In Singapore’s real estate market, the Additional Buyer’s Stamp Duty (ABSD) is a significant tax that applies to property transactions. This guide outlines the latest ABSD rates for 2025, who is liable to pay, and the implications for various buyer profiles.
Current ABSD Rates (2025)
| Buyer Profile | ABSD Rate |
|---|---|
| Singapore Citizens (SCs) buying their first property | % |
| SCs buying their second property | 20% |
| SCs buying their third and subsequent properties | 30% |
| Singapore Permanent Residents (SPRs) buying their first property | 5% |
| SPRs buying their second property | 30% |
| SPRs buying their third and subsequent properties | 35% |
| Foreigners buying any property | 60% |
| Entities (companies or associations) buying any property | 65% |
| Trustees for any residential property | 65% |
| Housing developers for any residential property | 35% (additional 5%; non-remittable) |
What is ABSD?
ABSD is an extra tax on top of the Buyer’s Stamp Duty (BSD). The calculation uses whichever is higher between the valuation and selling price of the property. The recent ABSD rate changes for foreigners have significantly cooled the market, especially as it was doubled from 30 to 60 per cent for foreigners as part of cooling measures.
Why Was ABSD Introduced?
ABSD was first introduced in 2011 December to regulate the demand for residential properties and speculation. The government has made several changes to the tax, the last being in April 2023, to ensure housing is affordable for Singaporean and PRs.
Key Definitions
- Properties utilized as homes such as HDB flats, condominiums, and landed properties.
- A non-individual buyer, such as a company or an association.
- ABSD Remissions and Exemptions
- Certain scenarios allow for ABSD remission, including
Aborted sale agreements
- Transfers due to matrimonial proceedings
- Specific cases under Free Trade Agreement
- Payment and Penalties
- The buyer needs to remit ABSD within 14 days of signing the agreement. If the payment is not made timely, penalty will be charged which will increase with time.
Should You Avoid ABSD?
Property buyer may want the way to reduction of tax but one must do it legally and not otherwise. It can be good to explore exemptions but tax evasion is illegal and can have serious consequences.
If you’re looking for assistance with ABSD or property purchases, contact me for assistance.
