Buyer's Stamp Duty (BSD) Declaration (Hong Kong)

A Buyer's Stamp Duty (BSD) Declaration in Hong Kong captures the particulars required for the filing or submission it supports.

Buyer's Stamp Duty was introduced by the Hong Kong Government in October 2012 as one of a suite of demand management measures targeting the residential property market. Section 29CA of the Stamp Duty Ordinance (Cap. 117) imposes BSD at a flat rate of 15% of the higher of the consideration paid or the market value of the residential property on acquisitions by companies (whether Hong Kong-incorporated or foreign), non-permanent residents, and Hong Kong permanent residents who already own one or more residential properties in Hong Kong at the time of the acquisition. BSD is charged in addition to the regular ad valorem stamp duty (AVD) payable on all property transactions.

The BSD exemption applies where the buyer is a natural person (not a company), is a Hong Kong permanent resident as defined by the Immigration Ordinance (Cap. 115) and the Basic Law of the HKSAR, and does not beneficially own any other residential property in Hong Kong at the time of the acquisition. Where a property is purchased jointly by two or more individuals, all co-purchasers must independently satisfy all three conditions simultaneously — the exemption is not available on a proportionate basis. If any one co-purchaser fails to satisfy any one condition, BSD at 15% applies to the entire transaction value.

The February 2024 Budget announcement by the Hong Kong Government removed the New Residential Stamp Duty (NRSD) and reduced Special Stamp Duty (SSD) rates as part of a relaxation of the residential property market cooling measures. BSD for non-permanent residents and companies remained in place. Buyers should verify the current stamp duty position with the Inland Revenue Department (IRD) or their solicitor at the time of their transaction, as the stamp duty regime for residential property is subject to legislative amendment.

A BSD declaration is prepared by the buyer's solicitor as part of the conveyancing process and must be executed by the buyer before or at the time the Agreement for Sale and Purchase or the Deed of Assignment is submitted to the IRD for stamping. The Stamp Duty Ordinance requires the instrument to be stamped within 30 days of execution in Hong Kong (or 30 days after the instrument is brought into Hong Kong if executed outside). An unstamped instrument is inadmissible in evidence in civil proceedings.

Forms-legal.com provides this Buyer's Stamp Duty Declaration template for Hong Kong property purchasers, covering the permanent resident exemption declaration under Cap. 117, IRD submission procedures, the consequences of a false declaration under Cap. 200, and the timing requirements for stamp duty payment within 30 days of the agreement for sale. Section 14 of the Stamp Duty Ordinance (Cap. 117) renders an unstamped instrument inadmissible in evidence before the Court of First Instance and the District Court of Hong Kong; the Collector of Stamp Revenue at the Inland Revenue Department's Revenue Tower office on Gloucester Road, Wan Chai, administers all BSD exemption applications under the Stamp Duty Ordinance.

A Buyer's Stamp Duty Declaration is required in every residential property acquisition transaction in Hong Kong where the buyer or any co-buyer may potentially be liable for BSD. In practice, the BSD declaration must be prepared and executed in almost every residential property purchase, as the declaration is part of the IRD's stamping process under Cap. 117.

A Hong Kong permanent resident purchasing a residential property as their first and only residential property in Hong Kong must execute a BSD declaration confirming their HKPR status and declaring that they do not beneficially own any other residential property in Hong Kong at the date of acquisition. This declaration is the evidentiary basis on which the IRD accepts the BSD exemption claim and applies only the regular AVD without the additional 15% BSD.

A non-permanent resident — including an individual holding a work visa, a student visa, an IANG visa, or any other non-permanent immigration status in Hong Kong — must execute a BSD declaration confirming their non-HKPR status and acknowledging BSD liability at 15% of the consideration or market value, whichever is higher. The 15% BSD is payable before or at the time the ASP is stamped by the IRD.

A company — whether a Hong Kong limited company incorporated under the Companies Ordinance (Cap. 622) or a foreign company — that acquires residential property in Hong Kong must pay BSD at 15% regardless of the identity or status of its shareholders. The BSD declaration for a company purchaser confirms the corporate nature of the purchaser and acknowledges the BSD liability.

A Hong Kong permanent resident who already owns one or more residential properties in Hong Kong and is purchasing an additional property must execute a BSD declaration confirming their HKPR status but acknowledging that they do not qualify for BSD exemption because they already own residential property. Until the 2024 removal of NRSD, such a buyer would have paid both BSD and NRSD. With NRSD removed, only the regular AVD applies in addition to BSD for HKPR buyers who already own property — buyers should verify the current position.

For joint purchases, each co-purchaser must separately address their BSD status in the declaration. The declaration must confirm that all co-purchasers simultaneously satisfy the exemption conditions, or acknowledge BSD liability if any one co-purchaser fails to qualify.

A Hong Kong Buyer's Stamp Duty Declaration under section 29CA of the Stamp Duty Ordinance (Cap. 117) must address the following key elements to satisfy the IRD's stamping requirements and to accurately record the BSD position for the transaction.

The full legal name of each buyer must be stated exactly as it appears on the buyer's Hong Kong Permanent Identity Card (HKID) or passport. For corporate buyers, the full registered company name and company registration number (as registered with the Companies Registry for Hong Kong companies, or the relevant foreign registration details for non-Hong Kong companies) must be stated. Any discrepancy between the buyer's name in the BSD declaration and the buyer's name in the Agreement for Sale and Purchase or Deed of Assignment creates inconsistency that the IRD's e-Stamping system may flag.

The HKPR status declaration is the most critical element. The buyer must confirm whether they are or are not a Hong Kong permanent resident. For HKPR buyers, the declaration should refer to the specific basis of permanent residency — for example, having ordinarily resided in Hong Kong for a continuous period of seven years, or having been born in Hong Kong of Chinese nationality — as defined in the Immigration Ordinance (Cap. 115) and Article 24 of the Basic Law. A copy of the buyer's permanent HKID card (bearing the *** symbol) is the primary evidence of HKPR status.

The declaration of no other residential property confirms that the buyer (and each co-buyer, in a joint purchase) does not beneficially own any other residential property in Hong Kong at the time of acquisition. The concept of beneficial ownership is broader than legal title — a buyer who holds a beneficial interest in a residential property through a trust, bare nominee arrangement, or undisclosed interest cannot truthfully make this declaration. Solicitors advising BSD exemption claims must conduct appropriate due diligence to confirm the absence of other residential property interests.

For joint purchasers, each co-purchaser's BSD status must be addressed separately. The declaration must confirm that all co-purchasers are HKPRs with no other residential property, or acknowledge BSD liability where this is not the case. The all-or-nothing rule under Cap. 117 means that if any one co-purchaser fails to satisfy the exemption conditions, full BSD applies to the entire transaction.

The property description must identify the subject residential property by its lot number, floor, unit, building name, and address, consistent with the description in the ASP and the Deed of Assignment. The declaration is property-specific and applies only to the named transaction.

A false BSD declaration is a serious offence. The IRD actively verifies BSD exemption claims through cross-referencing with Land Registry and HKID records. A buyer who makes a false declaration and avoids BSD is liable to pay the full BSD plus substantial penalties, in addition to any criminal liability for making a false declaration.

Forms-legal.com provides this BSD Declaration template covering all Inland Revenue Department requirements under Cap. 117, the permanent resident exemption conditions under Schedule 1D of the Stamp Duty Ordinance, joint purchaser treatment, and the consequences of a false statutory declaration under the Oaths and Declarations Ordinance (Cap. 11) — including prosecution for perjury under Cap. 200 and payment of the full BSD amount with penalties and interest. BSD refund applications after status change are also addressed.