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Shophouse Basics

Buyer's Stamp Duty on a Commercial Property in Singapore

Commercial property pays buyer's stamp duty in five bands, from 1% to 5%. How the bands work, the quick way to work it out, and a calculator.

The five bands

BSD is worked out on the price or the market value, whichever is higher. Each slice of the price pays its own rate.

Price or valueRate
First S$180,0001%
Next S$180,0002%
Next S$640,0003%
Next S$500,0004%
Above S$1.5 million5%

Buyer's stamp duty $119,600 3.99% of the price

The full calculator, band by band

The quick way

Within each price range, BSD is the top rate times the price, less a fixed figure. Above S$1.5 million: 5% × price − S$30,400. On S$3 million that is S$150,000 − S$30,400 = S$119,600. The share of the price paid in duty gets closer to 5% as the price rises, but never reaches it.

S$119,600BSD on a S$3 million commercial property
S$469,600BSD on S$10 million
14 daysBSD is due within 14 days of signing

Source: IRAS, buyer's stamp duty, non-residential rates.

What else a commercial buyer pays

  • GST at 9% on the price, if the seller is GST-registered. On S$3 million that is S$270,000.
  • No ABSD on the non-residential part. If any part counts as residential, as on a Commercial & Residential shophouse, ABSD and residential BSD apply to that part.
  • No seller's stamp duty on commercial property if you sell within a few years. Industrial property is different.

Questions

How much stamp duty do I pay on a S$5 million shophouse?

If it is wholly non-residential, BSD is 5% × S$5,000,000 − S$30,400 = S$219,600. There is no ABSD.

When is buyer's stamp duty paid?

Within 14 days of signing the agreement, or of exercising the option to purchase.

Is there ABSD on a commercial shophouse?

Not on the non-residential part. Check the zoning and the approved use of every storey first.

Sources

  • IRAS, buyer's stamp duty: iras.gov.sg(bsd)
  • IRAS, GST on real estate: iras.gov.sg(gst)/specific-business-sectors/real-estate
  • IRAS, seller's stamp duty for industrial property: iras.gov.sg(ssd)-for-industrial-property

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