Stamp duty is the cost landed buyers most often underestimate. On a freehold bungalow, it can run into seven figures, and unlike the price, it is not negotiable. This guide sets out how Buyer's Stamp Duty (BSD) and Additional Buyer's Stamp Duty (ABSD) work for landed homes, and the rules on who may buy one, using the current figures published by the Inland Revenue Authority of Singapore (IRAS) and the Singapore Land Authority (SLA).
Buyer's Stamp Duty: everyone pays it
BSD is payable on every property purchase in Singapore, whether you are buying your first home or your fifth. IRAS says it is not dependent on the buyer's nationality or the number of properties owned. It is computed on the purchase price or market value, whichever is higher. For residential property acquired on or after 15 February 2023, the rates are tiered:
| Portion of price or market value | BSD rate |
|---|---|
| First S$180,000 | 1% |
| Next S$180,000 | 2% |
| Next S$640,000 | 3% |
| Next S$500,000 | 4% |
| Next S$1,500,000 | 5% |
| Remaining amount | 6% |
Because the 6% band starts above S$3 million, landed homes sit almost entirely in the top bracket. IRAS's own worked example, a terrace house bought at S$4,500,100, attracts BSD of S$209,606. The figures below apply the same schedule to other prices (our calculation from the IRAS rates):
| Purchase price | BSD payable |
|---|---|
| S$4,500,100 (IRAS example) | S$209,606 |
| S$10,000,000 | S$539,600 |
| S$19,800,000 | S$1,127,600 |
| S$24,500,000 | S$1,409,600 |
ABSD: it depends on how many homes you own
ABSD is charged on top of BSD, on the full purchase price or market value, and the rate depends on the buyer's profile on the date of purchase. The current rates, in force since 27 April 2023, are:
- Singapore citizens: none on the first residential property, 20% on the second, 30% on the third and subsequent.
- Singapore permanent residents (SPRs): 5% on the first, 30% on the second, 35% on the third and subsequent.
- Foreigners: 60% on any residential property.
- Entities: 65% on any residential property.
For joint purchases by buyers with different profiles, IRAS applies the highest applicable rate to the entire value. A Singaporean buying with an SPR spouse, for example, is charged at the higher SPR rate. Both BSD and ABSD must be paid within 14 days of the signed contract, and IRAS says the duty must be paid in full and cannot be deferred.
The upgrader's question: can I avoid ABSD when I buy before I sell?
Many landed buyers are upgraders who still own a condo or HDB flat. IRAS's FAQ is direct: if a Singapore citizen has contracted to sell their only apartment before executing the acceptance to the option to purchase for the terrace house, no ABSD is payable. If not, the terrace house is a second property and ABSD of 20% applies.
Singaporean married couples buying a second property can still get the ABSD refunded if they dispose of their first property within six months, among other conditions. For a home that is still under construction, the six months run from the date of TOP or CSC (whichever is earlier); for a completed home, they run from the date of purchase. IRAS stresses that the six-month timeline is strictly applied, with no extension, and urges couples to start marketing the first property early and at a realistic price. Since 16 February 2024, single Singapore citizens aged 55 and above can also claim a refund of ABSD on a second residential property, subject to conditions. Our related note on the ABSD concession for senior singles who right-size explains the Budget 2024 background.
If you are buying a home that is still under construction, check the timeline carefully. The refund window runs from TOP or CSC, not from the purchase date, which is one reason buying landed homes off-plan can suit upgraders who need time to sell their existing home.
Who is allowed to buy landed property?
Terrace houses, semi-detached houses, bungalows and vacant residential land are all "restricted properties" under the Residential Property Act. SLA's Land Dealings (Approval) Unit says a foreign person who wants to buy one must obtain its approval first, and it strongly encourages applicants to apply for in-principle approval before signing any contract, to avoid forfeiting monies paid if the application is declined.
- Criteria: assessed case by case. Factors include having been a Singapore permanent resident for at least five years and making an exceptional economic contribution to Singapore.
- Limits: PRs are generally allowed to buy only restricted properties that do not exceed 15,000 sq ft and are not in a Good Class Bungalow area.
- Conditions: owner-occupation only (no renting out any part), no sale within five years of legal completion (or of TOP/CSC for a property under construction), and no subdivision without written approval.
- Timing: processing generally takes about 30 working days from receipt of all documents.
The SLA approval process above is for foreign persons, including PRs. For all buyers, ABSD still applies according to profile and the number of homes owned.
A practical checklist before you commit
- Work out your ABSD position first: how many residential properties will you own the day the option is exercised, and can you contract the sale of the existing one before then?
- Budget BSD at 6% on everything above S$3 million, plus ABSD where it applies, plus legal fees.
- Know that cash discounts stated in the contract can reduce the dutiable price (IRAS says the net price must still reflect market value), but non-cash benefits such as vouchers do not.
- If any buyer is an SPR or foreigner, secure SLA approval in principle before signing.
- For market context, see our look at URA's Q3 2026 flash estimate for landed homes and our earlier note on landed prices in early 2025.
Aurum Land's first collection of landed homes at Kheam Hock Road is fully sold. Two freehold detached bungalows at Anagram Homes, Tan Boon Chong Avenue in District 10 are now in preview, with guide prices from S$19.8M. You can also read the project overview on New Launches Condo. WhatsApp Patrick for floor plans, prices and private viewings, and to talk through how stamp duty would apply to your situation.
This article is for general information only and is not financial, legal or tax advice. Rates and rules are as published by the sources below at the time of writing and may change; confirm with IRAS, SLA or your lawyer before buying.
