The new 4% rate is applicable to homes priced above $1m.
Singapore raised the top marginal Buyer’s Stamp Duty (BSD) rate for residential properties to 4%, effective today.
“Today, our BSD rates for residential properties range between 1% and 3%, and have remained unchanged since 1996,” said Finance Minister Heng Swee Keat at the 2018 budget announcement yesterday. “The new top marginal rate of 4% will apply to the portion of residential property value which is in excess of $1 million.”
The BSD rates for non-residential properties remain at 1% to 3%. The adjustment in BSD rates for residential properties is part of the country’s initiative to improve the tax system.
The move comes at a time when Singapore standing in world property investment has been increasing with the country ranking in the world's top 10 investment spots in 2017.
Singapore jumped five places to the 10th in JLL's rankings of the most active countries in terms of real estate investment.
According to its global capital markets report, a total of $14.56b (US$11.1b) has been invested in Singapore in 2017, 18.09% higher than $12.33b (US$9.4b) in 2016.
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