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Written by Clicks® Team

Jun 11, 2024

Stamp Duty Singapore: Comprehensive Guide for Buyers and Sellers

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Stamp Duty Singapore: Comprehensive Guide for Buyers and Sellers

Navigating the Singapore property market involves understanding various financial aspects, and stamp duty is a critical component of property transactions in Singapore, influencing the overall cost for both buyers and sellers. Whether you're a first-time homebuyer or a seasoned investor, understanding the intricacies of stamp duty can save you significant amounts of money and help you navigate the property market more effectively.

This comprehensive guide will provide a detailed overview of stamp duty in Singapore, addressing essential aspects such as Additional Buyer’s Stamp Duty (ABSD), Seller’s Stamp Duty (SSD), and more.

What is Stamp Duty in Singapore?

Stamp Duty in Singapore is a tax levied by the Inland Revenue Authority of Singapore (IRAS) on the transfer of dutiable documents, including those related to property transactions. It's a one-time payment that contributes to the government's revenue stream. Understanding the different types of stamp duty and how they apply to your specific situation is essential for accurate financial planning.

Is Stamp Duty Compulsory in Singapore?

Yes, stamp duty is compulsory in Singapore for any property transaction involving a dutiable document. This includes buying, selling or renting of residential and non-residential properties. The specific type and amount of stamp duty payable depend on the type of transaction and the property's characteristics.

Types of Stamp Duty in Singapore

Types of Stamp Duty in Singapore

Understanding the different types of stamp duty applicable to your situation is crucial. Here's a breakdown of the key categories:

Understanding the nuances of each type of stamp duty is crucial for accurate financial planning. We'll delve deeper into each category in the following sections.

Understanding Buyer's Stamp Duty (BSD)

The Buyer's Stamp Duty (BSD) is the primary tax most property buyers encounter in Singapore. The amount payable is calculated based on a tiered structure, with different rates applying to various price brackets. Here's a breakdown of the BSD structure (as of May 30, 2024):

Example: If you're purchasing a residential property for S$1,000,000, your BSD calculation would be as follows:

Important Considerations:

Understanding Additional Buyer's Stamp Duty (ABSD)

Understanding Additional Buyer's Stamp Duty (ABSD)

The Additional Buyer's Stamp Duty (ABSD) is an additional layer of tax levied on top of the BSD for specific property purchases. The ABSD rate depends on the buyer's residency status and the number of existing residential properties they own. Here's a breakdown of the ABSD rates (as of May 30, 2024):

Buyer Residency & Number of Existing PropertiesABSD Rate
Singapore Citizens (First Property Purchase)0%
Singapore Citizens (Second & Subsequent Purchases)20%
Singapore Permanent Residents (First Property Purchase)5%
Singapore Permanent Residents (Second & Subsequent Purchases)30%
Foreigners (Any Property Purchase)60%

Important Considerations:

Understanding Seller's Stamp Duty (SSD)

The Seller's Stamp Duty (SSD) is a tax payable by sellers of residential properties within a specific timeframe following their purchase. The purpose of the SSD is to discourage property speculation and promote a more stable housing market. The SSD rate is tiered and decreases over time, as shown below (as of May 30, 2024):

Holding PeriodSSD Rate
Within 3 years of purchase12%
Between 3 and 4 years of purchase8%
Between 4 and 5 years of purchase4%
More than 5 years of purchase0%

Important Considerations:

Example: If you purchased a residential property for S$800,000 and sell it within 2 years, your SSD would be S$96,000 (12% x S$800,000).

Important Considerations:

Is Stamp Duty Paid by Tenant or Landlord?

In Singapore, the responsibility of paying stamp duty depends on the type of transaction:

How to Calculate Property Tax

Understanding Additional Buyer's Stamp Duty (ABSD)

While not directly related to stamp duty, property tax is another essential cost associated with property ownership in Singapore. Property tax is levied annually on the Annual Value (AV) of the property, which is an estimate of the annual rent the property could fetch on the open market. You can estimate your property tax using the IRAS property tax calculator (https://www.iras.gov.sg/taxes/property-tax).

  1. Owner-Occupied Residential Properties

    For owner-occupied residential properties, the tax rates are progressive, starting at 0% for the first $8,000 of AV, and increasing in increments based on the AV.

  2. Non-Owner-Occupied Residential Properties

    For non-owner-occupied residential properties, the tax rates start at 10% of the first $30,000 of AV, and increase progressively.

  3. Commercial and Industrial Properties

    For commercial and industrial properties, a flat tax rate of 10% of the AV is applied.

How to Pay Stamp Duty in Singapore

Stamp duty can be paid electronically using various methods, including internet banking, AXS machines, and SingPost SAM kiosks. Detailed instructions on how to pay stamp duty can be found on the IRAS website (https://www.iras.gov.sg/taxes/stamp-duty/for-property).

Leveraging Clicks® for Seamless Property Transactions

Leveraging Clicks® for Seamless Property Transactions

Navigating the property market in Singapore can be complex, but with a clear understanding of stamp duty and other associated costs, you can make informed financial decisions. Clicks®, a leading real estate social network platform, is dedicated to empowering your property journey. We offer a comprehensive suite of resources and connect you with experienced real estate agents who can guide you through every step of the process.

Whether you're a first-time buyer, seasoned investor, or looking to sell your property, Clicks® can be your trusted partner. Explore our platform to find valuable property listings, connect with top agents, and gain insights into the Singapore real estate market.

For those specifically interested in HDB resale flats, Clicks® provides detailed information and tools to help you navigate this segment of the market. Check out our HDB Resale Portal for more insights and resources tailored to your needs.