Buying property in Singapore is subject to tax levied known as Stamp Duty on the property purchase in Singapore, essentially it is the Buyer’s Stamp Duty (BSD) and the Additional Buyer’s Stamp Duty (ABSD). The amount you have to pay depends on the price of property you purchase. The higher the price of property the higher the tax.
Buyer’s Stamp Duty (BSD)
This is the rate that was raised from 3% to 4%, and applied on the value of residential property in excess of $1 million. The revised rates will apply to all residential properties acquired on or after 20 February 2018.
The current BSD rates with effect 20-Feb-2018 are:
|Purchase price or market value of property||BSD rate|
Additional Buyer’s Stamp Duty (ABSD)
This was introduced by the Government to be paid by certain groups of people who buy or acquire residential properties (including residential land) on or after 8 December 2011.
On 11 Jan 2013, the Government announced the revised ABSD rates applicable to purchases or acquisitions of residential properties on or after 12 Jan 2013. It has further announced on 5-July-2018 of the revised rate so as to keep price increases in line with the economic fundamentals and to cool the property market. With effect 6-July-2018, new ABSD rates to take effect as well to also tighten loan-to-value (LTV) limits on the residential property purchases.
The current ABSD with effect 6-July-2018 are :
|Citizenship||ABSD Rate on 1st Purchase||ABSD Rate on 2nd Purchase||ABSD Rate on 3rd and subsequent Purchase|
|Singapore Citizenship||Revised: NA||Revised: 12%||Revised: 15%|
|Permanent Resident||Revised: 5%||Revised: 15%||Revised: 15%|
|Foreigner and non-individual (Corporate Entity)||Revised: 20%||Revised : 20%||Revised: 20%|
SELLER’S STAMP DUTY (SSD)
The Government imposed a Seller’s Stamp Duty (SSD) on all residential properties and residential lands that are bought.
Depends on the property sold period, the rates of SSD payable on residential property purchased on and after 20 Feb 2010 and sold within certain duration, are summarized in the table below:
Source : IRAS
ABOUT FOREIGNERS UNDER FREE TRADE AGREEMENTS (FTAs)
Foreigners of certain nationalities who fall within the scope of the respective FTAs will be accorded with the same treatment as Singapore Citizens.
Such buyers are required to submit an application for remission so as to enjoy the same treatment as Singapore Citizens.
*The information provides herein are for general reference purpose. It does not constitute any financial or investment advice. Buyer to seek relevant authorities or financial institute for advice of any sales and purchase eligibility in making any investment or other decision.