🏠 Property · Stamp Duties · Sub-Silo 1 · Tool #10

Commercial Property Stamp Duty Calculator Singapore 2026
Non-Residential BSD (1%–5%), No ABSD, GST on Purchase & Shophouse Apportionment

Calculate Buyer’s Stamp Duty (BSD) on Singapore commercial, industrial, retail, and office property purchases using the non-residential 4-tier rate table (1% to 5%, topping out at 5% above S$1.5M). The headline advantage of commercial property: NO Additional Buyer’s Stamp Duty (ABSD) — saving investors 20% to 60% versus residential property. Includes GST treatment for GST-registered sellers, residential vs commercial total cost comparison, and mixed-use shophouse apportionment between residential and commercial portions.

✓ Non-Residential 4-Tier BSD ✓ NO ABSD (Major Saving) ✓ GST on Purchase Handling ✓ Commercial vs Residential Cost ✓ Mixed-Use Apportionment
BSD Top Rate5% (above S$1.5M)
ABSDS$0 (None!)
SSDS$0 (None!)
GST9% if Seller Reg.
Pay By14 Days
🏢 Commercial Property Inputs

Non-residential property (office, retail, industrial, commercial shophouse) attracts only BSD — no ABSD and no SSD. Mixed-use shophouses (e.g., commercial ground floor + residential upper floors) are apportioned: the residential portion attracts residential BSD + ABSD, while the commercial portion attracts only non-residential BSD.

S$

Enter the purchase price or market value of the commercial property, whichever is higher (the BSD assessment basis). For GST-registered sellers, enter the GST-exclusive purchase price — the GST is handled separately below.

Commercial properties sold by GST-registered sellers attract 9% GST on the purchase price (unlike residential property, which is GST-exempt). If the buyer is also GST-registered, the GST can usually be claimed back as input tax — making it cash-flow timing rather than a permanent cost. BSD is calculated on the purchase price.

% residential

For mixed-use shophouses only: enter the percentage of the property value attributable to the residential portion (e.g., upper-floor living quarters). The residential portion attracts residential BSD + ABSD; the commercial portion attracts non-residential BSD only. Leave at 0 for fully commercial properties.

🏢 Commercial BSD Analysis
🏢

Enter the commercial property price to calculate non-residential BSD with full band breakdown, the GST treatment if applicable, and the key comparison showing how much you save versus buying residential investment property (which would attract 20%–60% ABSD).

Commercial (BSD only) vs Residential (BSD + 20% ABSD) Total Stamp Duty

Commercial Property Stamp Duty Singapore 2026 — Non-Residential BSD Rates, Why No ABSD & GST on Purchase

Buyer’s Stamp Duty (BSD) on non-residential property — offices, retail units, commercial shophouses, industrial factories, and warehouses — uses a different rate structure from residential property. Since 20 February 2023, non-residential BSD follows a 4-tier progressive structure topping out at 5% (versus residential’s 6-tier structure topping at 6%). The defining advantage of commercial property for investors: there is no Additional Buyer’s Stamp Duty (ABSD) and no Seller’s Stamp Duty (SSD) on non-residential property. A residential property investor buying a second property pays 20% ABSD (SC), 30% (PR), or 60% (foreigner) on top of BSD — on a S$2M property, that is S$400,000 to S$1,200,000 in ABSD alone. A commercial property buyer at the same price pays zero ABSD. This single difference makes commercial property dramatically more tax-efficient for investors, and is the primary reason sophisticated Singapore investors include commercial property (shophouses, strata offices, industrial units) in their portfolios.

Non-Residential BSD Rate Table 2026 (From 20 February 2023)

Purchase Price BandNon-Residential BSD RateResidential BSD Rate (for comparison)
First S$180,0001%1%
Next S$180,000 (S$180,001–S$360,000)2%2%
Next S$640,000 (S$360,001–S$1,000,000)3%3%
Next S$500,000 (S$1,000,001–S$1,500,000)4%4%
Above S$1,500,0005%5% (to S$3M), then 6%

Non-residential BSD caps at 5% — it never reaches the residential 6% top tier. For properties above S$3M, commercial BSD (5%) is lower than residential BSD (6% on the portion above S$3M).

The Big Picture: Commercial vs Residential Total Stamp Duty

S$2M PropertyCommercialResidential (SC 2nd)Residential (Foreigner)
BSDS$69,600S$69,600S$69,600
ABSDS$0S$400,000 (20%)S$1,200,000 (60%)
Total Stamp DutyS$69,600S$469,600S$1,269,600
Commercial SavingS$400,000S$1,200,000

How This Commercial Property Stamp Duty Calculator Works — BSD Bands, GST & Mixed-Use Apportionment

Step 1 — Select Property Type and Enter Price

Choose the commercial property type: office, retail/shophouse, industrial, or mixed-use shophouse. Enter the purchase price. The calculator applies the non-residential 4-tier BSD rate table and shows the band-by-band breakdown and the effective BSD rate. The prominent “No ABSD” banner confirms the key advantage and quantifies your saving versus residential investment property.

Step 2 — Handle GST for GST-Registered Sellers

Unlike residential property (which is GST-exempt), commercial property sold by a GST-registered seller attracts 9% GST on the purchase price. Select “Yes” for GST-registered seller to see the GST amount and the total cash outlay. If the buyer is also GST-registered (e.g., buying through a GST-registered company or for a GST-registered business), the GST can typically be claimed back as input tax — making it a cash-flow timing issue rather than a permanent cost.

Step 3 — Apportion Mixed-Use Shophouses

For mixed-use shophouses (commercial ground floor, residential upper floors), enter the residential percentage. The calculator apportions the price: the residential portion attracts residential BSD + 20% ABSD; the commercial portion attracts non-residential BSD only. This reflects IRAS’s actual treatment of mixed-use properties, where the use of each part determines the applicable stamp duty.

3 Real Singapore Commercial Stamp Duty Examples — Strata Office, Industrial B1 & Mixed-Use Shophouse

Strata Office, S$1.2M

Purchase priceS$1,200,000
BSDS$32,600
ABSDS$0
Mortgage dutyS$500
Total SDS$33,100
Save vs SC 2nd homeS$240,000

Industrial B1 Unit, S$2.5M + GST

Purchase priceS$2,500,000
BSDS$94,600
GST (9%)S$225,000
GST claimable?Yes if GST-reg
ABSDS$0
Total SDS$95,100

Mixed Shophouse S$4M (40% Res)

Residential portionS$1,600,000
Res BSD + 20% ABSDS$53,600 + S$320,000
Commercial portionS$2,400,000
Commercial BSDS$89,600
Total SDS$463,200
Mixed-use noteABSD on res part only

3 Expert Commercial Property Tips — The ABSD Advantage, GST Recovery & Shophouse Classification

1

The No-ABSD Advantage Is the Core Investment Case for Commercial Property

The single most important fact for any Singapore property investor: commercial and industrial property carries no ABSD and no SSD. For an investor who already owns a home, buying a second residential property triggers 20% ABSD (SC), 30% (PR), or a punishing 60% (foreigner). On a S$2M property, that is S$400,000 to S$1.2M paid upfront purely in ABSD — an enormous drag on returns. Commercial property at the same price: zero ABSD. This is why many sophisticated Singapore investors pivot to commercial property (strata offices, retail shophouses, industrial B1/B2 units) for their second and subsequent property investments. Additionally, there is no SSD on commercial property — you can buy and sell commercial property at any time without the 12%/8%/4% seller’s stamp duty that applies to residential property held under 3 years. The trade-offs: commercial property typically requires a larger cash down payment (CPF cannot be used for commercial property purchase), attracts GST if bought from a GST-registered seller, and has different financing terms (commercial loans, often shorter tenure and higher rates).

2

GST on Commercial Property: A Cash-Flow Issue, Not Always a Permanent Cost

Commercial property sold by a GST-registered seller attracts 9% GST on the purchase price (residential property is GST-exempt). On a S$2.5M industrial unit, that is S$225,000 in GST — a substantial upfront cash requirement. However, if the buyer is GST-registered (e.g., purchasing through a GST-registered company, or for use in a GST-registered business), the GST paid can be claimed back as input tax in the buyer’s GST return — typically recovered within one to three months. In this scenario, the GST is a cash-flow timing issue, not a permanent cost. For buyers who are not GST-registered (e.g., individuals buying small commercial units), the GST is a permanent unrecoverable cost and must be factored into the total acquisition budget. Many commercial property investors register for GST specifically to recover the input tax on their property purchase — consult a tax advisor on whether voluntary GST registration makes sense for your situation. Note: BSD is calculated on the property price, and the GST treatment is separate.

3

Shophouse Classification: Conservation Status and Use Determine the Tax Treatment

Shophouses are one of Singapore’s most sought-after property classes — but their stamp duty treatment depends critically on their zoning and actual use. A shophouse zoned and used entirely for commercial purposes (e.g., F&B, retail, offices on all floors) is treated as non-residential: BSD only, no ABSD. A shophouse with residential use on upper floors is mixed-use: the residential portion attracts residential BSD + ABSD, apportioned by value. A shophouse zoned “Residential” (some conservation shophouses in residential areas) may be treated entirely as residential property — attracting full ABSD. Before purchasing any shophouse, verify: (1) the URA zoning (Commercial, Residential, or Commercial/Residential mixed); (2) the approved use; (3) whether it has conservation status (which affects renovation but not stamp duty directly). The difference between a commercial-zoned shophouse (no ABSD) and a residential-zoned shophouse (full ABSD) can be hundreds of thousands of dollars on a multi-million-dollar shophouse. Always obtain the URA zoning confirmation and consult a conveyancing lawyer experienced in shophouse transactions before committing.

16 FAQs — Commercial Property Stamp Duty Singapore 2026, No ABSD, GST & Shophouses

What stamp duty applies when buying commercial property in Singapore?+
When buying commercial, industrial, retail, or office property in Singapore, only Buyer’s Stamp Duty (BSD) applies on the purchase, at the non-residential rates (1% to 5%). Critically, there is no ABSD (Additional Buyer’s Stamp Duty) and no SSD (Seller’s Stamp Duty) on non-residential property. Additionally, mortgage duty (S$500 capped) applies if a loan is taken, and 9% GST applies if the seller is GST-registered. So the total stamp duty cost for commercial property is much lower than residential investment property, which would face BSD plus 20%–60% ABSD.
Is there really no ABSD on commercial property?+
Correct — there is no ABSD on non-residential property in Singapore. ABSD applies only to residential property purchases. Commercial, industrial, retail, and office properties are completely exempt from ABSD regardless of how many properties the buyer owns or the buyer’s nationality. This is the single biggest tax advantage of commercial property investment. A Singapore Citizen buying their fifth commercial property pays the same BSD as a first-time commercial buyer, with zero ABSD — whereas a fifth residential property would attract 30% ABSD for an SC. For foreign investors, the contrast is even starker: 60% ABSD on residential property vs 0% on commercial. This is why commercial property is a favoured asset class for portfolio investors and foreign buyers in Singapore.
What are the non-residential BSD rates in 2026?+
Non-residential BSD rates (effective from 20 February 2023, in force 2026): First S$180,000: 1%; Next S$180,000 (S$180,001–S$360,000): 2%; Next S$640,000 (S$360,001–S$1,000,000): 3%; Next S$500,000 (S$1,000,001–S$1,500,000): 4%; Above S$1,500,000: 5%. The non-residential BSD caps at 5% — it never reaches the 6% top tier that applies to residential property above S$3M. So for very high-value properties (above S$3M), commercial BSD is actually lower than residential BSD on the portion above S$3M.
Does GST apply when buying commercial property?+
Yes — if the seller is GST-registered, 9% GST applies on the sale of commercial property. (Residential property is GST-exempt and never attracts GST.) The 9% GST is charged on the purchase price. If the buyer is also GST-registered, the GST can be claimed back as input tax in the buyer’s GST return — making it a cash-flow timing issue rather than a permanent cost. If the buyer is not GST-registered, the GST is a permanent unrecoverable cost. Note that not all commercial property sales attract GST — it depends on whether the specific seller is GST-registered. Sales by non-GST-registered individuals (e.g., a private individual selling a small commercial unit) do not attract GST.
Can I use CPF to buy commercial property?+
No. CPF (Ordinary Account) savings cannot be used to purchase commercial or industrial property. CPF OA can only be used for residential property purchases (and the associated BSD, mortgage payments, etc.). Commercial property must be purchased entirely with cash and/or a commercial property loan. This is an important consideration for the cash-flow planning of commercial property investment — the down payment (typically 20%–30% for commercial loans, sometimes higher) plus BSD plus any GST must all come from cash, not CPF. This higher cash requirement is one of the trade-offs against the no-ABSD advantage of commercial property.
Is there SSD when I sell commercial property?+
No. There is no Seller’s Stamp Duty (SSD) on non-residential property. You can buy and sell commercial, industrial, retail, or office property at any time — including flipping within the first year — without incurring the SSD that applies to residential property (12%/8%/4% if sold within 3 years). This gives commercial property investors much greater flexibility to trade in and out of positions, take advantage of market opportunities, or exit quickly if needed. Combined with the no-ABSD advantage on purchase, the absence of SSD makes commercial property significantly more liquid and tax-efficient for active investors compared to residential property.
How is stamp duty calculated for a mixed-use shophouse?+
A mixed-use shophouse (e.g., commercial ground floor with residential upper floors) is apportioned for stamp duty: the value attributable to the residential portion attracts residential BSD + ABSD, while the value attributable to the commercial portion attracts non-residential BSD only. IRAS determines the apportionment based on the property’s use and value split. For example, a S$4M shophouse that is 40% residential by value: the S$1.6M residential portion gets residential BSD + 20% ABSD (if buyer is SC with existing property), while the S$2.4M commercial portion gets non-residential BSD with no ABSD. The apportionment requires a proper valuation and IRAS confirmation. For shophouses zoned entirely commercial, the full value is treated as non-residential (no ABSD). The classification hinges on the URA zoning and approved use.
Are HDB shops or HDB commercial units treated as commercial for stamp duty?+
HDB commercial properties (HDB shops, eating houses, and other commercial units within HDB estates) are treated as non-residential property for stamp duty purposes — BSD at non-residential rates, no ABSD, no SSD. However, HDB commercial units have their own eligibility and ownership rules administered by HDB, which may restrict who can buy them and for what use. The purchase of an HDB shop attracts the same non-residential BSD as a private commercial unit. Note: this is distinct from HDB residential flats, which are residential property and subject to residential BSD and ABSD rules. Always confirm the property classification (residential vs commercial) with HDB and IRAS before purchase.
Do foreigners pay extra stamp duty on commercial property?+
No. Foreigners pay the same non-residential BSD as Singapore Citizens and PRs when buying commercial property — with no ABSD surcharge. This is a stark contrast to residential property, where foreigners pay a 60% ABSD surcharge. For foreign investors, commercial property is therefore extremely attractive: they can buy Singapore commercial, industrial, or retail property at the same stamp duty cost as locals, with no nationality-based surcharge. Additionally, foreigners face fewer ownership restrictions on commercial property than on residential landed property (which foreigners generally cannot buy without special approval). Commercial property — especially strata offices and industrial units — is one of the most accessible Singapore property classes for foreign investors.
What is the BSD on a S$3 million commercial property?+
For a S$3,000,000 commercial property, non-residential BSD is calculated as: First S$180,000 × 1% = S$1,800; Next S$180,000 × 2% = S$3,600; Next S$640,000 × 3% = S$19,200; Next S$500,000 × 4% = S$20,000; Remaining S$1,500,000 × 5% = S$75,000. Total BSD = S$119,600. Plus mortgage duty S$500 if a loan is taken, plus 9% GST (S$270,000) if the seller is GST-registered (claimable if buyer is GST-registered). No ABSD. By contrast, the same S$3M property as a residential investment for an SC buyer with an existing home: BSD S$119,600 + 20% ABSD S$600,000 = S$719,600 total — the commercial route saves S$600,000 in ABSD.
Can a company buy commercial property and what stamp duty applies?+
Yes. Companies (including investment holding companies and operating businesses) commonly buy commercial property in Singapore. The stamp duty: non-residential BSD only (1%–5%), no ABSD. This is a major advantage over residential property, where companies/entities pay 65% ABSD. For commercial property, there is no entity ABSD surcharge — a company pays the same BSD as an individual. This makes corporate ownership of commercial property very common and tax-efficient. Companies buying commercial property can also typically claim the GST input tax (if GST-registered) and deduct property-related expenses against business income. Consult a corporate tax advisor on the optimal ownership structure (personal vs corporate) for your commercial property investment.
Is industrial property (B1/B2) treated the same as commercial for stamp duty?+
Yes. Industrial property — including B1 (light industrial), B2 (general industrial), factories, and warehouses — is non-residential property and attracts the same non-residential BSD (1%–5%), no ABSD, and no SSD. Industrial property is a popular investment class precisely because of this favourable stamp duty treatment combined with typically higher rental yields than residential. Note that industrial property has its own usage restrictions (JTC and URA rules on permitted activities, anti-speculation measures for certain industrial properties), and some industrial properties have minimum occupation periods or owner-occupation requirements imposed by JTC. The stamp duty treatment is non-residential, but always check the specific JTC/URA conditions attached to the industrial property before purchase.
When is commercial property stamp duty payable?+
BSD on commercial property must be paid within 14 days of signing the contract (the Option to Purchase exercise or the Sale and Purchase Agreement, whichever is the binding instrument) if signed in Singapore, or 30 days if signed overseas. Payment is made via the IRAS e-Stamping portal (estamping.iras.gov.sg). In practice, the buyer’s conveyancing solicitor handles the BSD stamping as part of the property purchase process and includes it in the completion statement. The 9% GST (if applicable) is handled separately through the GST mechanism between the GST-registered seller and the buyer — it appears on the seller’s tax invoice, not via IRAS e-Stamping.
Can commercial property BSD be paid using a loan?+
BSD itself is paid in cash (not financed by the property loan), though some buyers use general business credit facilities or personal funds. The property loan finances the purchase price (typically up to 70%–80% LTV for commercial property, lower than residential), while BSD, GST, and legal fees are paid from the buyer’s own cash. Commercial property buyers should budget for: down payment (20%–30%+ cash, as CPF cannot be used), BSD (1%–5%), GST (9% if applicable, potentially recoverable), legal fees, and valuation fees — all from cash resources. The total upfront cash requirement for commercial property is generally higher than for residential property, which is a key trade-off against the no-ABSD advantage. Plan your cash flow carefully before committing to a commercial property purchase.
Is a commercial shophouse a better investment than a residential condo for stamp duty?+
From a pure stamp duty perspective, a commercial shophouse (or any commercial property) is dramatically more tax-efficient than a residential condo for an investor who already owns property: no ABSD (saving 20%–60%), no SSD (freedom to sell anytime). However, the full investment comparison must consider: (1) commercial property requires more cash (no CPF, larger down payment); (2) GST applies on commercial (if seller GST-registered); (3) commercial financing has shorter tenure and higher rates; (4) commercial rental demand is more cyclical and tenant-dependent; (5) commercial property tax rates differ from residential; (6) shophouses can have conservation/zoning restrictions. The stamp duty advantage is real and significant, but it is one factor among many. Many investors use commercial property specifically to deploy capital that would otherwise face punishing residential ABSD — but the decision should be based on the full risk-return and cash-flow analysis, not stamp duty alone.
Does the commercial property BSD differ for leasehold vs freehold?+
No. The non-residential BSD rate (1%–5%) is the same regardless of whether the commercial property is freehold, 999-year leasehold, 99-year leasehold, 60-year leasehold, or 30-year leasehold (common for industrial/JTC properties). BSD is calculated on the purchase price or market value, not on the tenure. However, the tenure significantly affects the property’s value and financing: shorter-leasehold industrial properties (e.g., 30-year JTC leases) typically have lower prices (and thus lower BSD in absolute terms) but also depreciate as the lease runs down, and banks lend less against short-lease properties. The tenure is a critical valuation and investment factor, but it does not change the BSD rate structure. Always factor the remaining lease term into your commercial property investment analysis.
Legal Disclaimer & Editorial Transparency. Non-residential BSD rates (from 20 February 2023, in force 2026): First S$180,000: 1%; Next S$180,000: 2%; Next S$640,000: 3%; Next S$500,000: 4%; Above S$1,500,000: 5%. No ABSD and no SSD on non-residential (commercial, industrial, retail, office) property. 9% GST applies if the seller is GST-registered (claimable as input tax if buyer is GST-registered). CPF cannot be used for commercial property purchase. Mortgage duty S$500 capped applies if a loan is taken. Mixed-use shophouses are apportioned: residential portion attracts residential BSD + ABSD; commercial portion attracts non-residential BSD only. Property classification (residential vs non-residential) depends on URA zoning and approved use. BSD payable within 14 days of signing. ABSD comparison figures shown assume SC buyer second residential property at 20%. Verify rates, zoning, and GST treatment at iras.gov.sg/BSD. Not legal or tax advice. Consult a conveyancing lawyer for commercial and shophouse transactions. Operated by MAFHH INTERNATIONAL LTD.