Buyer's Stamp Duty payment schedule: Resale HDB vs. Resale Private Properties

Aug 05, 2024By Zen
Zen

Understanding Buyer's Stamp Duty for Resale HDB and Private Properties 

When buying a resale HDB flat or Private property in Singapore, you need to consider stamp duty. Stamp duty is a tax that the buyer pays to the government. It is important to understand how this tax works to plan your finances effectively.

The buyer's stamp duty (BSD)  is calculated based on the purchase price or market value, whichever is higher. The rates are as follows:

  1. 1% for the first $180,000
  2. 2% for the next $180,000
  3. 3% for the next $640,000
  4. 4% for the remaining amount

Example

if you buy a property for $500,000, your BSD will be $9,600. This is calculated as follows:

1% of $180,000 = $1,800
2% of $180,000 = $3,600
3% of $140,000 = $4,200
So, $1,800 + $3,600 + $4,200 = $9,600.

Buyer's Stamp Duty payment schedule for resale HDB flat

For HDB flat, the Buyer's stamp duty shall be payable within 14 days from HDB’s letter of in-principle approval of the sales. Especially when the HDB flat is pruchased using mortgage loan from either HDB or Financial institutions as either HDB or Financial institutions will need to see the stamp duty certificate before the disburment of the loan in order to complete the purchase.

However, if the HDB flat is purchased without any mortgage loan, the payment of stamp duty can be delayed till no later than the scheduled completion date itself. 

Buyer's Stamp Duty Table
Buyer's Stamp Duty Table

Buyer's Stamp Duty payment schedule for resale Private Properties

Buyer's Stamp Duty and Additional Buyer's Stamp Duty (if applicable) are payable on the date of purchase/acquisition.

Definition of Date of Purchase refers to document executed as at the point of

purchase:

• Date of Exercise of Option to Purchase (OTP) or Contract; or

• Date of Sale & Purchase Agreement (where no OTP is granted); or

• Date of transfer where none of the above is applicable

However, since buyers of  resale private properties have to pay the stamp duty on the date of pruchase, buyers  will have to pay the applicable stamp duties in cash first before they can request for reimbursement using their CPF ordinary accounts. 

Example

If you’re a Singapore citizen buying a second property for $1,200,000, here’s how your costs add up:

BSD: $32,600

1% of $180,000 = $1,800
2% of $180,000 = $3,600
3% of $640,000 = $19,200
4% of $200,000 = $8,000
Total = $1,800 + $3,600 + $19,200 + $8,000 = $32,600
ABSD (20% of $1,200,000): $240,000
Exercise fee (4% of $1,200,000): $48,000
So, you need $32,600 (BSD) + $240,000 (ABSD) + $48,000 (Exercise fee) = $320,600 in cash ready on the date of purchase.

Additional Buyer's Stamp Duty Table
Additional Buyer's Stamp Duty Table

Conclusion

Stamp duty is a crucial factor in the cost of you plan better. Always consider both BSD and ABSD when calculating your budget.

By being well-informed, you can navigate the property market more effectively and make decisions that align with your financial goals.

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