Taxes on property purchase, sale and ownership

There is no capital gain tax in Singapore. But, there are taxes on property purchase, sale and ownership.

Tax payable on property purchase

a. Buyer’s Stamp Duty (BSD)

For commercial and residential properties:

i) 1% on first $180,000

ii) 2% on next $180,000

iii) 3% for the remainder  of property purchase price

b. Additional Buyer’s Stamp Duty (ABSD)

For residential properties only

 Profile of Buyer ABSD Rates from 12 Jan 2013
Singapore Citizens (SC)1 buying first residential property  Not applicable
SC1 buying second residential property  7%
SC1 buying third and subsequent residential property  10%
Singapore Permanent Residents (SPR)1 buying first residential property  5%
SPR1 buying second and subsequent residential property  10%
Foreigners (FR) and entities2buying any residential property 15%

c. Good and Services Tax (GST)

Good and Services Tax (GST) is payable when you purchase a commercial property from a GST registered company or individual. The current Goods and Services Tax (GST) in Singapore is 7%.

Tax payable on property sale

Seller needs to pay Seller’s Stamp Duty (SSD) for selling a property within 3 years of purchase with effect from 11 March 2017. The rates of Seller’s Stamp Duty (SSD) payable on residential property purchased on and after 20 Feb 2010 and sold within certain duration, are summarized in the table below:

Date of Purchase or Date of Change of Zoning /  Use  Holding Period SSD Rate (on the actual price or market value, whichever is higher)
Between 20 Feb 2010 and 29 Aug 2010 (all  inclusive) Up to 1 year  1% on first $180,000
2% on next $180,000
3% on remainder
More than 1  year  No SSD payable
Between 30 Aug 2010 and 13 Jan 2011 (all  inclusive) Up to 1 year  1% on first $180,000
2% on next $180,000
3% on remainder
More than 1  year and up to 2  years  0.67% on first $180,000
1.33% on next $180,000
2% on remainder
More than 2 years and up to 3 years  0.33% on first $180,000
0.67% on next $180,000
1% on remainder
More than 3 years No SSD payable
Between 14 Jan 2011 and 10 Mar 2017 (all inclusive) Up to 1 year  16%
More than 1 year and up to 2 years  12%
More than 2  years and up to 3  years  8%
More than 3  years and up to 4  years  4%
More than 4  years  No SSD payable
 On and after 11 Mar 2017 Up to 1 year  12%
More than 1 year and up to 2 years  8%
More than 2 years and up to 3 years 4%
 More than 3 years  No SSD payable

Tax payable on property ownership

The tax on property ownership is derived from Annual Value.

What  is Annual Value?

Annual Value is the estimated gross annual rent of the property if it were to be rented out , excluding furniture, furnishings and maintenance fees. It is determined based on estimated market rentals of similar or comparable properties.

a. Owner-Occupier Tax Rates (Residential Properties)

Owner-occupied residential properties may be condominiums, HDB flats or other residential properties where the owner lives in ("occupies") the property. Owner-occupied residential properties enjoy owner-occupier tax rates.

Owner-Occupier Tax Rates
Annual Value ($) Effective 1 Jan 2015 Property Tax Payable
First $8,000
Next $47,000
0%
4%
 $0
$1,880
First $55,000
Next $15,000
-
6%
$1,880
$   900
First $70,000
Next $15,000
-
8%
$2,780
$1,200
First $85,000
Next $15,000
-
10%
$3,980
$1,500
First $100,000
Next $15,000
-
12%
$5,480
$1,800
First $115,000
Next $15,000
-
14%
$7,280
$2,100
First $130,000
Above $130,000
-
16%
$9,380

b.Residential Tax Rates (Non-Owner Occupied Residential Properties)

Non-owner occupied residential properties may be condominiums, HDB flats or other residential properties. The owner does not live in ("occupy") the property and, therefore, owner-occupier tax rates do not apply.

The following tax rates apply to non-owner occupied properties except for those in the exclusion list .

Residential Tax Rates
Annual Value ($) Effective 1 Jan 2015 Property Tax Payable
First 30,000
Next $15,000
10%
12%
$3,000
$1,800
First $45,000
Next $15,000
-
14%
$4,800
$2,100
First $60,000
Next $15,000
-
16%
$6,900
$2,400
First $75,000
Next $15,000
-
18%
$9,300
$2,700
First $90,000
Above $90,000
-
20%
$12,000

Residential properties on the exclusion list will continue to be taxed at 10%.

c. Commercial and Industrial Properties(Non-Residential)

Non-residential properties such as commercial and industrial buildings and land are taxed at 10% of the Annual Value .  The owner-occupier tax rates do not apply to non-residential properties even if you have bought the properties for your own use / occupation.

d. Income Tax on Rental Income

Rental income is subject to income tax. This means that any profit or net amount left once you have added together your rental income and deducted any allowable expenses is taxable.

For other tax information, please feel free to speak to our tax specialists.

ree to speak to our tax specialists.