In Singapore, stamp duty is a tax applied to property transactions by IRAS, particularly when buying or selling real estate. There are three key types: Buyer’s Stamp Duty (BSD), Additional Buyer’s Stamp Duty (ABSD), and Seller’s Stamp Duty (SSD). BSD is payable by all property buyers, while ABSD is imposed on foreign buyers or individuals purchasing multiple properties, with rates increasing for each additional property. SSD applies to those who sell their property within a specified period. The rates depend on the property’s value, type, and the buyer’s residency status, and these taxes aim to manage market demand and promote affordability.
Overview
This is a tax that applies to property transactions in Singapore, such as buying, leasing, or mortgaging real estate. It is based on various factors like the transaction type, property value, and whether it is residential or non-residential.
Property Purchases
For property purchases, BSD is calculated based on the higher of the purchase price or market value of the property. Rates differ for residential and non-residential properties. Residential properties follow tiered rates, whereas non-residential properties usually have a flat rate.
Leases
Leases are subject to stamp duty, which is determined by the total rental amount payable over the lease term. This applies to both residential and commercial properties.
Selling Property
SSD in Singapore is a tax imposed on property sellers who dispose of a residential property within a specific holding period. The duty applies when the property is sold within three years of purchase, and the seller is required to pay it based on the property’s sale price or market value, whichever is higher. The SSD aims to discourage short-term property speculation. Sellers should be aware of the holding period and associated duty to avoid unexpected costs when selling their property.
Conclusion
This is an important cost to factor into any property transaction in Singapore. By understanding the different rates and when to pay, buyers and lessees can ensure compliance and avoid extra charges.
Buyer’s Stamp Duty
| Purchase Price / Property Market Value | BSD Rates for Residential Property |
| First S$180,000 | 1% |
| Next S$180,000 | 2% |
| Next S$640,000 | 3% |
| Next S$500,000 | 4% |
| Next S$1,500,000 | 5% |
| Amount Exceeding S$3,000,000 | 6% |
Additional Buyer’s Stamp Duty
| Nationality | First Property | Second Property | Third Property |
| Singapore Citizens | Nil | 20% | 30% |
| Permanent Residents | 5% | 30% | 35% |
| Foreigners | 60% | 60% | 60% |
| Entities / Companies | 65% | 65% | 65% |
Seller’s Stamp Duty
| Holding Period | Rate from 14 Jan 2011* – 10 Mar 2017* | Rate on / after 11 Mar 2017 |
| Up to 1 Year | 16% | 12% |
| More than 1 Year, Up to 2 Years | 12% | 8% |
| More than 2 Years, Up to 3 Years | 8% | 4% |
| More than 3 Years, Up to 4 Years | 4% | No SSD Payable |
| More than 4 Years | No SSD Payable | No SSD Payable |
