2026 Singapore Additional Buyer’s Stamp Duty (ABSD): Homebuyer’s Guide

When purchasing property in Singapore, you are required to pay Buyer’s Stamp Duty (BSD). Additionally, depending on your residency status and the number of properties you own, you may also need to pay another tax called Additional Buyer’s Stamp Duty (ABSD).

The property cooling measures introduced in December 2021 increased the ABSD rates, and the latest round, effective 27 April 2023, raised them sharply again — doubling the foreigner rate from 30% to 60% and lifting entity and trust rates to 65%, among others. Furthermore, as of May 9, 2022, the Ministry of Finance announced that transfers of residential property into a living trust would be subject to ABSD (Trust), initially 35%; this rate was raised to 65% with effect from 27 April 2023 (the current rate).

This guide will explain what ABSD is in Singapore, the ABSD rates, ABSD remission, ABSD for Permanent Residents (PRs), and ABSD for a second property.

What is Additional Buyer’s Stamp Duty (ABSD)?

ABSD in Singapore is a tax levied on top of the Buyer’s Stamp Duty (a tax that buyers must pay when purchasing property). It is calculated based on the property’s valuation or selling price, whichever is higher.

Who Needs to Pay ABSD?

The ABSD rates apply to the following groups of buyers:

• Singapore Citizens: 20% ABSD for the second property, and 30% for subsequent properties.
• Singapore Permanent Residents (PRs): ABSD is payable on all property purchases, starting at 5% for the first property, 30% for the second, and 35% for subsequent properties.
• Foreign Buyers: 60% ABSD on any property purchase.
• Non-individual Buyers (Entities or Organizations): 65% for each property (developers are subject to an additional 5% non-remittable ABSD).

Why Was ABSD Introduced?

Here is a brief overview of Singapore’s ABSD and its timeline of changes:

• December 2011: ABSD was introduced to manage the surge in property demand.
• January 2013: ABSD rates were increased, and more buyer profiles were included to bear the tax.
• July 2018: ABSD rates rose again.
• December 2021: ABSD rates were increased again for second and subsequent purchases, foreign buyers, and non-individual buyers.
• 27 April 2023: The latest round of cooling measures doubled ABSD for foreigners from 30% to 60%, raised entities from 35% to 65%, Singapore Citizens’ second property from 17% to 20% and third+ from 25% to 30%, PRs’ second from 25% to 30% and third+ from 30% to 35%, and ABSD (Trust) from 35% to 65%.

ABSD was first introduced in December 2011 as a property cooling measure to curb the purchase of residential properties by foreign buyers and non-individual buyers, especially for multiple properties.

In other words, it was launched to manage demand for residential properties and keep housing prices affordable for Singaporeans.

The ABSD rates were further increased in January 2013, with more buyer profiles becoming liable for ABSD.

After the implementation of ABSD, property speculation decreased, and foreign buyers interested in investing in Singapore’s property market were deterred by the high ABSD rates.

Then in July 2018, BSD and ABSD rose again, and additional cooling measures like the Total Debt Servicing Ratio (TDSR) and Seller’s Stamp Duty (SSD) led to a significant drop in property transaction volumes.

The 16 December 2021 round of cooling measures tightened loan limits: the Loan-to-Valuation (LTV) ratio for HDB loans was adjusted from 90% to 85%, the Total Debt Servicing Ratio (TDSR) threshold was tightened from 60% to 55% of income, and ABSD rates were increased. The latest round took effect on 27 April 2023, doubling ABSD for foreigners to 60% and raising entity and trust rates to 65%, among other increases.

ABSD’s Definition of “Residential Property”

Before we discuss the adjusted ABSD rates, let’s understand the definition of “residential property.” A residential property is a property used as a residence. The most obvious examples include HDB flats, condominiums, bungalows, and terrace houses (and similar types).

Shophouses with living quarters and HDB ground-floor shops with upper floors designated for residential use will also be considered residential properties.

Properties purchased overseas do not count towards the property count for ABSD purposes.

What Are “Non-Individual Buyers” Mentioned in ABSD?

A non-individual buyer is an entity that is not an individual and is defined by the following criteria:

1. An unincorporated association
2. A trustee for a collective investment scheme
3. A trustee-manager for a business trust
4. A partner in a partnership, whether or not they are individuals, where the property transferred, assigned, or conveyed is to be held as partnership property

If a property is purchased by buyers from different profiles, the ABSD will be calculated based on the buyer profile with the highest ABSD rate. Furthermore, all non-individual buyers will be subject to the new 65% ABSD rate.

ABSD Rate Calculation

As mentioned earlier, the ABSD rate imposed will depend on your residency status, and the ABSD rate you need to pay depends on your nationality at the time of property purchase.

The payable ABSD is based on the higher of the purchase price or the market value. It is important to note that future rates may change with property market conditions. The following are the current ABSD rates, as of 2026:

From 9 May 2022, residential property transferred to a living trust became subject to ABSD (Trust), initially 35%; this rate was raised to 65% with effect from 27 April 2023 (the current rate).

How to Calculate ABSD?

For example, if a property is valued at S$1 million but sold for S$1.1 million. Assuming you are a Singapore Citizen buying a second property (ABSD rate 20%), the ABSD you need to pay is S$1.1 million x 20% = S$220,000.

Are There Any ABSD Exemptions?

There are certain situations where you do not need to pay ABSD, such as:

• Having signed a contract to sell your current residential property before an Option To Purchase (OTP) is issued
• When downgrading from a private property to a resale HDB flat

While not technically considered an “exemption,” some families opt for dual-key condominium units. These units are sold as a single property and thus do not incur ABSD, but they contain two separate living spaces—a main unit and a sub-unit.

Some people also consider decoupling, where a couple “divorces” and transfers ownership of the jointly-owned home to one spouse. (More on these “strategies” to avoid paying ABSD below.)

Additionally, under Free Trade Agreements (FTAs) between countries, nationals and permanent residents of Iceland, Liechtenstein, Norway, Switzerland, and the United States will be treated the same as Singapore citizens. In other words, individuals with these statuses do not need to pay ABSD on their first property purchase. Legal representatives can claim remission through the e-Stamping system on the Inland Revenue Authority of Singapore (IRAS) website.

ABSD Remission for Foreigners Married to Singapore Citizens

While we previously stated that ABSD is always levied on foreigners and permanent residents, there is one situation where they do not need to pay. A foreigner or permanent resident married to a Singaporean does not need to pay ABSD if they do not own any residential property under their name.

Married couples who are moving can also get an ABSD refund. To qualify for the refund, the first property for which ABSD was paid must be sold within six months of purchasing the second property. The full terms and conditions are available on the Inland Revenue Authority of Singapore (IRAS) website.

ABSD Exemptions & Remissions at a Glance (as of 2026)

Buying Property with Others: How is ABSD Calculated?

When purchasing property with others, different ABSD rates may apply to each party. In such cases, the higher rate will apply.

Here is a demonstration:

Assume you and your spouse are Singaporeans. Since your spouse has two properties, a joint purchase would result in three properties, so the applicable ABSD rate for your spouse would be 30% (Citizen, third and subsequent). You only have one property, but after the joint purchase, you would have two properties, so your applicable ABSD rate would be 20% (Citizen, second property). (If this is confusing, please refer to the detailed documentation provided by the Inland Revenue Authority of Singapore (IRAS).)

Therefore, the payable ABSD will be based on your spouse’s individual situation, which is 30%.

How to Pay ABSD?

You can pay ABSD online through the e-Stamping system using NETS, cheque, or cashier’s order.

You can also make payments at IRAS Surf Centre e-Terminals or SingPost Service Bureaus (located in Chinatown, Novena, Raffles Place, and Shenton Way). The stamp duty must be paid in full; installment payments are not supported.

You can also use your CPF to pay for ABSD. Once the stamp duty is paid, you can get a reimbursement from your CPF account.

Please note that ABSD must be paid within 14 days of signing the Sale and Purchase Agreement. If your agreement was signed overseas, the deadline is 30 days after the agreement is received in Singapore.

Are There Any Penalties for Late ABSD Payment?

If the ABSD is not paid by the deadline, you will receive a demand note reminding you to make the payment. This letter will also inform you of the penalty for missing the deadline.

IRAS may appoint your bank, employer, tenant, or lawyer to pay the outstanding stamp duty on your behalf. In serious cases, legal action may be taken to recover the amount owed.

Learn more about what happens when you miss the stamp duty deadline on the IRAS website.

Conclusion: Should You Try to Avoid ABSD?

In July 2020, the Monetary Authority of Singapore (MAS) released an official statement that current property restrictions would not be relaxed despite the coronavirus, as the property market remained stable. Currently, transaction volumes and prices for all property types are high. Furthermore, Singapore introduced cooling measures in December 2021 and again on 27 April 2023; the latest (27 April 2023) round sharply raised ABSD — doubling the foreigner rate to 60% and raising entity and trust rates to 65% — alongside tighter loan limits.

With the introduction of a new round of property cooling measures, we have no doubt that the increased ABSD rates will be a hot topic among homebuyers and investors. Not many people support this measure, which is normal, as it is an additional tax designed to create restrictions for buyers by increasing the cost of property in Singapore and to curb speculative activities by foreigners and non-individual organizations.

This is why many homebuyers seek exemptions and “loopholes” to avoid paying the additional tax. The methods mentioned above can be very effective, but in some cases, it may be easier and cheaper to pay the ABSD directly.

In conclusion, ABSD is an additional cost that is not going away anytime soon. If you are looking for legal ways to avoid ABSD, make sure you have calculated the ABSD amount and carefully considered the costs of your alternative “strategies” to avoid paying an excessive price.

Official Sources & References

• IRAS — Additional Buyer’s Stamp Duty (ABSD) rates: ABSD official page
• IRAS — Buyer’s Stamp Duty (BSD): BSD official page
• IRAS — Remission of ABSD (Trust): ABSD (Trust) remission
• IRAS — Remission of ABSD for a Married Couple: Married-couple remission
• IRAS — Appealing for Stamp Duty Waiver: Stamp duty waiver / remission
• IRAS — Late Payment or Non-Payment of Stamp Duty: Late-payment penalties
• Ministry of Finance (MOF) — Tax concessions via Free Trade Agreements: FTA concessions
• CPF Board — Which property-related fees can I use my CPF savings for: CPF official page
• IRAS — e-Stamping and Where to e-Stamp Documents: e-Stamping

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