Purchasing property in Singapore comes with a number of legal and financial obligations. One such obligation is the requirement to pay Buyer Stamp Duty (BSD). This duty applies to all types of properties, including commercial, residential, and industrial real estate.
BSD is calculated based on the higher of the purchase price stated in the sale and purchase documents or the property’s market value. In this article, we will explore the stamp duty rates applicable to commercial properties in Singapore, providing clarity on what you need to know before making a purchase or sale.
For residential property stamp duty rates please read our other article.
Commercial Property Stamp Duty Rates
On 14 February 2023, the government announced an increase in the top marginal Buyer’s Stamp Duty (BSD) rates for both residential and non-residential properties to make the BSD regime more progressive.
For commercial properties, the portion of the property’s value between $1 million and $1.5 million is now taxed at 4%, and the portion of the property’s value above $1.5 million is taxed at 5%.
Buyer’s Stamp Duty on Commercial Property
As of 15 February 2023, the Buyer Stamp Duty (BSD) rates for commercial properties in Singapore are as follows:
| Purchase price or market value of the property | BSD for commercial properties |
| First $180,000 | 1% |
| Next $180,000 | 2% |
| Next $640,000 | 3% |
| Next $500,000 | 4% |
| Anything above $1,500,000 | 5% |
BSD is rounded down to the nearest dollar, subject to a minimum duty of $1.
Illustration of Buyer Stamp Duty Payable on Commercial Property
To help you understand how BSD is calculated, here are examples based on different purchase prices for commercial properties:
| Purchase price or market value of the property | Purchase of a $2mil commercial property | Purchase of a $3mil commercial property | Purchase of a $5mil commercial property |
| 1% of First $180,000 | $1,800 | $1,800 | $1,800 |
| 2% of Next $180,000 | $3,600 | $3,600 | $3,600 |
| 3% of Next $640,000 | $19,200 | $19,200 | $19,200 |
| 4% of Next $500,000 | $20,000 | $20,000 | $20,000 |
| 5% of the remaining amount | $25,000 | $75,000 | $175,000 |
| Total Amount Payable | $69,690 | $119,600 | $219,600 |
Seller’s Stamp Duty on Commercial Property
Seller Stamp Duty (SSD) is not applicable when selling commercial properties like office spaces or mall units. However, Seller Stamp Duty does apply to the sale of industrial properties if sold within a holding period.
FAQ
No, Additional Buyer Stamp Duty (ABSD) applies only to residential property purchases. If you are buying a commercial property, you will not be subject to ABSD.
No, foreigners pay the same Buyer Stamp Duty (BSD) as Singaporeans when buying commercial properties. Unlike residential property purchases, where Additional Buyer Stamp Duty (ABSD) applies to foreigners and Singapore permanent residents, there are no additional duties for commercial properties.
For mixed-use properties, the applicable stamp duty rates will depend on the proportion of residential and commercial use. If the residential component is more substantial, residential rates may apply; otherwise, commercial rates will likely be applicable. It’s advisable to consult with a property expert to determine the correct classification in accordance with Singapore’s regulations.
Additional Conveyance Duty (ACD) primarily applies to residential properties in Singapore. For specific advice, please contact us at inquiry@yuenlaw.com.sg.
Yes, if your business is GST-registered and you’re buying commercial property from a GST-registered seller, you can claim the GST paid on the purchase. This also covers costs such as conveyance fees, construction and development expenses, and professional services, provided they come from GST-registered providers. Be sure to confirm the seller’s GST status and consult a tax advisor to understand the specific conditions for claiming GST.
Commercial properties are non-residential properties used for business or commercial purposes. Examples include boarding houses, guest houses, chalets, resorts, canteens, the lower floor of a shophouse (if approved for non-residential use), offices, and retail shops.
Resources
Stamp Duty Calculator for Commercial Property
Inland Authority Revenue of Singapore (IRAS) has a stamp duty calculator, available at Commercial Property Stamp Duty Fee Calculator.
