Understanding BSD: How Buyer's Stamp Duty Works in Singapore
Every property purchase in Singapore comes with a tax bill that many first-timers underestimate: Buyer's Stamp Duty (BSD).
Understanding BSD before you commit to a purchase is essential. It is not a small administrative fee — on a S$1.5 million condo, it can easily run into the tens of thousands of dollars. Knowing how it is calculated, when you must pay it, and how it interacts with other costs will help you budget accurately and avoid nasty surprises at the point of signing.
What Is Buyer's Stamp Duty?
BSD is a tax levied by the Inland Revenue Authority of Singapore (IRAS) on documents relating to the purchase or acquisition of property in Singapore. It applies to both residential and non-residential property — HDB flats, condos, landed homes, shophouses, commercial units, and industrial properties alike.
The tax is computed on the higher of the purchase price or the market value of the property. If you negotiate a below-market deal, IRAS will assess stamp duty based on what the property is actually worth, not the transacted price.
BSD is a buyer's obligation. The seller has a separate tax to worry about — namely, Seller's Stamp Duty, which applies if they sell within a certain holding period.
How BSD Is Calculated for Residential Property
BSD uses a progressive, tiered rate structure — similar to how personal income tax works. You pay a higher rate only on the portion of the price that falls within each band, not on the entire purchase price.
The bands for residential property (as of the time of writing — always verify the current rates at iras.gov.sg) are broadly structured as follows:
| Purchase Price or Market Value | Rate on That Portion |
|---|---|
| First S$180,000 | 1% |
| Next S$180,000 | 2% |
| Next S$640,000 | 3% |
| Next S$500,000 | 4% |
| Next S$1,500,000 | 5% |
| Amount exceeding S$3,000,000 | 6% |
Important: Stamp duty rates have been revised several times in recent years. Always verify the current bands and rates directly with IRAS before making any purchase decision.
A Worked Example
Say you are buying a resale HDB flat at S$600,000 (assuming the current rate structure):
- 1% on the first S$180,000 = S$1,800
- 2% on the next S$180,000 = S$3,600
- 3% on the remaining S$240,000 = S$7,200
Câu hỏi thường gặp
- What is Buyer's Stamp Duty (BSD) in Singapore?
- Buyer's Stamp Duty (BSD) is a tax levied by IRAS on the purchase or acquisition of property in Singapore. It applies to all buyers — regardless of citizenship or whether it is their first property — and is calculated on the higher of the purchase price or the market value of the property, using a progressive tiered rate structure.
- How is BSD calculated for a residential property purchase in Singapore?
- BSD for residential property is calculated using a tiered, progressive rate — for example, 1% on the first S$180,000, 2% on the next S$180,000, 3% on the next S$640,000, and higher rates on amounts above that. Only the portion of the price falling within each band is taxed at that band's rate. Buyers should always verify the current bands and rates with IRAS at iras.gov.sg, as these have been revised in recent years.
- When do you have to pay BSD after buying a property in Singapore?
- BSD must be paid within 14 days of signing the Sale and Purchase Agreement if the document is signed in Singapore, or within 30 days of the document being first received in Singapore if it is signed overseas. In practice, your conveyancing lawyer will calculate and arrange payment on your behalf.
- Can CPF OA funds be used to pay BSD in Singapore?
- Yes, BSD on a residential property purchase can generally be paid using funds from your CPF Ordinary Account (OA), subject to CPF Board rules. Your conveyancing lawyer and the CPF Board will guide you through the process for your specific transaction.
- What is the difference between BSD and ABSD in Singapore?
- BSD (Buyer's Stamp Duty) applies to every property purchase regardless of the buyer's profile, while ABSD (Additional Buyer's Stamp Duty) is an additional tax levied based on the buyer's citizenship or residency status and the number of residential properties they already own. Singapore Citizens pay no ABSD on their first residential property, but both BSD and ABSD apply to second and subsequent purchases.