If you’re planning to buy property in Singapore for the first time, understanding the country’s real estate tax framework is crucial. While Singapore offers a highly structured and investor-friendly property market, the associated taxes and duties can significantly influence the total cost of acquisition and ownership. First-time buyers — whether local or foreign — should carefully evaluate the tax implications to budget effectively and avoid surprises during the purchase process.
This article breaks down the key real estate taxes in Singapore, how they apply to first-time buyers, and what exemptions or benefits may be available. Read more about Thomson View New Condo
Buyer’s Stamp Duty (BSD)
Buyer’s Stamp Duty (BSD) is a mandatory tax payable on all property purchases in Singapore, regardless of the buyer’s nationality or residency status. It is calculated as a percentage of the property’s purchase price or market value, whichever is higher.
As of 2025, the BSD rates for residential properties are as follows:
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1% on the first SGD 180,000
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2% on the next SGD 180,000
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3% on the next SGD 640,000
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4% on the next SGD 500,000
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5% on the next SGD 1.5 million
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6% on the remaining amount above SGD 3 million
Example:
If you're buying a residential condo for SGD 1.5 million:
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First SGD 180,000 = 1% = SGD 1,800
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Next SGD 180,000 = 2% = SGD 3,600
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Next SGD 640,000 = 3% = SGD 19,200
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Remaining SGD 500,000 = 4% = SGD 20,000
Total BSD = SGD 44,600
BSD must be paid within 14 days of signing the Sales & Purchase Agreement. Failure to pay on time will result in penalties and interest charges.
Additional Buyer’s Stamp Duty (ABSD)
Additional Buyer’s Stamp Duty (ABSD) is imposed on top of BSD and is aimed at regulating demand and preventing speculative buying. The ABSD rates vary based on the buyer’s profile — whether you are a Singapore Citizen (SC), Permanent Resident (PR), or foreigner — and how many properties you already own.
As of 2025, the ABSD rates for residential properties are:
| Buyer Category | First Property | Second Property | Third & Subsequent |
|---|---|---|---|
| Singapore Citizens (SC) | 0% | 20% | 30% |
| Singapore Permanent Residents | 5% | 30% | 35% |
| Foreigners | 60% | 60% | 60% |
| Entities (companies/trusts) | 65% | 65% | 65% |
If you're a Singapore Citizen buying your first residential property, you do not need to pay ABSD.
However, Singapore PRs and foreigners must pay ABSD even on their first property purchase, which can significantly increase the acquisition cost.
Property Tax
After purchasing a property, owners are required to pay annual property tax. The amount is based on the Annual Value (AV) of the property — an estimated annual rental income assessed by the Inland Revenue Authority of Singapore (IRAS).
Singapore’s property tax system is progressive and differs based on whether the property is owner-occupied or non-owner-occupied (rented out).
Owner-Occupied Property Tax Rates (2025):
| AV Range (SGD) | Tax Rate (%) |
|---|---|
| First 8,000 | 0% |
| Next 47,000 | 4–10% |
| Above 55,000 | 12–16% |
| AV Range (SGD) | Tax Rate (%) |
|---|---|
| First 30,000 | 12% |
| Next 15,000 | 20% |
| Above 45,000 | 24% |
A non-owner-occupied property with an AV of SGD 50,000 would be taxed at a blended rate, resulting in an annual property tax of about SGD 9,600.
Seller’s Stamp Duty (SSD)
If you plan to sell your property within 3 years of purchase, you may be subject to Seller’s Stamp Duty (SSD). SSD is designed to discourage property flipping and short-term speculation.
SSD rates (2025):
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Sold within 1 year: 12% of sale price or market value (whichever is higher)
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Sold in 2nd year: 8%
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Sold in 3rd year: 4%
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Sold after 3 years: No SSD
This means that if you sell a property within the first year for SGD 1 million, you could pay as much as SGD 120,000 in SSD — a hefty cost for early disposal.
Legal Fees and Other Costs
In addition to taxes, first-time buyers should budget for:
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Legal fees: Typically SGD 2,500 to SGD 5,000 for conveyancing and legal documentation.
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Valuation fees: SGD 300 to SGD 800, depending on the property.
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Mortgage stamp duty: If you take a bank loan, you’ll pay 0.4% of the loan amount as stamp duty on the mortgage document.
Tax Reliefs and Exemptions
While Singapore doesn’t offer many tax reliefs for first-time property buyers, there are indirect benefits:
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CPF Housing Grants (up to SGD 80,000) for eligible Singaporeans purchasing HDB flats.
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ABSD remission for married couples (one SC spouse) upgrading from HDB to private property — subject to conditions like selling the first property within 6 months.
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Property tax rebates are occasionally offered by the government during economic slowdowns, although they are not guaranteed.
Tax Planning Tips for First-Time Buyers
To optimize your purchase, consider the following:
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Buy in joint names with your spouse to share the BSD and future property taxes.
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Time your sale to avoid SSD — hold for at least 3 years if capital gains are expected.
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Use CPF funds wisely for stamp duty payments and mortgage servicing.
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Consider ownership structure — especially for high-net-worth individuals or those planning to pass the property to children later.
Conclusion
Understanding real estate taxes is essential for first-time buyers in Singapore. While the BSD applies to all, ABSD can be a game changer — especially for PRs and foreigners. Ongoing property taxes and potential SSD also affect the total cost of ownership and your long-term returns.
By planning ahead, knowing your eligibility, and consulting property professionals, you can navigate the tax landscape smoothly and make a financially sound investment.
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