October 19 2022

Talent Attraction Measure: Stamp duty refund for eligible incoming talents

Source: Inland Revenue Department

On 19 October 2022, the Chief Executive announced in his 2022 Policy Address that, to encourage incoming talents to stay in Hong Kong for long-term development, the Government would refund the extra stamp duty paid by eligible incoming talents in purchasing residential property in Hong Kong.

For eligible incoming talents who purchase a residential property in Hong Kong on or after 19 October 2022, and subsequently become a Hong Kong permanent resident after residing in Hong Kong for seven years, they can apply for a refund of the Buyer’s Stamp Duty (15%) and the New Residential ad valorem Stamp Duty (15%) paid for the first residential property purchased and still held, but they still need to pay ad valorem stamp duty (AVD) at Scale 2 rates, such that the overall stamp duty charged will be on par with that charged on first-time home buyers who are Hong Kong permanent residents.  Such arrangement applies to any sale and purchase agreement entered into on 19 October 2022 and onwards.

Eligible incoming talents include those who enter Hong Kong under designated talents admission schemes (including General Employment Policy, Admission Scheme for Mainland Talents and Professionals, Quality Migrant Admission Scheme, Immigration Arrangements for Non-local Graduates, Technology Talent Admission Scheme, Admission Scheme for the Second Generation of Chinese Hong Kong Permanent Residents and the newly launched Top Talent Pass Scheme).

For further information about the proposed measure, please refer to the FAQs and illustrative examples.  It should be noted that the measure has to be implemented by way of legislative amendments to the Stamp Duty Ordinance.  Details of the amendments are subject to change during the legislative process.

Source: Inland Revenue Department