Singapore raises the top marginal Buyer's Stamp Duty rates to 6% for residential and 5% for non-residential property

Announced

14 February 2023

Effective

15 February 2023

Issuing authority

Ministry of Finance, Inland Revenue Authority of Singapore

Category

Tax policy

Affected market

All residential and non-residential property in Singapore acquired on or after 15 February 2023, by any buyer, on the portion of the dutiable value above S$1.5 million for residential property and above S$1 million for non-residential property. The dutiable value is the higher of the purchase price or the market value. Qualifying acquisitions of equity interests in property holding entities are reached through the Additional Conveyance Duties for Buyers. Acquisitions under an Option to Purchase granted on or before 14 February 2023 and exercised on or before 7 March 2023, or within its validity period if earlier, and not varied on or after 15 February 2023, keep the earlier rates.

Primary source

Buyer’s Stamp Duty (BSD) Rates to be Raised for Higher-Value Properties

On 14 February 2023 Singapore raised the top marginal Buyer's Stamp Duty rates for property acquired on or after 15 February 2023. For residential property the portion of value above S$1.5 million and up to S$3 million is taxed at 5% and the portion above S$3 million at 6%, where 4% had applied to all value above S$1 million. For non-residential property the portion above S$1 million and up to S$1.5 million is taxed at 4% and the portion above S$1.5 million at 5%, where 3% had applied. These are marginal rates on slices of value, not rates on the price: the first S$1.5 million of a residential purchase and the first S$1 million of a non-residential one pay exactly what they did before, and a S$3 million home pays S$119,600 against S$104,600, about 4% of the price. The duty falls on every buyer regardless of citizenship or properties owned. The ceiling on the Additional Conveyance Duties for Buyers, charged on acquisitions of equity interests in property holding entities, rose from up to 44% to up to 46%. An Option to Purchase granted on or before 14 February 2023 and exercised by 7 March 2023 kept the old rates. The Government's stated reason was to enhance the progressivity of the regime.