# HK Tax & Transaction Costs

> Component slug: `hk-tax-transaction-costs`. Researched: `2026-05-18T01:30:00Z`. Sources cited: `16`. Token usage: `42000`.

## 1. Summary (≤3 sentences)

Hong Kong's property tax and transaction cost regime underwent a landmark simplification in February 2024, when all demand-side management stamp duties (BSD, SSD, NRSD) were abolished, leaving Ad Valorem Duty (AVD) at Scale 2 rates as the sole acquisition tax for both residents and non-residents [ref: #300]. Ongoing holding costs are light by international standards: Property Tax at 15% of net assessable value (after 20% statutory allowance), Rates at 5–12% of rateable value, and Government Rent at 3% of rateable value, with no annual land tax and no capital gains tax [ref: #3, #5]. Cross-border AU-HK holders face compounded complexity: no bilateral DTA exists, Australia taxes worldwide income of its tax residents, and HK-AU CRS reporting is fully active, making professional structuring essential [ref: #9, #14].