Before making a purchase of any residential property in Singapore, it is vital to be aware of the taxes that one is subjected to before making a major financial commitment. Below are some essential property taxes that a home buyer should take note of.
- Buyer’s Stamp Duty (BSD) is a tax imposed on documents signed during the acquisition or purchase of immovable properties in Singapore. The responsibility for paying BSD lies with the buyer or transferee. It’s important to note that BSD is applicable for any acquisition of immovable property or land in Singapore, irrespective of whether it is a private property or an HDB flat.
Buyer's Stamp Duty (BSD)
| Based on the purchased price or market value, whichever is higher | |
|---|---|
| First $180,000 | 1% |
| Next $180,000 | 2% |
| Next $640,000 | 3% |
| Next $500,000 | 4% |
| Next $1,500,000 | 5% |
| Remaining | 6% |
*Note: As of 14th of Feb 2023, the Buyer’s Stamp Duty will range from approximately 3% to 6% of the purchased or valued price of the property.
For a residential property of price or market value of $1 million or below, the buyer’s stamp duty can be calculated using the formula below:
BSD = (3% x property price) – $5400
For a residential property of price or market value between $1 million – <$1.5 million, the buyer’s stamp duty can be calculated using the formula below:
BSD = (4% x property price) – $15,400
For a residential property of price or market value between $1.5 million – <$3 million, the buyer’s stamp duty can be calculated using the formula below:
BSD = (5% x property price) – $30,400
For a residential property of price or market value between $3 million and above, the buyer’s stamp duty can be calculated using the formula below:
BSD = (6% x property price) – $60,400
The Buyer’s Stamp Duty is applicable to all buyers purchasing a resale HDB flat, a new launch condo, or even a resale Singapore condo.
- Additional Buyer’s Stamp Duty (ABSD) policy was implemented by the Government on December 8, 2011, with the intention of regulating the demand for residential properties. This measure seeks to maintain affordability for Singaporean citizens and align property prices with economic fundamentals. ABSD is an additional charge imposed on top of the existing BSD for the acquisition of immovable residential properties in Singapore. The rates for ABSD were most recently adjusted on 27th April 2023, a move aimed at stabilizing the residential property market and mitigating the potential for a severe future price correction, which could have adverse effects on the overall economic stability.
You can find the latest ABSD rates in the table below,
Additional Buyer's Stamp Duty (ABSD)
| Profile Of Buyer | ABSD rates: 6th July 2018 - 15th Dec 2021 | ABSD rates: 16th Dec 2021 - 26th Apr 2023 | ABSD rates: On or After 27th Apr 2023 |
|---|---|---|---|
| Singapore Citizen Buying First Residential Property | Nil | Nil | Nil (No Change) |
| Singapore Citizen Buying Second Residential Property | 12% | 17% | 20% (Revised) |
| Singapore Citizen Buying Third and subsequent Residential Property | 15% | 25% | 30% (Revised) |
| Singapore PR buying First Residential Property | 5% | 5% | 5% (No Change) |
| Singapore PR buying Second Residential Property | 15% | 25% | 30% (Revised) |
| Singapore PR buying Third and subsequent Residential Property | 15% | 30% | 35% (Revised) |
| Foreigners buying residential property | 20% | 30% | 60% (Revised) |
| Entities buying residential property | 25% Plus Additional 5% for Developers (Non-Remittable) | 35% Plus Additional 5% for Developers (Non-Remittable) | 35% Plus Additional 5% for Developers (Non-Remittable) |
Singapore Citizen who does not own any residential property will not be subjected to Additional Buyer’s Stamp Duty (ABSD).
Note*
Under the respective Free Trade Agreements (FTAs), Nationals or Permanent Residents of the following countries will be accorded the same Stamp Duty treatment as Singapore Citizens:
-
- Nationals and Permanent Residents of Iceland, Liechtenstein, Norway or Switzerland
- Nationals of the United States of America
- The Seller’s Stamp Duty(SSD) is applicable to residential property buyers who sold their property within 3 years of acquiring the property.
The SSD was first implemented in 2011. An SSD is payable if a property buyer who purchases the property on or after 14th January 2011 sells it within 4 years. Recently in March 2017, the Authorities have revised the measure, Purchasers acquiring a residential property on or after 11th March 2017 will only need to hold the property for 3 years if they do not want to pay for any SSD.
Seller's Stamp Duty (SSD) - Residential Properties (On and after 11/03/2017)
| Holding Period | SSD payable |
|---|---|
| Up to 1 Year | 12% of consideration or value, whichever is higher |
| Up to 2 Years | 8% of consideration or value, whichever is higher |
| Up to 3 Years | 4% of consideration or value, whichever is higher |
| More than 3 Years | No SSD Payable |
Seller's Stamp Duty (SSD) - Residential Properties (Purchased between 14/01/2011 to 10/03/2017)
| Holding Period | SSD payable |
|---|---|
| Up to 1 Year | 16% of consideration or value, whichever is higher |
| Up to 2 Years | 12% of consideration or value, whichever is higher |
| Up to 3 Years | 8% of consideration or value, whichever is higher |
| Up to 4 Years | 4% of consideration or value, whichever is higher |
| More than 4 years | No SSD Payable |
The above information is obtained from the IRAS website. For more details, please click here to visit their website.
