Tax & ownership
Do Foreigners Pay ABSD on Shophouses? Stamp Duty, GST and Ownership Rules
Everton Estate · 28 September 2026 · 5 min read
The short answer: a shophouse used fully for commercial purposes can be bought by foreigners without approval, and no Additional Buyer's Stamp Duty (ABSD) is payable. It's the main reason shophouses are popular with overseas investors and family offices. The details depend on how the property is zoned and used.
Who can buy a shophouse?
- ◆Shophouse for commercial use — no approval needed for foreign buyers (SLA).
- ◆Shophouse for non-commercial (residential) use — a restricted property; foreigners need approval under the Residential Property Act.
- ◆Commercial & Residential (mixed) properties — special rules apply; check SLA's guidance for the specific property.
ABSD: only on residential property
ABSD applies to residential property. For a full commercial shophouse, no ABSD is payable. For a mixed-use shophouse, ABSD and residential rates apply only to the residential portion, while the commercial portion is charged at non-residential rates.
Buyer's Stamp Duty (BSD)
| Portion of price (or market value) | Non-residential | Residential |
|---|---|---|
| First S$180,000 | 1% | 1% |
| Next S$180,000 | 2% | 2% |
| Next S$640,000 | 3% | 3% |
| Next S$500,000 | 4% | 4% |
| Next S$1,500,000 | 5% | 5% |
| Remaining amount | 5% | 6% |
Worked example — S$10,000,000 full commercial shophouse: S$1,800 + S$3,600 + S$19,200 + S$20,000 + S$425,000 (5% on the remaining S$8.5 million) = S$469,600 BSD. No ABSD.
Seller's Stamp Duty (SSD)
SSD applies to residential and industrial property sold within a set holding period. For residential property bought on or after 4 July 2025, the holding period is four years. Commercial property, including full commercial shophouses, is not subject to SSD.
GST at 9%
The sale of residential property is exempt from GST. The sale of commercial property by a GST-registered seller attracts GST at 9%. Check early whether the seller is GST-registered, as it changes your total cost.
Sources
- IRAS — Buyer's Stamp Duty ↗
- IRAS — Additional Buyer's Stamp Duty ↗
- IRAS — Seller's Stamp Duty for residential property ↗
- IRAS — GST for real estate ↗
- SLA — Foreign ownership of property ↗
This article is general information based on official sources as at 28 September 2026. It is not legal, tax or financial advice. Rules change — please verify with the relevant authority or a qualified adviser before making a decision.