Is there a gift tax on property in Singapore?

No. Singapore does not have a gift tax or inheritance tax. However, gifting property is still subject to Buyer's Stamp Duty (BSD) and potentially ABSD, assessed on the recipient based on market value -- not the consideration paid.

Is inheritance better than gifting property in Singapore for stamp duty purposes?

Yes. Property inherited through a will or intestacy does not trigger BSD or ABSD. This is the key tax difference: a gift during lifetime triggers stamp duty; an inheritance does not. Estate planning through a will is therefore more stamp-duty-efficient than gifting.

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Gifting Property in Singapore: ABSD, BSD, and the Tax Reality

By Winfred Quek · CEA R073319H · 6-minute read · Last reviewed May 2026

Quick answer: Singapore has no gift tax and no capital gains tax. But gifting property is still subject to BSD (and possibly ABSD) on the recipient's side assessed on market value regardless of the price paid. Selling a property to a family member for $1 does not avoid stamp duty; IRAS assesses duty on full market value. Inheritance through a will, by contrast, triggers no BSD or ABSD at all.

Facts verified: May 2026 · Sources linked below

Singapore Has No Gift Tax But Stamp Duty Still Applies

Singapore abolished estate duty in 2008 and has never introduced a gift tax or capital gains tax on property. This makes it one of the most tax-friendly jurisdictions in the world for property wealth transfer. However, "no gift tax" does not mean "no taxes on gifts." BSD and ABSD remain payable by the recipient of a gifted property, calculated on market value.

The moment a property changes hands even as a gift, at zero consideration a dutiable instrument is created and stamp duty must be paid. The only way to transfer property without triggering stamp duty is via a testamentary disposition (will) or intestacy upon death.

How Stamp Duty Applies to Property Gifts

BSD is assessed on the market value of the property, not the consideration paid. IRAS has the authority to challenge transactions where the stated price is substantially below market value and assess stamp duty on the open market valuation. This applies to gifts, below-market sales to relatives, and any transaction that IRAS considers non-arm's-length.

Transaction Type	Consideration	BSD Assessed On	ABSD Assessed On
Open market sale	Market value	Sale price (= market value)	Sale price
Gift (no consideration)	$0	Full market value	Full market value
Below-market family sale	Below market	Full market value (IRAS adjusts)	Full market value
Inheritance (via will)	N/A	Not applicable no BSD	Not applicable no ABSD

ABSD on the Gift Recipient

ABSD is assessed on the recipient's profile their residency status and their property count after receiving the gift. A parent giving a property to an adult SC child who owns no other property: ABSD = 0% (recipient's first property). If the child already owns one property: ABSD = 20% on the market value of the gifted property. This is exactly the same logic as a standard property purchase.

The practical implication: gifting a $1.5M property to a child who already owns a home costs the child $300,000 in ABSD (20%), plus $44,600 in BSD a total stamp duty bill of $344,600. The "gift" is expensive for the recipient.

Common Gift Scenario: Parent to Adult Child

Step 1 Check the child's property count. If the child has no other property, ABSD is 0% and BSD is the only stamp duty payable. If they own a property, ABSD is 20% on top.

Step 2 Get a market valuation. IRAS will assess stamp duty on market value. Obtain a formal property valuation from a licensed valuer before proceeding to ensure the stamp duty amount is accurately calculated.

Step 3 Execute the transfer deed. Your conveyancing lawyer prepares a Deed of Gift or Transfer. BSD (and ABSD if applicable) must be paid within 14 days of execution.

Step 4 Update title with SLA. Once stamp duty is paid, the transfer is lodged with the Singapore Land Authority (SLA) to update ownership records.

IRAS anti-avoidance view: IRAS takes an adverse view of arrangements that appear designed solely to avoid stamp duty for example, selling a property to a child at $1 to "reset" their ABSD count, then immediately receiving a gift of cash equivalent to the property value. Such arrangements may be challenged under the general anti-avoidance provisions of the Stamp Duties Act.

Gift vs Inheritance vs Trust The Three-Way Comparison

Transfer Method	BSD	ABSD	Capital Gains Tax	Timing Control	Complexity
Lifetime gift	Yes (on market value)	Possibly (recipient's count)	None	Immediate	Low
Inheritance via will	None	None	None	On death	Low
Intestacy (no will)	None	None	None	On death (uncontrolled)	Medium (court)
Trust (discretionary)	BSD on initial transfer to trustee	ABSD at 65% (trustee rate) unless conditions met	None	Flexible (living or testamentary)	High

The trust route for residential property in Singapore is expensive the ABSD rate for property held by a trustee is 65% unless specific exemptions apply (e.g., a trust for Singapore Citizens meeting narrow conditions). For most families, the will-based inheritance route is the most stamp-duty-efficient transfer mechanism.

Partial Gifts: Transferring a Share

Parents sometimes gift a share (say 20% or 50%) of a property to a child to bring them in as a co-owner. BSD is assessed on the value of the share transferred. ABSD is assessed on the recipient for that share. If the child has no property, ABSD is 0%. The gift can be structured as a nominal-consideration sale (e.g., $1 for 20% share), but IRAS will assess on 20% of full market value.

Note: co-ownership of a property with a parent where both names are on title may affect the child's ABSD count for future purchases. Once they co-own a property, they are counted as having "one property" for ABSD purposes even if they hold only a small share.