Today we received a query, that is relatively common especially from expats and new Singapore PRs. 

Imagine this – You wish to buy a S$900,000 property and as a Singapore PR, you would need to pay the buyer stamp duty (BSD) of 3% + 5% additional buyer stamp duty (ABSD)So for $900,000, the total stamp duty is $21,600 (BSD) + $45,000 (ABSD) = $66,600. The client was shocked and went, “Wrong! It’s $72,000!”  

Why are my stamp duty calculations wrong?

PropertyWiki FAQ of the Week! 

Today we received a query, that is relatively common especially from expats and new Singapore PRs. 

Imagine this – You wish to buy a S$900,000 property and as a Singapore PR, you would need to pay the buyer stamp duty (BSD) of 3% + 5% additional buyer stamp duty (ABSD)So for $900,000, the total stamp duty is $21,600 (BSD) + $45,000 (ABSD) = $66,600. The client was shocked and went, “Wrong! It’s $72,000!”  

So the final verdict, we are correct. How this is possible? IRAS giving discount to homebuyers?  

The answer lies in the calculation breakdown table below 

Purchase Price or Valuation (whichever is higher)  BSD Rates for residential properties  BSD Rates for non-residential properties 
First $180,000  1%  1% 
Next $180,000  2%  2% 
Next $640,000  3%  3% 
Remaining Amount  4% (applies for above 1 Mil)  3% 

For this client case, his BSD and ABSD is calculated like this. 

Buyer Stamp Duty  Additional Buyer Stamp Duty 
$180,000 * 1% = $1,800
$180,000 * 2% = $3,600
$540,000 * 3% = $16,200 

Total: $1.8k + $3.6k + $16.2k = $21,600 

$900,000 * 5% = $45,000 

Total Stamp duty = $21,600 + $45,000 = $66,600 

So what if this same PR makes a purchase of a S$1,100,000 property? 

Buyer Stamp Duty  Additional Buyer Stamp Duty 
$180,000 * 1% = $1,800
$180,000 * 2% = $3,600
$640,000 * 3% = $19,200 

Remaining $100,000*4% = $4,000 

Total: $1.8k + $3.6k + $19.2K + $4k = $28,600 

$1,100,000 * 5% = $55,000 

Total Stamp duty = $28,600 + $55,000 = $83,600