Paper 2 · Taxes & Duties
Stamp Duties Explained: BSD, ABSD & SSD (Singapore)
Three different stamp duties apply to property in Singapore — two on the buyer (BSD, ABSD) and one on the seller (SSD). The exam tests whether you can identify *who pays, on what type of property, and how much* for a given profile. All are charged on the higher of the purchase price or the market value. Rates are government policy levers — the figures below are current as at 2025–2026; always confirm with IRAS.
1. Buyer's Stamp Duty (BSD)
Paid by every buyer on almost every property purchase — residential *and* non-residential. It is tiered by price. Residential tiers:
| Portion of price / value | BSD rate |
|---|---|
| First $180,000 | 1% |
| Next $180,000 ($180k–$360k) | 2% |
| Next $640,000 ($360k–$1m) | 3% |
| Next $500,000 ($1m–$1.5m) | 4% |
| Next $1,500,000 ($1.5m–$3m) | 5% |
| Amount above $3,000,000 | 6% |
2. Additional Buyer's Stamp Duty (ABSD)
Paid by the buyer, on residential property only, on top of BSD. The rate depends on buyer profile (citizenship/entity) and how many residential properties the buyer already owns. This is the most-tested table in Paper 2:
| Buyer profile | 1st property | 2nd property | 3rd & subsequent |
|---|---|---|---|
| Singapore Citizen (SC) | 0% | 20% | 30% |
| Singapore PR | 5% | 30% | 35% |
| Foreigner | 60% | 60% | 60% |
| Entity / Trustee | 65% | 65% | 65% |
- SC vs PR — the headline difference: an SC pays nothing on their first home; a PR pays 5% even on their first. On a second property the gap widens (SC 20% vs PR 30%).
- 2nd vs 3rd: the jump is real — SC 20% → 30%, PR 30% → 35%. Count *existing* residential properties to place the buyer in the right column.
- Foreigners pay a flat 60% regardless of count (some nationals of countries with Free Trade Agreements — e.g. USA, Switzerland, Norway, Liechtenstein, Iceland — may be accorded the SC rate under the FTA).
- Reliefs: an SC+SC married couple buying a second home can apply for ABSD remission if they sell their first within the stipulated period; entities/trusts pay the top rate.
3. Seller's Stamp Duty (SSD)
Paid by the seller on residential property sold within the holding period, regardless of profit. From 4 Jul 2025 the holding period was extended to 4 years:
| Holding period before sale | SSD rate |
|---|---|
| Up to 1 year | 16% |
| More than 1, up to 2 years | 12% |
| More than 2, up to 3 years | 8% |
| More than 3, up to 4 years | 4% |
| More than 4 years | 0% |
Residential vs commercial vs industrial
Which duty applies depends heavily on property type — a favourite exam distinction:
| Residential | Commercial | Industrial | |
|---|---|---|---|
| BSD | Yes (resi tiers) | Yes (non-resi tiers) | Yes (non-resi tiers) |
| ABSD | Yes | No | No |
| SSD | Yes (4-yr window) | No | Industrial SSD (3-yr) |
| GST | Exempt | Yes (if seller GST-reg) | Yes (if seller GST-reg) |
| Property tax | Owner-occ. vs non-owner progressive | Flat 10% of AV | Flat 10% of AV |
The trap
Classic traps: (1) thinking an SC pays no ABSD on a 2nd property — they pay 20%. (2) Putting SSD on the buyer — it's the seller's, and applies even at a loss. (3) Charging ABSD on a commercial/industrial purchase — ABSD is residential only. (4) Forgetting duties are on the higher of price or valuation, not just the price.
Exam takeaway
For any scenario, lock down four things in order: who pays (buyer→BSD/ABSD, seller→SSD), property type (ABSD & SSD are residential), buyer profile (SC/PR/foreigner/entity), and property count (1st/2nd/3rd). The rate falls straight out of the tables.
Common questions
- What is the difference between BSD and ABSD?
- BSD applies to almost every property purchase, tiered by price, for both residential and non-residential property. ABSD applies only to residential property and varies by the buyer's profile and the number of properties they already own.
- Who pays Seller's Stamp Duty (SSD)?
- The seller pays SSD when residential property is sold within the holding period, regardless of whether the sale is at a profit. Always check current rates and holding periods with IRAS.
Keep learning
Study material aligned to the public CEA syllabus. Not financial or legal advice — verify current figures with the relevant authority (IRAS, HDB, CEA, MAS).