When you buy a property in Singapore, you’re subjected to Buyer’s Stamp Duty (BSD). And, depending on certain criteria (e.g. your residency status, the number of properties you own), you may have to pay another type of tax, known as Additional Buyer’s Stamp Duty (ABSD).
The December 2021 cooling measures announced saw a revision of ABSD rates. Furthermore, as of 9 May 2022, the Ministry of Finance announced that any transfer of residential property into a living trust would be subject to an ABSD rate of 35%.
To keep you in the know, this guide will cover what ABSD in Singapore is, the ABSD rates, ABSD remission, ABSD for Singapore Permanent Residents (SPRs), and ABSD for your second property.
What Is Additional Buyer’s Stamp Duty?
ABSD in Singapore is a tax that’s levied on top of BSD. It’s computed based on the valuation or the selling price of the property, whichever is higher.
Who Needs to Pay Additional Buyer’s Stamp Duty in Singapore?
| Citizenship/status | ABSD amount |
| SC | Second purchase: 17% Subsequent purchases: 25% |
| SPR | First purchase: 5% Second purchase: 25% Subsequence purchases: 30% |
| Foreigner | 30% |
| Entity (i.e. company or association) | 35%, and 35% + 5% non-remittable for developers |
Why Was Additional Buyer’s Stamp Duty Introduced?
- December 2011: ABSD was introduced to manage the surge in demand for property
- January 2013: ABSD rates were increased, and more buyer profiles were included to be liable for the tax
- July 2018: ABSD rates increased again
- December 2021: ABSD rates were increased once more for second and subsequent purchases, for foreigners and entities.
ASBD was first introduced in December 2011 as a property cooling measure to discourage foreigners and entities from purchasing residential properties, especially multiple properties.
In other words, it was introduced to manage demand for residential properties and keep housing prices affordable for Singaporeans.
ABSD rates were increased further in January 2013, along with introducing new buyer profiles that would be liable for ABSD.
Property speculation dropped after ABSD was implemented, and foreign buyers who were interested in investing in Singapore’s property market were deterred by the high ABSD rates.
Then in July 2018, both the BSD and ABSD increased again, and additional cooling measures like the Total Debt Servicing Ratio (TDSR) and Seller’s Stamp Duty (SSD) saw the volume of property transactions drop rather significantly.
On 16 December 2021, another round of cooling measures was announced. Among them, ABSD rates increased.
On 28 September 2022, another round of cooling measures was announced. Among them, the Loan-to-Value (LTV) limit for HDB-granted loans adjusted from 85% to 80%, and the Total Debt Servicing Ratio (TDSR) and Mortgage Servicing Ratio (MSR) increased by 5% for both residential and non-residential properties, from 3.5% to 4%, and 4.5% to 5% respectively.
On 14 February 2023, Deputy Prime Minister and Minister of Finance Lawrence Wong gave the Budget 2023 statement. Among his announcements, the BSD rate was increased to up to 6% and 5% for residential and non-residential properties, respectively.
Definition of ‘Residential Property’ for Additional Buyer’s Stamp Duty
Before we talk about ABSD rates, let’s understand what’s defined as ‘Residential Property’. Residential properties are those used as homes. The most obvious examples would include HDB flats, condominiums, bungalows, and terrace houses (and similar types).
Shophouses with living quarters, as well as HDB void deck shops that have an upper floor designated for residential use, will also be considered residential property.
Regarding overseas property purchases, these properties are not included in the property count for ABSD purposes.
What Is An ‘Entity’ When It Comes to Additional Buyer’s Stamp Duty?
An entity would refer to someone who isn’t an individual, and is defined by the following criteria:
- An unincorporated association
- A trustee for a collective investment scheme when acting in that capacity
- A trustee-manager for a business trust when acting in that capacity
- The partners of the partnership whether or not any of them is an individual, where the property conveyed, transferred, or assigned is to be held as partnership property
If a property is purchased by buyers of different profiles, then the ABSD will be calculated based on the buyer profile with the highest ABSD rate. Additionally, all entities will be subject to the new ABSD rate of 35%.
Calculating Additional Buyer’s Stamp Duty in Singapore
| Buyer profile | ABSD amount |
| SCs buying their first property | – |
| SCs buying their second property | 17% |
| SCs buying their third and subsequent properties | 25% |
| SPRs buying their first property | 5% |
| SPRs buying their second property | 25% |
| SPRs buying their third and subsequent properties | 30% |
| Foreigners buying any property | 30% |
| Entities (companies or associations) buying any property | 35% (additional 5% if the entity is a housing developer; non-remittable) |
| Trustee buying any residential property | 35% |
The ABSD percentages shown in the tables above will apply to the property’s purchase price or market value, whichever is higher.
How Do You Calculate Additional Buyer’s Stamp Duty in Singapore?
For instance, say a property is valued at $1 million but the selling price is $1.1 million. Assuming that you’re subjected to an ABSD rate of 17%, the ABSD amount that you’ll need to pay is $1.1 million x 17% = $187,000.
Find out How Much You Need to Pay with an Additional Buyer’s Stamp Duty Calculator
To save yourself from any price shock when buying your property, it would be good to accurately calculate your ABSD amount prior. PropertyGuru has an easy-to-use stamp duty calculator that gives you a breakdown of how much stamp duty you’ll need to pay, on top of your actual housing price.
Are There Any Additional Buyer’s Stamp Duty Exemptions?
There are some situations in which you won’t need to pay ABSD, such as:
- When you’ve already contracted to sell your current residential property before you sign the Option to Purchase (OTP) for your new one
- When you’re downgrading from private property to an HDB resale flat
Although not technically considered an ‘exemption’, some families go for dual-key condo units, which are sold as one property (hence no ABSD levied), but feature two separate homes (a main unit and sub-unit).
Some also consider decoupling, which is when co-owners ‘split up’ and transfer ownership of the shared home to one half of the couple. (More on these ‘strategies’ to avoid ABSD below.)
Also, under the respective Free Trade Agreements (FTAs), Nationals and Permanent Residents of Iceland, Liechtenstein, Norway, Switzerland and the United States of America will be treated the same as SCs. In other words, you won’t need to pay ABSD for your first property purchase. Your legal representative can e-Stamp via the e-Stamping portal on IRAS’s website to apply for remission.
Additional Buyer’s Stamp Duty Remission for Foreigners Married to Singaporeans
Now, although we’ve indicated earlier that ABSD is always levied on foreigners and Permanent Residents, there’s one instance where these individuals won’t need to pay it.
If you’re a foreigner or Permanent Resident who’s married to a Singaporean, and you don’t own any residential property, you don’t need to pay ABSD.
You can also get an ABSD refund if you’re moving house as a married couple. To qualify for the refund, the property that you paid ABSD for needs to be sold within six months of you buying the second. You can view the full terms and conditions on IRAS’s website.
I’m Buying a Property With Someone Else: How Does Additional Buyer’s Stamp Duty Work?
When you’re buying a property with someone else, different ABSD rates might apply to both of you. If this is the case, then the higher ABSD rate will be used.
An example shown below demonstrates how it works:
| Your properties | Your spouse’s properties |
| Condo unit (sole owner) | Condo unit (sole owner) |
| Terrace house (joint owner) | Terrace house (joint owner) |
Let’s say you and your spouse are Singaporean. Since your spouse has two properties, after a joint purchase there will be a total of three properties. The ABSD rate applied will be 25%. On the other hand, you only own one property, but after a joint purchase, you have two properties. So your ABSD rate will be 17%. If you are confused, read more here.
The ABSD payable will then be based on your spouse’s profile, which is 25%.
How to Pay Additional Buyer’s Stamp Duty in Singapore
You can make payment for your ABSD online through the e-Stamping Portal using NETS, a cheque, or a cashier’s order.
Alternatively, you can also make payment at IRAS Surf Centre e-Terminals, or SingPost Service Bureaus (located in Chinatown, Novena, Raffles Place, and Shenton Way). These stamp duties need to be paid in full, and you won’t be able to pay them via instalments.
You can make use of your CPF to pay ABSD. Once you’ve paid these duties, you can get a reimbursement from your CPF account.
Note that ABSD needs to be paid within 14 days of the sale and purchase agreement being signed. If your sale and purchase agreement was signed overseas, the deadline is 30 days after the agreement was received in Singapore.
Are There Any Penalties for Late Additional Buyer’s Stamp Duty Payment?
| Delay in payment | Penalty for late ABSD payment |
| Up to three months | $10 or an amount equal to the BSD and ABSD payment, whichever is higher |
| Exceeding three months | $25 or an amount equal to four times the BSD and ABSD payable, whichever is higher |
If ABSD is not paid by the deadline, you will get a Demand Note reminding you to make payment. This letter will also inform you of the penalty that you’ve incurred for missing the deadline.
IRAS may appoint your bank, employer, tenant, or lawyer to pay the outstanding stamp duty on your behalf. In serious cases, legal action may be taken to recover the outstanding amount.
Read more about what happens when you miss your stamp duty deadlines on IRAS’ website.
Conclusion: Should You Try to Avoid Additional Buyer’s Stamp Duty?
In July 2020, however, the Monetary Authority of Singapore (MAS) released an official statement saying that there will be no easing of current property curbs as the property market has remained stable in spite of COVID-19. Currently, property transaction volumes and prices are high for all property types. Moreover, in December 2021, Singapore unveiled a package of measures to calm the housing market, including higher stamp taxes and tighter lending limitations.
And with the latest round of September 2022 property cooling measures, we have no doubt that the raised ABSD rates will be a hotly debated topic among property buyers and investors. Not many are fans of the measure, and unsurprisingly so: it is, after all, an extra tax meant to discourage buyers by increasing the cost of property in Singapore and foreigners and entities for speculating.
This is why many property buyers look for exemptions and ‘loopholes’ to avoid paying the extra tax. These could very well work, but in some cases, it may be easier and cheaper to simply pay the ABSD.
In conclusion, yes, ABSD is an extra cost, and it’s not going anywhere anytime soon. If you’re looking for ways to avoid ABSD (legally!), make sure you do your calculations and consider your alternative ‘strategies carefully so you don’t end up paying more than you have to.
Chat with us on Whatsapp
Fill up an online form
Disclaimer: Information provided on this website is general in nature and does not constitute financial advice.
PropertyGuru will endeavour to update the website as needed. However, information can change without notice and we do not guarantee the accuracy of the information on the website, including information provided by third parties, at any particular time. Whilst every effort has been made to ensure that the information provided is accurate, individuals must not rely on this information to make a financial or investment decision. Before making any decision, we recommend you consult a financial planner or your bank to take into account your particular financial situation and individual needs. PropertyGuru does not give any warranty as to the accuracy, reliability or completeness of information which is contained on this website. Except insofar as any liability under statute cannot be excluded, PropertyGuru and its employees do not accept any liability for any error or omission on this website or for any resulting loss or damage suffered by the recipient or any other person.
