Higher stamp duty rates for higher priced properties

Deputy Prime Minister and Finance Minister Lawrence Wong made an announcement during Singapore’s Budget 2023 about an increase in marginal buyer stamp duty rates for higher-value residential and non-residential Tengah Plantation EC properties. According to the announcement, the portion of the value of the residential properties over $1.5 million and up to $3 million will be taxed at 5%. An even higher rate of 6% will be imposed for those that are above $3 million, up from the current rate of 4%. This will affect 15% of residential properties.

As for the non-residential properties, the portion of their value over $1 million and up to $1.5 million will incur a rate of 4%, while those valued at more than $1.5 million will be taxed at 5%. This will affect a larger number of properties at 60%.

The changes will take effect on February 15, 2023. This comes as part of the government’s effort to discourage high-value property purchases, while still striving to make property more affordable to Singaporeans.