A Quick Recap
The Three Types of Duties
Why You Should Care
| Situation | What you’ll pay | Real‑World Impact |
|---|---|---|
| First‑time home purchase | BSD + ABSD (0 %) | Roughly 1 % total of price. |
| Buying a second home | BSD + ABSD (5 % for residents) | 6 % of the purchase price – that adds up! |
| Quick flip in 4 years | BSD + ABSD (15 % if 3rd property) + SSD | You could be paying ~30 % of the sale price in taxes – tight. |
Quick Tips
Bottom Line
Stamp duty isn’t just a footnote in your mortgage paperwork; it’s a serious tax that can sway your budget by a hefty amount. Keep the ABSd heads up, understand the SSD rules, and you’ll walk into your new home wallet‑wise and stress‑free. Happy house hunting!
1. Buyer’s stamp duty (BSD)
Understanding Singapore’s Buyer’s Stamp Duty (BSD) Made Simple
Buying a property in Singapore isn’t just about picking a pretty address – it also comes with a stamp duty, known locally as Buyer’s Stamp Duty (BSD). Think of it as a tax that you must pay once the purchase is finalized, calculated on the property’s purchase price or market value (whichever is higher). Since 2018, the steepest rate for residential homes is 4 %.
BSD Rates Breakdown
- First S$180 000: 1 %
- Next S$180 000: 2 %
- Next S$640 000: 3 %
- Anything above S$1 000 000: 4 %
For non‑residential properties the rates cap off at 3 % for the last tranche.
Let’s Crunch a Real‑World Example
Suppose you bought a condominium unit in 2018 for S$2,500,550 – roughly the market value of the property at that time. Here’s how the BSD would be calculated:
| Market Value Bracket | BSD Rate | Calculation |
|---|---|---|
| First S$180 000 | 1 % | S$1,800 (1 % × S$180 000) |
| Next S$180 000 | 2 % | S$3,600 (2 % × S$180 000) |
| Next S$640 000 | 3 % | S$19,200 (3 % × S$640 000) |
| Remaining S$1,500,550 | 4 % | S$60,022 (4 % × S$1,500,550) |
| Total BSD Payable | S$84,622 (sum of all brackets) | |
So, for that condo, you’d pocket an S$84,622 stamp duty. Not too shabby, right?
Why BSD Matters (And How It Touches Your Wallet)
- It’s a permanent tax – you’re stuck with it once you own the property.
- Higher property values mean steeper rates, especially past the S$1 million threshold.
- Masters and FRESH graduates among Singaporeans often feel the pinch – but the rate structure is designed to be proportional.
Quick Tip for Buyers
Always double‑check the market value versus the purchase price – the higher figure wins the winner hat and becomes the base for your BSD calculations. Keeps those surprise slips out of your eyes!
Bottom Line
BSD isn’t just another line item; it’s a key part of your property ownership checklist. By understanding its tiers and calculations, you can anticipate the extra cost and budget wisely. Happy house hunting – and may your BSD not bite too hard!
2. Additional Buyer’s Stamp Duty (ABSD)
Getting the Lowdown on Singapore’s ABSD (and Why It’s a Big Deal)
What is ABSD? It’s that extra tax you’ll have to cough up for any second or later property you buy in Singapore. Think of it as the “bumper” on top of the regular Buyers’ Stamp Duty (BSD). The amount depends on who you’re a—citizen, permanent resident, foreigner, or even a company!
Why Singapore Gave It a Tune‑Up (back in December 2021)
On 16 Dec 2021, the government decided to tighten the screws on the housing market, hoping to keep prices from flipping like a pancake. The goal? To slow down a rapid price surge and stop foreigners & big outfits from filling every condo block.
The ABSD Playbook By Profile
- Singapore Citizens: Buy a second home? 17% ABSD. One more? 25%—the more, the merrier…well, the more the tax.
- Singapore Permanent Residents (PRs): First home? 5% ABSD. Second? 25%. Anything beyond that? 30%—it’s a “no‑twenty‑first‑time” deal.
- Foreigners: Straight to 30% ABSD whether it’s their first or thirteenth purchase. No loopholes!
- Entities (Companies or Associations): Each property? 35% ABSD. Plus an extra 5% that can’t be taken back, especially for developers. Yes, even the big guys have to feel the heat.
Quick Recap
If you’re eyeing a townhouse or an apartment, remember that ABSD is the extra tax on top of BSD. It’s designed to keep the market balanced and discourage the whirlwind buying spree.
Exceptions and remissions:
Breaking News for Expats Looking to Make Home in Singapore
Picture this: you’re a citizen of Iceland, South Korea, or even the US, and you’re dreaming of a cozy condo in the Lion City. Great news — you’re now part of the ABSD remission club. That’s right, the same stamp‑duty perks that Singapore citizens enjoy are rolled out to foreign nationals from Iceland, Liechtenstein, Norway, Switzerland, and the United States.
What’s ABSD and Why Should You Care?
ABSD stands for Additional Buyer Stamp Duty, a tax you pay when purchasing a property in Singapore. It’s a powerful way for the government to cool down the real‑estate market. Think of it as a “golden ticket” that usually costs a hefty fee – but here’s the catch: first‑time buyers from those listed countries get a remission (i.e., a bang‑on‑the‑door discount) when they snap up their first home.
First Home, First Love – Keep the Money in Your Pocket
- Own your inaugural property in Singapore? You’re eligible for ABSD remission.
- No need to juggle taxes and extra fees. The stamp duty gets eased, giving you more cash to nag a little extra on your furnishings.
- This is super useful for anyone planning to settle down and wants a tangible slice of the city-state’s vibrant lifestyle.
Twins of Homeownership – Married Couples
Speaking of slices, if you and your spouse decide to dive into the real‑estate waters together, there’s another perk. For married couples buying a second residential property as a joint venture, ABSD remission may also apply. That means you’re not just walking into a new house, you’re doing it with an easy‑going tax discount. Perfect for those looking to upgrade or expand your living space without blowing the bank.
Feeling Confused? Here’s the Deal
Simply put: If you’re from one of the mentioned countries, buy your first house or a second house with your spouse and you can apply for the ABSD waiver. No hidden catches. It’s a legitimate, hassle‑free way to lighten your financial load.
Ready to Dive In?
Open your itinerary and plan that jump‑start. We’ve got hot tips on how to apply, what documents you’ll need, and the timeline of the remission process. Travel, settle, and enjoy your new home while the ABSD worry is in the past.
Note: The above is a friendly recap of how your stamp‑duty bills can bend in favor of expatriates and married couples. Step into Singapore’s property scene with confidence and a lighter wallet. Happy house hunting!
3. Seller’s Stamp Duty (SSD)
What’s the deal with Seller’s Stamp Duty (SSD)?
Ever heard about SSD? It’s that extra tax you pay if you decide to sell a property pretty soon after buying it – within three years of the purchase date (starting from February 20, 2010). The idea is simple: keep the housing market from turning into a hotpot of flipping bargains.
Why the fuss? Why the extra tick‑tack on the price?
- Preventing price hikes: Early sellers? They’re more likely to crank up resale prices, creating an inflated market. SSD puts a stop to that.
- Sniffing out abuse: With easy payment plans like a 20% down payment and deferral of the remaining 80% for two years, some folks were turning buying into a quick money‑grab. SSD acts as a safeguard.
How is it calculated?
- It’s a percentage of either the property’s valuation or its selling price—whichever is larger.
- The earlier you part ways, the heftier the duty. Think of it as a penalty that increases the sooner you sell.
Bottom line: If you’re thinking of cashing out soon after buying, keep the SSD in mind—your wallet will feel the pinch.
Keeping Your Home‑Buying Budget on the Right Track (with a Dash of Humor)
1⃣ TDSR – The “Do Not Dream of Borrowing Too Much” Rule
Picture this: you’re eyeing that dream condo, but the bank whispers, “Let’s keep it realistic.” The Total Debt Servicing Ratio (TDSR) caps what you can borrow at 55 % of your gross monthly income. It’s been simmering since 2013 to stop folks from living rent‑free on a mortgage that’s simply too heavy.
Why it matters
- Prevents “buy‑now, panic‑later” scenarios.
- Keeps you from over‑extending on future purchases.
2⃣ LTV – The “First‑Time, Fastest; Second‑Time, Slower” Trick
When you’re grabbing your first property, lenders say it’s fair game to borrow up to 75 % of the property’s value. Spoiler: that’s a generous deal.
But the plot thickens when you consider a second property:
- Loan‑to‑Value (LTV) drops to 45 % if the loan tenure is ≤30 years.
- Falls to 25 % if the tenure >25 years or if you hit the “65‑year‑old” club (i.e., your age >65).
Bottom line: buying a second home usually means pulling more cash out of your pocket than buying your first.
3⃣ CPF Savings – Your Cash‑In‑Hand House‑Buying Sidekick
You can tap CPF savings for down‑payment, but it’s contingent on:
- The type and value of the property.
- Whether you already have a housing loan.
- The loan tenure (capped at 25 years for HDB flats or 30 years for private homes).
- The LTV limit pertaining to the property.
4⃣ Stamp Duty – The Rent‑Repayment Tax
Need to rent? If you’re signing a tenancy or refreshing a lease, you’ll pay stamp duty. It depends on the Average Annual Rent (AAR).
Quick maths demo:
- Monthly rent: $3,000
- Lease period: 24 months
- AAR: $3,000 × 24 = $72,000
- Lease duty rate: 0.4 % of AAR = $288
Get it? Simple math, but it can snowball if you’re renting a luxury flat!
Remember, these rules were laid out first by 99.co, but you can read the official guidelines on the government website for the latest updates.
