In Singapore’s thriving property market, one of the most important factors every buyer must understand is ABSD (Additional Buyer’s Stamp Duty).
Introduced as part of the government’s cooling measures, ABSD has become a crucial financial consideration for both locals and foreigners when purchasing real estate.
Whether you’re a Singapore Citizen upgrading to your second property, a Permanent Resident eyeing your first home, or a foreign investor exploring the local market, understanding ABSD (Additional Buyer’s Stamp Duty) is essential to making informed, cost-effective decisions.
This guide explains everything you need to know about ABSD in Singapore for 2025 — from the latest rates, exemptions, and calculation methods to how it interacts with BSD (Buyer’s Stamp Duty) and overall property affordability.
What Is ABSD (Additional Buyer’s Stamp Duty)?
ABSD (Additional Buyer’s Stamp Duty) is a tax imposed on certain property buyers in Singapore, depending on their citizenship and the number of properties they own.
It was first introduced in December 2011 to cool Singapore’s overheated property market and discourage speculative buying.
The duty is payable on top of the standard BSD (Buyer’s Stamp Duty) and is calculated as a percentage of the property’s purchase price or market value, whichever is higher.
In short:
ABSD = extra tax on property purchases, meant to regulate demand and promote sustainable housing prices.
Why ABSD Exists
The Singapore government uses ABSD as a policy tool to ensure housing remains affordable and to maintain market stability.
ABSD helps to:
- Curb speculative property buying
- Encourage owner-occupation over investment
- Prioritize housing for Singapore Citizens
- Prevent runaway property prices
In essence, ABSD balances the market by discouraging excessive purchases from those already owning property — especially investors and foreign buyers.
Who Needs to Pay ABSD in Singapore
The amount of ABSD you pay depends on two main factors:
- Your residential status (Singapore Citizen, PR, or Foreigner)
- The number of properties you own at the time of purchase
Here’s a breakdown of who pays ABSD:
| Buyer Type | 1st Property | 2nd Property | 3rd & Subsequent Properties |
|---|---|---|---|
| Singapore Citizens (SC) | 0% | 20% | 30% |
| Singapore Permanent Residents (PRs) | 5% | 30% | 35% |
| Foreigners (Individuals) | 60% | 60% | 60% |
| Entities / Companies | 65% | 65% | 65% |
| Developers (Housing Entities) | 65% + 5% non-remittable | — | — |
(Rates accurate as of 2025, based on IRAS guidelines and April 2023 property cooling measures.)
ABSD (Additional Buyer’s Stamp Duty) Rate History
To understand current trends, it helps to see how ABSD evolved over the years.
| Year | Policy Change | Key Highlights |
|---|---|---|
| 2011 | ABSD introduced | 10% on foreigners; 3% for PRs buying second property |
| 2013 | First major increase | Up to 15% for foreigners |
| 2018 | Rates raised again | Foreigners: 20%; SC (2nd property): 12% |
| 2021 | Minor tightening | Encouraged cooling of luxury segment |
| 2023 | Major revision | Foreigners: 60%; SC (2nd property): 20%; PR (2nd property): 30% |
This steady increase reflects the government’s effort to moderate foreign demand and support local homeownership.
How to Calculate ABSD (Additional Buyer’s Stamp Duty)
Like BSD, ABSD is calculated on the higher of:
- The purchase price stated in the Sale and Purchase Agreement, or
- The market value of the property.
The formula is simple:
ABSD = (Property Value) × (Applicable ABSD Rate)
Example 1: Singapore Citizen buying 2nd property
- Purchase price: S$2,000,000
- ABSD rate: 20%
- ABSD payable = S$2,000,000 × 20% = S$400,000
Example 2: Foreigner buying any property
- Purchase price: S$2,000,000
- ABSD rate: 60%
- ABSD payable = S$2,000,000 × 60% = S$1,200,000
As you can see, ABSD can significantly increase upfront costs, especially for foreign buyers.
ABSD vs BSD: What’s the Difference?
While both BSD and ABSD are stamp duties payable to IRAS (Inland Revenue Authority of Singapore), they serve very different purposes.
| Aspect | BSD (Buyer’s Stamp Duty) | ABSD (Additional Buyer’s Stamp Duty) |
|---|---|---|
| Applies to | All property purchases | Based on citizenship & ownership count |
| Purpose | General property transaction tax | Cooling measure to reduce demand |
| Rate | Progressive (1%–6%) | Fixed percentage (0%–65%) |
| Affects | All buyers | Some buyers |
In short:
- BSD = applies to everyone
- ABSD = applies only to certain buyers, depending on residency and ownership status
When and How to Pay ABSD
ABSD must be paid within 14 days of signing the Sale and Purchase Agreement (if executed in Singapore).
If the document was signed overseas, payment must be made within 30 days of receiving it in Singapore.
Payment Process:
- Log in to the IRAS e-Stamping portal with SingPass or CorpPass.
- Select the form “Sale and Purchase of Property.”
- Enter buyer, seller, and property details.
- The system calculates both BSD and ABSD automatically.
- Make payment via PayNow, eNETS, GIRO, or Cashier’s Order.
- Download the e-Stamp Certificate for submission to your lawyer or bank.
Failing to pay on time may result in penalties, interest, and even legal enforcement by IRAS.
Can You Use CPF to Pay ABSD?
No — you cannot use CPF funds to pay ABSD directly.
You must pay it in cash first. However, under certain circumstances, you may be reimbursed after completion using CPF, depending on the transaction type and CPF Board approval.
ABSD Refunds and Remissions
While ABSD is generally non-refundable, there are specific cases where buyers may apply for ABSD remission or refund.
1. Married Couples (Singapore Citizen + Spouse)
If both spouses are Singapore Citizens and they sell their first property within six months of buying a second one, they can claim ABSD refund.
2. Mixed Nationality Couples
If one spouse is a Singapore Citizen and the other is a PR or foreigner, they may enjoy partial ABSD remission if the property is purchased jointly under specific criteria.
3. Developers and Entities
Property developers may receive a remissible 65% ABSD if they complete and sell all units within a stipulated timeframe (usually five years).
4. Public Schemes or Court Orders
Transfers under divorce settlements, inheritance, or court orders may qualify for ABSD waivers, subject to IRAS approval.
ABSD for Different Buyer Types
1. Singapore Citizens (SC)
- 1st property: 0%
- 2nd property: 20%
- 3rd & subsequent: 30%
Most locals purchasing their first home are exempt from ABSD, promoting affordable homeownership.
2. Permanent Residents (PRs)
- 1st property: 5%
- 2nd property: 30%
- 3rd & subsequent: 35%
PRs pay a small ABSD even on their first home, reflecting their non-citizen status.
3. Foreigners (Non-Residents)
- All properties: 60% ABSD
This high rate acts as a deterrent to speculative foreign investment, aligning with national housing priorities.
4. Entities (Companies, Trusts, Developers)
- Flat 65% ABSD applies
- Developers pay an additional 5% non-remittable ABSD — even if all units are sold later.
ABSD for Trust Purchases
From May 2022, ABSD also applies to property purchases held in trust.
The trustee must pay 65% ABSD upfront, even if the property is intended for a beneficiary.
However, if the beneficiary is identifiable and qualifies for remission (e.g., a Singapore Citizen buying their first home), IRAS may grant a refund after verification.
How ABSD Impacts Property Investors
ABSD plays a major role in shaping investment decisions:
- Reduces short-term flipping by increasing entry costs.
- Encourages long-term holding and rental strategies.
- Pushes investors toward alternative assets, like commercial or overseas properties.
For example:
A local investor buying a second property for S$1.8M would pay S$360,000 in ABSD, affecting ROI and financing capacity.
Savvy investors often restructure ownership through spouses, trusts, or companies — though these methods come with legal and tax implications.
Common ABSD Mistakes to Avoid
❌ 1. Assuming ABSD doesn’t apply if you co-own
Even partial ownership of another property counts as “owning one property”, triggering ABSD on your next purchase.
❌ 2. Forgetting to sell the first home in time
Couples eligible for ABSD remission must sell their first property within six months — failure to do so cancels the refund.
❌ 3. Misinterpreting entity ownership rules
Buying under a company does not exempt you from ABSD; in fact, it often triggers the highest rate (65%).
❌ 4. Ignoring trust purchase rules
Trust properties are no longer ABSD-free — always check IRAS updates before purchase.
Legal and Strategic Ways to Manage ABSD
- Buy under one spouse’s name (for couples planning multiple properties).
- Sell before buying to qualify for ABSD remission.
- Consider decoupling (transferring ownership between spouses), though it incurs BSD and legal costs.
- Purchase non-residential properties, which are not subject to ABSD.
Always seek professional legal and tax advice before restructuring ownership to avoid compliance issues.
ABSD and the Future of Singapore’s Property Market
In 2025, ABSD remains a cornerstone of Singapore’s real estate stability strategy.
Despite higher rates, the property market has continued to show resilient demand, especially in the mass-market and suburban segments.
With limited land and strong economic fundamentals, ABSD will likely remain in place to prevent overheating while maintaining investor confidence.
As of now, no major rate reductions are expected unless there’s a significant market slowdown.
Example: Total Cost of Property with ABSD
Let’s compare two buyers purchasing the same condo worth S$2,000,000.
| Buyer Type | ABSD Rate | ABSD Payable | Total Purchase Cost (with BSD) |
|---|---|---|---|
| Singapore Citizen (2nd property) | 20% | S$400,000 | ~S$474,600 |
| Singapore PR (2nd property) | 30% | S$600,000 | ~S$674,600 |
| Foreigner | 60% | S$1,200,000 | ~S$1,274,600 |
Clearly, ABSD can more than double the effective cost of a property — making strategic planning essential.
Final Thoughts: Understanding ABSD for Smarter Property Decisions
ABSD (Additional Buyer’s Stamp Duty) plays a key role in shaping Singapore’s real estate landscape.
While it can seem like an obstacle, it also keeps the property market stable, sustainable, and equitable for genuine homeowners.
Understanding your ABSD obligations before signing the Sale and Purchase Agreement helps you plan finances, avoid unexpected costs, and maximize investment efficiency.
Whether you’re upgrading your family home, investing in a second property, or exploring market entry as a foreigner — knowledge of ABSD in Singapore is non-negotiable.
Contact our team to know more about ABSD (Additional Buyer’s Stamp Duty), BSD, and other property tax implications in Singapore. We’ll guide you through the right strategies to minimize costs and make confident, informed decisions.
