Guide To Stamp Duty For Property In Singapore

When you purchase a property, you’re not just paying for the beautiful house or apartment. One of the many additional costs associated with buying property is stamp duty.  Each time you make a property purchase you have to pay the Buyer’s Stamp Duty (BSD).

And if you happen to fall under certain categories of buyer’s profile, like existing property owners, or foreigner etc, you are liable to pay the Additional Buyer’s Stamp Duty (ABSD). This is one of the measures that was introduced to cool down the over zealous property market to prevent a property bubble and also to stabilise the property prices.

So how much do you need to add to the price tag of your property purchase?

Buyer’s Stamp Duty (BSD) in Singapore

BSD is compulsory for all property purchase. There is no way to avoid this. The BSD is computed based on the purchase price or the market value of the property — whichever is higher. The revised rates with effect from 28 February 2018 is calculated as such:

Purchase Price or Market Value of the Property BSD Rates for residential properties BSD Rates for non-residential properties
First $180,000 1% 1%
Next $180,000 2% 2%
Next $640,000 3% 3%
Remaining Amount 4% 3%

The more expensive the price of the property is, the higher is the rate of the stamp duty.

Additional Buyer’s Stamp Duty (ABSD) in Singapore

In addition to BSD, there is Additional Buyer’s Stamp Duty (ABSD), which has increased with effect from 6 July 2018.

You are liable to pay ABSD on residential property purchases if:

  • You’re a Singapore Citizen who is purchasing your second and subsequent residential properties.
  • You’re a Permanent Resident who is purchasing your first and subsequent residential properties.
  • You’re a Foreigner or a non-individual (company).

The rates for ABSD are as follows:

If you’re thinking of upgrading your home, you can lower or eliminate your ABSD liabilities by timing the sale of your home to coincide with your purchase of a new one.

For married couples who purchase a second residential property jointly, you can apply for a Remission of ABSD . You can visit here to find out more about Remission of ABSD for a Married Couple.

Seller’s Stamp Duty (SSD) in Singapore

Besides BSD and ABSD, the 3rd type of Property Stamp Duty in Singapore is the Seller’s Stamp Duty (SSD). SSD was first introduced in February 2010. It can be defined as taxes payable on all residential properties levied on the selling price or valuation, whichever is higher, of the property when a seller sells it within the ‘minimum holding period’, This is also one of the cooling measures which was introduce to deter property flipping.

The SSD rates payable are as follows:

Date of Purchase or Date of Change of Zoning / Use Holding Period SSD rate payable
Between 20 Feb 2010 and 29 Aug 2010 (all  inclusive) Up to 1 year  1% on first $180,000
 2% on next $180,000
 3% on remainder
More than 1 year No SSD payable
Between 30 Aug 2010 and 13 Jan 2011 (all  inclusive) Up to 1 year  1% on first $180,000
 2% on next $180,000
 3% on remainder
More than 1 year and up to 2 years  0.67% on first $180,000
 1.33% on next $180,000
 2% on remainder
More than 2 years and up to 3 years  0.33% on first $180,000
 0.67% on next $180,000
 1% on remainder
More than 3 years No SSD payable
Between 14 Jan 2010 and 10 Mar 2017 (all  inclusive) Up to 1 year 16%
More than 1 year and up to 2 years 12%
More than 2 years and up to 3 years 8%
More than 3 years and up to 4 years 4%
More than 4 years No SSD payable
On and after 11 Mar 2017 (all  inclusive) Up to 1 year 12%
More than 1 year and up to 2 years 8%
More than 2 years and up to 3 years 4%
More than 3 years No SSD payable

Exceptions and remissions:

Those who are exempt from the SSD include:

  • Residential property owners whose properties are acquired by the Government under the Land Acquisitions Act
  • Individuals who are required to dispose of their properties as a result of bankruptcy
  • Companies who dispose of their properties upon involuntary winding up
  • Foreigners who are selling their residential properties under the Residential Properties Act
  • Individuals who return their flats to HDB as a result of re-possession or the Selective Enbloc Redevelopment Scheme (SERS)
  • Individuals who inherits an HDB flat, but is required by HDB to dispose of the flat
  • Individuals who own an HDB flat, and upon marrying a person who owns another HDB flat, is required by HDB regulations to dispose of either one of the flats

We hope that this brief overview can give you a better understanding on how the Property Stamp Duty in Singapore works and help you work out your financial planning for your property investment better.

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