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ABSD Increases by 5% for Citizens and PRs Buying Second Homes On or After 6 July

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Written by: Benjienen Toledo

Additional Buyer’s Stamp Duty (ABSD) is imposed on top of the Buyer’s Stamp Duty, and applied to the purchase price, or the current market value of the property, whichever is higher.

Below are the ABSD Rates before 6 July 2018:

Citizen Buying 1st Residential Property Buying 2nd Residential Property Buying 3rd and Subsequent Residential Property
Singapore Citizen (SC) NA 7% 10%
Singapore Permanent Resident (SPR) 5% 10% 10%
Foreigners and Non-Individuals 15% 15% 15%

For example, if you are a citizen and SPR buying your third home at $1 million, you will have to pay S$100,000 for ABSD.

If you are a foreigner, you will have to pay S$150,000 for ABSD.

Changes in Additional Buyer’s Stamp Duty Rates

On 5 July, the Government announced that it is raising Additional Buyer’s Stamp Duty (ABSD) rates and tightening loan-to-value (LTV) limits on residential property purchases, in an effort to cool the property market and keep price increases in line with economic fundamentals.

This means that if you will buy a property on or after 6 July 2018, the new ABSD Rates are as follows:

Citizen Buying 1st Residential Property Buying 2nd Residential Property Buying 3rd and Subsequent Residential Property
Singapore Citizen (SC) 0% (no change) 12% (revised) 15% (revised)
Singapore Permanent Resident (SPR) 5% (no change) 15% (revised) 15% (revised)
Foreigners buying any residential property 20% (revised) 20% (revised) 20% (revised)
Entities buying any residential property 25% (revised) 25% (revised) 25% (revised)

With these changes, if you are buying your third home at S$1 million, this is the amount that you need to pay for ABSD:

  • Citizen– S$150,000
  • SPR– S$150,000
  • Foreigner– S$200,000
  • Entity– $250,000

An additional ABSD of 5%, which is non-remittable under the Remission Rules, will also be introduced for developers purchasing residential properties for housing development.

Authorities said that for purchases jointly made by two or more parties of different profiles, the highest applicable ABSD rate will apply.

The Government said that to maintain a stable and sustainable property market, it would continue to monitor and adjust its policies as necessary.

Sources: Gov.sg, Channel News Asia


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