Stamp Duty is a tax on documents relating to the purchase or lease of a property. When buying property in Singapore, the Stamp Duty must be paid in full within 14 days of the Option to Purchase or Sale and Purchase Agreement being signed or from the date of transfer.
If the document is signed overseas, it has to be paid within 30 days after the date of its receipt in Singapore.
This tax is payable by the buyer regardless of whether you are a Singaporean citizen, Permanent Resident, or Foreigner.
Penalties will be imposed on documents that are stamped late or for which stamp duty is underpaid.
There are three types of stamp duty payable on the sale, purchase, acquisition or disposal of Singapore property. Only the first two are payable by the buyer.
Stamp Duty can be paid online – more details are available from IRAS.
- Buyer’s Stamp Duty (BSD)
- Additional Buyer’s Stamp Duty (ABSD)
- Seller’s Stamp Duty (SSD)
Buyer’s Stamp Duty
The Buyer’s Stamp Duty is a tax paid on the stamping of mortgage documents and paid by the purchaser.
You are required to pay a BSD for documents executed for the sale and purchase of property located in Singapore. BSD will be computed on the purchase price as stated in the document to be stamped or market value of the property.
The BSD is levied at the following rates:
- First S$180,000 1%
- Next S$180,000 2%
- Remaining amount 3%
Additional Buyer’s Stamp Duty (ABSD)
The ABSD was introduced on December 2011 and it aims to moderate strong investment demand by local and foreign buyers of residential property. ABSD’s aim is to ensure that residential property remains affordable for Singaporeans.
ABSD is to be paid by certain groups of people who buy or acquire residential properties on top of the existing buyer’s stamp duty.
ABSD, like BSD, is payable within 14 days of:
- Date of exercise of Option to Purchase (OTP) or Contract
- Date of Sale & Purchase Agreement (where no OTP is granted)
- Date of transfer where (i) and (ii) are not available nor applicable.
If the contract, agreement or transfer is signed overseas, ABSD is payable within 30 days of the receipt of such documents in Singapore.
Computation of BSD and ABSD
The amount is computed by applying the relevant stamp duty rates on the actual price paid or market value of the property, whichever is the higher.
The BSD is calculated based on a tiered-rate structure, i.e. 1% on the first $180,000, 2% on the next $180,000 and 3% on the amount exceeding $360,000.
The ABSD rates on the other hand are flat rates of 3%, 5%, 7%, 10% or 15% to be applied on the actual price paid or market value of property, whichever is higher.
For purchase of a partial interest in a residential property, ABSD is computed on the actual price paid or market value of the partial interest only.
BSD and ABSD Rates
|Profile of the Buyer||BSD Rates||ABSD Rates||ABSD Rates|
|Singapore Citizens (SC)1 buying first residential property||1% on first $180,0002% on next $180,0003% for the remainder||N/A||N/A|
|SC1 buying second residential property||N/A||7%|
|SC1 buying third and subsequent residential property||3%||10%|
|Singapore Permanent Residents (SPR)1 buying first residential property||N/A||5%|
|SPR1 buying second and subsequent residential property||3%||10%|
|Foreigners (FR) and entities2 buying any residential property||10%||15%|
1 Whether owned wholly, partially or jointly with others.
2 An Entity means a person who is not an individual. It includes the following:
- An unincorporated association
- A trustee for a collective investment scheme when acting in that capacity
- A trustee-manager for a business trust when acting in that capacity
- The partners of the partnership whether or not any of them is an individual, where the property conveyed, transferred or assigned is to be held as partnership property
3 BSD and ABSD are to be rounded down to the nearest dollar.
*Do note that all government taxes are subject to change.
Also published on Medium.