Buying or selling property in Singapore involves stamp duties that can add tens or even hundreds of thousands of dollars to your transaction costs. Understanding the three types of stamp duty — Buyer's Stamp Duty (BSD), Additional Buyer's Stamp Duty (ABSD), and Seller's Stamp Duty (SSD) — is essential for anyone entering the property market. This guide breaks down each duty, the current rates, who pays what, and how to calculate your liability.
Buyer's Stamp Duty (BSD)
BSD is payable on all property purchases in Singapore, whether residential, commercial, or industrial. It is calculated on the higher of the purchase price or the market value of the property. The rates are progressive, meaning higher-value properties attract higher marginal rates.
The current BSD rates for residential properties are:
- First S$180,000: 1 per cent
- Next S$180,000 (S$180,001 to S$360,000): 2 per cent
- Next S$640,000 (S$360,001 to S$1,000,000): 3 per cent
- Next S$500,000 (S$1,000,001 to S$1,500,000): 4 per cent
- Next S$500,000 (S$1,500,001 to S$2,000,000): 5 per cent
- Remaining amount (above S$2,000,000): 6 per cent
For example, on a property priced at S$1,200,000, the BSD would be: (S$180,000 x 1%) + (S$180,000 x 2%) + (S$640,000 x 3%) + (S$200,000 x 4%) = S$1,800 + S$3,600 + S$19,200 + S$8,000 = S$32,600.
For non-residential properties (commercial and industrial), the rates are lower: 1 per cent on the first S$180,000, 2 per cent on the next S$180,000, and 3 per cent on the remaining amount. BSD on these properties has not changed in recent years.
Additional Buyer's Stamp Duty (ABSD)
ABSD is the government's primary property cooling measure, designed to moderate demand and prevent speculative buying. It applies on top of BSD and the rates vary significantly depending on your residency status and how many properties you already own.
The current ABSD rates (effective from 27 April 2023) are:
- Singapore Citizens: 0 per cent on first residential property, 20 per cent on second, 30 per cent on third and subsequent.
- Singapore Permanent Residents: 5 per cent on first residential property, 30 per cent on second and subsequent.
- Foreigners: 60 per cent on any residential property purchase.
- Entities (companies, trusts): 65 per cent on any residential property, plus an additional 5 per cent (non-remittable) if the entity is a housing developer purchasing for development.
These rates are substantial. A foreigner buying a S$2 million condominium would pay S$1,200,000 in ABSD alone — on top of the BSD. Even for a Singapore citizen buying a second property at S$1.5 million, the ABSD is S$300,000. These costs fundamentally change the economics of property investment and have been effective in dampening speculative demand.
ABSD is payable within 14 days of executing the sale and purchase agreement (for properties purchased in Singapore). For properties acquired overseas, the payment deadline may differ. Late payment attracts a penalty.
ABSD Remission and Exemptions
Married couples who are both Singapore citizens may apply for ABSD remission on their second property if they sell their existing property within six months of purchasing the new one (or six months after the Temporary Occupation Permit date for uncompleted properties). This is designed to accommodate families who need to buy a new home before selling their current one.
Singapore citizen married couples can also claim ABSD remission if one spouse does not own any property and the new property is purchased in joint names. The refund must be applied for after the purchase, and IRAS will assess the eligibility based on the specific circumstances.
Housing developers can apply for remission of the ABSD paid on land purchased for development, provided all units in the development are sold within five years of the purchase date. If the developer fails to sell all units within the timeframe, the ABSD (plus interest) becomes payable.
Seller's Stamp Duty (SSD)
SSD is payable when you sell a residential property within a specified holding period after purchase. The purpose is to discourage short-term speculative buying and selling. The holding period and rates are:
- Sold within 1 year of purchase: 12 per cent
- Sold in the second year: 8 per cent
- Sold in the third year: 4 per cent
- Sold after 3 years: No SSD
SSD is calculated on the higher of the selling price or market value. For industrial properties, the holding period is three years with rates of 15 per cent, 10 per cent, and 5 per cent respectively. There is no SSD on commercial properties.
The holding period is calculated from the date of acquisition to the date of disposal. For uncompleted properties bought off-plan, the acquisition date is the date of the sale and purchase agreement, not the date of completion. This is important because some investors purchase off-plan properties intending to flip them before completion — SSD applies from the date of the agreement, not the TOP date.
How Stamp Duties Affect Property Investment Returns
The combined effect of BSD, ABSD, and SSD can dramatically affect the return on a property investment. Consider a Singapore citizen buying a second investment property at S$1.5 million:
- BSD: S$44,600
- ABSD (20 per cent): S$300,000
- Total upfront stamp duty: S$344,600
That is almost 23 per cent of the purchase price paid in stamp duty alone, before legal fees, agent commissions, renovation, and mortgage interest. For the investment to break even on stamp duty costs, the property would need to appreciate by at least S$344,600 — and that is before factoring in selling costs and potential SSD if sold within three years.
For most investors, the high ABSD on second and subsequent properties means that property investment in Singapore is only viable with a long holding period and strong rental yield to offset the upfront costs. The days of quick-flip property speculation in Singapore are effectively over for most buyer categories.
Stamp Duty on Transfers and Gifts
Stamp duty also applies when property is transferred between parties, even if no money changes hands. A gift of property to a family member is subject to BSD (and ABSD, if applicable) based on the market value of the property at the time of transfer. This is a common area of confusion — many people assume that transferring a property to a child or spouse is free of stamp duty, but it is not.
There are limited exemptions for transfers between spouses as part of a divorce settlement, where the court orders the transfer. In these cases, the transfer may be exempt from stamp duty, but the specific circumstances must be reviewed carefully.
How to Pay Stamp Duty
Stamp duty must be paid through IRAS's e-Stamping portal. For property purchases, the payment is typically handled by the conveyancing lawyer as part of the completion process. The deadline for payment is 14 days from the date of signing the agreement. Online stamp duty can be paid via GIRO, credit card, or direct bank transfer. A stamp certificate is issued as proof of payment, and this document is essential for the property registration process with the Singapore Land Authority.
Final Thoughts
Stamp duties are a major cost of property ownership in Singapore, particularly with the current ABSD rates for second properties, PRs, and foreigners. Before committing to a property purchase, make sure you calculate the full stamp duty liability and factor it into your investment analysis. The rules are clear and transparent, but the amounts involved are large enough to significantly affect your returns. Use our stamp duty calculator to work out the exact amount payable on your planned purchase.