If you are intended to purchase a property in Singapore, the following information may find useful for you to know the costs you may be incurred for any purchase and selling commercial or residential properties in Singapore.
Stamp duty – Commercial and residential properties
You are required to pay stamp duty for documents executed for a sale and purchase of property. Stamp duty will be computed on the purchase price or market value of the property (whichever is the higher amount).
The first instrument executed relating to a sale and purchase is liable to ad valorem duty (i.e. full duty). Subsequent document(s), relating to the same sale transaction, is liable to nominal duty.
As announced in Budget 2011, nominal duty has been removed for subsequent document executed on and after 19 February 2011. If the subsequent document is executed before 19 February 2011, nominal duty remains payable.
Seller Stamp Duty – Residential properties
In February 2010, the Government imposed a seller’s stamp duty (SSD) for sellers who buy (or acquire) residential properties on or after 20 February 2010 and sell (or disposed of) them within one year of acquisition. Properties acquired before 20 Feb 2010 will not be subject to SSD. The amount of SSD is computed based on the same rates as the buyer’s stamp duty.
On 30 Aug 2010, the Government further announced that SSD will be payable on residential properties which are acquired (or purchased) on or after 30 Aug 2010 and disposed of (or sold) within 3 years of acquisition. The amount of SSD for the holding period of 1 year is computed based on the same rates as the buyer’s stamp duty, but will be reduced to 2/3 and 1/3 of the amount of buyer’s stamp duty for holding period of 2 years and 3 years respectively.
On 13 January 2011, the Government announced the extension of the holding period for imposition of SSD on residential properties from 3 years to 4 years based on new rates. The new SSD rates will be imposed on residential properties which are acquired (or purchased) on or after 14 January 2011 and disposed of (or sold) within 4 years of acquisition, as follows :
– Holding period of 1 year : 16% of price or market value, whichever is higher
– Holding period of 2 years : 12% of price or market value, whichever is higher
– Holding period of 3 years : 8% of price or market value, whichever is higher
– Holding period of 4 years : 4% of price or market value, whichever is higher
For more information, please refer to Seller Stamp Duty (Residential)
Buyer Stamp Duty on Purchase of Properties – Commercial and residential properties
Stamp Duty Based on the Purchase Price or Market Value, whichever is higher
Every $100 or part thereof of the first $180,000 – $1
Every $100 or part thereof of the next $180,000 – $2
Every $100 or part thereof of the remainder – $3
Please refer to Stamp duty rates and computation for the details.
Additional Buyer Stamp Duty on Purchase of Residential Properties
On 7 December 2011, the Government has announced the implementation of additional buyer’s stamp duty (ABSD) to be paid by certain profiles of people who buy or acquire residential properties (including residential land).
The affected buyers on and after 8 December 2011 would have to pay ABSD on top of the existing buyer’s stamp duty (BSD).
a) Foreigners, companies, partnership and societies
b) Singapore Permanent Residents (PR) who already own 1 or more residential properties, whether owned wholly, partially, or jointly with others
c) Singapore Citizens (SC) who already own 2 or more residential properties, whether owned wholly, partially, or jointly with others
The new ABSD is payable by affected buyers at fixed rates on the actual price paid or market value of the property whichever is the higher.
The ABSD rate will be 10% for (a), and 3% for (b) and (c), on the total price or market value of the property.
BSD continues to be payable by all property buyers at unchanged rates.
For more information, please refer to Additional Buyer’s Stamp Duty on Purchase of Residential Properties
Other variable transaction costs
– Legal fees
– Agent commission
– Tax on mortgage agreement
– Valuation fee for your property