Quick Answer: A Hong Kong flat is normally let on a two-year fixed lease with a break clause after twelve months, against a deposit of two or three months' rent. Stamp duty is 0.5% of the yearly rent for a term over one year but not over three, and every party to the agreement is liable for it. Agency commission is negotiable, not set by law.
A Hong Kong flat is normally let on a two-year fixed term with a break clause that either side can use after the first twelve months, against a deposit of two or three months' rent. Stamp duty on that agreement is 0.5% of the yearly rent, and the Inland Revenue Department makes every party to the lease liable for it. Agency commission is negotiable and is not fixed by any statute. Average rents are still climbing: the Rating and Valuation Department's territory-wide rental index for all classes of private domestic property reached 207.4 in July 2026 against 197.4 a year earlier, a rise of about 5%. This guide covers what an agent charges, the money due before you move in, the stamp duty scale, registration, rates and management fees, and how to check a licence. Agencies and landlords are listed under real estate, property services and residential on Portal Hong Kong.
How does the market work, and what does an estate agent charge?
Most flats are found through a licensed agency, and the same firm often has both the landlord and the tenant on its books. Rents are quoted on saleable area and, in the official statistics at least, net of rates, management and other charges, as the Rating and Valuation Department sets out in the technical notes to its Hong Kong Property Review Monthly Supplement (September 2026). That supplement puts the July 2026 provisional average rent for a flat under 40 square metres at HK$553 per square metre a month on Hong Kong Island, HK$472 in Kowloon and HK$376 in the New Territories.
No law sets a commission rate. What the law does is control the paperwork: the Estate Agents Authority requires licensees to use Form 5 with a landlord and Form 6 with a tenant, and the rate or amount of commission is written into that form. Where the agent acts for both sides, Form 6 obliges it to disclose in writing the amount or rate of commission it will receive from the landlord. If a fee is later disputed, sums up to HK$300,000 can be referred to the Authority for determination under section 49 of the Estate Agents Ordinance, on payment of a determination fee of 10% of the amount in dispute, minimum HK$2,000. Agencies on the site include CBRE Hong Kong, Land and Fortune Realty and Hong Kong City Property.
What do you pay up front, and how does the two-year lease work?
Budget for the first month's rent, the deposit, your share of the stamp duty and the agency fee before the keys change hands. Two months' rent is the common deposit on an ordinary private tenancy and three months is asked where there is no local employment record; there is no statutory cap for ordinary private lettings, so the figure is whatever the agreement states.
The standard term is two years drafted as one fixed year followed by a second year that either party may end on two months' written notice, or two months' rent in lieu. That break is a contract term, not a statutory right, so check the earliest date it can be used and whether both sides have it. Two drafting points matter for tax: the Inland Revenue Department treats a fixed term with an option to renew as a lease for that fixed term only, and a term running from 1 January to 1 January is one year and one day, which pushes it into the higher duty band. Subdivided units are a separate regime. Under Part IVA of the Landlord and Tenant (Consolidation) Ordinance they run on a four-year regulated cycle of two two-year tenancies, and the rent increase for the second term tenancy cannot exceed the movement in the department's rental index and is capped at 10%.
How much stamp duty is payable, and who pays it?
| Term of the tenancy | Stamp duty rate | Example: HK$25,000 a month |
|---|---|---|
| Not defined or uncertain | 0.25% of the yearly or average yearly rent | HK$750 |
| Does not exceed 1 year | 0.25% of the total rent over the term | HK$750 on a 12-month term |
| Over 1 year, not over 3 years | 0.5% of the yearly or average yearly rent | HK$1,500 on a two-year term |
| Over 3 years | 1% of the yearly or average yearly rent | HK$3,000 |
| Each duplicate or counterpart | HK$5 | HK$5 |
The scale is the Inland Revenue Department's, set out in its stamping procedures for tenancy agreements and in the government's rates of stamp duty table. Rent is rounded up to the nearest HK$100 before the calculation and the rental deposit is ignored. All parties executing the agreement are liable, so the split is a matter for the lease; half each is usual. Stamping must happen within 30 days of execution regardless of the commencement date, and late stamping costs 2 times the duty within a month, 4 times within two months and 10 times after that.
Does the agreement have to be registered?
Two separate filings get confused. The Land Registry confirms that under section 3(2) of the Land Registration Ordinance the priority of a tenancy with a term not exceeding three years is unaffected if it is never lodged, which is why ordinary two-year leases are not registered. A longer lease should be, and the registration fee for a lease, agreement for a lease, renewal or surrender is HK$375. Separately, the landlord of any domestic tenancy should lodge Form CR109 with the Rating and Valuation Department, which is free within one month of the tenancy being entered into or renewed and HK$310 afterwards. Without that endorsement the landlord cannot maintain an action to recover rent.
Who pays rates, government rent and management fees?
Whoever the agreement names, so read the clause. Since 1 January 2025 rates on domestic tenements follow a progressive scale: 5% of rateable value up to HK$550,000, which the department says covers about 98% of private domestic tenements, then 8% on the next HK$250,000 and 12% on the remainder. Government rent, where the lease carries the obligation, is 3% of rateable value. Management fees are set by the building's manager and usually fall on the tenant; providers are listed under property management. Before signing, check the agent's licence on the Estate Agents Authority Licence List and ask for the estate agent card. The regulator itself is listed as Estate Agents Authority. If a serviced flat would suit better for the first few months, compare serviced apartments, and for choosing an area start with the Causeway Bay and Wan Chai guides or the relocation company guide.
Frequently asked questions
- How much is stamp duty on a tenancy agreement in Hong Kong?
- It depends on the term. For a term of one year or less, stamp duty is 0.25% of the total rent payable over the term. For a term over one year but not over three years, it is 0.5% of the yearly or average yearly rent. Over three years, it is 1%. Each duplicate or counterpart costs HK$5. The rent is rounded up to the nearest HK$100 and any rental deposit is ignored, according to the Inland Revenue Department's stamping notes for tenancy agreements.
- Who pays the stamp duty on a Hong Kong lease, the landlord or the tenant?
- Both, in law. The Inland Revenue Department states that all parties executing the tenancy agreement, including the landlord, the tenant and any sub-tenant, are liable for payment of the stamp duty. Which of them actually hands over the money is a matter for the agreement, and splitting the duty equally is the usual arrangement in the private market. The agreement must be stamped within 30 days of execution, whatever the commencement date says.
- What deposit do landlords ask for in Hong Kong?
- Two months' rent is the common request on an ordinary private tenancy, with three months asked where the tenant has no local employment record. There is no statutory cap for ordinary private lettings, so the figure is whatever the tenancy agreement states. The deposit is ignored when stamp duty is calculated. Expect to pay the first month's rent, the deposit, your share of stamp duty and any agency commission before you get the keys.
- What is a break clause in a Hong Kong tenancy agreement?
- It is the clause that lets either side end a two-year lease early. The usual drafting makes the first twelve months a fixed period, after which either party can terminate by giving two months' written notice or two months' rent in lieu. It is a contract term rather than a statutory right, so read the notice period, the earliest date it can be used and whether the landlord has the same right as the tenant.
- Does a tenancy agreement have to be registered in Hong Kong?
- A lease of more than three years should be registered at the Land Registry; the fee for registering a lease is HK$375. The Land Registry confirms that under section 3(2) of the Land Registration Ordinance the priority of a tenancy with a term not exceeding three years is unaffected if it is not registered. Separately, the landlord of a domestic tenancy should lodge Form CR109 with the Rating and Valuation Department for endorsement.
- What is Form CR109 and why does it matter?
- It is the Notice of New Letting or Renewal Agreement under Part IV of the Landlord and Tenant (Consolidation) Ordinance. The landlord or principal tenant of a domestic tenancy cannot maintain an action to recover rent unless the Commissioner of Rating and Valuation has endorsed the notice. Lodging it within one month of the tenancy being entered into or renewed is free; after that a fee of HK$310 applies.
- Who pays rates and management fees on a rented flat?
- Whoever the tenancy agreement says. Rates are charged on the rateable value at 5% for domestic tenements valued at HK$550,000 or below, which the Rating and Valuation Department says covers about 98% of private domestic tenements, then 8% on the next HK$250,000 and 12% on the remainder. Government rent, where it applies, is 3% of rateable value. Rents quoted in the market are usually net of rates and management fees.
- How do I check that an estate agent in Hong Kong is licensed?
- Search the Estate Agents Authority Licence List by licence number, name or business name and confirm the licence is currently valid. Ask to see the estate agent card as well. A licensed agent must use the prescribed forms: Form 5 for an agreement with a landlord and Form 6 with a tenant. Where the agent acts for both sides, it must disclose in writing the amount or rate of commission it receives from the landlord.
