What You'll Actually Pay: Singapore Stamp Duty Guide for Home Buyers
Welcome to the world of property buying in Singapore in 2025! Whether you’re hunting for your first HDB flat or eyeing a luxury condo, understanding stamp duties is key to nailing down your total costs. These taxes aren’t just another line item—they’re a big part of Singapore’s strategy to keep the property market stable, discourage speculation, and prioritize local homeowners. In this guide, we’ll walk you through everything you need to know about the stamp duty landscape, from the 2023 updates still shaping the market to real-life examples and smart ways to save. Let’s dive in!
The Stamp Duty Basics: What Are You Actually Paying For?
Stamp duties are the government’s way of taxing property transactions, and they serve a few purposes: cooling an overheated market, curbing excessive investment, and giving Singaporeans an edge over foreign buyers. As a home buyer in 2025, you’ll encounter two main types:
Buyer’s Stamp Duty (BSD): The Universal Tax
Everyone pays BSD—it’s the baseline stamp duty for all property purchases. Introduced in its current progressive form in February 2023, it scales with your property’s value. Here’s how it breaks down:
| Property Value Portion | BSD Rate |
|---|---|
| First $180,000 | 1% |
| Next $180,000 | 2% |
| Next $640,000 | 3% |
| Next $500,000 | 4% |
| Next $1,500,000 | 5% |
| Anything above $3,000,000 | 6% |
Additional Buyer’s Stamp Duty (ABSD): The Profile-Based Tax
ABSD is where things get interesting—and costly. It depends on who you are and how many properties you own. The rates, last updated in April 2023, are designed to make multiple property ownership or foreign buying a pricey endeavor. Check out the current lineup:
| Who You Are | ABSD Rate |
|---|---|
| Singapore Citizen buying first property | 0% |
| Singapore Citizen buying second property | 20% |
| Singapore Citizen buying third+ property | 30% |
| PR buying first property | 5% |
| PR buying second property | 30% |
| PR buying third+ property | 35% |
| Foreigner buying any property | 60% |
| Entities (including companies) buying any property | 65% |
| Housing developers | 35% (with conditions for remission) |
These rates can add up fast, so let’s put them into real-world dollars with some examples.
Real Numbers: How Much Will You Pay?
To get a sense of what stamp duties mean for your wallet, let’s walk through a few common scenarios for buyers in 2025.
Example 1: First-Time Singapore Citizen Buying a 4-Room HDB
For a $550,000 resale HDB flat:
Your BSD calculation:
- First $180,000: 1% = $1,800
- Next $180,000: 2% = $3,600
- Remaining $190,000: 3% = $5,700
- Total BSD: $11,100
ABSD: $0 (First property for a Singaporean)
Total stamp duty: $11,100
That’s about 2% of your purchase price – still a significant sum, but the government gives first-time Singaporean buyers the best deal. Curious about the process? Check out our Buying a Resale HDB Flat: A Step-by-Step Guide for a deeper dive into navigating the HDB market.
Example 2: Singapore PR buying a Second Property
For a $1.8 million condominium (while keeping your existing property):
Your BSD will be:
- First $180,000: 1% = $1,800
- Next $180,000: 2% = $3,600
- Next $640,000: 3% = $19,200
- Next $500,000: 4% = $20,000
- Remaining $300,000: 5% = $15,000
- Total BSD: $59,600
Plus ABSD:
- Second property as PR: 30% × $1,800,000 = $540,000
Total stamp duty: $599,600
That’s nearly $600,000 in taxes alone – a substantial 33% of your property value going to the government!
Example 3: Foreign Investor buying a Singapore Property
For a $3.5 million luxury apartment:
Your BSD:
- First $180,000: 1% = $1,800
- Next $180,000: 2% = $3,600
- Next $640,000: 3% = $19,200
- Next $500,000: 4% = $20,000
- Next $1,500,000: 5% = $75,000
- Remaining $500,000: 6% = $30,000
- Total BSD: $149,600
And then the ABSD:
- Foreign buyer: 60% × $3,500,000 = $2,100,000
Total stamp duty: $2,249,600
At over $2.2 million in taxes (64% of purchase price), the foreign investor premium is substantial, reflecting Singapore’s strong policy of prioritizing local buyers. Want to see how these rates affect your own purchase? Try our Stamp Duty Calculator to crunch the numbers instantly.
These examples highlight how stamp duties vary wildly based on your profile and property value. So, what’s driving these rates? Let’s explore Singapore’s stamp duty framework next.
Understanding Singapore’s Stamp Duty Framework
Singapore’s stamp duty system in 2025 reflects a deliberate effort to balance homeownership with market stability. Two key features stand out:
The Luxury Property Tax Tier
The 6% BSD rate for properties over $3 million targets the high-end market. By 2025, this cost is baked into luxury property prices—sellers and buyers alike expect it, and it’s part of negotiations for condos or landed homes in prime areas.
The Heavyweight ABSD Structure
ABSD rates are some of the toughest globally, shaping who can afford to own multiple properties:
| Buyer Category | ABSD Rate | Impact |
|---|---|---|
| SG Citizen – 2nd property | 20% | Deters casual investment |
| PR – 2nd property | 30% | Deters casual investment |
| Foreigners | 60% | Limits ownership to the ultra-wealthy |
| Companies | 65% | Nearly shuts out corporate buyers |
This setup means investment properties need sky-high rental yields to pencil out, while foreign buyers are nudged toward commercial options or other markets.
Now that you see the “why” behind the rates, let’s talk about how to lighten the load.
How to Legally Lower Your Stamp Duty Costs
Stamp duties may be non-negotiable, but there are clever, legal ways to reduce your bill. Here are the top considerations:
ABSD Remission for Married Couples
If you’re married with at least one Singaporean spouse, this can save you big:
Buy your second property first (paying 20% ABSD upfront).
Sell your existing property within 6 months.
Apply for a refund via the IRAS portal.
The clock starts ticking from the purchase date (or TOP/CSC issuance for uncompleted units), so timing is everything.
More information can be found on IRAS.
Strategic Property Ownership
Some couples optimize their stamp duty by structuring ownership carefully:
- Single Name Purchase
- The spouse with no existing property purchases the new home
- Avoids triggering higher ABSD rates for second properties
- Note: Consider implications for CPF usage and loan eligibility
- Decoupling Strategy
- One spouse transfers their share to the other
- The spouse without property can then purchase another property at lower ABSD rates
- Important: Transfer of part share still incurs BSD
Commercial Property Alternative
Investors sidelined by residential ABSD can pivot:
- BSD caps at 5% for commercial properties .
- No ABSD is payable for commercial properties
- You will be liable for GST if the seller is a GST registered company (you may claim GST refund if you are using your own GST registered company to purchase)
These strategies can save thousands depending on your situation. But what about special cases like gifting or family transfers?
Special Property Transactions: Good to Know
Gifted Properties
Even “free” properties come with a catch:
- BSD calculated based on market value
- ABSD may apply depending on recipient’s profile.
Family Property Transfers
Rules for intra-family moves:
- BSD still applies based on market value
- Potential stamp duty relief for specific situations (e.g., divorce)
- ABSD implications depend on existing property ownership
Part Share Transfers (Decoupling)
A popular move for couples:
- BSD is charged on the transferred share’s value.
- Legal fees are around $6000 more or less.
- The new buyer’s ABSD rate reflects their existing properties.
These scenarios show how stamp duties touch every transaction. Let’s see how real buyers are navigating this in 2025.
Real-Life Impact: Stories from the Market
The Tan Family: Upgraders in Today’s Market
The Tans are Singaporeans looking to upgrade from their first HDB to a $2.1 million condo. Like many families, they needed to sell and purchase at the same time.
“With the 20% ABSD, we were looking at a temporary payment of $420,000,” explains Mrs. Tan. “Thankfully, that was avoided easily as our purchase exercise date was after our sale exercise date.”
IRAS deems your property count based on the date that you exercise the sale/purchase. There was no ABSD payable for the Tans as the property count was zero on the purchase exercise date.
Mr. Wong: The Deterred Investor
Mr. Wong, a Singapore PR who bought his family home in 2018, has been monitoring the investment property market.
“The 30% ABSD fundamentally changes the investment equation,” he explains. “For a $1.5 million property, that’s $450,000 in additional costs that need to be recouped. I’ve shifted my investment strategy to REITs and commercial properties instead, where the tax treatment is more favorable.”
Ms. Chen: The Foreign Buyer
Ms. Chen, a Chinese national looking to invest in Singapore property, has had to recalibrate her expectations.
“With the 60% ABSD, buying a $2 million apartment means paying $1.2 million just in ABSD, plus the BSD. At that rate, only ultra-luxury properties with exceptional appreciation potential make any sense. Most foreign investors I know have redirected their capital to other markets or commercial properties in Singapore.”
Practical Payment Tips
You’ll need to pay stamp duties within 14 days after signing the Sale & Purchase Agreement or exercising the Option to Purchase.
Most transactions now use the IRAS e-Stamping Portal with digital payment options. Physical payments at SingPost branches are still available but less common in 2025.
Stamp duties for completed private properties will need to be paid in cash upfront within the 14 days deadline. You may however choose to apply for reimbursement from CPF later on. More info regarding this can be found here.
Remember that penalties for late payment can reach up to 4 times the unpaid duty – IRAS doesn’t mess around.
The Bottom Line
Two years after the 2023 tweaks, Singapore’s stamp duties are a defining force in the property market. For first-time Singaporean buyers, it’s smooth sailing. For investors, PRs, and foreigners, the high rates have rewritten the playbook, favoring commercial properties or single-home ownership.
Before you sign on the dotted line, double-check the latest rates on the IRAS website—adjustments can happen anytime.
