Additional Buyer's Stamp Duty (ABSD)
Definition
An additional tax levied on buyers of residential properties in Singapore depending on residency status and property counts.
Key Takeaways
- ABSD is an upfront property tax paid to IRAS on residential purchases in Singapore.
- Rates depend on the buyer's residency status and the number of properties currently owned.
- Exemptions exist under certain FTAs (e.g., US Citizens pay same rates as SG Citizens).
- Must be settled within 14 days of executing the sale contract or option to purchase.
Detailed Explanation
Additional Buyer's Stamp Duty (ABSD) is a property tax levied on top of standard Buyer's Stamp Duty (BSD) for residential property purchases in Singapore. Introduced as a cooling measure by the Inland Revenue Authority of Singapore (IRAS), ABSD rates depend on your citizenship status and the number of residential properties you already own. It must be paid upfront within 14 days of signing the purchase agreement.
For Singapore Citizens, the ABSD is 0% for the first property, 20% for the second, and 30% for the third or subsequent properties. Permanent Residents pay 5% for their first property, 30% for their second, and 35% for subsequent properties. Foreigners and entities pay flat rates of 60% and 65% respectively (as of the latest cooling measures). There are exemptions available, such as under Free Trade Agreements (FTAs) for citizens of certain countries like the US, or when married couples buy a first property jointly.