Published December 10, 2011 · Updated October 4, 2026
Stamp duties, not the purchase price, are often the single largest cash outlay in a Singapore property deal. A foreigner buying a S$2 million condominium today owes S$1,269,600 in combined stamp duties — just under 64% of the price itself.
- In this blog, we discuss the buyer's stamp duty, additional buyer's stamp duty (ABSD) and seller's stamp duty (SSD) rates.
- We also explain the ad valorem computation and other transaction costs — legal fees, agent commissions and property tax.
- Buyers and sellers of residential and commercial property should budget for these costs in 2026.
What Is Ad Valorem Stamp Duty and How Is It Computed?
Ad valorem stamp duty is the tiered transfer tax charged on the first document that transfers a property. It is computed on the higher of the purchase price and the property's market value.
Stamp duty on property in Singapore is administered by the Inland Revenue Authority of Singapore (IRAS) under the Stamp Duties Act 1929. The Latin ad valorem means duty according to the value. IRAS therefore values the transaction at the higher of the price the parties agreed and the market value it assesses.
The first dutiable purchase document — usually the buyer’s Acceptance to the Option to Purchase — attracts full ad valorem duty. Subsequent documents for the same transaction generally attract only nominal duty. Duty must be paid within 14 days of the date of the document if it is signed in Singapore, or within 30 days if it is received from overseas. Similar deadlines apply to other dutiable contracts, so see our guide on when is stamp duty payable on business agreements in Singapore.
Buyers and sellers should distinguish three duties that sit under the stamp duty umbrella. The tables below set out the current tiers for residential and non-residential purchases.
For example, on a S$2 million residential purchase, BSD is computed in tiers: 1% on the first S$180,000 (S$1,800), 2% on the next S$180,000 (S$3,600), 3% on the next S$640,000 (S$19,200), 4% on the next S$500,000 (S$20,000), and 5% on the remaining S$500,000 (S$25,000). The sum is S$69,600.
1. Buyer's Stamp Duty (BSD)
BSD is payable by every buyer of residential or non-residential property. The current residential tiers, which range from 1% to 6%, and non-residential tiers, which range from 1% to 5%, apply to documents executed on or after 15 February 2023.
2. Additional Buyer's Stamp Duty (ABSD)
ABSD is an additional duty levied only on buyers of residential property. The rate depends on the buyer's profile and the number of residential properties already held.
3. Seller's Stamp Duty (SSD)
SSD is payable by sellers who dispose of residential property within the applicable statutory holding period. Industrial property may also be subject to SSD, while commercial property is outside the SSD regime.
Buyer's Stamp Duty Tiers for Residential Property (From 20 February 2025)
| Purchase price or market value (whichever is higher) | BSD rate |
|---|---|
| First S$180,000 | 1% |
| Next S$180,000 (up to S$360,000) | 2% |
| Next S$640,000 (up to S$1,000,000) | 3% |
| Next S$500,000 (up to S$1,500,000) | 4% |
| Next S$1,500,000 (up to S$3,000,000) | 5% |
| Amount above S$3,000,000 | 6% |
Buyer's Stamp Duty Tiers for Non-Residential Property
| Purchase price or market value (whichever is higher) | BSD rate |
|---|---|
| First S$180,000 | 1% |
| Next S$180,000 (up to S$360,000) | 2% |
| Next S$640,000 | 3% |
| Next S$500,000 (up to S$1,500,000) | 4% |
| Amount above S$1,500,000 | 5% |
Is Stamp Duty Part of the Purchase Price?
No. Stamp duty is a tax payable to IRAS on top of the purchase price — it is not part of the consideration and is never paid to the seller.
The duty is assessed on the transaction value, but the amount itself is a tax, not a component of the price. The buyer pays it to the government. The consideration stated in the sale and purchase agreement is what the seller receives, less the seller's own costs.
The distinction matters for financing. Banks and the Housing and Development Board (HDB) lend against the purchase price, and stamp duty cannot be borrowed. Buyers must set aside cash for BSD, and for ABSD where applicable, on top of the down payment. Late payment attracts a penalty of up to four times the deficient duty.
The tax treatment follows the same logic. IRAS treats acquisition stamp duty as capital in nature, and it is generally not an allowable deduction against rental income. A seller's SSD is likewise a separate tax settled out of proceeds, not an adjustment to the price agreed with the buyer.
Who Pays Additional Buyer's Stamp Duty on Top of BSD?
ABSD applies on top of BSD only to residential purchases, and only when the buyer falls into one of these categories:
- A Singapore citizen buying a second or subsequent residential property
- A Singapore permanent resident buying any residential property
- A foreigner buying any residential property
- An entity such as a company or trust buying any residential property
ABSD rates were last revised with effect from 27 April 2023. Foreigners generally pay 60% of the price or market value, whichever is higher, subject to applicable free-trade agreement treatment, while entities pay 65%. Singapore citizens pay nothing on their first home. The table below sets out the full schedule by buyer profile.
The duty is computed on the same base as BSD. A company buying a S$2 million condominium, for example, owes S$69,600 in BSD plus S$1,300,000 in ABSD. Housing developers pay 35% ABSD plus a further 5% that is not remittable, bringing their aggregate upfront ABSD rate to 40%.
Holding residential property through a company therefore generally attracts the 65% entity rate. It also brings the annual filing and compliance obligations that follow company incorporation in Singapore. Buyers should weigh both costs before committing to a corporate structure.
Limited remissions exist. Married couples with one citizen spouse may apply for remission on a jointly purchased home. Developers may receive a partial remission if they redevelop and sell every unit. Beyond property, permanent residency carries personal tax consequences; we explain the tax residency of a Singapore permanent resident in a separate article.
ABSD Rates by Buyer Profile (From 27 April 2023)
| Buyer profile | First residential property | Second residential property | Third and subsequent |
|---|---|---|---|
| Singapore citizen | Nil | 20% | 30% |
| Singapore permanent resident | 5% | 30% | 35% |
| Foreigner | 60% | 60% | 60% |
| Entity (company or trust) | 65% | 65% | 65% |
How Does Seller's Stamp Duty Work — and Is the 4-Year Rule Still Relevant?
Residential property acquired on or after 4 July 2025 attracts SSD for four years at 16%, 12%, 8% and 4%; earlier acquisitions remain subject to the schedule that applied on their acquisition date.
SSD is payable when a residential property is disposed of within the statutory holding period. Like BSD, it is computed on the higher of the sale price and market value. The seller pays it within 14 days of the sale document, whether or not the sale produced a profit.
For residential property acquired on or after 4 July 2025, the holding period is four years. The rate tapers from 16% to 12%, 8% and 4% across those years, as the table below shows. A sale after the fourth year attracts no SSD under this schedule.
Property acquired between 11 March 2017 and 3 July 2025 remains subject to the former three-year schedule of 12%, 8% and 4%. Residential property acquired between 14 January 2011 and 10 March 2017 remains subject to the earlier four-year schedule of 16%, 12%, 8% and 4%. Anyone weighing a sale should first check the acquisition date.
IRAS publishes the governing rules and worked examples on its pages covering selling or disposing of a property.
Seller's Stamp Duty Rates by Holding Period
| Holding period before sale | SSD rate |
|---|---|
| Sold within one year of acquisition (post-4 Jul 2025) | 16% |
| Sold in the second year | 12% |
| Sold in the third year | 8% |
| Sold after three years | 4% |
| Sold after four years | Nil |
Does Seller's Stamp Duty Apply to Commercial Property?
Commercial property is not subject to SSD, but industrial property can attract SSD when it is sold within three years of acquisition.
A buyer of office, retail or industrial space pays BSD on the non-residential schedule:
- 1% on the first S$180,000
- 2% on the next S$180,000
- 3% on the next S$640,000
- 4% on the next S$500,000
- 5% on the amount above S$1.5 million. ABSD does not apply to a non-residential purchase, regardless of citizenship, residency or entity status.
Sellers of commercial property owe no SSD whatever the holding period. However, industrial property acquired on or after 12 January 2013 is subject to SSD if sold within three years: 15% in the first year, 10% in the second and 5% in the third. Singapore also levies no capital gains tax, so a gain on an investment property is generally not taxable. Profits from trading in properties are, however, assessed as income under the Income Tax Act 1947.
Owners should still budget for recurring property tax on commercial and industrial holdings. Non-residential property is taxed at a flat 10% of its Annual Value, whether owner-occupied or not.
What Other Costs Do Buyers and Sellers in Singapore Pay?
Beyond stamp duty, both sides of a property transaction should budget for four further cost heads: legal fees, agent commission, annual property tax, and mortgage-related fees.
The table below summarises the indicative amounts for a typical private property transaction in Singapore. Actual quotes vary with the property's value and the lawyers and agents engaged.
1. Legal and Conveyancing Fees
Each party engages its own solicitor. Fees for a private residential conveyance typically range from S$2,000 to S$3,500, plus disbursements. A mortgage document adds work, and some banks offer a legal fee subsidy that is clawed back if the loan is redeemed early.
2. Estate Agent Commission
Sellers of private property commonly pay around 1% to 2% of the sale price, as agreed in the estate agency agreement. Buyers who engage their own agent pay a similar fee. Rates are negotiable and are not set by any authority.
3. Property Tax on Ownership
Owner-occupied homes are taxed on a progressive scale of up to 32% of the Annual Value, which is the estimated market rent. Let-out and vacant investment homes face rates rising to 36% from 1 January 2024. Non-residential property is taxed at 10%. Rental income is separately taxed at the prevailing Singapore personal income tax rates.
4. Mortgage, Valuation and Miscellaneous Fees
Expect a valuation fee of a few hundred dollars, loan processing fees, fire insurance and mortgage reducing term assurance where a loan is involved. HDB buyers also pay an option fee, and inward remittances add telegraphic transfer charges.
Indicative Transaction Costs Beyond Stamp Duty
| Cost item | Typical amount | Paid by |
|---|---|---|
| Legal and conveyancing fees | S$2,000 to S$3,500, plus disbursements | Buyer and seller, each with own counsel |
| Valuation fee | About S$300 to S$700 | Buyer |
| Estate agent commission | About 1% to 2% of sale price, negotiable | Usually seller; buyer's agent if engaged |
| Property tax | Up to 32% owner-occupied; up to 36% investment residential; 10% non-residential | Owner |
| Mortgage and insurance fees | Varies; may include processing, fire insurance and assurance | Borrower |
Conclusion
Stamp duties dominate the cost of a Singapore property transaction. Every buyer pays BSD under the ad valorem tiers in force since 15 February 2023. Residential buyers may add ABSD at up to 65% depending on their profile. The SSD schedule depends on the property's acquisition date. Homes acquired on or after 4 July 2025 face SSD within a four-year window, while industrial property can attract SSD within three years. Legal fees, agent commissions and property tax complete the bill.
Careful timing and structuring can make a material difference. Sellers should confirm the acquisition date before listing, buyers should quantify ABSD before exercising an option, and cash must be reserved for duties that lenders will not finance.
As a corporate services provider supporting clients since 2011, 3E Accounting Singapore helps property owners and investors plan transaction taxes. We also help structure ownership through companies where it makes commercial sense, and stay on top of the compliance obligations that follow. Speak with our team before you commit to your next purchase or sale.
Budget Every Dollar Before You Sign
Speak with our team to quantify BSD, ABSD and SSD for your transaction and plan the cash you need on completion.
Frequently Asked Questions
No. Stamp duty is a tax assessed on the transaction and paid to IRAS, separate from and additional to the price in the sale and purchase agreement. The seller never receives it, and lenders do not finance it.
For residential property acquired on or after 4 July 2025, SSD applies for four years at 16%, 12%, 8% and 4%. Property acquired between 11 March 2017 and 3 July 2025 remains subject to the former three-year schedule of 12%, 8% and 4%, while property acquired between 14 January 2011 and 10 March 2017 remains subject to the earlier four-year schedule.
No. Commercial property is not subject to SSD. However, industrial property acquired on or after 12 January 2013 can attract SSD if sold within three years, at 15%, 10% or 5%. Buyers of non-residential property pay BSD at the 1% to 5% tiers and do not pay ABSD.
IRAS takes the higher of the purchase price and market value, then applies the BSD tiers effective from 15 February 2023. Residential BSD rises from 1% to 6%, while non-residential BSD rises from 1% to 5%. ABSD is added where the buyer's profile requires it.
Within 14 days of executing the document if it is signed in Singapore, or within 30 days if it is received from overseas. Late payment attracts a penalty of up to four times the deficient duty.
Abigail Yu
Director
Abigail Yu oversees executive leadership at 3E Accounting Group, leading operations, IT solutions, public relations, and digital marketing to drive business success. She holds an honors degree in Communication and New Media from the National University of Singapore and is highly skilled in crisis management, financial communication, and corporate communications.
