Can Transferring a Property Save You Taxes?

在香港如何透過近親物業內部轉讓來慳稅？

在香港如何透過近親物業內部轉讓來慳稅？

Transferring a property to a relative is a legal means of acquiring properties and avoiding taxes in Hong Kong. After the government implemented double stamp duty in 2013 and increased it for second-home buyers to 15% in 2016, home owners began transferring property titles from joint to single ownership, enabling them to restore the ‘first-time purchaser' status to re-enter the property market without triggering additional tax.

How Does it Work?

A person holding a property as a joint proprietor or individual owner may transfer (sell) their property to a close relative such as a parent, sibling, spouse or child, exempting them from paying the 15% buyers' stamp duty (BSD). The transaction is subject to Ad Valorem stamp duty (AVD) based on the property's determined value, but the transferor becomes eligible for the first-time buyer status, voiding them from the BSD on a future purchase.

Saving on Taxes

For example, a couple jointly owns a HK$6 million property. The husband transfers the property title to his spouse. The total AVD payable is HK$45,000. Later, he purchases a unit with a market value of HK$8 million as a first-time buyer, avoiding the 15% BSD (HK$1.2 million), instead paying only the 3.75% stamp duty (HK$300,000). This results in a net tax savings of HK$855,000 compared to purchasing the property without having transferred ownership of the original property.

Under current laws, the husband may be entitled to exemption from the BSD on each new purchase. The stamp duty applicable to first-time home buyers is much lower, ranging from 1.5% to 4.25%. If the property is under HK$2 million, only a printing fee of HK$100 is required.

In the first-hand property market, a similar strategy has evolved, with some prospective buyers registering for multiple lottery applications with their relative's names in order to increase their chances. If successful, they can transfer the property ownership from their relative to themselves, typically after waiting three years to avoid being subject to the Special Stamp Duty (SSD). These tax-saving strategies are not illegal and is obviously beneficial, but one must pay attention to the risks involved.

What are the Risks?

Mortgage financing: Banks are naturally careful in considering the financial strength of all parties involved, particularly for older purchasers or those with multiple properties in their portfolio. In the above example, he could provide a personal guarantee on his wife's mortgage, though again the bank will review the combined financial strength of both parties. The same applies to a parent transferring ownership to a child.

Costs: Consider both the immediate costs and those that may be incurred later. If the mortgage is transferred before the expiry of a penalty period, you may have to return the cash rebate and pay the penalty interest to the bank.

Estate planning: Separate ownership results in a more protracted probate process if the sole owner dies, especially if they do not have an updated will, which then leads to an even more exhaustive intestate court process and potential legal disputes within families.

Other tax and title considerations: Some owners may attempt to transfer their property below market price, but tax authorities have the right to recover the difference, potentially with a penalty. Even when done as a Deed of Gift (with no money changing hands), it is still considered a property transfer and subject to the same tax treatment as a sale, it is also subject to claims by creditors if the donor declares bankruptcy within five years. This can cause complications later, making the property difficult to sell, since banks may be unwilling to provide a mortgage to a new buyer during that five-year period.

Consider potential complexities and engage professional legal and tax advisors regarding property transfers. The government has indicated that it is closely monitoring such transfers, so stay abreast of the latest policies in case they change. Note: Illustrations in this article are for reference only and no representation or warranty is made regarding their accuracy. This article in no way represents legal, tax, accounting or investment advice. Readers considering real estate transactions should consult professionals in these areas for advice.

對於有意在香港置業的人來說，將物業內部轉讓予近親是一個合法途徑以購買物業和節省稅項。港府自2013年實施雙倍印花稅和2016年起對購買多個物業的業主收取15%的從價印花稅以來，就有許多聯名契約的業主相繼除名。這個做法讓他們回復「首置身分」，再考慮入市時，就可以避免高達15％的額外印花稅。

如何運作？

以聯名或個人名義持有物業的人士，可透過內部轉讓（出售）的方式，將持有物業的業權轉名給近親，例如父母、兄弟姊妹、配偶、子女等。「近親」的關係容許他們在業權轉讓時，豁免15％的買家印花稅，而只是按一般的物業印花稅繳稅。完成業權轉讓（「除名」）之後，該人士就可恢復「未持有物業」的身分，倘若之後再度入市，可節省高達15%的「辣招」稅。

如何節省印花稅－實際例子

舉例來說，夫婦原本聯名持有一個市值600萬元的物業，丈夫將其擁有的50%業權轉名給妻子，應課印花稅款為4.5萬元（$3,000,000 x 1.5%）。其後，丈夫再以「首置」身分買入市值800萬元的單位，應課印花稅項將由樓價15%（120萬元），大幅降至3.75% （ 30萬元）。連同此前「甩名」所產生的印花稅，內部轉讓為夫婦二人變相慳稅85.5萬元。

根據現時的法制，丈夫可以一直重覆這個動作、購入物業再轉讓予妻子，丈夫就可永續首置身分，每次置業都免卻辣招稅。相比15%辣稅，適用於首次置業的印花稅稅項僅為1.5%至4.25%，如果是樓價200萬元或以下的物業，更只需支付100元釐印費。

物業內部轉讓提供合法的途徑降低稅務開支，但存在許多潛在的複雜問題需要考慮。故此，在採取這個策略之前，你應該先諮詢專業的法律和稅務顧問，以助你作出更明智、更準確和可行的投資決定。此外，政府已經表明會密切關注情況，我們也應關注未來政策或將轉變。

注意：本文中引用的例子僅供參考，不會就其準確性作出任何陳述或保證。本文並非作為稅務、會計或法律建議之用途。讀者在考慮物業買賣時，應向專家諮詢專業意見。