Stamp Duties and Government Charges

Navigating Stamp Duties and Government Charges

Navigating the intricacies of stamp duties and government charges is crucial for anyone looking to buy or sell property in Singapore. These charges, which include the Buyer's Stamp Duty (BSD), Additional Buyer's Stamp Duty (ABSD), and Seller's Stamp Duty (SSD), can significantly impact the overall cost of property transactions. Understanding these duties is essential for budgeting and financial planning in the property market.

Buyer's Stamp Duty (BSD)

Buyer's Stamp Duty is a tax levied on all property purchases in Singapore, calculated based on the purchase price or market value of the property, whichever is higher. The BSD rates for residential properties are tiered progressively: 1% for the first $180,000, 2% for the next $180,000, 3% for the next $640,000, 4% for the next $500,000, 5% for the next $1,500,000, and 6% for any amount exceeding $3,000,000. These higher tiers, introduced in February 2023, mean that buyers of properties valued above $1.5 million will face a higher BSD than under the previous four-tier structure. This duty applies to all buyers regardless of nationality or residency status, and must be paid within 14 days of the date of the property purchase agreement.

Additional Buyer's Stamp Duty (ABSD)

Additional Buyer's Stamp Duty is an extra tax imposed on top of BSD for certain categories of buyers. The rates, last revised on 27 April 2023, are as follows: Singapore Citizens pay 0% on their first property, 20% on their second, and 30% on their third and subsequent properties. Permanent Residents pay 5% on their first property, 30% on their second, and 35% on their third and subsequent properties. Foreigners pay 60% on any residential property purchase, while entities such as companies pay 65%. These rates form part of the government's cooling measures to moderate the property market and ensure housing affordability. Certain reliefs may apply; for example, married couples where at least one spouse is a Singapore Citizen may qualify for an ABSD refund if they sell their existing property within six months of purchasing a new one.

Seller's Stamp Duty (SSD)

Seller's Stamp Duty applies to the sale of private residential properties sold within a specified holding period, and is intended to discourage speculative flipping. For properties purchased on or after 4 July 2025, the holding period is four years, with rates of 16% if sold within the first year, 12% in the second year, 8% in the third year, and 4% in the fourth year. No SSD is payable if the property is held beyond four years. For properties purchased between 11 March 2017 and 3 July 2025, the previous three-year holding period applies, with rates of 12%, 8%, and 4% for the first, second, and third years respectively. HDB flat owners are not subject to SSD as the existing five-year Minimum Occupation Period already restricts early resale. This duty is calculated based on the selling price or market value, whichever is higher, and is payable by the seller.