Hong Kong Cuts Property Stamp Duty and Stock Transaction Taxes to Bolster Markets

Efforts to Revive Sluggish Real Estate Sector Amid Mass Departures and Falling Home Prices; Foreigners and Non-Permanent Residents Stand to Benefit.

Hong Kong has cut key duties on property purchases, a change primarily benefitting locals planning to buy additional properties and non-permanent residents. These measures were first imposed over ten years ago to cool the region's heated real estate market.
The tax for flipping a property within two years has been cut to 10%, and the stamp duty on locals buying additional properties and purchases of non-permanent residents has fallen to 7.5%.
Foreign residents' first property stamp duty will be suspended, but will accrue if their application for permanent residency is unsuccessful or not lodged.
These changes aim to attract and retain 'foreign talent,' cultivate a healthy real estate market, and prevent property speculation risks.
Other economic stimulus measures include the reduction of stamp duty on stock transactions from 0.13% to 0.10%, a $2,557 allowance for newborns with one parent with three years' permanent residency, and an increase in the tax-free income threshold for parents to $15,341.