There are few property tax in Singapore you need to take note when you invest in Singapore property. These depend on which property type and the number of properties you own in Singapore. There are 5 types of property tax in Singapore you need to pay upon purchasing Singapore property are stamp duty tax, goods and services tax (GST), seller stamp duty tax, annual property tax, and rental income tax.
5 types of property tax in Singapore
1. Stamp duty tax
The first property tax in Singapore you should aware of is Stamp duty tax. This applies when you purchase residential and commercial property in Singapore.
Commercial property stamp duty tax
| Tax rate | |
| First SGD 180,000 | 1% |
| The next SGD 180,000 | 2% |
| Above SGD 360,000 | 3% |
In short, if you purchase commercial property above SGD 360,000, the amount of stamp duty you need to pay is 3% of property price minus SGD 5,400.
Residential property stamp duty tax
The normal stamp duty tax for residential property is the same as commercial property stamp duty tax.
| Tax rate | |
| First SGD 180,000 | 1% |
| The next SGD 180,000 | 2% |
| The next SGD 640,000 | 3% |
| Above SGD 1,000,000 | 4% |
Additional Buyer Stamp Duty (ABSD)
Since 12 Jan 2013, individual or corporate entity who intend to purchase residential property in Singapore need to pay additional buyer stamp duty. This policy is implemented by Singapore government to cool off the Singapore residential property price, to protect genuine investor, and to prevent bubble formed in the market.
Singapore citizen needs to pay additional buyer stamp duty if they acquire second property and above. Singaporean PR and foreigner needs to pay additional buyer stamp duty if they acquire first property and above.
| Additional Buyer Stamp Duty | Singapore Citizen | Singapore PR | Foreigner | Corporate Entity |
| 1st property | 0% | 5% | 30% | 35% |
| 2nd property | 17% | 25% | 30% | 35% |
| 3rd property | 25% | 30% | 30% | 35% |
Additional Buyer Stamp Duty does not apply to Singapore commercial property segment.
2. Goods and services tax (GST)
The second property tax in Singapore is Goods and services tax (GST). It applies when you purchase commercial property if the seller is a GST registered. The current goods and services tax in Singapore is 7%.
3. Seller stamp duty tax
Seller stamp duty tax applies to residential and industrial property. It is a new property tax in Singapore implemented to discourage speculator to sell the property within short period of time for quick profit. If you sell your residential property within 4 years from your purchase date, you will need to pay seller stamp duty upon disposing.
| Residential seller stamp duty | Tax rate |
| Sell within 1st Year | 12% of selling price or valuation whichever higher |
| Sell within 2nd Year | 8% of selling price or valuation whichever higher |
| Sell within 3rd Year | 4% of selling price or valuation whichever higher |
| Sell after 3rd Year | 0% |
If you sell your industrial property within 3 years from your purchase date, you will need to pay seller stamp duty upon disposing.
| Industrial seller stamp duty | Tax rate |
| Sell within 1st Year | 15% of selling price or valuation whichever higher |
| Sell within 2nd Year | 10% of selling price or valuation whichever higher |
| Sell within 3rd Year | 5% of selling price or valuation whichever higher |
| Sell after 3rd Year | 0% |
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4. Annual property tax in Singapore
Like any other country, when you own property in Singapore, you are liable to pay yearly property tax in Singapore. Annual property tax rate depends whether it is owner occupied property or investment property.
First you need to define annual value of your property. Annual property is the estimated annual rent of your property if it were to be let excluding furniture, fittings and service charge. Your annual property tax is annual value * tax rate.
Owner occupied property
Annual Value (AV) | Progressive Tax Rates | Property Tax Payable |
First 8,000 | 0% | 0 |
Next 47,000 | 4% | $1,880 |
Next 15,000 | 6% | $900 |
Next 15,000 | 8% | $1,200 |
Next 15,000 | 10% | $1,500 |
Next 15,000 | 12% | $1,800 |
Next 15,000 | 14% | $2,100 |
Above 130,000 | 16% |
Non owner occupied property
Annual Value (AV) | Progressive Tax Rates | Property Tax Payable |
First 30,000 | 10% | $3,000 |
Next 15,000 | 12% | $1,800 |
Next 15,000 | 14% | $2,100 |
Next 15,000 | 16% | $2,400 |
Next 15,000 | 18% | $2,700 |
Above 90,000 | 20% |
5. Rental Income Tax
Rental income tax is the property tax in Singapore you are liable to pay when you rent out part or whole unit of your property. Rental income tax rates payable is the net rental income after deducting all the expenses such as interest on the mortgage, agent commission on securing first tenant, maintenance fee, property tax, and many more other claimable expenses. The net rental income tax rate is 20% for foreigners, the rate will increase to 22% starting from Year of assessment 2017.
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