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Property: What is ABSD and BSD?

Additional Buyer’s Stamp Duty (ABSD) is a tax charged on second and subsequent property purchases. The charge differs depending on the residency status of the buyer, meaning whether you’re a Singaporean citizen, permanent resident or a foreigner.

The Singapore government imposed a hike of five percentage points in ABSD rates that were implemented in July, as part of cooling measures to the property market. Private residential prices began rising in the third quarter of 2017, after declining gradually for almost four years. Prices have increased sharply by 9.1% over the past year.

  Second residential property (rates on or before 5 July 2018) Second residential property (rates on or after 6 july 2018) Third and subsequent residential property
Singapore citizen 7% 12% 15%
Permanent resident 10% 15% 15%
Foreigner* 15% 20% 20%

*Foreigners buying any residential property are charged a 20% ABSD rate from 6 July 2018 onwards, up from 15%.

Buyer’s Stamp Duty

For those who are only looking to buy their first property at the moment, Buyer’s Stamp Duty (BSD) might be more applicable than ABSD. In Singapore, all property purchases are charged BSD.

BSD is computed based on the purchase price or market value of the property, whichever is higher. With effect from 20 Feb 2018, there are differentiated BSD rates between residential and non-residential properties. For definition of residential or non-residential, refer to this IRAS site

Purchase price or market value of property BSD rates for residential properties bsd rates for non-residential properties
first $180,000 1% 1%
Next $180,000 2% 2%
next $640,000 3% 3%
remaining amount 4% 3%

 

Remissions

Full ABSD remission may be applicable to a married couple who jointly purchase a residential property, provided that at least one spouse is a Singapore citizen. In addition, both the spouses must not own any residential property. 

Married couples at least one Singapore citizen spouse who jointly purchase a second home together can continue to apply for an ABSD refund, as long as they sell their first home within six months after the date of purchase of the second property, or by the issue date of the Temporary Occupation Permit or Certificate of Statutory Completion of the second property - whichever is earlier.

For more detailed information on BSD and ABSD, visit IRAS' website here