Stamp Duty for Property

How much do we need to pay for Buyer Stamp Duty (BSD) or Additional Buyer Stamp Duty (ABSD)? And who will need to pay ABSD and who doesn’t?

The above are some of the common questions on the Stamp Duty for purchasing a property in Singapore. We will answer you in a simplified way,

Who can request for remission of ABSD (Non-developer)?
– For joint purchaser (with at least one Singapore Citizen) who had paid ABSD for their newly purchased property, and letting go all of their current property on hand within 6 months from TOP of the new property.

Buyer Stamp Duty for Property

Who needs to pay Buyer Stamp Duty? 
All purchaser buying any types of property in Singapore will needs to pay Buyer Stamp Duty.

Rates on or after 20 Feb 2018     

Purchase Price or Market Value of the Property BSD Rates for residential properties  BSD Rates for non-residential properties 
Property priced between $1 and $180,000                  1%                          1%
Property priced between $180,000 and $360,000                  2% less $1,800                          2% less $1,800
Property priced between $360,000 and $1m                  3% less $5,400

            

                        3% less $5,400  

Property priced at $1m and more                  4% less $15,400
 
BSD is rounded down to the nearest dollar.

For example, if the purchase price of a property is $600,000, the BSD payable will be:

 (1% x $180,000) + (2% x $180,000) + (3% x (600,000 – 180,000 – 180,000)) = $12,600.

Here’s a shortcut – if the property is being sold for or is valued below $1 million, you can use this formula to calculate the BSD instead:

(3% x purchase price or market value) – $5,400

You will arrive at the same result.

Additional Buyer Stamp Duty for Property

Additional Buyer Stamp Duty (ABSD) is applicable for selected group of purchaser only. The rate varies from 5% up to 20% , please refer to the below chart for ABSD payable for the new rate effective from 6 July 2018.

Buyer’s residency status ABSD rate on purchase of first property ABSD rate on purchase of second property ABSD rate on purchase of third and subsequent property
Singapore citizens, and nationals and Permanent Residents of Switzerland, United States of America, Liechtenstein, Iceland and Norway Not applicable 12% 15%
Singapore Permanent Residents 5% 15% 15%
Foreigners 20% 20%

20%

You will be regarded as purchasing an additional residential property if you already own a residential property in Singapore (whether you fully, jointly or partially own this first residential property).

Must ABSD always be paid when you buy additional residential properties in Singapore?

There are some situations where you will not have to pay ABSD when buying additional residential properties in Singapore. These include:

  • Where you have already contracted to sell your current residential property before signing the Option to Purchase for the new residential property
  • If you are downgrading from a private property to a HDB resale flat. This is because you are required to sell your private property within 6 months of completing your purchase of the HDB resale flat.

What if you are buying the property jointly with someone else?

When purchasing a residential property jointly with someone else, check whether different ABSD rates apply to both of you.

If so, the higher ABSD rate will be used to calculate ABSD.

Do I need to pay ABSD when purchasing an Executive Condo (EC)?
– No. This is because you are required to sell your HDB within 6 months from TOP date of the new EC, disposed-off any private property for at least 30 months before the purchase of new EC for NPS or sell off your HDB before TOP of new EC for DPS.

For more detailed info on Stamp Duty, please click here

To learn more on payment timeline click here