ABSD Singapore : What You Need to Know To Avoid Pain

ABSD Singapore. Additional Buyers’ Stamp Duties. The killer of many property deals due to the need to pay this additional tax. And it does not come cheap, regardless of whether you are a Singaporean or a Permanent Resident or Foreigners.

What is Additional Buyer’s Stamp Duty (ABSD Singapore)

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“Alright, let’s dive into the world of stamp duties in Singapore, shall we? So, we all know about Buyer’s Stamp Duty (BSD), right? It’s that pesky tax that applies to everyone when buying property. But did you know there’s another one called Additional Buyer’s Stamp Duty (ABSD)? Oh yes, my friend, this is where things get interesting.

ABSD is like the secret weapon the government uses to keep property prices in check. It’s all about managing the demand for residential properties and ensuring affordability for Singaporeans. Now, here’s the deal. BSD is calculated based on the property value, no matter who you are. But ABSD, my friend, is a whole different ballgame. It’s calculated based on the buyer’s profile at the time of purchase. Different rates apply to Singapore Citizens (SC), Permanent Residents (PR), and Foreigners.

Let’s talk about the dreaded ABSD rates for foreigners, shall we? Brace yourself. Foreigners generally have to pay a whopping 20% to 30% ABSD. Ouch, right? But here’s where it gets interesting. Singapore Permanent Residents (PRs) have their own chart for ABSD. For PRs, the first property comes with a 5% ABSD. Not too shabby, huh?

But hold on, it gets even better. If you’re a PR and you’re also a citizen of the good ol’ United States of America, well, congratulations! Thanks to some fancy Free Trade Agreements (FTAs) between Singapore and the US, you get the same treatment as Singapore citizens when it comes to stamp duty. That means…wait for it…0% ABSD for your first property! Happy days!

Now, if you’re from the rest of the world, things aren’t as rosy. Sorry, my friends, but you’re looking at a hefty 20% to 30% to even 60% ABSD. For example, China citizens, still have to pay a whopping 60% ABSD. Tough luck, huh?

But wait, what if you’re both an American citizen and a Singapore PR? Well, lucky you! In this case, your country of citizenship takes precedence. So, you get to enjoy the perks of being an American citizen and pay a glorious 0% ABSD for your first property in Singapore. Isn’t that fantastic?

ABSD Singapore : Changes are always happening

In Singapore, besides the constant hot weather, perhaps the other constant changes are the real estate rules. This is not a bad thing as the Government is trying its very best to keep the property market fair and equitable for its residents.

For example, just in April 2023, a new round of ABSD changes has been announced too. It is crucial for property buyers to stay updated on these changes, as the Singaporean government has been introducing cooling measures with increasing frequency to curb rising property prices.

These measures, including adjustments in ABSD rates, aim to regulate the property market and ensure its stability. Recently, there was an increase in ABSD rates for foreigners purchasing residential properties in Singapore, marking the first change in over a year since the last adjustment in April 2022. To learn more about these new ABSD rates and their impact on property buyers, you can find detailed information in this link.

By staying informed about these changes, property buyers can make well-informed decisions and navigate the evolving landscape of Singapore’s property market.

How does ABSD help maintain the affordability of residential property for Singaporeans?

Ah, the dreaded ABSD. The one true killer to stop a foreigner from buying a property in Singapore. You see, ABSD stands for Additional Buyer’s Stamp Duty, and it’s a measure implemented by the Singaporean government to curb rising property prices and maintain affordability for Singaporeans. It’s quite a hefty tax, let me tell you.

So, let’s get down to the nitty-gritty. For foreigners, the ABSD rate is a staggering 20% to 30%. That’s right, if you’re from Mainland China, Malaysia, Indonesia, India, Australia, Korea, or even Hong Kong SAR, you’ll be paying a hefty sum to acquire a property in Singapore. But hey, Singapore offers a politically stable environment, a clean government, clear rules and regulations, and a business-friendly atmosphere. And let’s not forget about the great education system here. So, I guess it’s a small price to pay, right?

Now, if you’re a Singapore Permanent Resident (PR), things get a little bit different. They have a special chart just for PRs when it comes to ABSD. For the first property, the ABSD rate is 5%, which is significantly lower compared to foreigners. But, if you’re a PR looking to buy a second property, brace yourself because the ABSD rate jumps to 15% to 25% to 30%. And if you’re even more ambitious and want to buy a third property or more, well, you’ll be facing the same 15% to 30% to 35% ABSD rate.

The Singaporean government is quite proactive in managing the property market. They introduce cooling measures with increasing frequency to rein in rising property prices. These measures, including ABSD, are aimed at curbing speculation and ensuring that residential properties remain affordable for Singaporeans. It’s a constant effort to strike a balance between market stability and accessibility for local buyers.

So, yes, the ABSD rates may seem daunting, but it’s all part of the government’s strategy to maintain the affordability of residential property for Singaporeans. It’s a way to manage demand, prevent property speculation, and ensure that locals have access to housing that meets their needs. And with the ongoing adjustments and measures, the Singaporean government is committed to keeping the property market in check for the benefit of its citizens.

Why was ABSD introduced?

The introduction of Additional Buyer’s Stamp Duty (ABSD) in Singapore was a game-changer, a true killer measure that aimed to tackle the soaring property prices and curb the influx of foreign buyers.

ABSD was strategically implemented to regulate the demand for residential properties, thereby ensuring that they remain within reach of Singaporeans. By deterring foreign investors through imposing additional taxes, ABSD effectively aimed to maintain a balanced property market and safeguard affordability for local residents.

This measure was a proactive step taken by the government to prevent property prices from spiraling out of control, a move that demonstrated their commitment to prioritize the welfare and accessibility of residential properties for Singaporeans.

Who has to pay ABSD?

“Alright, let me break it down for you. When it comes to buying a property in Singapore, there are two stamp duties that you need to know about. First up, we have the Buyers’ Stamp Duty (BSD). Now, here’s the deal – this one is mandatory for everyone, whether you’re a Singaporean, a Permanent Resident, or even a foreigner. No exceptions, my friend. The exact calculation might be a bit complex, so I suggest checking out numerous websites or the IRAS web page for all the nitty-gritty details. But hey, as a quick rule of thumb, you can consider it as 4%.

Now, let’s talk about the big bad wolf of stamp duties – the Additional Buyers’ Stamp Duty (ABSD). This is the real game-changer, aimed at curbing the soaring property prices and making it a little harder for foreigners to buy property in Singapore. It’s the one thing that can put a damper on your dreams of owning a piece of this sunny island.

Well, here’s the thing – ABSD is not something you can escape easily. It applies to pretty much everyone, just like the Buyers’ Stamp Duty. The thing that makes ABSD a bit trickier is that the rates can vary based on a few factors. First off, it depends on whether you’re an individual or an entity. Yeah, there’s a difference, my friend. ABSD rates can also be influenced by your residency status – whether you’re a Singapore Citizen, a Permanent Resident, or a Foreigner.

But wait, there’s more! ABSD rates also take into account the number of properties you already own. The more properties you have under your belt, the higher the ABSD rate you might have to pay. It’s like a little extra tax for being a property connoisseur.

Oh, and here’s a little fun fact for you – if you plan on transferring your residential property into a living trust, well, brace yourself. You’ll be facing an ABSD rate of a whopping 35%. Yeah, it’s a hefty price to pay, my friend.

So, whether you’re a Singaporean with multiple properties, a Permanent Resident, a foreigner, or even an entity, it’s crucial to dig deep and understand the specific ABSD rate that applies to you. You don’t want any surprises when it comes to financing your purchase. Stay informed, my friend, and navigate the world of stamp duties with confidence.


Phew! That was a lot to take in, right? But it’s essential to understand these ABSD rates, my friends. Stay updated with any changes the Singaporean government introduces to curb rising property prices. Knowledge is power, after all. So, keep an eye out for any updates if you’re in the market for new residential properties.

There you have it, my fellow property buyers. A thorough journey into the world of ABSD, from the basics of BSD to the nitty-gritty of ABSD rates for different buyers. Now go forth, armed with this knowledge, and make wise decisions in your property purchases.

Happy house hunting!

Absd Singapore

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