Property tax in Singapore

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%

Above SGD 360,000

3%

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 (ABSD)

Singapore Citizen

Singapore PR

Foreigner and corporate entity

First property

0%

5%

15%

Second property

7%

10%

15%

Third property and above

10%

10%

15%

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

16% of selling price or valuation whichever higher

Sell within 2nd Year

12% of selling price or valuation whichever higher

Sell within 3rd Year

8% of selling price or valuation whichever higher

Sell within 4th Year

4% of selling price or valuation whichever higher

Sell after 4th 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.

Other articles that you may like

  1. Buying Singapore property guide
  2. Can foreigners buy property in Singapore

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