Hong Kong proposes stamp duty waiver for pre-listing REIT property transfers
Hong Kong's Deputy Secretary for Financial Services and the Treasury proposed waiving stamp duty on non-residential property transfers for real estate investment trusts (REITs) preparing to list in the city. The measure, announced in the 2026-27 budget, aims to cut pre-listing costs and boost Hong K
Hong Kong's Deputy Secretary for Financial Services and the Treasury on 6 November 2026 briefed the Legislative Council's Financial Affairs Committee on a proposal to waive stamp duty on non-residential property transfers for real estate investment trusts (REITs) preparing to list in the city.
The official said the national 15th Five-Year Plan explicitly supports Hong Kong in strengthening its function as an international asset and wealth management centre. According to a Securities and Futures Commission survey, Hong Kong's total assets under management reached a record high of HK$42.2 trillion at the end of 2025, up 20 per cent year on year. Net capital inflows into the city's asset and wealth management industry nearly tripled to HK$2.1 trillion. An industry report published this year, the 2026 Global Wealth Report, ranked Hong Kong as the world's largest cross-border wealth management centre, forecasting that cross-border wealth managed from the city would grow by an average of 9 per cent annually from 2025 to 2030.
The government is pursuing multiple measures to consolidate Hong Kong's leading position, including promoting family office business, introducing diversified fund structures, providing a more favourable tax environment for the fund industry and expanding fund distribution networks. For the REIT market specifically, the government has implemented a grant scheme supporting REIT listings and, since December 2024, exempted stamp duty on transfers of REIT units. On 11 November 2026, it will table a bill amending the Securities and Futures Ordinance to introduce a statutory mechanism for REIT restructuring or compulsory acquisition, enhancing market liquidity.
The proposed stamp duty waiver, announced in the 2026-27 Budget, targets pre-listing REITs that may need to restructure assets, incurring significant stamp duty costs. The measure aims to reduce upfront listing costs and encourage more REITs to set up in Hong Kong. It applies to new REITs preparing to list in Hong Kong, including those already listed overseas seeking dual primary or secondary listing in the city. Beneficiary REITs must complete property transfers within six months before listing on the Stock Exchange of Hong Kong (SEHK). The waiver covers both direct property transfers and transfers via special purpose vehicle shares, but excludes residential property. To prevent abuse, the REIT must hold the property or special purpose vehicle shares for at least two years and maintain its SEHK listing for at least two years.
The government proposes the waiver take effect from the date the bill is tabled in the Legislative Council. Stamp duty paid during the interim period would be refundable once all eligibility requirements are met. The 2026 Policy Address announced that relevant legislative proposals are being drafted, with a target to table the bill in the first half of 2027. The official described the waiver as part of a "combination punch" supporting REIT market development, alongside efforts to include REITs in mutual market access schemes to inject growth momentum.