stamp duty | SGPD

SSD in Singapore: The Lowdown on Seller’s Stamp Duty

Shelwyn @ SGPD — Thu, 17 Aug 2023 11:47:15 +0000

What is Seller's Stamp Duty (SSD)?

Buyer’s Stamp Duty (BSD) is a tax levied to sellers for selling residential properties in Singapore within 3 years, from the date of acquiring the property.

BSD is computed based on the valuation or selling price, whichever is higher.

How do I know if I will need to pay SSD?

As long as you are selling a residential property in Singapore within 3 years of acquiring the property, you are liable to pay SSD regardless of your citizenship status in Singapore.

How much SSD do I have to pay?

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

How do I tell exactly when I have fulfilled 3 years after acquiring the property and will not incur SSD?

It will be either 3 years after the:

Date of Sale and Purchase (S&P) Agreement or
Option to Purchase (OTP) Exercise Date (if no S&P) or
Date of Transfer

One thing to note, do not refer to the Option To Purchase (OTP) exercise date for new launches, as it is not the right date for calculation.

Will there be any scenario where I don't need to incur SSD?

Ensure that you have crossed the 3 years holding period or if you need to be sure, consult a professional to look through your documentation.

If you are under HDB regulations to dispose of a HDB flat due to marriage or inheritance, you will also not incur SSD.

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The post SSD in Singapore: The Lowdown on Seller’s Stamp Duty first appeared on SGPD.

Understanding ABSD: What Foreigners Need to Know When Buying Residential Properties in Singapore

Shelwyn @ SGPD — Thu, 17 Aug 2023 04:13:18 +0000

What does ABSD mean for Foreigners?

ABSD refers to Additional Buyer’s Stamp Duty, a tax levied to foreigners intending to buy any residential property in Singapore.

ABSD is computed based on the valuation or purchased price, whichever is higher, and is payable on top of BSD (Buyer’s Stamp Duty).

Does ABSD affect me as a Foreigner intending to buy a residential property?

Yes, as long as you are buying a residential property in Singapore, you will have to incur ABSD.

I'm a foreigner, how much ABSD do I have to pay for my residential properties?

You will have to pay 60% ABSD for any residential property purchase.

At which point during property purchase do I pay ABSD?

Within 14 days upon signing your sale and purchase agreement or within 30 days if your sale and purchase agreement was signed overseas.

How can I avoid paying ABSD as a Foreigner?

The only legal way to avoid paying ABSD for your first residential property is if you are married to a Singaporean.

You may also qualify for an ABSD refund as a married couple if the property you paid ABSD for is sold within six months as you purchase the second residential property,

You do not have to pay ABSD for a property that you inherited in accordance to the Intestacy Law, Muslim Inheritance Law or a Will.

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The post Understanding ABSD: What Foreigners Need to Know When Buying Residential Properties in Singapore first appeared on SGPD.

Understanding ABSD: What Singapore Permanent Residents (SPRs) Need to Know When Buying Residential Properties

Shelwyn @ SGPD — Thu, 17 Aug 2023 03:52:28 +0000

What does ABSD mean for SPRs?

ABSD refers to Additional Buyer’s Stamp Duty, a tax levied to SPR property buyers intending to buy any residential property.

ABSD is computed based on the valuation or purchased price, whichever is higher, and is payable on top of BSD (Buyer’s Stamp Duty).

Does ABSD affect me as an SPR property buyer?

Yes, as long as you are buying a residential property in Singapore, you will have to incur ABSD.

I'm an SPR, how much ABSD do I have to pay for my residential properties?

5% ABSD for first residential property
30% ABSD for second residential property
35% ABSD for third and subsequent properties

At which point during property purchase do I pay ABSD?

Within 14 days upon signing your sale and purchase agreement or within 30 days if your sale and purchase agreement was signed overseas.

How can I avoid paying ABSD as an SPR?

The only legal way to avoid paying ABSD for your first residential property is if you are married to a Singaporean.

You may also qualify for an ABSD refund as a married couple if the property you paid ABSD for is sold within six months as you purchase the second residential property,

You do not have to pay ABSD for a property that you inherited in accordance to the Intestacy Law, Muslim Inheritance Law or a Will.

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The post Understanding ABSD: What Singapore Permanent Residents (SPRs) Need to Know When Buying Residential Properties first appeared on SGPD.

Understanding ABSD: What it is and How it Affects Singaporean Property Buyers

Shelwyn @ SGPD — Wed, 16 Aug 2023 02:31:01 +0000

What does ABSD mean for Singaporeans?

ABSD refers to Additional Buyer’s Stamp Duty, a tax levied to Singaporean property buyers who intends to own more than one residential property. ABSD is computed based on the valuation or purchased price, whichever is higher, and is payable on top of BSD (Buyer’s Stamp Duty).

Does ABSD affect me as a Singaporean property buyer?

If you currently own one residential property and intend to sell it before buying another residential property, then ABSD does not apply to you.

However, if you already own a residential property in Singapore, intend to keep it and buy another residential property, then you will need to pay ABSD for your second and subsequent properties.

You will also incur ABSD if percentage shares of a residential property is transferred to you, on top of the existing one you own.

I'm a Singaporean, how much ABSD do I have to pay for my additional residential properties?

20% ABSD for second residential property
30% ABSD for third and subsequent properties

At which point during property purchase do I pay ABSD?

Within 14 days upon signing your sale and purchase agreement or within 30 days if your sale and purchase agreement was signed overseas.

How can I avoid paying for ABSD?

Well, you can’t really avoid paying for ABSD as it is considered as tax evasion in Singapore.

One legal way to ensure you don’t have to incur ABSD is buying two separate private properties as a couple, but this will only work if your partner and you are buying two private properties, each under separate ownership. Factors to consider are more cash will be required for downpayment and/or monthly instalments as you can only use the CPF of one party to pay for each property.

You do not have to pay ABSD for a property that you inherited in accordance to the Intestacy Law, Muslim Inheritance Law or a Will.

If you are game for something out of the usual comfort zone, consider also commercial or industrial properties as ABSD do not apply to them.

I'm married, how can I keep my HDB and avoid paying ABSD for a new property?

If you are a married couple who owns a HDB, you cannot keep the HDB and buy another property without incurring ABSD. You will need to sell your HDB (when the MOP is up), and buy two private properties separately as mentioned above. Note that you cannot own a HDB and a private property separately if you are a married couple.

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The post Understanding ABSD: What it is and How it Affects Singaporean Property Buyers first appeared on SGPD.