Disclaimer (Block 1): This article is for educational purposes only and is intended to assist CEA-registered property agents in understanding regulatory frameworks. It does not constitute financial, tax, or legal advice. LEVR's calculations are indicative only. Always verify rates and eligibility with your bank, HDB, CPF Board, or a licensed financial advisor before advising clients.
When Stamp Duty Must Be Paid
Buyers of private residential property in Singapore must pay Buyer's Stamp Duty (BSD) and, where applicable, Additional Buyer's Stamp Duty (ABSD) within 14 days of the date of the instrument of transfer — which in practice means within 14 days of OTP exercise for most resale transactions.
The triggering event and timeline:
- OTP granted — the option fee is paid, but no stamp duty is due yet
- OTP exercised — the buyer exercises the option by signing the acceptance and paying the exercise fee. This creates a binding contract. BSD and ABSD become due within 14 days of the exercise date.
- 14-day deadline — the stamp duty must be stamped (paid via IRAS e-Stamping portal) within 14 calendar days of OTP exercise
- Completion — typically 10–12 weeks after OTP exercise for resale transactions; stamp duty has already been paid long before completion
Who Pays and How
Who Is Responsible
BSD and ABSD are the buyer's liability. The buyer's conveyancing solicitor typically handles the e-Stamping process on the buyer's behalf immediately upon receiving the exercised OTP (or the SPA for new launches). The solicitor requests funds from the buyer — either in advance or on receipt of the exercised instrument.
Agents should advise buyers to engage their solicitor promptly upon exercising the OTP, and to have the stamp duty funds readily available at that point.
Payment Method
Stamp duty is paid via IRAS's e-Stamping portal. The buyer's solicitor logs into the portal, uploads the instrument, calculates the duty, and processes payment. Payment methods accepted include:
- GIRO (from a Singapore bank account)
- Credit card (for lower amounts)
- Internet banking funds transfer
CPF Cannot Be Used
CPF funds cannot be used to pay BSD or ABSD. These must be paid in cash. This is a frequent surprise for buyers who are using the maximum CPF for their down payment and assume stamp duty can also come from CPF.
For a property at S$1.5M with ABSD at 20% (second property for a Singapore Citizen), the ABSD alone is S$300,000 in cash — a significant liquidity requirement at the time of OTP exercise, not at completion.
BSD Calculation
BSD is assessed on the higher of the purchase price or market value. For resale transactions, the purchase price is typically used. For new launches where developers offer rebates, IRAS may assess BSD on the undiscounted price — buyers should be aware of this.
BSD rates for residential property (as at 2026):
| Purchase price / 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% |
For a S$1.5M property: BSD = (1% × S$180,000) + (2% × S$180,000) + (3% × S$640,000) + (4% × S$500,000) = S$1,800 + S$3,600 + S$19,200 + S$20,000 = S$44,600.
ABSD: Timing of Assessment
ABSD is assessed at the same time as BSD — on the date the instrument is presented for stamping (typically within days of OTP exercise). ABSD is assessed based on the buyer's profile at the time of stamping:
- Citizenship / PR status — confirmed at the time of stamping. Buyers who recently received PR or citizenship status should ensure this is documented before OTP exercise.
- Number of residential properties owned — assessed at the time of exercising the OTP, not at the time of granting the OTP. A buyer who owned one residential property when the OTP was granted but sells it before exercising pays ABSD at the first-property rate (for SC: 0%). Timing of the divestment relative to OTP exercise is therefore critical.
Late Stamping: Penalties
If stamp duty is not paid within the 14-day deadline, IRAS imposes a penalty (in addition to the stamp duty itself). The penalty structure is progressive:
| Delay period | Penalty |
|---|---|
| Up to 3 months late | S$10 or 2× the unpaid duty (whichever is higher) |
| 3–6 months late | S$25 or 4× the unpaid duty (whichever is higher) |
| More than 6 months late | S$50 or 10× the unpaid duty (whichever is higher) |
For a buyer who is more than 6 months late on a S$300,000 ABSD bill, the penalty can reach S$3,000,000 — 10× the duty. In practice, most late stamping penalties arise from administrative delays in the first few weeks rather than long delays, but the risk of a large penalty is a compelling reason for agents to ensure buyers understand the timeline.
New Launches: Different Instrument, Same Timeline
For new launch purchases, the instrument is the Sales and Purchase Agreement (SPA) rather than the OTP. The SPA is signed by both buyer and developer after the booking fee is paid. BSD and ABSD must be stamped within 14 days of the SPA date — not the booking date.
For new launches, ABSD timing works differently:
- ABSD is assessed at the date of the SPA, not the booking date
- If the buyer's first property sale has not completed by the SPA date, ABSD is assessed as if they still own the first property — even if the sale is in progress
- A Singapore Citizen buying a second property via new launch who simultaneously sells their first may be eligible for ABSD remission after the sale completes, under specific conditions set by MAS
Frequently Asked Questions
Q: Can the buyer request an extension of the 14-day stamping deadline?
A: Extensions can be requested from IRAS in certain circumstances (e.g., overseas buyer with difficulty remitting funds). However, extensions are not guaranteed and penalties accrue until the stamp duty is paid even if an extension is pending. Agents should ensure buyers are prepared to fund stamp duty on the day of OTP exercise, not plan to source funds after.
Q: What happens if the buyer's ABSD is higher than expected because their first property sale fell through?
A: If the buyer expected to have sold their first property by the time the second OTP was exercised, but the sale fell through, they are still liable for ABSD at the second-property rate on OTP exercise. There is no provision for ABSD to be reassessed based on subsequent events after stamping. This is why timing the sale of the existing property before exercising the new OTP is critical.
Q: Is there stamp duty on the mortgage as well?
A: Yes. Mortgage Duty applies on the loan amount at 0.4% of the loan secured, capped at S$500. This is a separate stamp duty payable on the mortgage instrument, not the property transfer instrument. It is paid by the buyer (as borrower) and is typically a small amount — at S$800,000 loan, the mortgage duty is S$320; it caps at S$500 for loans above S$125,000.
Q: What documentation does IRAS require for stamping?
A: The e-Stamping process requires the signed instrument (OTP acceptance or SPA) to be uploaded to the IRAS e-Stamping portal. The buyer's solicitor handles this. IRAS may require additional documentation if there are ABSD concessions or remissions being claimed (e.g., for specific FTA nationals or ABSD remission for simultaneous sale situations).
Disclaimer (Block 3): LEVR's calculator outputs are estimates based on inputs provided and current regulatory parameters as known at time of publication. They are not a guarantee of borrowing capacity, stamp duty liability, or CPF eligibility. Regulatory thresholds and rates may change. Always verify with IRAS, your bank, or a licensed financial advisor before making financial decisions.