Buyer Stamp Duty – 6 Comprehensive Insights For Property Buyers

When you buy property in Singapore, you will incur a cost known as Buyer Stamp Duty. Learn whether you need to pay Buyer’s Stamp Duty, how to calculate them, and more.

Adulting can be hard, but efforts can be rewarded with smart choices and savvy investment insights.  

Nonetheless, get to know part of the buying process of property in Singapore. 

It is a vibrant scene and constantly comes up in conversations. It is also probably the largest purchase in one’s lifetime. 

The following information is catered to first-time homeowners and upgraders who wish to enter the private property market and understand better the fees involved when buying a home.  

Learn how Buyer Stamp Duty is calculated and estimate how much funding is required to purchase a residential property in Singapore. 

Buyers Stamp Duty (BSD) is a levy on a purchased property within Singapore and is paid to the Inland Revenue Authority of Singapore (IRAS) for the documents required to execute the purchase of your property.  

In other words, the government wants to be part of the buying process, and for reasons that we may not have calculated in the long term. 

Buyer Stamp Duty is taxed on all purchases of residential, commercial, and industrial property.  This includes a condo, private property, resale HDB, or BTO.  

Property Stamp Duty is generally used as a cooling measure to ensure a stable and sustainable property market in Singapore. 

Tax imposition makes sellers and buyers think twice about flipping properties within short periods which in turn drives the market and makes it less accessible to new entrants. 

Stamp Duty payable is based on the following:

1. The purchase price as stated in the signed Sale & Purchase Agreement;
2. The market value of the property (obtained by valuation reports);

whichever is higher of the two.

If you’re buying a resale, private or not, there is a purchase price and a valuation that deems the property in question equitable at a certain value.

If you have agreed with the seller to close the deal at $1.2 million, which is below the market valuation of $1.25 million, while we congratulate you for striking a good deal, unfortunately, Buyer stamp duty will still be applied to the higher figure!

Before 20 Feb 2018, Buyer stamp duty rates were capped at 3%. After 20 Feb 2018, the tax increased to 4% for residential properties above S$1 million.  

This was to cool the market and ensure that investors and home buyers make careful considerations. 

Purchase Price or Market Value (whichever is higher)	Buyer stamp duty Rates for Residential Property
First $180,000	1%
Next $180,000	2%
Next $640,000	3%
Next $500,000	4%
Next $1,500,000	5%
Remaining amount	6%

Buyer stamp duty is rounded down to the nearest dollar, subject to the minimum duty of $1.

For example, if the purchase price of the property is $1.25 million, the following Buyers stamp duty is as follows:

Purchase Price or Market Value (whichever is higher)	Buyer stamp duty rates	Calculation
First $180,000	1%	0.01 x $180,000 = $1,800
Next $180,000	2%	0.02 x $180,000 = $3,600
Next $640,000	3%	0.03 x $640,000 = $19,200
Next $500,000	4%	0.04 x ($1,250,000 – $1,000,000) = $10,000
	Stamp Duty Payable	$34,600

Yes, it may take time to work out the Buyer stamp duty step by step, fortunately, there is a quicker formula.

Example: ($1,250,000 x 0.04) – $15,400 = $36,400

For properties valued between $360,000 to $1 million, the quick formula:

Example: ($500,000 x 0.03) – $5,400 = $10,200

You can pay stamp duty with the several modes of payment available to IRAS. You may check IRAS for more information. 

installments popular options are usually FAST via DBS as it is almost instant in its processing. Internet banking funds transfers have proven to be simple and convenient too.  

Alternatively, you can kick it a little old school and issue a cheque or cashier order which is the original form of payment, and let your agent do the work for you. 

Lastly, BSD can be a substantial amount and most buyers will use CPF to pay off the stamp duties provided your CPF OA has sufficient funds!

Read on for more details. 

BSD must be paid within 14 days from the date of the contract or acceptance date if the documents are signed in Singapore.  

If the contract is executed overseas, property stamp duty must be paid within 30 days upon receipt of documents.

Buyers of residential properties are to pay for property stamp duty using cash and CPF. 

If the property is completed, and no longer undergoing construction, buyer stamp duty is to be paid in cash first and buyers can apply for a one-time reimbursement from their CPF Ordinary Account. 

If the property is still under construction, property stamp duty is still paid with cash first and can be claimed only upon the completion date. 

This is provided that your CPF Ordinary Account has sufficient funds. Otherwise, buyer stamp duty must be paid in cash and cannot be paid in installments. 

It is an offense to avoid paying buyer stamp duty and penalties are involved for late payment. 

If payment is not received, a Demand Note will be sent as a reminder.  

If payment is delayed for up to 3 months, the penalty is $10 or an amount equivalent to the property stamp duty, whichever is higher. 

If payment delay exceeds 3 months, the penalty is $25 or an amount 4 times the property stamp duty payable, whichever is higher. 

IRAS may take legal action to recover any outstanding amount and may appoint the buyer’s bank, employer, tenant, or lawyer to pay the BSD amount on the buyer’s behalf. 

Buyer stamp duty is also payable on the transfer of property through a way of a gift and is pegged to the current market valuation. 

Property stamp duty is not payable if the property is inherited following a Will, Intestacy Law, or Muslim Inheritance Law.

Yes, there are!  Additional buyer’s stamp duty (ABSD) is also part of the tax law in Singapore. ABSD applies to Singapore Citizens, Permanent Residents, and Foreigners. 

It was introduced as another cooling measure to prevent property prices from rocketing.

ABSD depends on critical criteria such as residency status and property count. 

The fundamental difference between BSD and ABSD is that BSD is levied on every property purchase, while ABSD applies if the buyer is a foreigner or a permanent resident on their first purchase. 

As a Singapore Citizen, ABSD is taxed only upon the purchase of more than 1 property.

The amount of ABSD is also based on either the purchase price or valuation, whichever is higher.