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Singapore Property Guide 101: Stamp Duty

April 20, 2016
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Singapore Property Guide 101: Stamp Duty

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By: Gerry Ong | 20th April 2016

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Buying property in Singapore can be confusing. Since cooling measures were implemented in 2013, there’s been a shake-up in stamp duty regulation that can leave both new home buyers and experienced ones equally confused. With that in mind, the EasyRates team have compiled an easy to understand guide on stamp duty in Singapore.

For Buyers

 Applicable Stamp Duty/
Profile of Buyer
Buyers Stamp Duty Additional Buyers Stamp Duty Mortgage Duty
Singapore Citizen
buying first home
X X
Singapore Citizen
buying a second home
or more
X X X
Singapore PRs/ Foreigners X X X

Buyers Stamp Duty (BSD)(All Property)

BSD is payable by all prospective homeowners seeking to purchase a property in Singapore, regardless of the amount of property you already own and applies to purchases of any property (Industrial, Commercial or Residential). The stamp duty payable in this case is calculated as below:

Purchase Price or Market Value of the Property  BSD Rates
 First $180,000  1%
 Next $180,000  2%
 Remaining Amount  3%

Things to note

  • When assessing the stamp duty payable, the Inland Revenue Authority of Singapore (IRAS) uses the higher value of either the purchase price or market value of the property, so don’t be surprised if you end up paying more in BSD than you should based on the purchase price of the property.
  • BSD is generally applicable to all property in Singapore

Additional Buyers Stamp Duty (ABSD)(Residential Only)

As part of the cooling measures announced in 2013, the Additional Buyers Stamp Duty or ABSD was revised upwards from its previous levels. ABSD is applicable only to residential property and is based on the number of homes you currently own. ABSD is currently set at 0% for Singapore citizens who at the time of buying do not hold any other residential property and increases based on the number of homes you own in Singapore. A little known fact is that for the purposes of ABSD calculation, because of Free Trade Agreements, Citizens of the USA, Switzerland, Liechtenstein, Norway, Iceland will be treated the same as Singapore Citizens.

 

 Profile of Buyer 1st Property 2nd Property 3rd Property
and more
Singapore Citizen  Not applicable 7% 10%
Singapore PRs 5% 10% 10%
Foreigners and Entities 15%

Things to note

  • If you’re buying a property with another individual, IRAS will base the ABSD payable on the individual with the highest amount payable.
    • g John is buying his 1st property with his wife Jane who already owns a property in Singapore. In this case, IRAS will charge ABSD based on his wife Jane, meaning that even though John doesn’t own a home in Singapore at the moment, the two of them will have to pay 7% ABSD.
  • Corporate entities buying a residential property will be charged the same ABSD rates as that of a foreigner.
  • ABSD is only applicable to residential property and not commercial or industrial property.

Want to own a second or third residential property but don’t want to pay ABSD?
Speak to our consultants for a free no obligation consultation to find out if you qualify for decoupling!

Mortgage Duty

When securing a mortgage in Singapore, the amount mortgaged is subjected to a mortgage duty which varies between 0.2 – 0.4% but is however capped at $500. In practice, you can assume that you’ll be paying $500 in mortgage duty as long as you’re taking out a mortgage, since banks do not normally grant a loan quantum of less than $100,000 in Singapore

For Sellers

Sellers Stamp Duty (SSD)

While the calculation of Sellers stamp duty for Industrial property is fairly straight forward, residential sellers stamp duty is a bit more complex and is based on the period in which you purchased your property, to find out more please see the table below:

Residential Property SSD Table

 Profile of Buyer Less than 1 year 1 – 2 Years 2 – 3 Years 3 – 4 Years 4 Years
or more
Between 20 Feb 2010 and 29 Aug 2010 (all  inclusive) 1% on first $180,000
2% on next $180,000
3% on remainder
Not Applicable
Between 30 Aug 2010 and 13 Jan 2011 (all  inclusive) 1% on first $180,000
2% on next $180,000
3% on remainder
0.67% on first $180,000
1.33% on next $180,000
2% on remainder
 0.33% on first $180,000
0.67% on next $180,000
1% on remainder
Not Applicable
On and after 14 Jan 2011  16% 12% 8% 4% Not Applicable

 

Industrial Property SSD Table

Date of Purchase / Acquisition or Date of Change of Zoning / Use Holding Period SSD Rate (on the actual price or market value, whichever is higher)
On or after 12 Jan 2013 Up to 1 year 15%
More than 1 year and up to 2 years 10%
More than 2 years and up to 3 years 5%
More than 3 years No SSD payable

 

Things to note

  • SSD is calculated based on the selling price or the market value of the property as at the date of sale or disposal, whichever is higher
  • If you’re acquiring only a part of the residential property, SSD payable will be based on the selling price or market value of the partial interest, whichever is higher.
  • SSD is not applicable for industrial properties purchased before 12 Jan 2013

Need more advice on stamp duty and the best ways to minimize it?
Speak to our consultants for a free no obligation consultation to find out more!

We hope you’ve enjoyed reading our guide on stamp duties in Singapore, if you’d like to know more about stamp duties do feel free to leave a comment below! Think this article would be useful for your friends? Share it! Have questions about buying property in Singapore and getting a mortgage? Feel free to get a no obligation consultation with our mortgage experts here at EasyRates!

[mk_fancy_title tag_name=”h6″ size=”20″ font_weight=”bold” margin_bottom=”0″ font_family=”Muli” font_type=”google”]About EasyRates[/mk_fancy_title][mk_divider style=”thick_solid” margin_top=”0″]

EasyRates is Singapore’s preferred portal for home loans, refinancing, equity loans, overseas loans, personal and business loans, having long standing partnerships with more than 20 banks. Our experienced consultants are advocates for our customers and work hard to ensure you get the best packages available. The best part? Our services are 100% free of charge. Here at EasyRates we pride ourselves on providing unbiased advice on all loans and financial products and putting our customers above all else. So what are you waiting for? Get a FREE Mortgage consultation today!

[mk_fancy_title tag_name=”h6″ size=”20″ font_weight=”bold” margin_bottom=”0″ font_family=”Muli” font_type=”google”]About the author[/mk_fancy_title][mk_divider style=”thick_solid” margin_top=”0″]
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GERRY ONG

Former banking lizard, startup ninja and trainer turned writer. A coffee to content conversion system who writes by day and codes by night. Lives simply, thinks deeply and exercises never.

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[mk_fancy_title size=”25″ font_weight=”bolder” font_style=”normal” margin_top=”50″ margin_bottom=”0″ font_family=”Lato” font_type=”google”]

Singapore Property Guide 101: Stamp Duty

[/mk_fancy_title]

By: Gerry Ong | 20th April 2016

[sharify]

Like/ Follow us on Facebook/ Twitter To See More Cool Posts!

Buying property in Singapore can be confusing. Since cooling measures were implemented in 2013, there’s been a shake-up in stamp duty regulation that can leave both new home buyers and experienced ones equally confused. With that in mind, the EasyRates team have compiled an easy to understand guide on stamp duty in Singapore.

For Buyers

 Applicable Stamp Duty/
Profile of Buyer
Buyers Stamp Duty Additional Buyers Stamp Duty Mortgage Duty
Singapore Citizen
buying first home
X X
Singapore Citizen
buying a second home
or more
X X X
Singapore PRs/ Foreigners X X X

Buyers Stamp Duty (BSD)(All Property)

BSD is payable by all prospective homeowners seeking to purchase a property in Singapore, regardless of the amount of property you already own and applies to purchases of any property (Industrial, Commercial or Residential). The stamp duty payable in this case is calculated as below:

Purchase Price or Market Value of the Property  BSD Rates
 First $180,000  1%
 Next $180,000  2%
 Remaining Amount  3%

Things to note

  • When assessing the stamp duty payable, the Inland Revenue Authority of Singapore (IRAS) uses the higher value of either the purchase price or market value of the property, so don’t be surprised if you end up paying more in BSD than you should based on the purchase price of the property.
  • BSD is generally applicable to all property in Singapore

Additional Buyers Stamp Duty (ABSD)(Residential Only)

As part of the cooling measures announced in 2013, the Additional Buyers Stamp Duty or ABSD was revised upwards from its previous levels. ABSD is applicable only to residential property and is based on the number of homes you currently own. ABSD is currently set at 0% for Singapore citizens who at the time of buying do not hold any other residential property and increases based on the number of homes you own in Singapore. A little known fact is that for the purposes of ABSD calculation, because of Free Trade Agreements, Citizens of the USA, Switzerland, Liechtenstein, Norway, Iceland will be treated the same as Singapore Citizens.

 

 Profile of Buyer 1st Property 2nd Property 3rd Property
and more
Singapore Citizen  Not applicable 7% 10%
Singapore PRs 5% 10% 10%
Foreigners and Entities 15%

Things to note

  • If you’re buying a property with another individual, IRAS will base the ABSD payable on the individual with the highest amount payable.
    • g John is buying his 1st property with his wife Jane who already owns a property in Singapore. In this case, IRAS will charge ABSD based on his wife Jane, meaning that even though John doesn’t own a home in Singapore at the moment, the two of them will have to pay 7% ABSD.
  • Corporate entities buying a residential property will be charged the same ABSD rates as that of a foreigner.
  • ABSD is only applicable to residential property and not commercial or industrial property.

Want to own a second or third residential property but don’t want to pay ABSD?
Speak to our consultants for a free no obligation consultation to find out if you qualify for decoupling!

Mortgage Duty

When securing a mortgage in Singapore, the amount mortgaged is subjected to a mortgage duty which varies between 0.2 – 0.4% but is however capped at $500. In practice, you can assume that you’ll be paying $500 in mortgage duty as long as you’re taking out a mortgage, since banks do not normally grant a loan quantum of less than $100,000 in Singapore

For Sellers

Sellers Stamp Duty (SSD)

While the calculation of Sellers stamp duty for Industrial property is fairly straight forward, residential sellers stamp duty is a bit more complex and is based on the period in which you purchased your property, to find out more please see the table below:

Residential Property SSD Table

 Profile of Buyer Less than 1 year 1 – 2 Years 2 – 3 Years 3 – 4 Years 4 Years
or more
Between 20 Feb 2010 and 29 Aug 2010 (all  inclusive) 1% on first $180,000
2% on next $180,000
3% on remainder
Not Applicable
Between 30 Aug 2010 and 13 Jan 2011 (all  inclusive) 1% on first $180,000
2% on next $180,000
3% on remainder
0.67% on first $180,000
1.33% on next $180,000
2% on remainder
 0.33% on first $180,000
0.67% on next $180,000
1% on remainder
Not Applicable
On and after 14 Jan 2011  16% 12% 8% 4% Not Applicable

 

Industrial Property SSD Table

Date of Purchase / Acquisition or Date of Change of Zoning / Use Holding Period SSD Rate (on the actual price or market value, whichever is higher)
On or after 12 Jan 2013 Up to 1 year 15%
More than 1 year and up to 2 years 10%
More than 2 years and up to 3 years 5%
More than 3 years No SSD payable

 

Things to note

  • SSD is calculated based on the selling price or the market value of the property as at the date of sale or disposal, whichever is higher
  • If you’re acquiring only a part of the residential property, SSD payable will be based on the selling price or market value of the partial interest, whichever is higher.
  • SSD is not applicable for industrial properties purchased before 12 Jan 2013

Need more advice on stamp duty and the best ways to minimize it?
Speak to our consultants for a free no obligation consultation to find out more!

We hope you’ve enjoyed reading our guide on stamp duties in Singapore, if you’d like to know more about stamp duties do feel free to leave a comment below! Think this article would be useful for your friends? Share it! Have questions about buying property in Singapore and getting a mortgage? Feel free to get a no obligation consultation with our mortgage experts here at EasyRates!

[mk_fancy_title tag_name=”h6″ size=”20″ font_weight=”bold” margin_bottom=”0″ font_family=”Muli” font_type=”google”]About EasyRates[/mk_fancy_title][mk_divider style=”thick_solid” margin_top=”0″]

EasyRates is Singapore’s preferred portal for home loans, refinancing, equity loans, overseas loans, personal and business loans, having long standing partnerships with more than 20 banks. Our experienced consultants are advocates for our customers and work hard to ensure you get the best packages available. The best part? Our services are 100% free of charge. Here at EasyRates we pride ourselves on providing unbiased advice on all loans and financial products and putting our customers above all else. So what are you waiting for? Get a FREE Mortgage consultation today!

[mk_fancy_title tag_name=”h6″ size=”20″ font_weight=”bold” margin_bottom=”0″ font_family=”Muli” font_type=”google”]About the author[/mk_fancy_title][mk_divider style=”thick_solid” margin_top=”0″]
10881626_10154167626923975_6319766155891124382_n

GERRY ONG

Former banking lizard, startup ninja and trainer turned writer. A coffee to content conversion system who writes by day and codes by night. Lives simply, thinks deeply and exercises never.

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GERRY ONG

Gerry has spent time working in 5 different banks in various capacities, across a range of functions from back to middle and front office. After leaving banking, he spent time working on market research for consumer banking with a focus on the Chinese and Singapore market. He now serves as a home loan consultant and business manager of Easyrates.

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2 Comments

  1. Travis Hong July 1, 2016

    Most commercial properties in Singapore are either 60 years leasehold or freehold. If you are an investor, it will be best to work out what fits your budget. Naturally, a leasehold property will be much cheaper.

    Forestwood Residences

    Reply
  2. Koffee Krank August 29, 2016

    How does IRAS determine the market value of a property?

    Reply

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