Introduction
On 3 July 2025, the Ministry of Finance (“MOF“) announced changes to the Seller’s Stamp Duty (“SSD“) regime for residential properties. This will apply to all residential properties purchased on or after 12.00 am on 4 July 2025.
The changes impact both the holding period and the applicable SSD rates and are intended to address the increase in the number of private residential property transactions with short holding periods. The Additional Conveyance Duties for Sellers (“ACDS“) have likewise been revised to reflect these changes. We elaborate on these changes below.
Changes to SSD Regime
The SSD is payable by parties who sell a residential property within a specified period after purchase. Prior to 4 July 2025, SSD rates were capped at 12%, with 0% payable for sellers holding a residential property for more than three years.
With effect from 4 July 2025, the new rates are as follows:
| Holding period | Rates from 11 March 2017 to 3 July 2025 | Rates on and after 4 July 2025 |
|---|---|---|
| Up to 1 year | 12% | 16% |
| More than 1 year but up to 2 years | 8% | 12% |
| More than 2 years but up to 3 years | 4% | 8% |
| More than 3 years but up to 4 years | 0% | 4% |
| More than 4 years | 0% | 0% (no change) |
These new rates are a return to the pre-2017 SSD rates and holding period of four years. As stated in MOF’s press release titled “Extension of the Holding Period of Seller’s Stamp Duty (SSD) and Higher SSD Rates for Residential Properties“, the changes are triggered by a sharp increase in transactions with short holding periods. In particular, MOF highlighted the increase in the sub-sale of units that have not yet been completed.
Practically, this would mean that if a seller disposes of a residential property two and a half years after purchase, the applicable SSD will now be 8%, up from 4% previously. This change significantly increases the cost of early disposals and may influence the period by which residential properties are held and corresponding investment strategies and returns.
Changes to ACDS Regime
Similar changes have been implemented to the ACDS regime, which address the stamp duty rate differential between the direct acquisition/disposal of residential properties versus the indirect acquisition/disposal of residential properties via an entity. It applies to the qualifying sale or transfer of equity interests in property-holding entitles that own primarily residential properties in Singapore.
| Date of acquisition | Disposed of | Applicable SSD |
|---|---|---|
| Between 11 March 2017 and 3 July 2025 | Within three years | 12% |
| On or after 4 July 2025 | Within four years | 16% |
The above changes have been reflected in the updated Inland Revenue Authority of Singapore (IRAS) e-Tax Guide titled “Stamp Duty: Additional Conveyance Duties on Property-Holding Entities (Eighth Edition)“.
The revised ACDS regime affects entities disposing of equity interests in property-holding companies. Clients involved in mergers and acquisitions or restructuring matters should reassess transaction timelines and consider the increased stamp duty exposure when planning indirect disposals.
Concluding Remarks
These revisions to the SSD and ACDS regimes signal that the Singapore Government continues to keep a close eye on movements in the property market, with changes potentially implemented on an overnight basis. However, we note that not all announced measures aim to tighten control over the market. For instance, the Minister for National Development Mr Chee Hong Tat remarked on 28 May 2025 that the current restriction on private property owners, who must currently wait for 15 months after selling their private property to be eligible to purchase a public housing resale flat, may be reviewed or removed as prices of such resale flats begin to moderate.
We will continue to keep you informed of any other updates in the sector, with other recent changes including enhanced requirements for developers covered in our July 2025 Legal Update titled “Enhanced Requirements for Developers on Money Laundering, Proliferation Financing, and Terrorism Financing“.
For further information, please feel free to contact our team set out on this page.
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