When you purchase a property, you’re not only paying for that new flat or apartment.
There are actually a few other items you will need to be spending thousands on, including interest payments for your home loan, legal fees, stamp duty. Every time you purchase a property, you’re obligated to pay a Buyer’s Stamp Duty (BSD) to IRAS.
There will be in circumstances, such as, being a foreigner or owning another property, you will be required to fork out Additional Buyer’s Stamp Duty (ABSD), which was introduced as part of the cooling measures to stop overzealous buyers from overheating the property market.
Buyer’s Stamp Duty (BSD) in Singapore
All property buyers have to pay BSD. There is no exception. This is an unavoidable tax on your home.
BSD rates are tabulated based on the value of the property:
|Purchase Price or Market Value of the Property||BSD Rates for residential properties||BSD Rates for non-residential properties|
Additional Buyer’s Stamp Duty (ABSD) Singapore
You are required to pay ABSD on residential property purchases if:
- A Singapore citizen who’s already a residential property owner and wants to buy another.
- A PR.
- A foreigner.
An addition to the Buyer’s Stamp Duty that is imposed on all purchases of residential property in Singapore. Unlike the Buyer’s Stamp Duty, the Additional Buyer’s Stamp Duty, or ABSD, is an additional tax on the purchase of residential property in Singapore that only affects Singapore Permanent Residents and foreigners, or Singapore Citizens who are buying more than one property and company purchase
In other words, it significantly raises the property prices for everyone except Singapore Citizens buying their first residential property.
Here’s how much you have to pay:
|You are…||ABSD rate|
|Singapore citizen buying your first residential property||0%|
|Singapore citizen buying a second residential property||12%|
|Singapore citizen buying a third and subsequent residential property||15%|
|PR buying a first residential property||5%|
|PR buying a second and subsequent residential property||15%|
|Foreigner buying any residential property||20%|
When Is The BSD And ABSD Being Paid?
The BSD and ABSD are straight upfront costs that we have to fork out when purchasing a property in Singapore. This amount has to be part of the cost to purchase a property, and as well as other upfront costs when determining whether we can afford to buy a home.
The BSD and ABSD has to be paid within 14 days from the date of the signed Contract or Agreement. The transaction documents for the home purchase will be considered to be duly stamped only when we have fully paid the stamp duty.
Although this means we are required to typically need to pay for the BSD and ABSD upfront in cash, we can however include this amount when applying for the reimbursement from our CPF account, together with our application to use our CPF savings to buy the home. In short, we can pay for our BSD and ABSD with our CPF funds thereafter.
Foreigners Eligible For ABSD Remission
Under our respective Free Trade Agreements (FTAs), Nationals and Permanent Residents of Iceland, Liechtenstein, Norway and Switzerland, and Nationals of the USA, are accorded the same Stamp Duty treatment as Singapore Citizens.
This means foreigners from these countries will only have to pay the BSD when they purchase their first home in Singapore and do not need to pay the ABSD.
Buyer’s Stamp Duty (BSD) And Additional Buyer’s Stamp Duty (ABSD) For An Inherited Property?
According to IRAS, we do not have to pay BSD or ABSD on a property we inherit in accordance with the Intestacy Law, Muslim Inheritance Law or a Will.
Reach out to us if you need any further consultation or advice on any Stamp Duty queries.
++ Disclaimer: BSD and ABSD are subjected to checks and evaluation from IRAS and legal agencies.