Singapore raises the top residential buyer's stamp duty rate to 4% on value above S$1 million

Announced

19 February 2018

Effective

20 February 2018

Issuing authority

Ministry of Finance, Inland Revenue Authority of Singapore

Category

Tax policy

Affected market

Residential property in Singapore acquired on or after 20 February 2018, on the portion of the purchase price or market value that exceeds S$1,000,000. Non-residential property is outside the measure and keeps its 1%, 2% and 3% schedule. An Option to Purchase granted on or before 19 February 2018 keeps the old rates if exercised on or before 12 March 2018 or within its validity period, whichever is earlier.

Primary source

Buyer’s Stamp Duty (BSD) Rate to be Raised, on the Value of Residential Property in Excess of $1 Million

On 19 February 2018, in Budget 2018, the Ministry of Finance announced that for residential property acquired on or after 20 February 2018 the top marginal buyer's stamp duty rate would rise from 3% to 4%, charged only on the portion of value above S$1 million. The first S$180,000 stayed at 1% and the next S$180,000 at 2%. The 3% band, which had run without limit above S$360,000, now stops at S$1,000,000, and a new 4% band covers everything above it. Duty on a purchase at or below S$1 million did not change. Non-residential property kept its 1%, 2% and 3% schedule, so from this date residential and non-residential buyers faced different rates for the first time. An Option to Purchase granted on or before 19 February 2018 kept the old rates if exercised on or before 12 March 2018 or within its validity period, whichever was earlier. The release stated that the additional conveyance duties would be adjusted accordingly, without giving the rates.