Singapore – Property Taxes

What taxes and fees apply when buying a property in Singapore?

The dominant costs when purchasing property in Singapore are stamp duties, which are administered by the Inland Revenue Authority of Singapore (IRAS). Two key forms of stamp duty apply to purchasers: Buyer’s Stamp Duty (BSD), which every buyer must pay upon acquiring a property, and Additional Buyer’s Stamp Duty (ABSD), a supplementary levy that varies according to the buyer’s residency status and existing property holdings. Rather than applying a flat transfer charge as some countries do, Singapore operates a tiered system where the total tax burden depends significantly on who is making the purchase.

Buyer’s Stamp Duty (BSD)

BSD is payable by every purchaser — whether a Singapore citizen, Permanent Resident (PR), foreigner, entity, or trustee — and is imposed without exception on the buying side of the transaction. It is computed on whichever figure is greater: the agreed purchase price or the property’s market value. Following changes introduced from 15 February 2023, the highest marginal BSD rate applicable to residential properties stands at 6% (as of 2025).

The progressive BSD bands for residential property (as of 2025) work as follows:

Always verify the latest BSD bands with IRAS, as rates are subject to change.

Worked example — BSD on a S$1.5 million condo (as of 2025):

• 1% on first S$180,000 = S$1,800
• 2% on next S$180,000 = S$3,600
• 3% on next S$640,000 = S$19,200
• 4% on next S$500,000 = S$20,000
• Total BSD = S$44,600

Additional Buyer’s Stamp Duty (ABSD)

Singapore citizens purchasing their second or subsequent residential properties are subject to ABSD of 20% to 30%, while permanent residents, foreigners and entities face rates ranging from 5% to 65% from 27 April 2023. First-time Singapore citizen buyers are exempt from ABSD entirely, reflecting the government’s aim of making homeownership accessible to its own nationals.

Rates as of 27 April 2023 and in force as of 2025. Verify current rates at IRAS.

ABSD is computed on the higher of the purchase price or market value. Where a property is jointly acquired by buyers who fall under different profiles, the highest ABSD rate among them governs the entire transaction. To illustrate: if a Permanent Resident and a foreigner purchase a property together, the foreigner’s 60% ABSD rate applies to the full value.

Payment deadline and other fees

All stamp duties must be paid within 14 days of executing the Sale and Purchase Agreement, or within 30 days if the agreement is signed outside Singapore. In addition to stamp duties, buyers should set aside funds for legal and conveyancing fees — typically S$2,500–S$6,000 for a standard private property transaction — as well as a property valuation fee where required. For new-build properties acquired from GST-registered developers, Goods and Services Tax (GST) at 9% (as of 2025) may also be applicable; buyers should confirm with the developer whether this is already reflected in the quoted price. Singapore does not operate a separate notary fee system — conveyancing is handled by qualified solicitors. Stamp duties are ordinarily the buyer’s responsibility, though seller’s stamp duty and additional buyer’s stamp duty have both been introduced as tools to moderate residential property market activity.

What taxes and fees apply when selling a property in Singapore?

The cost profile for sellers differs considerably from that of buyers. The primary tax exposure for those disposing of property is the Seller’s Stamp Duty (SSD), a time-bound levy aimed at discouraging the rapid resale of residential property. SSD was first introduced in 2010 as a property market cooling measure to curb speculative flipping, which IRAS viewed as a driver of artificial demand and price inflation.

Seller’s Stamp Duty (SSD) — updated July 2025

In July 2025, the Government announced revisions to the SSD framework for residential properties, extending the holding period threshold from three to four years and increasing SSD rates by four percentage points across each tier. These changes apply to all residential properties purchased on and after 4 July 2025.

As of 2025. Verify current SSD rates and schedules at IRAS.

SSD is assessed on whichever is greater: the actual transaction price or the property’s market value at the point of sale. IRAS will evaluate both figures and apply the higher one when determining the duty owed.

Worked example — SSD on a S$1.8 million property sold after 10 months (purchased after 4 July 2025): SSD = 16% × S$1,800,000 = S$288,000. This demonstrates how significantly the holding period affects the financial outcome for property investors.

Other selling costs

Sellers typically incur estate agent commissions of around 1%–2% of the sale price (subject to negotiation), legal and conveyancing fees, and their share of any pro-rated annual property tax for the year of sale. Where a seller has prepaid the full year’s property tax, the buyer may reimburse the proportionate unused portion — this is a private arrangement negotiated between the parties. There is no separate capital gains tax on property disposals for most sellers (covered in the following section). Notably, foreigners who are required to dispose of their residential properties under the Residential Property Act are not subject to SSD in those circumstances.

How does capital gains tax work on property in Singapore?

Singapore stands out among developed economies for the absence of a formal capital gains tax. This sets it apart from regimes such as the UK’s Capital Gains Tax on residential property, or Australia’s Capital Gains Tax framework under which investment property gains are taxed at income rates (subject to possible long-term holding discounts). Singapore’s position is generally more straightforward — though with one meaningful caveat.

As a general principle, gains realised on the disposal of Singapore property are not subject to tax. The exception arises when property dealing constitutes a person’s primary source of income — in such cases, profits from property sales are classified as trading income and taxed under Singapore’s progressive income tax rates. In other words, IRAS draws a clear line between a property investor or homeowner whose proceeds from a sale are typically outside the scope of tax, and a property trader whose activity is treated as a business generating taxable income.

How does IRAS determine trading vs. investment?

IRAS examines several factors when making this determination, including the frequency of buying and selling, how long each property was held, the stated reasons for the sale, and whether the individual’s occupation or background is connected to property dealings. Repeated purchases and quick resales are more likely to be characterised as trading. Conversely, a single property disposed of after an extended period of ownership will almost invariably be treated as a capital transaction and therefore not taxable. There is no indexation or inflation adjustment mechanism applicable, as for most owners the gain simply falls outside the tax net.

No distinction by residency for capital gains

Unlike jurisdictions such as France, where non-residents are taxed on property gains at higher rates than residents, Singapore’s approach is consistent regardless of where the seller is based: gains are generally non-taxable. However, if a non-resident is operating a property trading business, the same trading income analysis applies. Confirm your individual circumstances with a qualified Singapore tax adviser and refer to IRAS for current guidance on property-related gains.

Are there any ongoing annual property taxes in Singapore?

Yes — every property owner in Singapore is subject to an annual property tax, which operates as a form of wealth levy. This tax applies to all property regardless of whether it is tenanted, owner-occupied, or sitting vacant. It is distinct from income tax, which is charged on rental earnings derived from letting out a property. While conceptually comparable to council tax in the UK or municipal rates in Australia, Singapore’s annual property tax is explicitly structured as a wealth-based charge tied to the property’s estimated rental value — not a flat fee or a payment for local services.

How is Annual Value calculated?

Each property is assigned an Annual Value (AV), which IRAS determines by reference to the market rents of comparable properties in the same area. For example, IRAS surveys what similar flats or units nearby are actually being let for, and uses this to establish the AV. The annual property tax payable is then derived by multiplying the AV by the applicable tax rate.

Owner-occupier vs. non-owner-occupier rates

Properties occupied by their owners benefit from reduced tax rates compared with those not personally occupied. These lower owner-occupier rates are a deliberate policy measure to support homeownership in Singapore. The rates are progressive, meaning properties with higher annual values attract higher marginal rates.

The owner-occupier tax rates effective from 1 January 2025 are as follows:

Properties not occupied by the owner — including rental properties, investment holdings, and vacant units — are assessed at higher progressive rates ranging from 12% to 36%. Non-residential properties such as commercial premises, industrial buildings, and land are taxed at a flat rate of 10% of Annual Value. Verify current rates at IRAS.

Rebates and payment

In 2025, the Government provided a one-off property tax rebate of 20% for owner-occupied HDB flats and 15% (capped at S$1,000) for owner-occupied private residential properties. This rebate is applied automatically to offset any tax due. Property tax is billed annually by IRAS and can be settled through the myTax Portal using GIRO, PayNow, or other electronic payment methods. Homeowners aged 65 and over who face difficulties with upfront payment may apply for a 24-month interest-free instalment arrangement to spread the cost.

How does inheritance tax apply to property in Singapore?

Singapore removed estate duty (its equivalent of inheritance tax) in February 2008, and no such tax has been levied on any asset — including real property — since that date. This aligns Singapore with jurisdictions like Australia and Canada, which similarly impose no inheritance tax, and places it in contrast to countries such as the UK (where inheritance tax applies above threshold values) or the United States (where estate taxes may be triggered on larger estates).

As a result, when a Singapore property passes to an heir — whether that heir is a Singapore citizen, permanent resident, or a non-resident — no estate duty or inheritance tax is owed to the Singapore government on the property’s value. The estate must still undergo the legal process of distribution in accordance with the deceased’s will, or where no will exists, under Singapore’s intestacy laws (or, in the case of Muslim estates, under the applicable Muslim inheritance framework).

Stamp duty on inherited property

Although no inheritance tax applies, the formal transfer of property from an estate to a beneficiary does attract stamp duty considerations. BSD is generally payable on such transfers, calculated on the market value of the property at the time of transfer. Depending on the heir’s existing property portfolio, ABSD may also be applicable. Whether ABSD is triggered by an inheritance transfer depends on the specific facts of each case — seeking advice from a solicitor or IRAS is recommended.

Practical note for non-resident heirs

A non-resident inheriting Singapore property will face no Singapore estate duty, but may be subject to tax obligations under the laws of their own country — for instance, if that jurisdiction taxes worldwide inheritances or treats an inherited estate as taxable income. Non-resident heirs should always seek guidance from a tax professional with expertise in both Singapore and their home jurisdiction. Current information is available from IRAS and the Singapore Ministry of Finance.

How does gift tax apply to property transfers in Singapore?

Singapore does not operate any standalone gift tax regime. Since the abolition of estate duty in 2008, there is no tax levied on the value of property transferred as a gift within Singapore. This contrasts with countries such as France, where droits de donation (gift taxes) can reach 45% for non-relatives, or the United States, which imposes a federal gift tax subject to annual exclusions and lifetime limits.

Stamp duty on gifted property

Even though no gift tax applies, stamp duty remains payable on property transferred by way of gift, including voluntary declarations of trust and settlements. When a property is gifted, BSD is assessed on its market value at the time of transfer. ABSD will also apply where the recipient’s profile attracts it — for example, a foreign recipient would be liable for 60% ABSD on any residential property received as a gift, while a Singapore citizen receiving a second residential property as a gift would face 20% ABSD (as of 2025).

Implications for non-residents

Gifting property to a non-resident recipient will give rise to BSD and potentially ABSD at the applicable foreigner rate, making cross-border property gifting a potentially costly exercise. Beyond Singapore’s own taxes, the recipient’s home country may treat the received property as taxable income or subject it to domestic gift tax rules. Anyone contemplating a property gift — whether within the family or otherwise — should obtain advice from a Singapore-qualified solicitor or tax adviser beforehand. Always check current rates and requirements with IRAS.

How is rental income from property taxed in Singapore?

All income earned or received in Singapore is subject to income tax, and rental income from Singapore property is no exception. Singapore applies a progressive income tax scale to resident taxpayers, with rates starting at 0% on the first S$20,000 of chargeable income and rising to 24% on income exceeding S$1,000,000 (as of 2025). Non-resident landlords are generally taxed at a flat rate of 24% on net rental income, or 15% of gross rental income — whichever produces the greater tax liability. Always verify the current non-resident rates with IRAS before filing.

What expenses can be deducted?

Landlords are permitted to offset allowable expenses against gross rental income when computing their tax liability. Typical deductible items include:

• Mortgage interest (note: only the interest component, not capital repayment)
• Property tax paid on the rented-out property
• Fire insurance premiums
• Maintenance and repair costs (but not improvement costs)
• Agent commissions for securing tenants
• Depreciation on furniture and fittings using the statutory 20% per annum method, or actual cost if lower

Property tax paid on a rented property is an eligible deduction when calculating net rental income for income tax purposes.

Worked example — net rental income calculation (as of 2025):

• Annual gross rent: S$36,000
• Less mortgage interest: S$8,000
• Less property tax: S$6,600
• Less agent commission: S$1,800
• Less maintenance: S$1,200
• Net taxable rental income: S$18,400

For a resident taxpayer with no other income, the first S$20,000 is taxed at 0%, meaning no income tax would arise on this amount. These figures are for illustration only; always confirm your position with IRAS.

Short-term rentals

Revenue from short-term accommodation arrangements — such as lettings through platforms like Airbnb — is taxable as rental income under the same principles. However, it is equally important to note that short-term accommodation lasting fewer than three consecutive months is subject to regulation in Singapore. Most residential properties, including HDB flats and private homes, require prior approval before being made available on short-term letting platforms, and many are not permitted to do so at all. Landlords must ensure their arrangements comply with the Urban Redevelopment Authority (URA) and HDB requirements before listing any property, as well as declaring all rental income to IRAS.

Are there any tax advantages or incentives for buying property in Singapore?

Singapore’s property-related tax incentives are more narrowly focused than those offered in certain other countries. There is no provision for deducting mortgage interest on an owner-occupied home against personal income tax (unlike the United States, where such deductions are available to homeowners), and there is no first-home buyer grant for the private property market of the kind found in Australia or Canada.

Owner-occupier property tax relief

Residential properties occupied by their owners are assessed at materially lower annual property tax rates than investment or vacant properties. This differential is a deliberate policy incentive to promote homeownership in Singapore. The practical saving is significant: owner-occupier rates begin at 0% for the first S$12,000 of Annual Value, whereas a non-owner-occupied property with the same AV would be taxed at 12% on that same portion (as of 2025). Owners living in their property should therefore apply for owner-occupier status without delay to benefit from these reduced rates.

ABSD remission for upgraders

A Singapore citizen who sells their existing home within six months of the Temporary Occupation Permit (TOP) or Certificate of Statutory Completion (CSC) being issued for a newly purchased property may qualify for a refund of the ABSD paid on that second property. This remission is particularly valuable for those moving up the property ladder rather than accumulating investment properties.

ABSD remission for eligible senior citizens

For purchases of a second residential property on or after 16 February 2024, single Singapore citizen seniors aged 55 and above may be eligible for an ABSD refund on the second property, provided the relevant conditions are satisfied. This concession acknowledges that older Singaporeans may need to purchase a smaller replacement home before completing the sale of their existing property.

CPF funds for stamp duty and down payments

Purchasers of HDB flats, new-launch condominiums, and executive condominiums may use their CPF (Central Provident Fund) savings to meet stamp duty obligations. This can reduce the immediate cash outlay required, particularly for Singapore citizens and permanent residents who have built up CPF balances over time. Foreign nationals without PR status have no access to CPF and must fund all transaction costs in cash. Always confirm the applicable eligibility conditions with your solicitor and refer to IRAS and the CPF Board for up-to-date rules.

What are the tax implications for foreign nationals buying property in Singapore?

Foreign nationals purchasing property in Singapore encounter some of the steepest acquisition costs globally, driven primarily by the ABSD regime. These measures reflect Singapore’s deliberate policy stance of prioritising residential property access for its own citizens and permanent residents.

ABSD at 60% for foreign purchasers

The ABSD rate for foreigners buying any residential property was increased from 30% to 60% in April 2023. This is levied on the purchase price or market value, whichever is higher. On a S$2 million property, a foreign buyer would face an ABSD liability of S$1.2 million alone, before adding BSD. Nationals of certain countries covered by relevant free trade agreements are accorded the same treatment as Singapore citizens for ABSD purposes. As of 2025, citizens of the United States and nationals of Iceland, Liechtenstein, Norway and Switzerland benefit from this FTA treatment — verify your eligibility with IRAS before proceeding.

Restrictions on what foreigners can buy

Under the Residential Property Act, foreign purchasers are subject to restrictions on the categories of property they may acquire. Generally, foreigners are permitted to purchase private condominium units, apartments within approved condominium developments, and strata landed houses in approved developments without requiring special consent. Purchasing landed residential property — such as detached houses, semi-detached houses, or terrace houses — requires prior approval from the Singapore Land Authority (SLA). HDB flats are entirely off-limits to foreign buyers.

Tax obligations in home country

Owning Singapore property may give rise to reporting and tax obligations in the buyer’s country of residence. Rental income from a Singapore property is typically reportable as foreign income in most tax systems worldwide. While capital gains on disposal are not taxed in Singapore, they may be taxable in the owner’s home jurisdiction depending on domestic rules and any applicable double taxation agreement (DTA) between that country and Singapore. Singapore maintains an extensive network of DTAs — full details are available through IRAS’s DTA listing. Foreign buyers should consult a tax adviser qualified in both Singapore and their country of residence before exchanging contracts.

Annual property tax for non-residents

Foreign owners who do not reside in their Singapore property will be assessed at the higher non-owner-occupier residential property tax rates. These elevated rates reflect the fact that such properties are primarily held as investments and may generate rental income. This treatment applies uniformly to all non-owner-occupiers, irrespective of nationality.

Frequently asked questions: property taxes in Singapore

Do I pay capital gains tax if I sell my Singapore property as a non-resident?

As a general rule, gains arising from the disposal of property in Singapore are not subject to tax. The exception is where property trading constitutes a person’s principal source of income, in which case the profits are treated as taxable trading income. This position applies equally to both residents and non-residents — there is no distinction between the two. That said, your home country may tax the gain under its own domestic rules, so it is always advisable to seek advice from a tax professional in your jurisdiction of residence.

Can I deduct mortgage interest on rental income in Singapore?

Yes. The interest component of a mortgage taken out to finance a property that is rented out is an allowable deduction against rental income for Singapore income tax purposes. It is important to note that only the interest element qualifies — repayments of the loan principal are not deductible. Mortgage interest on an owner-occupied property cannot be offset against other income. Confirm the current rules with IRAS.

Is there a wealth tax on property in Singapore?

Annual property tax in Singapore effectively operates as a wealth levy — it is not charged on rental earnings but is instead assessed by reference to the property’s value, which forms part of the owner’s broader asset base. There is no separate standalone wealth tax, but the progressive annual property tax serves a broadly similar function. The Singapore Government addresses wealth taxation through property tax, stamp duties, and the additional registration fee applied to motor vehicles.

How much ABSD will I pay as a foreigner buying a S$2 million condo?

As of 2025, all foreign purchasers pay 60% ABSD on residential property acquisitions. On a S$2 million condominium: ABSD = 60% × S$2,000,000 = S$1,200,000. BSD would also be payable (approximately S$69,600 on a S$2 million purchase). The combined stamp duty liability would therefore be in the region of S$1,269,600, before factoring in other transaction costs. Always check the latest rates at IRAS.

How long do I need to hold a Singapore property before avoiding Seller’s Stamp Duty?

From 3 July 2025, the Government extended the qualifying holding period from three to four years and increased SSD rates by four percentage points at each tier. These revised rules apply to all residential properties purchased on and after 4 July 2025. Properties acquired before that date remain subject to the prior three-year holding period and the lower rate schedule. For properties purchased from 4 July 2025 onwards, a holding period of more than four years is required for SSD to fall to zero.

Is rental income from my Singapore property taxed if I live abroad?

Yes. Rental income derived from a Singapore property is sourced in Singapore and is taxable here regardless of where the property owner is based. Non-resident individual landlords are generally assessed on the higher of: net rental income taxed at the prevailing non-resident individual rate, or 15% of gross rental income (as of 2025). A Singapore tax return must be filed to declare this income. Consult IRAS for current withholding rates and filing requirements.

Is there any inheritance tax on Singapore property left to my children?

No. Singapore abolished estate duty in February 2008, and no inheritance tax, estate tax, or succession duty has been payable in Singapore since then — on property or any other asset — regardless of the estate’s value or where the beneficiaries are resident. BSD may, however, be payable when property is formally transferred from the estate to beneficiaries. Your children’s own country of residence may impose its own inheritance-related obligations — always seek local advice in the relevant jurisdiction.

Can I use CPF savings to pay stamp duty as a foreign buyer?

No. CPF (Central Provident Fund) is Singapore’s national pension scheme, and contributions to it are made exclusively by and on behalf of Singapore citizens and permanent residents. Foreign nationals who do not hold Singapore PR status have no entitlement to CPF funds and must cover all property purchase costs — including both BSD and ABSD — entirely in cash. Clarify your position with your conveyancing solicitor before proceeding with any transaction.