The short answer
Beyond the price, buying a shophouse in Singapore involves Buyer's Stamp Duty, possible ABSD for residential property, GST if the seller charges it, legal and valuation fees, restoration or compliance works, and ongoing property tax and maintenance. Budget these before bidding, since they can shift returns materially.
- $5m non-res BSD
- $144,600 (illustrative)
- GST
- 9% if charged
- ABSD
- Residential only
- Also budget
- Legal, valuation, restoration
Last reviewed 5 November 2026. Rates and rules cited reflect IRAS, MAS, SLA and URA publications as last checked on 5 November 2026; always confirm current figures on the issuing agency's website before you sign. General information only, not legal, tax, or financial advice.
Restoration and compliance can matter as much as stamp duty.
1. Upfront and holding costs
| Cost | When | Notes |
|---|---|---|
| Buyer's Stamp Duty | Within IRAS deadline after exercise | Tiered; differs for non-residential and residential |
| ABSD | Same as BSD | Residential property only; rates by buyer type |
| GST | At completion if seller is GST-registered | Standard rate is 9% since 1 January 2024 |
| Legal fees | Throughout | Quoted by your law firm; ask for a written quote |
| Valuation and surveys | Before exercise | Bank valuation fee plus optional independent reports |
| Loan costs | At drawdown | Bank fees, legal for mortgage |
| Restoration and compliance | Post-completion | Scope depends on building; get quotes |
| Property tax | Annually | Non-residential property tax is on annual value; see IRAS |
| Insurance and maintenance | Annually | Fire, public liability, repairs |
2. Illustrative BSD example: $5 million non-residential purchase
| Band | Rate | Duty |
|---|---|---|
| First $180,000 | 1% | $1,800 |
| Next $180,000 | 2% | $3,600 |
| Remaining $4,640,000 | 3% | $139,200 |
| Total BSD | $144,600 |
This applies the IRAS non-residential schedule to a round price purely as an illustration. It excludes ABSD, GST and fees. For residential use, the residential schedule and ABSD apply, and the bill is much higher.
3. GST on commercial shophouses
The sale of a non-residential property by a GST-registered seller can be a taxable supply. Ask whether GST applies and who bears it in the option, since it can add materially to your funding requirement.
4. Hidden costs buyers underestimate
- Rectifying unauthorised works and enforcement items
- Fit-out and licensing for the intended use, especially F&B
- Vacancy between tenants
- Façade and roof repairs on older buildings
- Holding cost during any change-of-use process
Sources
- IRAS: Buyer's Stamp Duty (BSD)
- IRAS: Additional Buyer's Stamp Duty (ABSD)
- IRAS: GST on property
- IRAS: Property tax
Next step: see the ABSD breakdown, the URA buyer manual and live conservation shophouses for sale.