(Updated 27 April 2023) Additional Buyer Stamp Duty (ABSD) Rates in Singapore – What You Need to Know

The Singapore Government has recently revised the Additional Buyer Stamp Duty rates as of April 27, 2023. Due to these changes, all property buyers who are acquiring residential units will now be subject to increased ABSD applied to either the purchase price or market value, depending on which is the higher. This is an overview of the latest amendments to ABSD and how it may influence your real estate acquisition.

What Is Additional Buyer Stamp Duty?

Additional Buyer Stamp Duty (ABSD) is a tax imposed on buyers of residential properties in Singapore, in addition to the usual buyer’s stamp duty. The purpose of ABSD is to promote a stable and sustainable residential property market.

ABSD was first imposed in 2011 in order to control the growing demand for property investments by Singapore Citizens and foreign buyers. By doing so, not only does it maintain affordability of residential properties for locals, but also allows home prices to increase steadily along with economic fundamentals. In 2018, the Government raised the ABSD costs for both citizens and non-residents to reduce escalating housing prices.

What Is The Latest ABSD Rates?

From 27 April 2023, all buyers of residential properties will be subject to the following ABSD rates:

Profile of Buyer

On Or After 27 Apr 2023
Singapore Citizens (SC) buying 1st residential property Not applicable Not applicable
SC buying 2nd residential property 17% 20%
SC buying 3rd and subsequent residential property 25% 30%
Singapore PR (SPR) buying 1st residential property 5% 5%
SPR buying 2nd residential property 25% 30%
SPR buying 3rd and subsequent residential property 30% 35%
Foreigners (FR) buying any residential property 30% 60%
Entities buying any residential property 35% 65%
Housing Developers buying any residential property 35% 65%
Source: https://www.iras.gov.sg/

How Do You Calculate ABSD?

The precise ABSD rate incurred by you depends on your individual circumstances and relevant factors concerning your real estate investment.

Let’s assume a Singapore Citizen who currently owns a HDB flat wants to acquire a private condo which cost S$2 million. After the increase in ABSD rates, the buyer has to pay an Additional Buyer’s Stamp Duty of S$400,000 (20% of property price), on top of the Buyer’s Stamp Duty of S$64,600. In total, the buyer has to pay a total of S$464,600.

Need help with minimizing ABSD? Let us know!

What Is The Rationale Behind The Government's Hike Of The ABSD?

The Government has applied a higher ABSD to ensure a steady real estate landscape. This will help balance demand, reduce speculation, and alleviate overall price increases in the residential property market. By increasing the ABSD, the Government is attempting to create a level playing field between locals and foreigners who are buying property in Singapore. The ABSD will discourage foreign buyers from speculatively investing in residential properties and thus help to maintain an affordable housing market for locals. 

How Will This Affect You?

The increase in ABSD could affect your property purchase significantly. It is important to consider this additional cost when deciding on whether to purchase or invest in residential properties.

Read more: How to Own 2 Properties in Singapore Without Incurring ABSD?

The information above is meant to be used as a guide only and should not be taken as legal or professional advice. It is also advisable to consult with an experienced real estate agent or solicitor prior to making any major property purchase decisions. 

If you would like more information about ABSD, please contact us for a consultation. We are happy to help explain the rules and regulations so that you can make your purchase with confidence.