Simplify & Navigate : Singapore Residential Property Stamp Duty
Whenever there is a change of ownership of residential property in Singapore, the transaction must be taxed.
The taxes that must be paid are as follows:
(1) a Buyer’s Stamp Duty (BSD); and
(2) Additional Buyer’s Stamp Duty, if applicable (ABSD).
What is BSD & How Much Is It?
BSD must be paid when transferring or buying Singapore real estate. BSD is based on the purchase price or market value (the higher amount).
BSD Rates (for transactions after 20 Feb 2018)
Purchase Price or Market Value of Property | BSD for Residential Property |
First $180,000 | 1% |
Next $180,000 | 2% |
Next $640,000 | 3% |
Remaining amount (above S$ 1 million) | 4% |
As you can see, the BSD is taxed at a different rate depending on how much the home cost to buy or how much it is worth on the market. So, people who can afford more expensive homes will pay a higher BSD, while people who buy cheaper houses will pay less.
Illustration
- If we purchase a home worth $500,000, the BSD payable is $9,600.
- If we purchase a home worth $2 million, the BSD payable is $64,600.
What Is ABSD & How Much Is It?
ABSD was part of a series of cooling measures implemented by the Monetary Authority of Singapore to limit speculative demand for residential properties in Singapore.
Since its introduction, the ABSD has undergone multiple revisions, and the Monetary Authority of Singapore has maintained that there are no intentions to relax property cooling measures. The latest revisions were announced on 8 May 2022.
The buyer’s profile at the time of the purchase of the residential property will determine whether ABSD is payable, and if so, the amount of ABSD that must be paid.
ABSD must be paid in addition to the existing BSD by applicable buyers.
ABSD Rates (for transactions after 9 May 2022)
Buyer Profile | ABSD Rate |
SC–1st residential property | N.A. |
SC–2nd residential property | 17% |
SC–3rd & subsequent residential property | 25% |
SPRs–1st residential property | 5% |
SPRs–2nd residential property | 25% |
SPRs–3rd & subsequent residential property | 30% |
Foreigners–any residential property | 30% |
Entities buying any residential property | 35% |
While the BSD is based on a percentage of the property’s selling price, the ABSD is fixed. The amount we must pay varies according to our nationality (whether we are Singaporeans, PRs, or foreigners) and the number of properties we own, as shown in the table.
Singaporeans must pay an ABSD of 17% when buying a second residential property.
Illustration
If we want to buy a second home that costs $2 million, we must pay:
BSD + ABSD = $64,600 + $340,000 = $404,600
Count of Residential Properties Owned
(A) Count from the Date of the Sale and Purchase Agreement
If the Option to Purchase has been exercised, it should be counted as one of the buyer’s properties as of the day he exercised the Option, even if the property has not yet been legally transferred to him.
This includes purchasing a unit from the developer before its completion if the Sale and Purchase Agreement has been executed.
Similarly, the property should not be regarded as one of the buyer’s properties if the new buyer has exercised his Option to Purchase.
(B) Partial / Joint Ownership
Ownership of any interest in a property is counted as part of a buyer’s total property holdings.
Illustration
- John jointly owns a property with his wife – Count 1.
- John owns a property with his brother, percentage ownership 30% – 70% – Count 2.
- The number of properties owned by John is 2.
(C) Multiple Properties in a Single Transaction
Many residential properties can be purchased under one contract. However, each residential property will be counted as its own.
(D) HDB Shop with Living Quarters
HDB shops with living quarters or shophouses with residential use will be included as a residential property count.
(E) Residential Properties Not in Singapore
All residential properties not located in Singapore will not be included in the count of residential properties owned.
When Must BSD & ABSD Be Paid?
If the BSD applies to you, the ABSD must be paid within 14 days from the exercise of the Option to Purchase or the date the Sale & Purchase Agreement is signed.
What About Inherited Properties?
IRAS has clarified that BSD and ABSD are not payable on properties acquired by inheritance. However, such properties are included in the property count if further residential property purchases are made.
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