Additional Buyer’s Stamp Duty (ABSD) introduced for residential properties

8 December 2011

An additional round of property measures to moderate investment demand have been announced by the Singapore Government. This is in view of the strong pool of external liquidity and now record-high foreign buying.

An additional Buyer’s Stamp Duty (ABSD) has been imposed over and above the current Buyer’s Stamp Duty (BSD) for the following:

  • Foreigners and non-individuals (companies, partnership and societies) buying any residential property will pay an ABSD of 10%
  • Permanent Residents buying the second and subsequent at 3%, and
  • Singapore Citizens buying the third and subsequent at 3%.

Taking into account the existing BSD, total stamp duty payable on a S$2mil purchase for a foreigner would therefore be S$254,600.

For purchases made jointly by two or more parties (e.g. a Singaporean with a PR, or a PR with a foreigner), the higher applicable ABSD rate will be imposed.

Properties transferred via gifts, inheritance, settlement, trust, letter of authority and exchange will be also subject to ABSD.

Timing of the ABSD Payment  is the same as the BSD.

Reliefs however will be provided for Singaporean-foreigner/PR married couples buying their homes, as well as for qualifying developers and for purchases falling within the scope of Singapore’s international trade agreements.

These measures take effect from 8 December 2011.

More on the details of the ABSD can be found in the IRAS e-Tax Guide.

Source: Inland Revenue Authority of Singapore, Ministry of Finance