property owned by company, new buyer does not need to pay stamp duty?



ORIGINAL POST
Posted by peter0001 9 yrs ago
i have a flat in tung chung crescent, i want to sell which is owned by a company
this company only holds this 1 property and nothing else

so if i sell this company to new buyer he/she will not need to pay any stamp duty?
also i can sell to a non permanent resident of hong kong?

please let me know

thanks
peter

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COMMENTS
Topol 9 yrs ago
The stamp duty for a transfer of a company is 0.2% - so the stamp duty will be significantly lower than a transfer from individual to individual. However the buyer may require an indemnity against any hidden debts the company may have.

The buyer of the property does not need to be a HK permanent resident.

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OffThePeak 9 yrs ago
A key question is:

If you sell the company holding the property will you get a better price?
My guess is that you will not. Or that you will pocket less than half the savings?

Why?
Because fewer buyers will be willing to "play" - and the Buyer may even want a discount for the risk of a debt popping up, and the hassle that he/she may have to go through in selling in the future.

My suggestion, is to try to sell it both with and without the company, and see which of them will allow you to get a better price. My guess is, most buyers would prefer to buy it "clean"

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Topol 9 yrs ago
You should get a better price to reflect that stamp duty has been reduced. However I suspect that this would be a tool to resist dropping the price when negotiating rather than getting a premium. A legal indemnity may allay a fears of a future dept popping up - you may also need to provide past company accounts.

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OffThePeak 9 yrs ago
There is plenty of choice for buyers.
Why pay more for a property with a possible cloud over it

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