ABSD

additional buyer’s stamp duty

( Updated May 2024 )

When purchasing a property in Singapore, the buyer is ​subjected to a Buyer’s Stamp Duty.


Then, there is also the Additional Buyer’s Stamp Duty ​(ABSD) which was implemented in 2011 as a cooling ​measure to moderate the demand, and hence the ​property prices, in Singapore.


The ABSD is applicable to:

  • Singaporeans buying more than one residential ​property.
  • Foreigners buying residential properties in ​Singapore.
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In the case of a mixed-nationality married couple (Singapore citizen & foreign ​spouse) co-owning a property, the ABSD is not required if neither partner ​already owns a residential property in Singapore. Otherwise, the ABSD will be ​in effect and will be based on the higher rate i.e. that for a foreign buyer.

*Note - Under the respective Free Trade Agreements, Nationals or Permanent ​Residents of the following countries will be accorded the same Stamp Duty rates ​as Singapore Citizens:


  • Nationals and Permanent Residents of Iceland, Liechtenstein, Norway and ​Switzerland
  • Nationals of the United States of America

ABSD Rates, Updated 2024

















Foreigners

Any and all properties

Permanent Resident (PR)

First Property

Permanent Resident (PR)

2nd Property

Permanent Resident (PR)

3rd & subsequent properties

Singapore Citizen

1st property

Singapore Citizen

2nd property

Singapore Citizen

3rd & subsequent properties

ABSD Rate

(% of the property price)

60%

5%

30%

35%

0%

20%

30%

RESPONSES TO THE ABSD

( Updated May 2024 )

The latest revision to the ABSD rates took place in April 2023, with the rate for ​foreigners doubling to 60%, had raised many eyebrows. So, in this past year, what ​were the experiences like with foreign buyers who went ahead with purchases? What ​contributed to their decision-making?


We observed two deciding factors,


i) What it would have cost to buy a property in an alternative city, for instance, ​Shanghai.


ii) If the property is for personal residence, how long will the buyer be staying in ​Singapore?


The foreign buyers proceeded with the purchases after considering the above factors ​and felt that it was still worth it, especially since they had planned to live in Singapore ​for a while.



What about Singaporean Buyers?


Some Singaporean buyers proceeded with the purchases despite the ABSD, because of ​the availability of accurate information that helped them analyze the investment viability ​-- historical real estate transaction prices and rental rates in various parts of Singapore.


On the other hand, we also observed that there has been a greater interest in overseas ​properties and commercial properties as alternatives.