Additional Buyer's Stamp Duty (ABSD) in Singapore
Additional Buyer’s Stamp Duty (ABSD) is an extra tax imposed on top of the Buyer’s Stamp Duty (BSD) for certain property buyers in Singapore. It was introduced to moderate property demand and maintain housing affordability by discouraging speculative purchases, especially among foreigners and multiple-property owners. Understanding ABSD is crucial for anyone planning to purchase residential property in Singapore, as the amount can significantly increase the total acquisition cost.
What is Additional Buyer’s Stamp Duty?
ABSD was first implemented on 8 December 2011 by the Inland Revenue Authority of Singapore (IRAS). The tax targets buyers who already own property or are not Singapore citizens. It complements BSD and applies only to residential properties—including HDB flats, Executive Condominiums, private condominiums, and landed homes.
ABSD is calculated based on the higher of the purchase price or the market value of the property, and must be paid within the same timeframe as BSD—14 days from signing the sale document if signed in Singapore, or 30 days if signed overseas.
Real estate agent explaining Additional Buyer's Stamp Duty to a foreign couple (7 October 2025 AI Generated)
Current ABSD Rates (as of 2025)
ABSD rates differ according to the buyer’s profile (citizenship and residency status) and the number of residential properties they already own. The following table summarises the applicable rates for purchases of residential properties in Singapore.
ABSD Rates for Individuals
- Singapore Citizens (SC):
- 0% on first property
- 20% on second property
- 30% on third and subsequent properties
- Singapore Permanent Residents (PR):
- 5% on first property
- 30% on second and subsequent properties
- Foreigners (non-PRs):
- 60% on any residential property
- Entities (companies, associations, etc.):
- 65% on any residential property
- Trustees purchasing for a trust:
- 65%, unless the trust qualifies for exemption
These rates reflect the government’s commitment to keeping property prices stable and discouraging speculative activity by investors and overseas buyers.
Example of ABSD Calculation
Consider a foreign buyer purchasing a private condominium in Singapore for S$2,500,000.
- BSD: S$94,600 (as shown in the Buyer’s Stamp Duty example)
- ABSD (60%): 60% × S$2,500,000 = S$1,500,000
Total taxes payable at purchase: S$1,594,600
This example illustrates how ABSD can form a major part of the acquisition cost for foreigners, and why it must be factored into any property investment plan.
Who Needs to Pay ABSD?
ABSD applies to the following groups of property buyers:
- Singapore Citizens buying their second or subsequent residential property
- Permanent Residents buying any residential property (including their first)
- Foreigners (non-PRs) buying any residential property
- Entities (companies, associations, or collective ownership structures)
- Trustees purchasing residential property under a trust
Even if the buyer is married to a Singaporean citizen, special rules may apply. For example, in a joint purchase by a Singaporean and a foreign spouse, ABSD remission may be granted under the ABSD (Spouses) Remission Scheme, provided certain conditions are met.
ABSD for Joint Purchases
When two or more parties purchase a property together, ABSD is generally computed based on the profile that attracts the highest rate. For example:
- If a Singapore Citizen (first property) buys jointly with a Foreigner, ABSD is charged at 60%.
- If both are Singapore Citizens buying their second property together, ABSD is 20%.
However, remission may be possible in mixed-status cases, especially between spouses or where one party qualifies under specific exemption schemes.
When and How to Pay ABSD
ABSD payment follows the same timeline and process as BSD. It must be paid via the IRAS e-Stamping Portal within:
- 14 days from signing the Sale & Purchase Agreement or Option to Purchase (if exercised) in Singapore, or
- 30 days if signed overseas.
Once paid, IRAS issues a stamp certificate that confirms compliance. The certificate is required when registering the property transfer with the Singapore Land Authority (SLA).
Exemptions and Remissions
Certain buyers may qualify for ABSD remission or exemption under special circumstances. Common examples include:
- Singaporean spouses with foreign partners buying their first matrimonial home under the ABSD (Spouses) Remission Scheme
- Developers buying land for residential development (conditional on selling all units within a stipulated time)
- Diplomatic and consular staff buying for official purposes
Remission applications must be made to IRAS with all supporting documents within the stipulated timeframe. Failure to apply on time may result in forfeiture of remission eligibility.
Purpose and Policy of ABSD
The ABSD framework is a key part of Singapore’s property cooling measures. By increasing the cost of purchasing additional properties, the government aims to:
- Maintain housing affordability for Singaporeans
- Prevent speculative buying and property flipping
- Stabilise housing prices amid global capital inflows
Over the years, ABSD rates have been adjusted several times to reflect changing market conditions. The most recent increases underscore the government’s ongoing vigilance against property market overheating.
Impact of ABSD on Foreigners and Investors
For foreign buyers, ABSD makes Singapore one of the more expensive markets for residential property investment. A 60% ABSD rate means a foreigner must pay an additional S$600,000 for a S$1 million home, on top of BSD and legal fees. As a result, many foreigners now explore options such as serviced residences or commercial properties, which are not subject to ABSD.
For local investors, ABSD significantly increases the cost of acquiring multiple properties. This policy encourages Singaporeans to focus on owner-occupation rather than speculative accumulation of housing assets.
ABSD for Entities and Developers
Entities such as companies and property developers face even higher ABSD obligations—65% as of 2025. However, developers can apply for an ABSD remission if they fulfil specific conditions, such as completing and selling all units within five years of acquiring the land. Failure to meet this condition results in ABSD clawback, including interest and penalties.
Relationship Between ABSD and BSD
ABSD and BSD are separate taxes but both must be paid upon property purchase. BSD applies to all buyers, while ABSD depends on the buyer’s profile and property count. Both are computed on the same taxable base: the higher of the property’s purchase price or market value.
ABSD and Property Ownership Planning
For those planning to buy property in Singapore—whether citizens, PRs, or foreigners—it is essential to factor in ABSD early in the budgeting process. Couples and families should also consider ownership arrangements carefully, as these can affect ABSD liability. Legal and tax advice is strongly recommended before finalising any purchase.
Key Takeaways
- ABSD is an additional tax on top of BSD for residential property purchases.
- Foreigners pay 60% ABSD on any property purchase in Singapore.
- Singapore citizens and PRs also pay ABSD on multiple properties.
- Entities and developers face a 65% ABSD rate, with limited remissions.
- Payment must be made within 14 days (or 30 days if signed overseas) via IRAS e-Stamping.
- ABSD rates and exemptions are subject to change based on government policy.
References
- Inland Revenue Authority of Singapore (IRAS): Additional Buyer’s Stamp Duty
- Stamp Duties Act 1929
- Ministry of National Development (MND) Singapore
Page Details
This page was created on 7 October 2025. Hi, my name is Timothy and created it from my research, for my own entertainment, knowledge and to satisfy my curiosity. I am providing the information to you in good faith and hope it is useful. I try to get the details as accurate as possible. I also try to update the page whenever I stumble on new details. So this and all my other pages are perpetual work in progress. If you discover any error, please politely inform me, pointing out where the error lies, and I will correct it as soon as possible. Your helpfulness will keep this page accurate, relevant and helpful to those who need the information.Articles related to Residential Properties in Singapore
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