What is Buyer’s Stamp Duty (BSD)?
The Buyer’s Stamp Duty (BSD), a tax on legal documents related to acquiring or leasing real estate, applies to all real estate purchases in Singapore, including those of HDB flats. The tax only applies to the buyer.
The amount of BSD payable is determined by whichever is higher: the property’s purchase price as stated in the signed sale and purchase agreement or the property’s market value as determined by appraisal reports.
Even if the buyer can negotiate a lower purchase price, the BSD rate will still be based on the higher of the two amounts.
For instance, if you negotiate a S$1.7 million apartment down to S$1.5 million, the larger of the two amounts will still be used to determine your BSD rate.
It is illegal to utilise a document that hasn’t had its stamp duties paid. Only documents with paid stamp duties will be considered valid evidence in a property dispute that goes to court.
As a result, all potential buyers should budget for the buyer’s stamp duty and, if applicable, Additional Buyer’s Stamp Duty (ABSD).
How much is Buyer’s Stamp Duty (BSD) in Singapore?
The amount of BSD tax imposed on a property is determined by its cost or market value.
Higher-valued homes will have a greater BSD tax, while lower-valued homes will have a lower BSD tax. The rates at which residential and non-residential properties are taxed under BSD differ slightly.
Residential property purchases are subject to a maximum BSD rate of 6%, while non-residential property purchases are subject to a maximum BSD rate of 5%. This change was made in Budget 2023 and will be effective immediately for any properties purchased on or after February 15th, 2023.
Use our stamp duty calculator to determine the taxes due on your new residence.
Information provided was accurate at the time of publication. For latest changes and updates, head over to this article: Singapore’s Buyer’s and Seller’s Stamp Duty: What you should know
When should I pay the Buyer’s Stamp Duty (BSD) and Additional Buyer’s Stamp Duty (ABSD)?
Both BSD and ABSD must be paid within 14 days of the execution of the Contract or Agreement. Only after you have paid the stamp duty in full will the property acquisition documents be considered properly stamped.
Can I use CPF to pay for the Buyer’s Stamp Duty (BSD) and Additional Buyer’s Stamp Duty (ABSD)?
You can seek a one-time reimbursement from our CPF account when you apply to use CPF funds to buy the property. You can use CPF funds to pay for your BSD and ABSD.
