ABSD in Singapore: What It Costs, Who Pays, and How to Plan For It
ABSD is the single biggest number in most Singapore property decisions, and the one people understand least before they buy. Here it is, plainly.
What ABSD is
Additional Buyer’s Stamp Duty is a tax on buying residential property, charged on top of Buyer’s Stamp Duty. It applies to Singapore Citizens, Permanent Residents, foreigners and entities — at very different rates.
Two things to hold onto:
- ABSD is charged on the higher of the purchase price or the market value.
- It’s assessed on your profile and your property count on the date of purchase — which means the order in which you buy and sell genuinely matters.
The current rates
ABSD rates for purchases on or after 27 April 2023:
| Profile of buyer | ABSD rate |
|---|---|
| Singapore Citizen — 1st residential property | None |
| Singapore Citizen — 2nd residential property | 20% |
| Singapore Citizen — 3rd and subsequent | 30% |
| Singapore PR — 1st residential property | 5% |
| Singapore PR — 2nd residential property | 30% |
| Singapore PR — 3rd and subsequent | 35% |
| Foreigner — any residential property | 60% |
| Entity — any residential property | 65% |
| Housing developer | 35% (+5% non-remittable) |
Residential property held on trust is charged at 65%, with remission available in some cases where the trust is for identifiable individual beneficiaries. That’s a legal question, not a property one — take advice.
Source: IRAS. Rates change; check iras.gov.sg before you transact.
How it's calculated
ABSD is a flat percentage, not a band. It isn’t tiered the way BSD is.
Buying a $2,000,000 condo as a Singapore Citizen’s second property:
$2,000,000 × 20% = $400,000 in ABSD, on top of BSD.
The same purchase as a first property:
$0 in ABSD.
That difference — $400,000 — is why the order of a buy and a sell is a financial decision, not an administrative one.
Counting your properties
Your property count includes:
- Properties you own, including those held beneficially or in trust
- Properties acquired by gift, inheritance, release or settlement
- HDB flats
- Shophouses and HDB shops with living quarters
It excludes properties held outside Singapore, and properties gazetted for compulsory acquisition.
For joint purchases, each buyer’s ABSD is assessed separately at their own profile and count — and the highest applicable rate applies to the whole purchase. Who is named on the deed is therefore a real decision, not a formality.
The legitimate ways ABSD is reduced
These are real mechanisms, not loopholes. Each has conditions, and each needs proper advice.
Sell before you buy, where the timing allows. If your first property is disposed of before the second is acquired, the second may count as your first. The order is everything.
Married couple remission. A married couple may claim a refund of ABSD paid on a second home if they sell the first within a specified window. The conditions are strict and the clock matters.
Decoupling. Transferring a share of one property so that each spouse holds one. Legally permissible, but it triggers its own stamp duty and financing questions, and it must be done for genuine reasons. It is not a trick, and treated as one it stops working.
Trust arrangements and remission. Available in specific circumstances for identifiable beneficiaries.
What ABSD means for your decision
ABSD is not a reason not to buy a second property. It’s a number that has to be in the arithmetic from the start, because it changes both what you can afford and how long you need to hold to make the move worth making.
It’s also the reason a lot of “should we upgrade?” conversations turn out differently than people expect — sometimes better, sometimes not.
Keen to know more. Run your numbers with me below.
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Run Your Numbers With Me
We’ll work out what ABSD applies to your situation, and what your options look like around it.
Perry Siow · CEA Registration No. R006056B
Salesperson with PropNex Realty Pte Ltd · Estate Agent Licence No. L3008022J
+65 9455 6807
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CEA Reg: R006056B, a licensed real estate salesperson with PropNex Realty Pte Ltd L3008022J
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