Talent Attraction Measures: Stamp duty refund and upfront relief for eligible incoming talents

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An eligible incoming talent may apply for refund if the following conditions are fulfilled –

1. he/she as an eligible incoming talent has acquired a residential property in Hong Kong during the period from 19 October 2022 to 24 October 2023;
2. at the time of acquisition of the property concerned, he/she must hold a valid visa under the designated talents admission schemes and does not own any other residential property in Hong Kong (unless he/she acquires the property concerned to replace his/her only residential property in Hong Kong, i.e. to buy a new one and then sell the original one, within 12 months from the date of assignment of the property concerned);
3. he/she has paid Buyer’s Stamp Duty (BSD) and ad valorem stamp duty (AVD) at Part 1 of Scale 1 rate on an instrument executed for the acquisition of the property concerned (the Applicable Instrument);
4. he/she has become a Hong Kong permanent resident (HKPR);
5. at the time of application for refund of stamp duty:
   1. he/she remains a HKPR;
   2. he/she is still the beneficial owner of the property concerned;
   3. he/she was not a vendor under an agreement for sale of any other residential property in Hong Kong that was made before the date of his/her acquisition of the property concerned; and that is unperformed, or otherwise remains outstanding;
   4. if applicable, no person other than him/her, other co-buyer(s) covered by specified talents admission scheme(s) and his/her/their close relative(s) is a beneficial owner of the property concerned; and
6. he/she can only apply for refund in respect of one residential property within the specified time limit (see Q&A 20)

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1. There is a general time limit for claiming tax refund, which is not later than 6 months after the date of gazettal of the Stamp Duty (Amendment) (No. 3) Ordinance 2023 (i.e. on or before 30 December 2023) or not later than 6 months after the date on which the sole buyer under the Applicable Instrument executed for acquisition of the property concerned with BSD and AVD at Part 1 of Scale 1 rate paid (if the property concerned is jointly acquired by non-HKPR co-buyers under the Applicable Instrument, the person who, among the co-buyers who remain beneficial owners of the property concerned on the date of application, last became a HKPR) became a HKPR, whichever is the later.
2. In case of an eligible incoming talent acquires the property concerned to replace his/her only residential property (the Original Property), besides the time limit in (i) above, the time limit is further extended to not later than 2 years after the date of the Applicable Instrument executed for acquisition of the property concerned with BSD and AVD at Part 1 of Scale 1 rate paid or not later than 2 months after the date of the assignment for the disposal of the Original Property, whichever is the latest.

The applicant should submit the completed application form (IRSD125D) with the supporting documents specified in the Annex of the form within the aforesaid application timeframe.

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A non-HKPR may be entitled to upfront stamp duty relief if the following conditions are fulfilled -

1. he/she as a non-HKPR, is covered by a specified talent admission scheme (Specified Scheme, see Q&A 2) (i.e. an eligible incoming talent);
2. he/she as an eligible incoming talent, is acting on his/her own behalf to acquire a residential property in Hong Kong on or after 25 October 2023;
3. at the time of acquisition of the property concerned, he/she must hold a valid visa under the Specified Schemes and does not own any other residential property in Hong Kong;
4. he/she was not a vendor under an agreement for sale of any other residential property in Hong Kong that was made before the date of his/her acquisition of the property concerned; and that is unperformed, or otherwise remains outstanding;
5. he/she shall furnish the completed application form IRSD125E and supporting documents requested to apply for suspension of liability to stamp duty in respect of the Specified Amount (see Q&A 23) in relation to the instrument executed for the acquisition of the property concerned (Applicable Instrument) while submitting the Applicable Instrument to IRD for stamping; and
6. he/she has to pay AVD on the Applicable Instrument at Scale 2 rates and specified application fee (equivalent to the registration fee charged by the Land Registry for registering the related certificate of charge on the property concerned issued by IRD).

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Specified Amount in relation to an Applicable Instrument means the sum of

1. an amount equal to the difference between AVD payable according to Part 1 of Scale 1 and AVD paid according to Scale 2 on the instrument;
2. the amount of BSD payable on the instrument.

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If his/her application is acceptable, the Applicable Instrument will be stamped with a stamp denoting that the instrument’s liability to stamp duty in respect of the Specified Amount has been suspended. IRD will also register a certificate of charge at the Land Registry on the property concerned for securing the recovery of the Specified Amount.

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The eligible incoming talent shall, upon becoming HKPR, furnish the completed application form IRSD125E and supporting documents requested to apply for waiver of the liability to stamp duty in respect of the Specified Amount in relation to the Applicable Instrument.  On the condition that he/she still remains the beneficial owner (or only person(s) closely related to him/her (and each other) has/have become additional beneficial owner(s) of the property concerned after acquisition) of the property concerned, IRD will approve the application.  The Applicable Instrument will be stamped with a stamp denoting that the instrument’s liability to stamp duty in respect of the Specified Amount has been waived.  IRD will also issue a certificate of discharge in respect of the charge on the property concerned to the applicant for registration in the Land Registry.  For details about the registration, please visit the website of the Land Registry at www.landreg.gov.hk.

The application for waiver of liability should be submitted before the Deadline (see Q&A 29).

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A suspension of the Specified Amount will be revoked and the eligible incoming talent shall pay the Specified Amount if:

1. as at the Deadline (i.e. 9 years as mentioned in Q&A 29) for wavier of the liability to stamp duty in respect of the Specified Amount in relation to the Applicable Instrument, no liability has been waived;
2. the eligible incoming talent ceases to be a beneficial owner of the property concerned;
3. a person other than a closely related person of the eligible incoming talent has become a beneficial owner of part of the property concerned.

The Specified Amount shall be paid within 30 days after the occurrence of the situation in a, b or c above. Otherwise, penalty will be imposed for late payment.

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An eligible incoming talent shall pay BSD and AVD under Part 1 of Scale 1 in relation to an instrument executed to acquire the New Property. If subsequently he/she can produce documentary proof that he/she has disposed of the Original Property within 12 months after the date of assignment of the New Property and that he/she has paid the Specified Amount for the Original Property (if applicable), he/she may furnish the completed application form IRSD125E and supporting documents request to apply for a refund of the Specified Amount for the New Property. Upon approving his/her application, the Applicable Instrument will be stamped with a stamp denoting that the instrument’s liability to stamp duty in respect of the Specified Amount has been suspended. IRD will also register a certificate of charge at the Land Registry on the New Property for securing the recovery of the Specified Amount.

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There is a time limit for claiming a refund of the Specified Amount, which is not later than (a) 2 years after the date of the Applicable Instrument executed for the acquisition of the New Property, or (b) 2 months after the date of assignment for the disposal of the Original Property, whichever is the later.