If you’re buying property in Singapore, understanding the Additional Buyer’s Stamp Duty (ABSD) is crucial. With the new rules effective from 1 July 2025, both residents and foreigners must be aware of changes in rates, exemptions, and payment deadlines to avoid costly mistakes.
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🏠 1. What is ABSD?
The Additional Buyer’s Stamp Duty (ABSD) is a tax imposed on certain property purchases in Singapore, on top of the standard Buyer’s Stamp Duty (BSD). It primarily targets:
- Foreigners buying any residential property
- Singapore Citizens purchasing their second and subsequent properties
- Permanent Residents purchasing their first and subsequent properties
- Entities and trusts acquiring residential properties
📊 2. ABSD Rates After July 2025
From 1 July 2025, the ABSD rates have been revised to further cool the property market. The updated rates are:
| Buyer Profile | 1st Property | 2nd Property | 3rd & Subsequent Properties |
|---|---|---|---|
| Singapore Citizens | 0% | 20% | 30% |
| Singapore Permanent Residents | 5% | 25% | 35% |
| Foreigners | 65% | ||
| Entities (Companies, Associations, etc.) | 70% | ||
| Trust Purchases | 70% | ||
These higher rates aim to reduce speculative buying and prioritise housing for owner-occupation.
🧮 3. How ABSD is Calculated
ABSD is calculated on the higher of the purchase price or market value of the property, as assessed by IRAS. It is applied in addition to BSD.
Example: If a Singapore Citizen buys a second property for $2 million:
- BSD is calculated using tiered BSD rates.
- ABSD = 20% × $2,000,000 = $400,000
Total upfront taxes = BSD amount + $400,000 ABSD.
📅 4. Payment Deadlines
You must pay ABSD within:
- 14 days from signing the Sale & Purchase Agreement (in Singapore)
- 30 days if the agreement is signed overseas
Late payment will result in penalties and interest charges.
⚖️ 5. Exemptions & Remissions
Certain transactions are exempt from ABSD or qualify for remission, such as:
- Married couples with at least one Singapore Citizen buying their first residential property together
- Replacement of matrimonial home under specific conditions
- Foreigners buying under Free Trade Agreements with Singapore (e.g., US citizens)
💡 6. Tax Planning Tips for Property Buyers
- Plan property purchases strategically to avoid higher ABSD tiers
- Explore buying under spouse’s or family member’s name if eligible
- Check if you qualify for ABSD remission before making an offer
- Always factor ABSD into your total property cost
📍 Final Thoughts
With the latest ABSD rate hikes from July 2025, property buyers in Singapore must be more strategic than ever. Whether you are a local, PR, or foreign investor, understanding your ABSD obligations will help you make informed property investment decisions and avoid unexpected tax burdens.
