Guides / Costs and leases

Costs and leases

Rates, government rent and stamp duty on a Hong Kong office lease

2 min read · 16 Oct 2026 · Ready Office

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In short. Rates are 5% and government rent is 3% of rateable value, charged to the owner and often passed to the tenant. Stamp duty on a two to three-year lease is 0.5% of average yearly rent, customarily shared equally.

On this page
  1. Rates
  2. Government rent
  3. Stamp duty on the lease
  4. A worked example
  5. What to do

Three costs sit outside the headline rent: rates, government rent and stamp duty. Here is how each works. Ready Office's quoted all-in monthly figure does not include any of them, so it helps to know what to budget.

Rates

Rates are a property charge based on rateable value, which is an estimate of a property's annual rental value. The Hong Kong Government charges rates at 5% of rateable value.

Government rent

Government rent is a separate charge on the land, at 3% of rateable value.

Both are charged to the property owner. Source: Hong Kong Government, 2016. The government has granted rates concessions from time to time. Many office leases pass rates and government rent to the tenant, so check who pays under yours. Figures and concessions can change, so confirm the current position with the Rating and Valuation Department.

Stamp duty on the lease

Stamp duty applies to tenancy agreements. The Inland Revenue Department's rates are:

Lease term Duty
Up to 1 year 0.25% of total rent over the term
More than 1 year, up to 3 years 0.5% of average yearly rent
More than 3 years 1% of average yearly rent

Rental deposits are excluded, and rent-free periods count as part of the term. Source: Inland Revenue Department.

All parties to the agreement are liable for the duty. In practice it is customarily shared equally between landlord and tenant. Source: Hugill & Ip.

A worked example

This uses invented numbers for illustration only.

A three-year lease at HK$100,000 a month has an average yearly rent of HK$1,200,000. At 0.5%, the duty is HK$6,000. Shared equally, each side pays HK$3,000.

What to do

  • Ask whether the lease passes rates and government rent to you, and the current annual amount.
  • Ask who bears the stamp duty.
  • Add all three to your total cost comparison.

This is general information, not tax or legal advice.

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