Stamp Duty
Stamp Duty
When it comes to purchasing Tampines 11, the downpayment is a percentage of the purchase price that you must pay upfront. In Singapore, the downpayment for a new condo is usually 25% of the total purchase price.
ABSD
If you’re a Singaporean citizen buying your first property, you won’t need to pay Additional Buyer’s Stamp Duty (ABSD). However, if you’re buying a second property, you’ll face a 20% ABSD tax. For example, if you’re purchasing a $1 million condo as your second home, you’ll need to pay $220,000 worth of ABSD.
Current ABSD Rates
| Buyer Category | ABSD Rates | Additional Notes |
|---|---|---|
| Singapore Citizen (1st property) | No ABSD | No additional tax for Singapore Citizens buying their first property. |
| Singapore Citizen (2nd property) | 20% | A 20% Additional Buyer’s Stamp Duty (ABSD) is applicable for the purchase of the second property. |
| Singapore Citizen (3rd and subsequent properties) | 30% | For the third and subsequent properties, Singapore Citizens incur a 30% ABSD. |
| Singapore Permanent Resident (SPR, 1st property) | 5% | SPRs pay a 5% ABSD for their first property purchase. |
| SPR (2nd property) | 30% | A 30% ABSD applies to SPRs buying their second property. |
| SPR (3rd and subsequent properties) | 35% | For the third and subsequent properties, SPRs face a 35% ABSD. |
| Foreigners | 60% | Foreign buyers are subject to a 60% ABSD for any property purchase. |
| Entities (company or association) | 65% | Entities pay a 65% ABSD for property purchases, with potential variations. |
| Entities (housing developer) | 35% (+5% non-remittable) | Housing developers pay an additional 5%, non-remittable, making it a total of 40%. |
| Trustee | 65% | Trustees are subject to a 65% ABSD when purchasing any residential property. |
In addition to ABSD, you’ll also need to pay Buyer’s Stamp Duty (BSD) when purchasing a new launch condo in Singapore. BSD is calculated based on the purchase price of the property and ranges from 1% to 4%. For example, if you’re purchasing a $1 million condo, you’ll need to pay $24,600 worth of BSD.
Buyer’s Stamp Duty BSD
| Purchase Price Range | BSD (Residential) | BSD (Non-residential) |
|---|---|---|
| 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% |
| In excess of $3 million | 6% | 5% |
LTV and the minimum cash downpayment
Loan-to-value (LTV) is the amount of money you can borrow from a bank to finance your new condo. In Singapore, the maximum LTV is 75% of the purchase price. This means that you’ll need to pay at least 25% of the purchase price as a downpayment.
| Outstanding Housing Loans | LTV Limit | Minimum Cash Downpayment for Condo Loans |
|---|---|---|
| 0 | 75% or 5% (for LTV of 75%); 10% (55% LTV) | 55%* |
| 1 | 45% or 25% | 25%* |
| 2 or more | 35% or 25% | 15%* |
Of this 25%, a minimum of 5% must be paid in cash. The remaining 20% can be paid using your CPF Ordinary Account (OA) savings or in cash. However, if you’re a first-time buyer and your loan tenure is more than 25 years, you’ll need to pay a minimum of 10% in cash.