Tax Differences: Commercial, Industrial & Residential Property
- Residential, commercial and industrial property face different stamp duties and taxes.
- ABSD applies to residential; commercial and industrial generally do not.
- GST and property-tax treatment also differ by type.
Property tax treatment differs across commercial, industrial and residential properties in Singapore. Understanding the differences helps you plan and protect your returns.
Buyer's Stamp Duty (BSD)
BSD applies to all property purchases on a progressive scale. For residential, top-tier rates reach 6%; for non-residential (commercial and industrial), BSD tops out at 5%. This alone gives commercial and industrial a small edge on entry cost.
Additional Buyer's Stamp Duty (ABSD)
ABSD applies only to residential property — up to 20% for citizens' second homes, 30% for the third, and 60% for foreigners. Commercial and industrial properties carry no ABSD, which is why investors facing high residential ABSD often pivot to commercial units, shophouses or SOHOs.
GST
Commercial and industrial properties may attract GST if the seller is GST-registered (a cost buyers should budget for, or offset via input tax if they too are registered). Residential property sales are exempt from GST.
Property Tax (Annual)
Property tax is levied on Annual Value. Owner-occupied residential enjoys lower, progressive rates; non-owner-occupied (rented) residential is taxed at higher progressive rates. Commercial and industrial properties are taxed at a flat 10% of Annual Value.
Rental Income and Capital Gains
Rental income is taxable (in your name, or at the corporate level if held via a company). Notably, Singapore has no capital gains tax on property, though Seller's Stamp Duty applies to residential within the holding period. Knowing these differences — BSD, ABSD, GST, property tax and SSD — lets you structure purchases efficiently. Always consult a tax professional for your situation.