Buying Private Residential Properties

1. Before the Transfer of Property

A) Make a legal requisition on the property

Once the property is transferred to you, you will be liable for any outstanding property tax including arrears that should have been paid by the previous owner. Thus, it is important for your lawyer to make a legal requisition to check on any outstanding property tax.

For newly constructed properties, IRAS will bill you for the property tax that starts from the date of temporary occupation permit (TOP) within 1 year of TOP.

B) Apportion property tax between you and the seller

If there is an outstanding tax amount, your lawyer will assist you to settle the outstanding amount with the seller. Your lawyer will also apportion the current year tax between the seller and yourself. IRAS does not apportion property tax liabilities between the parties.

C) File a Notice of Transfer to IRAS

The seller's lawyer will file a Notice of Transfer to IRAS within 1 month of the sale or property transfer.

For correspondence and payment, IRAS communicates with the transferee/buyer indicated as the "Recipient of Property Tax Notices" in the Notice of Transfer form submitted to IRAS. Lawyers are advised to confirm with the transferee/buyer the identified party to be receiving all property tax correspondence post transfer, before filing. Your lawyer will then liaise with the seller's lawyer to ensure the Notice of Transfer is filed correctly.

2. After the Transfer of Property

Once the Notice of Transfer has been processed by IRAS, the record of ownership will be updated for property tax purposes.

A) Update your address

IRAS sends the property tax bill or notice to:

• The address listed on your identity card; or
• The corporate owner's registered office address listed in the Accounting and Corporate Regulatory Authority (ACRA) records.

To receive all your correspondence promptly, please ensure that your address is updated. Please see change mailing address if you need to update your address.

B) Receive Acknowledgement Notice on Transfer of Property

IRAS will issue an Acknowledgement Notice to inform you about the updated record of ownership.

If there is any outstanding tax for your property, please arrange for payment to be made.

C) Automatic Application of Owner-Occupier Tax Rates

Owners who live in their homes enjoy lower property tax rates. The Acknowledgement Notice will inform you if your property has been granted the owner-occupier tax rates. If you have another residential property granted the owner-occupier tax rates, the concession will not be automatically applied. You will have to apply for the owner-occupier tax rates once you have moved into the property.

For more details, please refer to Lower Property Tax Rates for Owner Occupied Residential Properties .

D) Calculate your Property Tax

To calculate the annual property tax payable, multiply the Annual Value (AV) of the property with the set of Property Tax Rates that applies to you. You can use this calculator to calculate your tax payable.

E) Arrange to pay your Property Tax

Payment of property tax must be made within 1 month from the date of Acknowledgement Notice. You are encouraged to pay your property tax by GIRO to enjoy up to 12 interest-free monthly instalments.

Alternatively, you can opt for one-time GIRO deductions or use any of the modes of payment available to pay your property tax.

3. Other Taxes Relating to Property

A) Stamp Duty

When you buy any property, you need to pay Stamp Duty within 14 days of the date of Contract/Agreement. In most instances, your lawyer acting on your behalf in purchasing the property will arrange for payment of Stamp Duty.

B) Income Tax from Rental

If you partially or fully rent out your property, your rental income is subject to income tax. Find out more on Income from property rented out.

FAQs