Expats dazed and confused by stamp duty

New stamp duties rolled out over the last few months to try and cool the property market have been a big blow for expatriates in Hong Kong - and a matter of some confusion.

On Monday last week the Inland Revenue Department, which handles all queries on stamp duties, was so overwhelmed with calls that its inquiry hotline was disconnected while officials tried to catch up with a backlog of calls.

The confusion is understandable. Within four months three new stamp duty taxes have been introduced.

First came the "Special Stamp Duty" for properties that are resold within 36 months. Then came a "Buyer's Stamp Duty", a 15 per cent tax to be paid by non-permanent residents. Although aimed at mainlanders, it impacted all expats who have yet to clock up seven years' residence in the city and qualify for permanent resident status.

And then on February 22 came a doubling of the stamp duty that applies to everyone except permanent residents who are first-time buyers.

Anthony Hindmarsh, founder of Qi Homes, says the stamp duty issue is now so complex he plans to post an explanation of the various new duties in a blog on his company's site. But the message that buying property in Hong Kong is now even more expensive has been heard loud and clear, especially by non-permanent resident expats who have been hit hardest.