ
Do non-residents still pay 15% Buyer's Stamp Duty in Hong Kong?+
No. BSD, New Residential Stamp Duty and SSD were all abolished on 28 February 2024. Non-permanent residents now pay the same ad valorem scale as local buyers.
Can I get a Hong Kong mortgage on overseas income?+
Yes, but the HKMA requires a ten-percentage-point lower LTV cap where principal income is not from Hong Kong. Approvals commonly land at 50%–60%; Hong Kong salary and tax returns can reach 70%.
Does QMAS or Top Talent status give a property tax advantage?+
No advantage and no penalty — the duty is identical to a local buyer's. Status matters mainly for mortgage LTV and long-term residency.
How much cash do I need for an HK$8M flat?+
At 50% LTV: HK$4M deposit plus about HK$240,000 duty, HK$80,000 commission and roughly HK$20,000 legal and sundry costs — around HK$4.34M before renovation.
Can I complete the purchase without travelling to Hong Kong?+
Yes. A notarised and attested power of attorney lets your Hong Kong solicitor sign and complete, while a buyer-side adviser handles viewings, checks and negotiation.
8. Sources
Sources: Inland Revenue Department stamp duty ordinance and the February 2024 abolition of BSD and SSD; HKMA residential mortgage LTV guidelines, including the lower cap for borrowers with non-local income; Immigration Department Quality Migrant Admission Scheme and Top Talent Pass Scheme materials; Land Registry transaction records. Policy can change — confirm the current position before signing.