Understanding Additional Buyer’s Stamp Duty (ABSD)
To manage the rising property market and discourage property speculation, the Singapore government introduced the ABSD in 2011. The government has increased the ABSD rates again, which will come into effect from 27 April 2023. This is in response to the significant increase in private residential property prices, as reported by the latest URA figures.
If someone is buying a second or subsequent residential property, they are liable to pay the Additional Buyer’s Stamp Duty (ABSD), in addition to the Buyer’s Stamp Duty (BSD). However, unlike the BSD which is calculated based on the incremental value of the property, the ABSD is calculated based on the buyer’s profile, and a flat ABSD rate is applied to the entire purchase price of the property.
This article discusses how much ABSD buyers are required to pay when buying a second investment property or upgrading from their current property.
What is the ABSD rate in Singapore?
The ABSD rates in Singapore vary depending on the buyer’s profile and the number of residential properties they currently own. For example, a Singaporean citizen purchasing their second residential property is required to pay an ABSD rate of 12% on the purchase price, while a Permanent Resident (PR) purchasing their first residential property will be required to pay a 5% ABSD rate. Meanwhile, a foreigner purchasing any residential property in Singapore will be required to pay an ABSD rate of 20% on the purchase price.
ABSD Rates for Residential Property in Singapore
|Profile of Buyer||ABSD Rates from 16 Dec 2021 to 26 Apr 2023||ABSD Rates on or after 27 Apr 2023|
|Profile of Buyer Singapore Citizens (SC) buying first residential property1||Not applicable||Not applicable|
|Profile of Buyer SC buying second residential property1||17%||20%|
|Profile of Buyer SC buying third and subsequent residential property1||25%||30%|
|Profile of Buyer Singapore Permanent Residents (SPR) buying first residential property1||5%||5%|
|Profile of Buyer SPR buying second residential property1||25%||30%|
|Profile of Buyer SPR buying third and subsequent residential property1||30%||35%|
See also: Buyer’s Stamp Duty Table
The Additional Buyer’s Stamp Duty (ABSD) is a tax imposed on property buyers in Singapore, in addition to the standard Buyer’s Stamp Duty (BSD). The rates for ABSD depend on the buyer’s profile and the number of residential properties owned. The table above shows the ABSD rates applicable from 16 Dec 2021 to 26 Apr 2023, and those that will be applicable on or after 27 Apr 2023.
Want to calculate your total payable stamp duty?
Here you may find our Stamp Duty Calculator (ABSD/BSD) to be useful.
ABSD Treatment for Trusts
The ABSD (Additional Buyer’s Stamp Duty) treatment for trusts includes a remission which aims to standardize the ABSD treatment for transfers of residential properties, regardless of the involvement of a trust. The remission can only be availed if all the requirements are met, and you may refer to the Remission of ABSD (Trust) for further details.
Residential Property Count for ABSD (Trust)
Any residential property transferred to a trust will be included in the property count of any identifiable beneficial owner of that property, regardless of whether the ABSD (Trust) remission is obtained or not.
Stamping Documents Liable to ABSD (Trust)
To stamp documents liable to ABSD (Trust), you can use the e-Stamping Portal and select “Stamping” then “Other Form”. You need to log in with your Singpass under Individual or Business User to complete the process.