As part of the Government’s continued efforts to ensure progressivity in the tax system, the Finance Minister has announced higher marginal Buyer’s Stamp Duty (BSD) rates targeting properties with higher values.
The current and new rates are set out below. The Additional Conveyance Duties for Buyers (ACDB) rates, which apply to qualifying acquisitions of property holding entities (PHE)*, will also be adjusted accordingly, from a maximum of 44% to a maximum of 46%. There are transitional provisions whereby the former BSD rates will apply to property transactions where an option to purchase has been granted on or before 14 February 2023, among other conditions.
It remains to be seen how the increases in stamp duty rates and the current rising interest rate environment will affect the real property market in Singapore in the short to medium term, though it should be noted that Singapore has consistently emerged as one of the top two investment destinations in Asia for the last five years in the Emerging Trends in Real Estate survey (a joint undertaking between PwC and the Urban Land Institute).
*A PHE is an entity that has at least 50% (i.e. asset ratio) of its total tangible assets comprising prescribed immovable properties in Singapore.
Buyer Stamp Duty (BSD) rates
| Higher of purchase price or market value of the property | Residential properties |
|
| Existing Marginal BSD rates (on or before 14 February 2023) | New Marginal BSD rates (on or after 15 February 2023) | |
| First $180,000 | 1% | 1% |
| Next $180,000 | 2% | 2% |
| Next $640,000 | 3% | 3% |
| Amount exceeding $1 million up to $1.5 million | 4% | 4% |
| Amount exceeding $1.5 million up to $3 million | 5% (New) | |
| Amount exceeding $3 million | 6% (New) | |
| Higher of purchase price or market value of the property | Non-residential properties |
|
| Existing Marginal BSD rates (on or before 14 February 2023) | New Marginal BSD rates (on or after 15 February 2023) | |
| First $180,000 | 1% | 1% |
| Next $180,000 | 2% | 2% |
| Next $640,000 | 3% | 3% |
| Amount exceeding $1 million up to $1.5 million | 4% (New) | |
| Amount exceeding $1.5 million | 5% (New) | |
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