Do I have to pay stamp duties for inheriting a HDB?
If you inherited a property in Singapore such as a HDB, there is no need for you to pay any Buyer's Stamp Duty.
However, you may not be eligible to "keep" it if you do not meet the HDB eligibility conditions and will have to sell your share of the inherited HDB to the other beneficiaries or even to someone else.
In such situation, there is no Seller's Stamp Duty (SSD) involved but any buyers buying over your inherited shares of the HDB will have to pay the Buyer's Stamp Duty (BSD) and any Additional Buyer's Stamp Duty (ABSD).
The following are extracted from IRAS website:
SSD for residential properties is exempt for sellers / transferors under the following scenarios:
- A person who owns an HDB flat and inherits another HDB flat, is required under the HDB’s regulations to dispose of either the inherited HDB flat or the existing HDB flat. This exemption applies to disposal of flats on or after 18 Dec 2015.
- A person who owns a non-HDB flat and inherits an HDB flat, is required under the HDB’s regulations to dispose of the inherited HDB flat. This exemption applies to disposal of flats on or after 18 Dec 2015.
Source: IRAS
Examples of property acquisition in which BSD is payable:
- By way of distribution from the estate of a deceased that is not in accordance to the Will, Intestate Succession Act or Muslim Law of Inheritance.
BSD is computed based on the purchase price or market value of the property, whichever is higher.
Source: IRAS
Say for example, Jason Doe died without a Will leaving behind just a HDB (solely owned by him). Say he is survived by his wife Jane (who has no property at all) and 2 adult children who each already have their own HDB. By Intestate Succession Act, his Wife Jane is entitled to 50% and his 2 adult children 25% each of the HDB. Even if his 2 adult children agree to "sell" each of their 25% shares to Jane for "free" so Jane can get to keep the entire HDB, Jane may still have to pay the buyer stamp duties based on the market value of the property.
In the above example, Jason Doe may want to make a Will to give the entire HDB to his Wife Jane to avoid such BSD. Making a Will also have other benefits such as allowing him to appoint a trusted Executor to carry out his intentions!
Please note that the above are subjected to any future regulatory changes.