Buying Property in Hong Kong as a Foreigner (2026): What Changed and How to Buy

Published on: June 23, 2026

Quick answer: For over a decade, foreign buyers paid punitive extra stamp duties in Hong Kong. In the budget delivered on 28 February 2024 the government abolished all of them (Buyer's Stamp Duty, Special Stamp Duty, and New Residential Stamp Duty), and they remain gone in 2026, so a non-permanent resident now pays the same Ad Valorem Stamp Duty as a local. There are no restrictions on foreigners owning residential property, though almost all land is held on long government leases rather than true freehold, and Hong Kong has no general capital gains tax. Expect high prices and modest rental yields of around 2 to 3%.

For more than a decade, Hong Kong was effectively closed to overseas property buyers. A wall of "cooling" taxes meant a non-permanent resident could pay an extra 15%, later 7.5%, just for being foreign, on top of everything else. Then, in early 2024, the government tore that wall down. For international buyers, Hong Kong's residential market reopened almost overnight.

If you've been waiting on stale information, this is the reset. Here's what actually changed, what it costs to buy today, and how the process works for a foreign purchaser in 2026.

The change that reopened the market

In the 2024 to 25 Budget delivered on 28 February 2024, Hong Kong abolished all demand-side management measures for residential property, effective immediately. In plain terms, three taxes that had blocked foreign and speculative buyers disappeared:

• Buyer's Stamp Duty (BSD), previously up to 15% (reduced to 7.5% in late 2023) on purchases by non-permanent residents, removed.
• Special Stamp Duty (SSD), a penalty of up to 20% for selling within a holding period, removed, so there is no longer any minimum hold.
• New Residential Stamp Duty (NRSD), removed.

These remain abolished in 2026. The practical result is striking: a non-Hong Kong permanent resident now pays the same stamp duty as a local buyer, and companies can once again purchase residential property without punitive extra duty.

What stamp duty you actually pay in 2026

With the cooling measures gone, the only stamp duty on a residential purchase is the Ad Valorem Stamp Duty (AVD), charged on the higher of price or market value under the progressive Scale 2 rates. These run from a nominal HK$100 at the bottom up to 4.25% of the consideration at the top of the old scale.

The one notable 2026 update: under the latest budget, ultra-luxury residential transactions of HK$100 million or more are taxed at a flat 6.5%. (A separate new "Scale 3" was also introduced for non-residential property from 26 February 2026.) Because AVD is banded and periodically adjusted, always confirm the exact current rates with the Inland Revenue Department before you transact.

To put the shift in perspective: after the 2024 removal, the effective stamp duty for a mainland Chinese buyer of a typical home dropped from around 15% to roughly 4.25%, and for a local buyer from 7.5% to about 1.5%.

Can foreigners actually own Hong Kong property? Yes, with one nuance

There are no restrictions on foreigners buying residential property in Hong Kong, and ownership extends to purchases through companies. The nuance worth understanding is tenure: almost all Hong Kong land is held on government leases rather than true freehold, so what you acquire is a long leasehold interest in the land plus ownership of the building. This is normal and well understood by the market, but it's worth confirming the specific lease term of any property with your solicitor.

Financing: mortgages after the 2024 relaxation

Alongside scrapping the stamp duties, the Hong Kong Monetary Authority relaxed mortgage rules in February 2024. It raised loan-to-value (LTV) caps and suspended the interest-rate stress test. For self-use residential property, the maximum LTV was raised to 70% for properties valued at or below HK$30 million (tapering above that).

Two cautions for foreign buyers: borrowing through a limited company typically attracts lower permitted LTV (a larger deposit), and all mortgage applications remain subject to individual bank approval and the buyer's income profile. High interest rates in recent years have been a genuine headwind, so model your financing carefully.

The other costs and taxes to budget for

Stamp duty is the big one, but it isn't the only line item:

• Legal fees, engaging a solicitor is standard and essential in Hong Kong conveyancing.
• Agency fees, typically around 1% of the purchase price.
• Rates, a tax on property occupation charged on the property's rateable (annual rental) value. A progressive system (5%, 8% and 12% on successive portions of rateable value) was introduced from late in the 2024 to 25 year, primarily affecting higher-value homes.
• Government rent, an ongoing charge linked to rateable value applies to many properties.
• Property tax on rental income, if you let the property, net rental income is generally taxed at the standard rate of 15%.

Importantly, Hong Kong has no general capital gains tax, so a non-trading owner who sells at a profit is typically not taxed on the gain (frequent trading can be treated as taxable business profit). Confirm your specific position with the Inland Revenue Department or a tax adviser.

The buying process, step by step

1. Engage a solicitor early. Hong Kong purchases run through licensed solicitors who handle title checks and conveyancing, this is not optional.
2. Sign a Provisional Agreement for Sale and Purchase (PASP) and pay the initial deposit, usually after price agreement.
3. Conduct due diligence, title, the government lease terms, any encumbrances, building condition and management arrangements.
4. Sign the formal Sale and Purchase Agreement, typically within around two weeks of the provisional agreement.
5. Arrange financing and complete, paying the AVD and remaining balance on completion.

A reality check on the market

Hong Kong remains one of the most expensive property markets on earth, central units commonly exceed US$2,000 per square foot, and rental yields are modest, around 2 to 3%. The reopening has revived buyer interest, particularly from mainland China and international investors, but this is a market driven by scarcity, prestige and long-term positioning rather than high cash flow. Buy it for the location and the access, not for headline yield.

Frequently asked questions

Do foreigners still pay extra stamp duty in Hong Kong?
No. Since 28 February 2024, the Buyer's Stamp Duty, Special Stamp Duty and New Residential Stamp Duty have all been abolished. Non-permanent residents now pay only the standard Ad Valorem Stamp Duty, the same as local buyers.

What is the stamp duty on a Hong Kong home in 2026?
The progressive AVD (Scale 2), rising to 4.25% at the top of the old scale, with a flat 6.5% rate on ultra-luxury residential transactions of HK$100 million or more under the 2026 budget. Confirm exact bands with the Inland Revenue Department.

Can I get a mortgage as a foreign buyer?
Often, yes, subject to bank approval. Maximum LTV for self-use residential property was raised to 70% (for properties up to HK$30 million) after the 2024 relaxation, though company purchases and non-resident profiles may face lower limits.

Is there capital gains tax when I sell?
Hong Kong has no general capital gains tax. Profits from normal (non-trading) property sales are typically untaxed, though active trading can be treated as taxable business profit.

Disclaimer. This article is for general information only and is not legal, tax or investment advice. Hong Kong stamp duty rates, mortgage rules, rates and property-tax provisions change and depend on individual circumstances. Always confirm current figures with the Inland Revenue Department and Hong Kong Monetary Authority, and engage a licensed Hong Kong solicitor before purchasing. Information was believed accurate at the time of writing in 2026.

A note on the numbers: where no source is named, the market figures in this article (prices, yields, costs) are indicative estimates compiled from publicly available market data and industry reporting at the time of writing. Markets move and rules change, so treat them as a starting point and verify current figures with official sources before acting on them.