Stamp Duty on Tenancy Agreement Hong Kong 2027: Rates & Steps
Kenji Farre, Director · Nov 2, 2026 · 5 min read
Stamp duty on a Hong Kong tenancy agreement is 0.25% of the total rent for a lease of 1 year or less, 0.5% of the yearly (or average yearly) rent for a lease of over 1 year and up to 3 years, and 1% of the yearly rent for a lease of over 3 years, according to the Inland Revenue Department. Each counterpart copy costs a further HK$5. You must stamp the lease within 30 days of signing, not of moving in, and late stamping costs up to 10 times the duty. On a typical 2-year lease at HK$25,000 a month, the duty is HK$1,500 plus HK$5 for the counterpart, usually split equally between landlord and tenant.
This guide explains the rates, how to calculate the duty, who pays, how to stamp online in a few minutes, and the separate Form CR109 that landlords must file.
What Is Stamp Duty on a Tenancy Agreement?
Stamp duty is a tax charged on certain documents under the Stamp Duty Ordinance. A lease of immovable property in Hong Kong, including a flat you rent, is one of them. Once the duty is paid, the Stamp Office issues a stamp certificate, which becomes part of the lease.
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Stamp Duty Rates for Leases in Hong Kong
These rates come from the IRD's leaflet on stamp duty for leases (IRSD119, September 2024).
| Lease term | Stamp duty rate | Charged on |
|---|---|---|
| Not defined or uncertain | 0.25% | Yearly or average yearly rent |
| 1 year or less | 0.25% | Total rent payable over the term |
| Over 1 year, up to 3 years | 0.5% | Yearly or average yearly rent |
| Over 3 years | 1% | Yearly or average yearly rent |
| Key money or construction fees (with rent) | 4.25% | The key money or fee |
| Each duplicate or counterpart | HK$5 fixed | Per copy |
Source: Inland Revenue Department, Stamp Duty on Leases leaflet IRSD119 (September 2024).
Two rounding rules apply. The rent is rounded up to the nearest HK$100 before the rate is applied, and the duty is rounded up to the nearest dollar. Rental deposits are not charged.
How to Calculate Stamp Duty on Your Lease
Here are worked examples using the IRD's rates.
| Lease | Rent | Calculation | Duty | With one counterpart |
|---|---|---|---|---|
| 1-year lease | HK$20,000 a month | HK$240,000 total x 0.25% | HK$600 | HK$605 |
| 2-year lease | HK$25,000 a month | HK$300,000 a year x 0.5% | HK$1,500 | HK$1,505 |
| 2-year lease, 1 month rent-free | HK$30,000 a month | Average yearly rent HK$345,000 x 0.5% | HK$1,725 | HK$1,730 |
| 3-year lease | HK$40,000 a month | HK$480,000 a year x 0.5% | HK$2,400 | HK$2,405 |
| 4-year lease | HK$40,000 a month | HK$480,000 a year x 1% | HK$4,800 | HK$4,805 |
Source: our calculation using IRD rates in IRSD119.
The rent-free example matters because many Hong Kong leases include a rent-free fitting-out period. The IRD charges duty on the average yearly rent: in that example, 23 paid months at HK$30,000 is HK$690,000 over 2 years, or HK$345,000 a year.
For anything unusual, use the IRD's tenancy stamp duty calculator. You enter the lease start and end dates and the rent, and it works out the duty.
What About a "2+1" or Break Clause Lease?
The common Hong Kong lease of "2 years fixed plus 1 year optional" can be treated differently depending on how it's worded. If the term is genuinely uncertain, the 0.25% rate on yearly rent may apply. If you're not sure, the IRD calculator and the Stamp Office are the safest places to check.
Who Pays Stamp Duty: Landlord or Tenant?
Legally, everyone who signs is liable: the landlord, the tenant and any sub-tenant. The IRD says the parties decide between themselves how to split it.
In practice, residential leases in Hong Kong commonly state that stamp duty is shared equally between landlord and tenant. Check the clause in your agreement before you sign. If an agent is involved, they usually arrange the stamping and collect each side's share.
When Must You Stamp a Tenancy Agreement?
Within 30 days after the date of signing. The IRD is clear that the commencement date of the lease has no bearing on the deadline. If you sign on 1 March for a lease starting on 1 May, the duty is due by 31 March.
Penalties for Late Stamping
| How late | Penalty |
|---|---|
| Up to 1 month late | 2 times the duty |
| Over 1 month, up to 2 months | 4 times the duty |
| Over 2 months | 10 times the duty |
Source: Inland Revenue Department, IRSD119.
The Collector of Stamp Revenue can waive all or part of a penalty on written request, but don't count on it.
What Happens If You Don't Stamp Your Lease?
An unstamped tenancy agreement can't be admitted as evidence in civil proceedings, and public officers can't register or act on it. That matters if you end up in a dispute over your deposit or an early termination.
The Community Legal Information Centre (CLIC) also notes that the Collector can sue both landlord and tenant for the unpaid duty.
There's a practical cost too. Banks, the Immigration Department and schools sometimes ask for a stamped lease as proof of address, and you'll want one when you claim a tax deduction or apply for a visa extension.
How to Stamp a Tenancy Agreement Online
The easiest way is the government's e-Stamping service, which runs 24 hours a day.
- Sign the lease with your landlord.
- Go to e-Stamping and choose the lease option. You don't need to present the original document.
- Enter the details: parties, address, lease term, rent and any rent-free period.
- Pay the duty by credit card, FPS or PPS, or print a payment notice to pay elsewhere.
- Download the stamp certificate. With online payment it's issued instantly; with offline payment it takes up to 2 working days.
- Keep the certificate with the lease. It has the same legal status as a conventional stamp.
You can also stamp by post using Form IRSD111, with a certificate issued within 5 working days, or in person at the Stamp Office on the 3rd floor of Revenue Tower, 5 Gloucester Road, Wan Chai.
Form CR109: The Landlord's Other Filing
Separately from stamp duty, the landlord of a residential flat must file Form CR109 (Notice of New Letting or Renewal Agreement) with the Rating and Valuation Department within 1 month of the new letting or renewal, according to CLIC.
Filing on time is free. A late filing costs HK$310. Without the Commissioner's endorsement, the landlord can't take court action to recover unpaid rent. Leases with a fixed term of 5 years or more, no landlord break clause and no rent increase during the term are exempt.
This is the landlord's job, but tenants benefit from a properly filed lease. It's worth asking your agent to confirm it's been done.
Other Upfront Costs When Renting in Hong Kong
Stamp duty is small compared with the rest of your move-in cash. Expect to pay:
- Deposit: set in the lease and returned when you move out, minus any agreed deductions.
- First month's rent in advance.
- Agent's commission: agreed in the estate agency agreement (Form 6). The Estate Agents Authority doesn't set a figure, so agree it in writing before viewing flats.
- Your share of stamp duty.
Our Hong Kong rent and neighbourhoods guide covers typical rents by district, and our cost of living guide shows the full monthly budget.
Tips for Expats Signing a Hong Kong Lease
- Read the stamp duty clause. Make sure it says "shared equally" unless you've agreed otherwise.
- Check the term carefully. A 3-year lease is charged at 0.5%; a lease of 3 years and 1 day is charged at 1%.
- Get a copy of the stamp certificate for your own records.
- Check the building's water certificate before signing; our tap water guide shows how.
- Diarise the 30 days from signing. Don't wait until you move in.
- If your employer pays your rent, the lease structure affects your salaries tax. See our salaries tax guide on how housing is taxed.
FAQs: Stamp Duty on Tenancy Agreements
How much is stamp duty on a tenancy agreement in Hong Kong?
0.25% of total rent for leases of 1 year or less, 0.5% of yearly rent for leases over 1 year and up to 3 years, and 1% for leases over 3 years. Add HK$5 per counterpart.
Who pays stamp duty on a Hong Kong tenancy agreement?
All signing parties are legally liable. Most residential leases split it equally between landlord and tenant, but the agreement decides.
What is the deadline for stamping a tenancy agreement?
Within 30 days of signing. The lease start date doesn't change the deadline.
What is the penalty for late stamping?
Up to 2 times the duty if up to 1 month late, 4 times if 1 to 2 months late, and 10 times if later than that.
Can I stamp my tenancy agreement online?
Yes. The e-Stamping service runs 24 hours a day, takes card, FPS or PPS payment, and issues a stamp certificate instantly for online payment.
How is stamp duty calculated with a rent-free period?
On the average yearly rent. Add up the rent payable over the whole term, divide by the number of years, round up to the nearest HK$100 and apply the rate.
Is the rental deposit subject to stamp duty?
No. The IRD excludes deposits when calculating stamp duty on a lease.
Is an unstamped lease valid in Hong Kong?
It can't be used as evidence in civil proceedings, and the Collector can sue the parties for the duty. Always stamp it.
What is Form CR109?
A notice of new letting that residential landlords file with the Rating and Valuation Department within 1 month. Without it, a landlord can't take court action to recover rent.
How much stamp duty is there on a HK$20,000 a month, 2-year lease?
HK$240,000 a year x 0.5% = HK$1,200, plus HK$5 for the counterpart.
Key Takeaways
- Lease stamp duty is 0.25%, 0.5% or 1% depending on the term, according to the IRD.
- Each counterpart costs an extra HK$5.
- Stamp within 30 days of signing; the start date doesn't matter.
- Late stamping costs 2, 4 or 10 times the duty.
- e-Stamping runs 24 hours and issues an instant certificate when you pay online.
- Unstamped leases can't be used as evidence in civil proceedings.
- Landlords must also file Form CR109 within 1 month; late filing costs HK$310.
Moving to Hong Kong for Work?
Signing a lease is easier when your job is sorted. Browse English-speaking jobs in Hong Kong on ExpatJobBoard.com, and use our first 30 days checklist to plan the rest of your move.
