Latest BSD & ABSD Rates
Introduction
With the world recovering from the effects of COVID-19, and the re-opening of borders around the world, the increase in international travel has led to an influx in investments in Singapore. The most prominent being in the property market in Singapore.
On 14 February 2023, the Singapore Government announced an increase in the Buyer’s Stamp Duty (BSD) rates in an effort to cool the property market. The changes are set out in the table below:-
| Higher of Price or valuation | Marginal BSD Rate | |||
| Residential Property | Non-residential Property | |||
| On or before 14 Feb 2023 | On or after 15 Feb 2023 | On or before 14 Feb 2023 | On or after 15 Feb 2023 | |
| First $180,000 | 1% | 1% | 1% | 1% |
| Next $180,000 | 2% | 2% | 2% | 2% |
| Next 640,000 | 3% | 3% | 3% | 3% |
| Next $500,000 | 4% | 4% | 3% | 4% |
| Next $1,500,000 | 4% | 5% | 3% | 5% |
| Amount exceeding $3,000,000 | 4% | 6% | 3% | 5% |
A shorter way to calculate the BSD is shown below:-
| Higher of Price or valuation | Marginal BSD Rate | |||
| Residential Property | Non-residential Property | |||
| On or before 14 Feb 2023 | On or after 15 Feb 2023 | On or before 14 Feb 2023 | On or after 15 Feb 2023 | |
| $180,000 | 1% | 1% | 1% | 1% |
| Above $180,000 to $360,000 | 2% -$1,800 | 2% -$1,800 | 2% -$1,800 | 2% -$1,800 |
| Above $360,000 to $1,000,000 | 3% – $5,400 | 3% – $5,400 | 3% – $5,400 | 3% – $5,400 |
| Above $1,000,000 to $1,500,000 | 4% – $15,400 | 4% – $15,400 | 3% – $5,400 | 4% – $15,400 |
| Above $1,500,000 to $$3,000,000 | 4% – $15,400 | 5% – $30,400 | 3% – $5,400 | 5% – $30,400 |
| Above $3,000,000 | 4% – $15,400 | 6% – $60,400 | 3% – $5,400 | 5% – $30,400 |
Thereafter, a further cooling measure was introduced on 26 April 2023. The Additional Buyer’s Stamp Duty was increased.
| Profile | On or before 26 Apr 2023 | On or after 27 Apr 2023 | |
| Singapore Citizens | First residential property | 0% | 0% (no change) |
| Second residential property | 17% | 20% (+3%) | |
| Third and subsequent residential property | 25% | 30% (+5%) | |
| Permanent Residents | First residential property | 5% | 5% (no change) |
| Second residential property | 25% | 30% (+5%) | |
| Third and subsequent residential property | 30% | 35% (+5%) | |
| Foreigners | Any residential property | 30% | 60% (+30%) |
| Entities (excluding housing developers) | Any residential property | 35% | 65% (+30%) |
| Trust | Any residential property | 35% | 65% (+30%) |
| Housing Developers | Any residential property | 35% (remittable, subject to conditions) + 5% non‑remittable | 35% (remittable, subject to conditions) + 5% non‑remittable (no change) |
As can be seen from the tables above, there is no change for Singapore Citizens and Singapore Permanent Residents purchasing their first residential property that is priced (or valued, whichever is higher) at $1.5 million or lower. For the rest, it means that the cost of acquiring residential property has increased since 10 February 2023. For some purchaser profiles, this increase can be rather substantial.
Below, we set out the stamp duty payable for purchasers of different profiles at different times to demonstrate the changes in the stamp duty payable since 10 February 2023.
For Singaporean Citizens purchasing their third or subsequent residential property worth $1.5 million on 10 February 2023, 20 April 2023, and 30 May 2023:-
| 10 February 2023 | 20 April 2023 | 30 May 2023 |
| $1,500,000 x (4%+25%) – $15,400 | $1,500,000 x (4%+25%) – $15,400 | $1,500,000 x (4%+30%) – $15,400 |
| $419,600 (~28%) | $419,600 (~28%) | $509,600 (~34%) |
For Singaporean Permanent Residents purchasing their second residential property worth $2.5 million on 10 February 2023, 20 April 2023, and 30 May 2023:-
| 10 February 2023 | 20 April 2023 | 30 May 2023 | ||
| $2,500,000 x (4%+25%) – $15,400 | $2,500,000 x (5%+25%) – $30,400 | $2,500,000 x (5%+30%) – $30,400 | ||
| $709,600 (~28.3%) | $719,600 (~28.8%) | $844,600 (~33.8%) | ||
For foreigners purchasing any residential property worth $5 million on 10 February 2023, 20 April 2023, and 30 May 2023:-
| 10 February 2023 | 20 April 2023 | 30 May 2023 | ||
| $5,000,000.00 x (4%+30%) – $15,400 | $5,000,000.00 x (6%+30%) – $60,400 | $5,000,000.00 x (6%+60%) – $60,400 | ||
| $1,684,600 (~33.7%) | $1,739,600 (~34.8%) | $3,239,600 (~64.8%) | ||
For a residential property purchased on trust worth $10 million on 10 February 2023, 20 April 2023, and 30 May 2023 prior to ABSD (Trust) Remission:-
| 10 February 2023 | 20 April 2023 | 30 May 2023 | ||
| $10,000,000.00 x (4%+35%) – $15,400 | $10,000,000.00 x (6%+35%) – $60,400 | $10,000,000.00 x (6%+65%) – $60,400 | ||
| $3,884,600 (~38.8%) | $4,039,600 (~40.4%) | $7,039,600 (~70.4%) | ||
The increase in the cost to purchasers of residential property has sparked some to consider commercial properties However, prior to making any such purchases, whether residential or commercial, it is best to consult professionals to understand your options, the current outlook, and if there are any restrictions and/or conditions that you will have to comply with.
Our experienced conveyancing team have a wealth of experience and knowledge in property‑related matters. This allows us to provide you with sound and practical advice on your queries. Should you have any question pertaining to your property or other conveyancing matters, please reach out to our lawyers or Business Development team.