ABSD Singapore: The Complete Guide for Every Buyer Profile
ABSD applies differently depending on whether you're a Singaporean, PR, or foreigner, and whether it's your first or second property. Here's exactly what the current rates are, what they mean in dolla
Additional Buyer's Stamp Duty is one of the biggest upfront costs in a Singapore property purchase. And yet, many buyers only find out how much it applies to them after they've already made an offer.
Here's a straightforward breakdown of what ABSD is, who pays it, and how to factor it into your decision.
What Is ABSD?
ABSD is a tax levied on top of Buyer's Stamp Duty (BSD) when purchasing residential property in Singapore. It was introduced as a cooling measure to moderate demand, and rates have been revised upward several times. The most recent increase took effect on 27 April 2023. (Source: IRAS, MOF)
Current ABSD Rates (Effective April 2023)
Buyer Profile | 1st Property | 2nd Property | 3rd and Subsequent
Singapore Citizen | 0% | 20% | 30%
Permanent Resident | 5% | 30% | 35%
Foreigner | 60% | 60% | 60%
Entity (Company) | 65% | 65% | 65%
These rates remain in effect through 2025 and into 2026, with no announced changes. (Source: IRAS)
What This Means in Practice: Real Dollar Examples
Singapore Citizen buying first home ($700,000 HDB resale):
ABSD = $0. You pay BSD only (approximately $15,600).
Singapore Citizen buying a second property ($1.5M condo, owning first):
ABSD = 20% × $1,500,000 = $300,000, paid in cash upfront, not financeable.
PR buying first property ($1.5M condo):
ABSD = 5% × $1,500,000 = $75,000
Foreigner buying any residential property ($1.5M condo):
ABSD = 60% × $1,500,000 = $900,000, plus BSD of $44,600. Total stamp duty exceeds $944,000.
Common Strategies to Manage ABSD
Sell before you buy. If you sell your existing property before the new purchase completes, you avoid second-property ABSD entirely. The timing risk: you may need temporary accommodation between transactions.
Decouple. If the property is jointly owned, one party transfers their share to the other, freeing themselves to buy a new property at first-property ABSD rates. This involves BSD on the transfer, typically $25,000 to $40,000 - but is often significantly cheaper than paying 20% ABSD on the next purchase.
Use the ABSD remission scheme. Married Singapore Citizen couples who sell their existing residential property within 6 months of purchasing a new completed property, or within 6 months of TOP for uncompleted developments - can apply for ABSD remission on the second purchase. Strict conditions apply; verify with a lawyer before proceeding.
FTA exceptions. US citizens and nationals of Iceland, Liechtenstein, Norway, and Switzerland are treated the same as Singapore Citizens for ABSD purposes under Free Trade Agreements. This means 0% ABSD on a first property for these nationalities.
Our Take
ABSD should be factored in before you start viewing. Knowing your exact liability upfront lets you budget properly and decide which strategy, sell first, decouple, or time around TOP - makes the most financial sense for your situation.
On a $1.5M condo, the difference between paying ABSD and not is $300,000. That's a decision worth making deliberately, not discovering after you've fallen in love with a unit. What's your current property situation?
Frequently Asked Questions
Does ABSD apply to HDB flat purchases?
ABSD applies to all residential property purchases, including HDB resale flats. Singapore Citizens buying their first HDB flat pay 0% ABSD. A second property, even an HDB flat - triggers ABSD at the applicable rate.
Can ABSD be included in a bank loan?
No. ABSD must be paid in cash within 14 days of exercising the Option to Purchase. It cannot be financed through a mortgage or CPF.
What is the ABSD remission scheme for married couples?
Married Singapore Citizen couples who purchase a second property can apply for ABSD remission if they sell their first property within 6 months of the new purchase completion (or 6 months of TOP for uncompleted properties). The 20% ABSD is paid upfront and refunded if the conditions are met. Conditions apply, consult a conveyancing lawyer.
Does a US citizen pay ABSD in Singapore?
US citizens are treated the same as Singapore Citizens for ABSD purposes under the US-Singapore Free Trade Agreement. This means 0% ABSD on a first residential property purchase.
What happens if I don't pay ABSD on time?
ABSD must be paid within 14 days of signing the OTP or Sale and Purchase Agreement. Late payment incurs penalties from IRAS, typically 5% of the outstanding duty plus additional interest. Always confirm your ABSD liability and payment deadline with your lawyer.
Not Sure What the Right Move Is for You?
Every property situation is different. If you're trying to work out what this means for your specific flat, income, or timeline, a planning session is the clearest way forward.
We'll look at your current numbers, map out your options, and give you an honest view of what each path looks like financially, no obligation, no pressure.
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Have a conversation about your numbers, your timing, and what a sensible next move actually looks like, for you.