Singaporeans are no stranger to taxes, more so taxes on owning properties in this land-scarce nation. In a previous article, we covered property tax, the recurring annual tax on the ownership of a property.
Today, we will explore Buyer Stamp Duties (BSD) and Additional Buyer Stamp Duties (ABSD) for residential properties in Singapore so that you will be equipped with the knowledge of calculating the true cost of purchasing your next dream home.
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What is Buyer's Stamp Duty in Singapore?
Buyer’s Stamp Duty (BSD) is paid when you purchase a property in Singapore. A property is considered purchased when you exercise your option to purchase or when you execute the sales and purchase agreement. It is calculated based on the purchase price or the current market value of the property (as assessed by a valuer), whichever is higher.
It is not uncommon for property developers to dangle cash rebates or furnishing vouchers to entice buyers. For example, the list price of the property you are purchasing may be $1 million. The developer promises a cash rebate of $100,000 to be paid to you after the property is completed – the cash rebate may be deducted from the purchase price to calculate the amount of stamp duty you need to pay. In this case, the BSD is payable on $900,000 instead of $1 million.
What Is The Purpose Of Buyer's Stamp Duty In Singapore?
Stamp duties are used to tamp down on the volatility of the private residential and industrial property market, with seller stamp duties introduced in 2010. This discourages flipping of properties for capital gains over a short holding period, and curbs rapid price escalation arising from speculative real estate transactions.
The result is a real estate market where the demand from genuine buyers is reflected in the property’s price, without raising property prices to exorbitant levels. Furthermore, longer holding periods are encouraged, which prevents the overheating of the property market.
How is the Buyer’s Stamp Duty calculated?
Stamp duties are calculated based on the actual price paid for the property, or the open market value, whichever is higher. This means that one cannot circumvent paying a stamp duty by buying a property priced at a nominal sum of $1.
For lease and tenancy agreements, the stamp duties are calculated on the actual rent charged on the property or the open market rent, whichever is higher. Without getting into too much detail, total rent (which includes the rent for premises, furniture, maintenance etc) is taken into consideration for the calculation of stamp duty.
Broadly speaking, BSD applies to all residential real estate transactions, while ABSD applies depending on the profile of the purchaser.
Current Buyer’s Stamp Duty Rate (2025)
Purchase price or market value of the property | BSD rates for residential properties |
|---|---|
First $180,000 | 1% |
Next $180,000 | 2% |
Next $640,000 | 3% |
Next $500,000 | 4% |
Next $1,500,000 | 5% |
Remaining amount | 6% |
Source: IRAS, BSD is rounded down to the nearest dollar, subject to a minimum duty of $1.
Prior to Feb 2023, the maximum BSD payable on a residential property was 4% but has since been updated to 6%.
Here is an example of how to calculate your buyer stamp duty. Based on a property which transacted at a price of $1,600,000. Do keep in mind that each stratum charges an incrementally higher BSD rate. This is opposed to simply falling into a higher bracket and being charged a higher flat rate.
Purchase Price | BSD Rate Applied | BSD Payable |
|---|---|---|
$180,000 | 1% | $180,000 * 1% = $1,800 |
$180,000 | 2% | $180,000 * 2% = $3,600 |
$640,000 | 3% | $640,000 * 3% = $19,200 |
$500,000 | 4% | $500,000 * 4% = $20,000 |
$100,000 | 5% | $100,000 * 5% = $5,000 |
Total BSD Payable | $49,600 |
How to Pay Buyer’s Stamp Duty (BSD) in Singapore
Payment for BSD can be made via a few platforms such as:
– GIRO for Stamp Duty
– AXS
– FAST via DBS/POSB Account
– eNETS
– Internet Banking Fund Transfer
– Telegraphic Transfer
– Services Bureaus (SingPost)
– Cheque/Cashier’s Order
For Singaporeans, BSD can also be paid using your CPF Ordinary Account savings. However, as BSD is payable within 14 days from the date of purchase in most cases, you would have to prepare enough cash to pay off this amount first.
You can then apply for a one-time reimbursement from your CPF account when submitting your application to use CPF funds to finance your property. Do take note that in cases where a HDB loan is taken, this stamp duty reimbursement is subject to eligibility.
When to Pay Buyer’s Stamp Duty?
You are required to stamp a document before you sign it. Otherwise, should the document be signed before stamping, you would need to stamp it and pay BSD within a stipulated time frame. Thus, it is crucial to take note of when and where the document for the property purchase is signed as this will impact when your BSD is due . For documents carried out in Singapore, BSD must be paid within 14 days of the date of execution. On the other hand, for documents signed overseas, BSD must be paid within 30 days of being received in Singapore.
Penalties For Late Payment or Non-Payment of Buyer’s Stamp Duty (BSD)
IRAS may take the following actions if you fail to pay by the due date:
- Impose penalties
- Appoint agents like your bank, employer, tenant or lawyer (handling the sale of any of your property) to recover the overdue duty
- Issue a Travel Restriction Order (TRO) to stop you from leaving Singapore
- Take legal action
- The above list is not exhaustive.
You are required to pay the Stamp Duty by the payment due date even if you have filed an objection and are awaiting the outcome. If the assessment is subsequently revised, any excess payment will be refunded.
|
Delay Duration |
Penalty |
|
Delay in payment not exceeding 3 months |
A penalty of $10 or an amount equal to the duty payable, whichever is greater. |
|
Delay in payment exceeding 3 months |
A penalty of $25 or 4 times of the duty payable, whichever is greater. |
|
Exceeding the due date stated in the penalty notice |
Additional penalties or court summonses. |
Additional Buyer Stamp Duty
While the BSD applies to all buyers within the market, the Additional Buyer Stamp Duty (ABSD) is applied to further curtail volatility in the local real estate market. They are applied to the following groups:
- Singaporean Citizens making second and subsequent residential property purchases
- Singapore Permanent Residents
- Foreigners
- Entities
This prevents property hoarding and speculation within the market, while keeping property prices affordable for Singaporeans who wish to find a property to actually live in.
On 15 Dec 2021, the Government announced a change in ABSD rates to cool private residential and HDB resale markets. The following changes are reflected below.
ABSD Rates on the higher of the purchase price or market value
Profile of Buyer | ABSD Rates from 16 Dec 2021 to 26 Apr 2023 | ABSD Rates on or after 27 Apr 2023 |
|---|---|---|
Singapore Citizens (SC) buying first residential property¹ | Not applicable | Not applicable |
SC buying second residential property¹ | 17% | 20% |
SC buying third and subsequent residential property¹ | 25% | 30% |
Singapore Permanent Residents (SPR) buying first residential property¹ | 5% | 5% |
SPR buying second residential property¹ | 25% | 30% |
SPR buying third and subsequent residential property¹ | 30% | 35% |
Foreigners (FR) buying any residential property¹ | 30% | 60% |
Entities² buying any residential property¹ | 35% | 65% |
Housing Developers³ buying any residential property¹ | 35%⁴ (Plus Additional 5% (non-remittable)⁵) | 35%⁴ (Plus Additional 5% (non-remittable)⁵) |
Source: IRAS
Click here to find out more about Additional Buyer Stamp Duty (ABSD).
Conclusion on Stamp Duties
BSD and ABSD adds to the cost of purchasing a property. Although it is non-recurring unlike property taxes, it is important to take these added costs into consideration while planning the next step in your real estate journey. Do reach out to any of our friendly mortgage advisors to gain a better understanding of all the costs involved, and how you can optimise the financing for your next property purchase.
Frequently Asked Questions
Can I Pay My Buyer’s Stamp Duty (BSD) Using CPF?
Using CPF funds to pay stamp duty is subject to the terms and conditions under the Private Properties and Public Housing Schemes. You may wish to check with CPF Board for more details.
(Source: IRAS)
Are There Exemptions From Paying Buyer’s Stamp Duty?
Stamp Duty cannot be waived in general. As such, the majority of stamp duty appeals received by IRAS are rejected. Click here to view the list of common reasons for appeal received by IRAS that were rejected.
Can I Get A Refund For My Buyer’s Stamp Duty If The Property Transaction Falls Through?
Refunds are only allowed on documents which have been rescinded or cancelled, due to the reasons provided under Section 22(6) and Section 57 of the Stamp Duties Act. Read more here.
