Thursday, June 12, 2008

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Qiuck Way to Calculate Stamp Duty Payable for Buying Singapore Property

Stamp Duty payable by Buyer of Singapore Property

- First $180,000 is 1% .
- Second $180,000 is 2%.
- Thereafter, 3% of the remaining property price.

For property price more than $360K, a quick way to compute the stamp duty is to consider a flat rate of 3% on the total property price, then subtract the excess amount for the first $180K and next $180K which is $5400.

Quick Formula:
Stamp Duty = 3% x Property price - $5400


Example 1: Property Price = $1M
Stamp Duty = 3% of $1M - $5400 = $30,000 - $5400 = $24,600

Example 2: Property Prcie = $600K
Stamp Duty = 3% of $600K - $5400 = $12,600

For property price less than $360K, it's 1% for first $180K and 2% for the next $180K.
Example 3: Property Price = $280K
Stamp Duty = 1%x$180,000 + 2%x$100,000 = $3800
Example 4: Property Price = $160K
Stamp Duty = 1%x$160,000 = $1600
(The discounts given to the first 360K is to take care of people from the lower income group who are buying a small property like a 3-rm HDB flat.)

May also want to read:
How to Calculate Rental Yield for Singapore Property
How to Calculate Property Tax for Singapore Property
Inland Revenue Authority of Singapore(IRAS): Stamp Duty Calculator
Singapore Property History

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