If you’re selling residential property in Singapore, you need to know about the Seller’s Stamp Duty (SSD). From 1 July 2025, a new top rate of 16% applies, making it crucial for property owners, investors, and developers to plan sales carefully to avoid hefty tax costs.
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🏠 1. What is Seller’s Stamp Duty (SSD)?
The Seller’s Stamp Duty is a tax imposed on property owners who sell or dispose of their residential properties within a specified holding period. The purpose of SSD is to discourage short-term speculation and maintain market stability.
SSD applies to:
- Residential properties bought on or after 20 February 2010
- Industrial properties bought on or after 12 January 2013
- Both individuals and entities, including property developers
📊 2. New SSD Rates Effective July 2025
From 1 July 2025, SSD rates have been revised, with a new top rate of 16% for sales within the first year of purchase.
| Holding Period | SSD Rate (Before July 2025) | SSD Rate (From July 2025) |
|---|---|---|
| Up to 1 year | 12% | 16% |
| More than 1 year and up to 2 years | 8% | 10% |
| More than 2 years and up to 3 years | 4% | 5% |
| More than 3 years | 0% | 0% |
🧮 3. How SSD is Calculated
SSD is computed based on the higher of the selling price or the property’s market value at the date of sale.
Example: If you sell a property within 1 year for $1,500,000 after July 2025:
- SSD = 16% × $1,500,000 = $240,000
- You will need to pay this amount to IRAS within the stipulated deadline
📅 4. SSD Payment Deadline
Payment must be made to IRAS within:
- 14 days from signing the Sale & Purchase Agreement in Singapore
- 30 days if signed overseas
Late payments attract penalties and interest.
⚖️ 5. Exemptions from SSD
SSD does not apply in certain cases, including:
- Sale of residential property due to bankruptcy or compulsory acquisition
- Transfer of property between family members due to divorce
- Sale of HDB flats after fulfilling the Minimum Occupation Period (MOP)
💡 6. Strategies to Reduce SSD Liability
- Plan your property sale after the minimum holding period to avoid high SSD rates
- Consider renting out instead of selling early to generate income without incurring SSD
- Factor SSD costs into your financial planning before purchasing
📍 Final Thoughts
The new 16% SSD rate from July 2025 is a significant increase aimed at curbing speculative activity in the property market. For both individual homeowners and investors, understanding SSD rules is critical to making informed property decisions in Singapore’s competitive real estate landscape.
