Paper 2 · Taxes & Duties
Stamp Duties Explained: BSD, ABSD & SSD (Singapore, 2026)
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 |
Worked example
A Singapore PR buys their 2nd residential property at $1,200,000. BSD (tiered) ≈ $32,600. ABSD = PR 2nd = 30% × $1.2M = $360,000. Total upfront duties ≈ $392,600 — and the ABSD dwarfs the BSD. (An SC buying their *first* home at the same price would pay the $32,600 BSD and $0 ABSD.) It shows how profile + count drive the bill.
Common mistakes
- Forgetting ABSD is on top of BSD (not instead of it).
- Computing on the price when the higher of price or valuation applies.
- Putting SSD on the buyer — it's the seller's.
- Charging ABSD on commercial/industrial — it's residential only.
Edge cases & 'what-ifs'
| Scenario | Stamp-duty treatment |
|---|---|
| Foreigner buys residential | BSD + 60% ABSD (flat). FTA nationals (US, Switzerland, Norway, Liechtenstein, Iceland) may be accorded the SC rate. |
| Entity / company / trust buys residential | BSD + 65% ABSD (housing developers have a separate 35% + 5% regime). |
| Commercial property | No ABSD; BSD on non-residential tiers; GST if seller is GST-registered. No SSD. |
| Industrial property | No ABSD; BSD; Industrial SSD if sold within 3 years (15/10/5%); GST if applicable. |
| Mixed-use (e.g. shophouse) | Apportioned — the residential portion can attract ABSD. |
| Buying via a company to 'avoid' ABSD | Backfires — the entity 65% rate is usually higher than an individual's. |
Decoupling: co-owners sometimes restructure (one buys out the other) so a future purchase counts as a 'first property' and escapes higher ABSD — but the buy-out itself attracts BSD (and possibly ABSD), so the maths must be worked through.
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.
Apply it · the IRAC method
A Singapore Citizen who already owns one condominium buys a second residential condo for $1.5m — then sells it just six months later.
- IIssue: Which stamp duties apply on the purchase, and does Seller's Stamp Duty (SSD) bite on the quick sale?
- RRule: Every buyer pays Buyer's Stamp Duty (BSD) on the price or market value, whichever is higher. A citizen pays Additional Buyer's Stamp Duty (ABSD) on a second residential property. SSD applies if residential property is sold within the holding period (a 4-year taper). Confirm current rates with IRAS.
- AApplication: On the way in he pays BSD plus ABSD at the citizen second-property band. Selling after only six months falls well inside the SSD holding period, so SSD applies at the first-year (highest) rate on the sale price or value.
- CConclusion: One quick flip triggers three duties: BSD + ABSD on purchase, and SSD on the sale. The trap is forgetting SSD on the exit.
Worked case study · Section B style
A Singapore Citizen who already owns one home buys a second condo for $1,500,000, then sells it about a year later. • His second residential property • Sold within the holding period
- (i) BSD applies on the higher of price or valuation
- (ii) ABSD applies because it is his second residential property
- (iii) Selling within the holding period can trigger Seller's Stamp Duty
- (iv) A citizen pays no ABSD on a second property
- A.(i), (ii) and (iii) only
- B.(i) and (iv) only
- C.(iii) only
- D.All of the above
Show answer & explanation
Answer: A. (i)–(iii) are correct: BSD on the higher of price/value, ABSD on the second property, and SSD on a quick resale. (iv) is the trap — citizens do pay ABSD on a second home.
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Practise exam-style questions on Taxes & Duties — with instant answers and explanations.
Practise Taxes & Duties questions →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.
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Join @resprepsg →Study material aligned to the public CEA syllabus. Not financial or legal advice — verify current figures with the relevant authority (IRAS, HDB, CEA, MAS).