New Buyer’s Stamp Duty
New Buyer’s Stamp Duty – With Effective from 20/02/2018, Buyer’s Stamp Duty rates for residential properties will be raised from 3 percent to 4% for the portion of value that is more than S$1 million. There is no changes to Additional Buyer’s Stamp Duty.
Summary of Changes (Table Format)
Now, let’s us take a look how the changes will affect the amount of buyer’s stamp duty you need to pay when you purchased a property above S$1 million.
Mr A Bought a 3 Bedroom Condo For S$1.5 million before 20th Feb 2018.
BSD he is liable to pay: (1% * S$180,000) + (2% * S$180,000) + (3% * S$1,140,000) = S$39,600
Mr A Bought a 3 Bedroom Condo For S$1.5 million after or on 20th Feb 2018.
BSD he is liable to pay: (1% * S$180,000) + (2% * S$180,000) + (3% * S$640,000) + (4% * S$500,000) = S$44,600
Difference: S$44,600 – S$39,600 = S$5,000
The difference in terms of the amount that you are liable to pay as BSD is S$5,000 if you purchased a property of S$1.5 million worth of value. The amount seems nominal compared to the value of the property. It is unlikely that the new BSD will deter buyers or investors from purchasing property. Moreover, it does not apply to property value of less than S$1 million.
Hope you enjoy reading – “New Buyer’s Stamp Duty”. You might also be interested to read more about “New Singapore Condominiums Launching in 2018“
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Disclaimer: This article is meant for research/ information and educational purposes only. All information, especially property ownership laws, are subjected to changes and no responsibility shall be held on the accuracy. All sorts of property investments can be risky and investors are expected to perform their own due diligence before committing into any purchase.