Pursuits
Hong Kong Plugs Property Tax Loophole Amid Home-Buying Spree
- New rules intended to prevent multiple purchases of units
- Analysts say move won’t have much impact on home prices
Hong Kong Plugs a Property Tax Loophole
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Hong Kong’s government tightened property rules for the second time since November to shut a loophole that allowed investors to snap up multiple units in one shot to qualify for lower tax rates.
Under the new rules, first-time home buyers acquiring more than one property in a single contract will be charged the same 15 percent stamp duty that applies to purchases of a second property, rather than the 4.25 percent duty for first-time buyers. The change, announced late Tuesday by Hong Kong’s Chief Executive Leung Chun-ying, took effect at midnight.