If you are buying a home in Singapore, the additional buyers stamp duty (ABSD) is one of the biggest costs that first-timers tend to overlook. It sits on top of the buyer’s stamp duty (BSD) that every purchaser pays, and for some buyers it can add a very large sum to the bill. Understanding how it works, and who has to pay it, helps you budget honestly before you fall in love with a place you cannot comfortably afford.
This is general information to help you plan, not financial, legal or tax advice. ABSD rules and rates change from time to time as part of the cooling measures, so treat everything below as an explanation of how the duty works, and always confirm the current rate and your own position with IRAS, the Inland Revenue Authority of Singapore, or a conveyancing lawyer before you commit.
What ABSD Is and Why It Exists
Stamp duty is a tax you pay to the government when you buy property. There are two layers for buyers. The first, BSD, applies to essentially every purchase and is worked out on the price or market value, whichever is higher. The second, ABSD, is an extra tax charged on top of BSD for certain buyers, and it is a central plank of Singapore’s property cooling measures.
The purpose of ABSD is to moderate demand and keep housing more accessible, particularly for those buying a home to live in rather than as an investment. Because it is a policy tool, the government adjusts it when the market runs hot or cools down. That is exactly why you should never treat a rate you read somewhere, including here, as the current figure. For a plain explanation of the first layer, see our guide to buyer’s stamp duty, and for the wider policy picture, our guide to property cooling measures.
Who Pays ABSD, and How Much Depends on You
Unlike BSD, which is broadly the same for everyone, how much ABSD you pay depends on two things: your residency or profile, and how many residential properties you already own or are counted as owning. In broad terms:
- Singapore citizens buying their first residential property are generally treated most favourably, and many pay no ABSD on that first home. The rate rises for a second property and rises again for a third or subsequent one.
- Permanent residents (PRs) typically pay ABSD even on their first residential property, with higher rates on further purchases. If you are a PR, our guide to buying property as a permanent resident covers the wider picture.
- Foreigners usually face the highest ABSD rate on any residential purchase, though some are affected by free trade agreements. See can foreigners buy property in Singapore for the eligibility side.
- Entities and trusts buying residential property are charged at their own, generally higher, rates.
The exact percentages for each of these groups change with the cooling measures, so the point to take away is the structure, not any number. The more property you already hold, and the further you are from being a first-time citizen buyer, the more ABSD tends to apply. Always check the live rate on the IRAS website or with your lawyer.
Counting Your Properties and the Profile Ladder
The single most common surprise is how the count works. ABSD is charged on your profile as a buyer, and the count of properties you are treated as owning can include more than you expect. A part share in a property, an inherited share, or a property held overseas may all matter depending on the rules in force, and a married couple’s holdings are often looked at together.
When two people buy jointly, the ABSD rate that applies is usually the higher of the two profiles. So if a citizen buys together with a foreigner, the purchase can attract the foreigner rate on the whole price, not just half. Couples in mixed-nationality or mixed-residency situations should get this checked carefully before signing anything, because it changes the sums dramatically.
Here is an illustrative comparison of how different buyer profiles are treated. The figures below are made-up placeholders to show the pattern only, not real rates. Do not rely on them.
| Buyer profile (illustrative) | Buying first home | Buying an additional home |
|---|---|---|
| Singapore citizen | Often the lowest or no ABSD | Higher ABSD, rising with each property |
| Permanent resident | ABSD usually applies from the first | Higher ABSD than on the first |
| Foreigner | Highest ABSD band, subject to treaties | Highest ABSD band |
| Entity or trust | Highest published rate | Highest published rate |
Read that table as direction of travel only. For the actual percentages that apply to your situation, IRAS is the single source of truth.
Remissions, Refunds and the Married-Couple Rule
The rules do include some relief, and it pays to know it exists so you can plan around it. A well-known example is the remission that can apply to a married couple who already own a property but are buying a replacement home, where the ABSD paid on the new home may be refunded if they sell the first within a set window. There are strict conditions and a firm deadline, and if you miss the timeline you generally do not get the money back.
Because these remissions are conditional and time-limited, they are exactly the kind of thing to confirm in writing with your conveyancing lawyer before you exchange, not after. Our guide to engaging a conveyancing lawyer explains what your lawyer handles. Never structure a purchase, split ownership or use an arrangement purely to reduce ABSD without proper legal and tax advice. Schemes such as the 99-to-1 split have drawn scrutiny from IRAS, and getting it wrong can mean back-duty and penalties. See our neutral explainer on the 99-to-1 arrangement before you go near it.
Budgeting for ABSD Before You Buy
ABSD is paid in cash or from CPF within a short window after you sign, and it cannot be added to your loan. That makes it a real, upfront hit to your savings, so it belongs in your budget from day one rather than as an afterthought. A few practical habits help:
- Work out your buyer profile honestly, including any property you already part-own or hold overseas.
- Ask IRAS or your lawyer for the current ABSD rate that applies to that profile, then apply it to a realistic purchase price.
- Add BSD, legal fees, valuation and other costs on top, so you see the full cash needed. Our guide to budgeting for the full cost of buying walks through the rest.
- Keep the cash set aside and separate, since the deadline to pay is short and penalties for late payment are real.
If ABSD pushes a purchase out of reach, that is useful information early, not bad news late. It may steer you toward a first home rather than an additional one, or toward selling before you buy.
The Bottom Line
The additional buyers stamp duty rewards buying a home to live in and adds cost to holding more property, but the rates and rules shift with policy. Treat this guide as a map of how ABSD works, not a rate card. Before you commit, confirm the current figure and your own profile with IRAS or a conveyancing lawyer, and factor the cash into your budget from the start. That way there are no expensive surprises on signing day.
Related across Sky Media: Stamp Duty and ABSD for PR Property Buyers · Stamp Duty: BSD and ABSD Explained