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Buyer stamp duty on a Singapore property purchase

Posted by admin on January 6, 2023

What is a buyer stamp duty?

Buying a home can be a tedious affair. From multiple house viewings or condominium showflat viewings. And then you have decided to go for that unit you first saw. Now what?

The real estate agent ran through the financial calculations and mentioned that there is a buyer stamp duty to be paid as a first time buyer. Scratching your head right now as you are not prepared for the stamp duty payable.

Read also on the procedure on how to buy a private property.

Stamp duty on Singapore property purchase

Buyer Stamp duty or BSD is a tax on documents drawn out. It is levied on all Singapore property purchases including all HDB, residential private properties as well as commercial properties.

These taxes are payable by the buyer of the said property. The amount of BSD to pay is dependent on whichever is the higher of 2 mentioned below.

  • The agreed purchase price of the property which is included in the signed Sales and Purchase agreement (S&P) or Option to Purchase (OTP)
  • The property valuation report which indicates the market value of the property.

Rates and computation

Residential property

The BSD rates for residential property have different tiersThe rates is as the following.

For property purchase below $1million is computed at 3% whereas for those above will be calculated at 4%.

Use calculator for the calculation for your buyer stamp duty. 

BSD is rounded down to the nearest dollar, subject to a min of $1.

See table below for the breakdown on calculation.

Year 2022 BSD rates for residential property
First $180,000 1%
Next $180,000 2%
Next $640,000 3%
Remaining 4%
Assuming property purchase is $2,000,000 for a HDB.
First $180,000 1% X $180,000 = $$1,800
Next $180,000 2% X $180,000 = $3,600
Next $340,000 3% X $340,000 = $10,2000
BSD payable $1,800 + $3,600 + $10,200 = $15,600
Assuming property purchase is $2,000,000 for a private property.
First $180,000 1% X $180,000 = $$1,800
Next $180,000 2% X $180,000 = $3,600
Next $640,000 3% X $640,000 = $19,2000
Remaining 4% X $1,000,000 = $19,200
BSD payable $1,800 + $3,600 + $19,200 + $40,000= $64,600

Inland Revenue Authority of Singapore (IRAS)

After computing your BSD, this amount is on top of the purchase price that was agreed upon, the payment is then made out to the IRAS. The conveyancing lawyer that is acting for you will assist in the payment.

If your property purchased is a resale property, the buyer stamp duty has to be made in cash first and then will be reimbursed back to your CPF ordinary account. However if you are buying a property direct from a property developer, the BSD can be made directly from your CPF ordinary account. 


Are there any other payments to be made after paying the BSD?

If you are a Singapore Citizen and this is your first property purchase, which means you do not hold any other residential property while going through the process of purchasing one, then it is safe to say you will only have to pay the Buyer Stamp Duty.

However if this property is your 2nd one while holding on to another property either a HDB or a private property, you will incur the Additional Buyer Stamp Duty or what we call ABSD in short. Read here to find out if you need to make payment for  Additional Buyer’s Stamp Duty.

The revised residential buyer's stamp duty

The recent budget talk on 14th February 2023 had some changes in the buyer’ stamp duty calculation for both residential and commercial properties.

 For residential properties that are more than $1.5 million dollars the new stamp duty rates is at 5%. 

And for properties above $3million in price tag, the new buyer stamp duty rates is 6%. 

Year 2023BSD rates for residential property
First $180,0001%
Next $180,0002%
Next $640,0003%
Next $500,0004%
Next $1.5million 5%
Amount exceeding $3 million6%

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