If you own an investment property and/or are thinking of buying a property to “flip”, then you might want to do a little research on what is known as the property Seller’s Stamp Duty (SSD). In Singapore, SSD is a fee that you’ll have to pay if you’re selling your property shortly after purchasing it.
Want to sell your property in 2024? Click our sell page below to get started!
[ProductCTA]{
“title”: “Sell your property confidently”,
“description”: “Receive a free valuation report on your property and find an experienced property agent to help you sell your home.”,
“link”: “https://www.propertyguru.com.sg/home-sellers”,
“buttonText”: “Learn more”,
“image”: “affordabilitycalculator”
}
[/ProductCTA]
With that, read on to learn more about what SSD is, the latest SSD rates, and common SSD exemptions. We’ve also included our useful Seller’s Stamp Duty calculator.
What Is Seller’s Stamp Duty (SSD)?
SSD is a property tax that a property seller has to pay when he/she sells a property within the three-year holding period (number of years that you own a property).
Seller’s Stamp Duty (SSD) Rates in Singapore (2024)
| How long property has been held | SSD rate |
| Up to one year | 12% |
| More than one year and up to two years | 8% |
| More than 2 years and up to 3 years | 4% |
| More than 3 years | No SSD payable |
Above are the latest Seller’s Stamp Duty (SSD) rates for residential properties purchased on and after 11 March 2017. The SSD amount payable depends on how long the seller has held the property before selling it.
Why Was SSD or Seller’s Stamp Duty Introduced in Singapore?
Payable to the Inland Revenue Authority of Singapore (IRAS), SSD was introduced in 2010 as a property cooling measure to curb the act of flipping property for profit. IRAS believed that if left unmanaged, widespread property flipping could drive property demand and prices up, potentially contributing to a bubble.
Does SSD or Seller’s Stamp Duty Apply to HDB Flats?
As you can see, Seller’s Stamp Duty applies only to cases where you sell your home within three years of acquiring it.
So, if you’re an HDB flat owner looking to sell your flat, you can only do so after fulfilling the Minimum Occupation Period (MOP) of five years. Thus, you won’t have to pay SSD.
Unique Circumstances That Require SSD Payment
However, note that Seller’s Stamp Duty will be applicable if you acquired a property through a property transfer in case of a divorce (Stamp Duties (Matrimonial Proceedings) Remission Rule), inheritance or a transfer of an HDB flat within the family (Stamp Duties (Transfer of HDB Flat Within Family) Remission Rule).
How Much Do I Need to Pay for Seller’s Stamp Duty (SSD)?
| The holding period for property bought on and after 11 March 2017 | SSD rate |
| Up to one year | 12% |
| More than one year and up to two years | 8% |
| More than two years and up to three years | 4% |
| More than three years | No SSD payable |
The total SSD that you’ll need to pay is calculated by applying the applicable rate on whichever is higher for the residential property in question:
- Selling price, or
- Current market value
Want to find out a gauge of how much your property can cost? Use our home valuation tool now.
[ProductCTA]{
“title”: “property valuation in under 2 mins”,
“description”: “Receive a free valuation report on your property, get access to resources, and find an experienced property agent to help you sell your home.”,
“link”: “https://www.propertyguru.com.sg/home-sellers”,
“buttonText”: “Learn more”,
“image”: “affordabilitycalculator”
}
[/ProductCTA]
As evident from the table above, these three factors also play a part in determining the total SSD you’ll need to pay:
- When the transaction takes place
- The SSD percentage rate
- The holding period
Moreover, you’ll notice that the sooner you sell your property, the higher the SSD you’ll need to pay.
Let’s look at a hypothetical case example to help you better understand how SSD works.
How SSD Works
Marie bought her residential property on 22 April 2017.
She then sold it on 25 February 2018 for $2,200,000. Since the holding period is less than 1 year, the SSD rate for her property would be 12%.
Therefore, the SSD that Marie would have to pay is:
$2,200,000 x 12% = $264,000
As you can see, SSD can come up to quite a huge sum of money, so be sure to check how much SSD you’ll need to pay before you decide to sell your property.
If you’re looking to earn a profit from your property sale, do remember to take the SSD into account.
SSD Seller’s Stamp Duty Calculator
Want an easy way to calculate property stamp duties? Use our handy stamp duty calculator.
SSD Exemptions: Are There Any Exemptions from Seller’s Stamp Duty?
There are scenarios in which you won’t need to pay SSD.
According to IRAS, property sellers will be exempted from paying SSD under the following situations:
- Licensed housing developers governed under the Housing Developers (Control and Licensing) Act need not pay SSD when selling residential properties developed by them
- Public authorities (e.g. HDB and JTC), in exercising their functions and duties, need not pay SSD when selling residential properties
- Residential property owners need not pay SSD when the Government acquires their properties under the Land Acquisitions Act
- Individuals who own residential properties need not pay SSD if adjudged bankrupt and must dispose of their residential properties due to bankruptcy
- Companies that own residential properties need not pay SSD when disposing of their residential properties upon involuntary winding up
- Foreigners need not pay SSD when selling their residential properties as required under the Residential Properties Act
- For HDB flat sellers or transferors who bought or acquired their flats on or after 30 August 2010 and have been identified for Selective Enbloc Redevelopment Scheme (SERS), but sell their flats in the open market before HDB claims them
- HDB flat sellers or transferors who return their flats to HDB due to re-possession by HDB or under the SERS
- A person who owns an HDB flat, inherits an HDB flat, and is required under the HDB’s regulations to dispose of either the inherited HDB flat or the existing HDB flat. This exemption applies to the disposal of flats on or after 18 December 2015
- A person who owns a non-HDB flat, inherits an HDB flat, and is required under the HDB’s regulations to dispose of the inherited HDB flat. This exemption applies to the disposal of flats on or after 18 December 2015
- A person who owns an HDB flat marries a person who owns another HDB flat, and the couple is required under HDB’s regulations to dispose of either one of the HDB flats. This exemption applies to the disposal of flats on or after 18 December 2015
Other Types of Property Stamp Duties in Singapore
It’s not just property sellers that are subjected to tax. Some buyers will also need to pay tax when they buy properties in Singapore. These are Buyer’s Stamp Duty (BSD) and Additional Buyer’s Stamp Duty (ABSD).
Similar to SSD, both BSD and ABSD were introduced by the government as cooling measures to ensure that housing remains affordable for all Singaporeans.
Buyer’s Stamp Duty (BSD)
BSD is payable when you buy or acquire a property. The applicable rate will apply to whichever is higher:
- The purchase price of the residential property, or
- The market value of the residential property
Additional Buyer’s Stamp Duty (ABSD)
The ABSD is levied on top of the BSD and applies to individuals buying additional residential property:
- For Singaporean Citizens, ABSD will apply for the second property purchased and all subsequent purchases
- For Permanent Residents, ABSD will apply to all purchases, with the first purchase at a lower rate
- For foreigners and corporate entities, ABSD will apply to all purchases at a similar rate, including the first one
Conclusion: Factor Seller’s Stamp Duty into Your Projected Returns
We hope this guide has helped you gain a better understanding of the Seller’s Stamp Duty in Singapore.
While selling your home can potentially bring in tidy returns, do remember to factor in possible expenses such as Seller’s Stamp Duty, and also fees for your property agent if you’re looking to hire one!
Are There Any Exemptions from Seller’s Stamp Duty?
These property sellers are exempt from paying SSD:
- Licensed housing developers governed under the Housing Developers (Control and Licensing) Act selling properties developed by them
- Public authorities (e.g. HDB and JTC) exercising their functions and duties
- Residential property owners whose properties are acquired by the government under the Land Acquisitions Act (LAA)
- Residential property owners disposing of their properties under the requirements of their adjudged bankruptcies
- Companies disposing of their residential properties upon involuntary winding up
- Foreigners selling their residential properties as required under the Residential Properties Act
- HDB flat sellers or transferors who bought or acquired their flats on or after 30 August 2010 and their flats have been identified for Selective En bloc Redevelopment Scheme (SERS), but are selling their flats in the open market before HDB can claim them
- HDB flat sellers or transferors returning their flats to HDB as a result of re-possession by HDB or under the SERS
- A person who owns a non-HDB flat and inherits an HDB flat disposing of either of the flats under HDB’s regulation
- A couple who each own HDB flats disposing of either of their HDB flats under HDB’s regulation
What Are the Other Types of Property Stamp Duty in Singapore?
It’s not just property sellers that are subjected to tax. Some buyers will also need to pay taxes when they buy properties in Singapore. These are Buyer’s Stamp Duty (BSD) and Additional Buyer’s Stamp Duty (ABSD).
Similar to SSD, both BSD and ABSD were introduced by the government as cooling measures to ensure that housing remains affordable for all Singaporeans.
Buyer’s Stamp Duty (BSD)
| Purchase price/Market value | Rates for residential properties | Rates for non-residential properties |
| First $180,000 | 1% | 1% |
| Next $180,000 | 2% | 2% |
| Next $640,000 | 3% | 3% |
| Next $500,000 | 4% | 4% |
| Next $1.5 million | 5% | 5% |
| Over $3 million | 6% | 5% |
Additional Buyer’s Stamp Duty (ABSD)
| Citizenship status | ABSD amount |
| SC | Second purchase: 17% Subsequent purchases: 25% |
| SPR | First purchase: 5% Second purchase: 25% Subsequence purchases: 30% |
| Foreigner | 30% |
| Entities (i.e. companies or associations) | 35%, and 35% + 5% non-remittable for developers |
Conclusion: Factor Seller’s Stamp Duty into Your Projected Returns
We hope this guide has helped you gain a better understanding of what Seller Stamp Duty in Singapore is all about.
While selling your home can potentially bring in tidy returns, do remember to factor in possible expenses such as Seller’s Stamp Duty, and property agent fees if you’re looking to hire one!
[ProductCTA]{
“title”: “Find a Property Agent”,
“description”: “Browse PropertyGuru’s directory of experienced property agents for your home selling, buying, and/or renting needs. “,
“link”: “https://www.propertyguru.com.sg/property-agent-directory”,
“buttonText”: “Search now”,
“image”: “buying”
}
[/ProductCTA]
For more property news, content and resources, check out PropertyGuru’s guides section.
Looking for a new home? Head to PropertyGuru to browse the top properties for sale in Singapore.
Need help financing your latest property purchase? Let the mortgage experts at PropertyGuru Finance help you find the best deals.
