What is Seller's Stamp Duty (SSD) and when does it apply?

Seller's Stamp Duty (SSD) is a tax levied on property owners who sell their residential property within a specified holding period after purchase. SSD was introduced as an anti-speculation measure to discourage short-term property flipping and has been revised several times since its introduction in 2010.

On 3 July 2025, the government announced an increase in both the SSD holding period and rates for residential properties, reverting to the pre-2017 structure. For properties purchased on or after 4 July 2025, the SSD rates are as follows: 16% if sold within the first year of purchase, 12% if sold in the second year, 8% if sold in the third year, and 4% if sold in the fourth year. No SSD is payable if the property is sold after four years. These changes were prompted by a sharp increase in private residential property transactions with short holding periods, particularly sub-sales of uncompleted units.

For properties purchased between 11 March 2017 and 3 July 2025, the previous regime still applies: 12% if sold within the first year, 8% in the second year, and 4% in the third year, with no SSD after three years. It is important to check your purchase date to determine which SSD schedule applies to your property.

For example, if you purchased a condominium on or after 4 July 2025 for S$1,500,000 and sold it 18 months later for S$1,700,000, SSD of 12% would apply to the selling price, amounting to S$204,000. Combined with other transaction costs, this can significantly erode or even exceed your capital gains.

SSD applies to private residential properties and is calculated from the date of purchase (the date you exercised the Option to Purchase or signed the Sale and Purchase Agreement) to the date of sale. HDB flat owners are generally unaffected by SSD changes, as the existing five-year Minimum Occupation Period already restricts resale within that timeframe.

Certain exemptions from SSD exist, including situations where the property is transferred due to bankruptcy, death of the owner, or under a court order. Licensed housing developers selling properties they have developed are also exempt. However, these exemptions are narrow and specific.

The existence of SSD should be factored into your decision-making timeline when purchasing property. Under the current regime, if there is any possibility you may need to sell within four years, the potential SSD liability should be a key consideration. For a S$2,000,000 property sold within the first year, the SSD alone would amount to S$320,000. This makes short-term property investment strategies significantly more costly and reinforces the government's position that property ownership should be a long-term commitment.