Singapore ABSD Guide 2026: Additional Buyer's Stamp Duty Rates and Exemptions

Last updated: May 2026 | SeaMoneyTips

What Is ABSD in Singapore?

Additional Buyer's Stamp Duty (ABSD) is an extra stamp duty imposed by the Inland Revenue Authority of Singapore (IRAS) on property purchases. It was introduced in 2011 as a cooling measure to curb speculative buying and reduce property price inflation. Unlike the standard Buyer's Stamp Duty (BSD), ABSD is charged at a significantly higher rate and applies based on the buyer's residency status and the number of properties they already own.

The key thing to understand is that ABSD is not a one-time fee - it is calculated as a percentage of the property's purchase price or market value, whichever is higher. This means buying an expensive property can result in a substantially larger ABSD bill, even for Singapore citizens buying their second home.

ABSD Rates by Buyer Type (2026)

As of 2026, ABSD rates depend on your residency status and whether you already own residential properties. Here is the complete rate chart:

Singapore Citizens

• First residential property: 0% ABSD
• Second residential property: 20% ABSD
• Third and subsequent residential properties: 30% ABSD

Singapore Citizens enjoy the most favorable ABSD rates. However, the 20% rate on a second property is still significant - on a $2 million condo, that means $400,000 in ABSD alone. This is why many first-time buyers consider whether to buy an HDB flat first before upgrading to private property.

Permanent Residents (PRs)

• First residential property: 5% ABSD
• Second residential property: 30% ABSD
• Third and subsequent residential properties: 35% ABSD

Permanent Residents face a 5% ABSD on their first property, which is a substantial upfront cost. The jump to 30% on the second property makes it very expensive for PRs to own multiple properties in Singapore. This rate difference is one reason many PRs wait several years before applying for citizenship to access the lower citizen rates.

Foreigners and Entities

• Foreigners: 60% ABSD on all residential properties
• Singapore incorporated companies: 65% ABSD
• Living trusts: 65% ABSD
• Other entities: 65% ABSD

The 60% ABSD rate for foreigners is one of the highest in the world and effectively prices most international buyers out of the Singapore residential market. This rate applies regardless of how long the foreigner has lived in Singapore or whether they hold an employment pass. Companies and trusts face an even higher 65% rate.

How ABSD Is Calculated

ABSD is calculated on the higher of the purchase price or the market value of the property. The tax is paid within 14 days of execution of the Option to Purchase or Sale and Purchase Agreement. Here is a practical example:

As you can see, the ABSD can add hundreds of thousands of dollars to the cost of a property. This is why understanding ABSD is critical before making any property purchase in Singapore.

ABSD Refund and Exemption Schemes

IRAS provides several pathways to claim ABSD refunds or exemptions. These are important to know if you are planning your property acquisition strategy:

Refund for Singapore Citizens

Singapore Citizens who buy a second property can claim a full refund of the ABSD paid if they sell their first residential property within 6 months. If the first property is sold after 6 months but within 12 months, a 50% refund is available. This scheme is designed to allow citizens to upgrade without permanently paying double ABSD.

Refund for Permanent Residents

PRs who naturalize as Singapore Citizens can claim a full refund of the ABSD paid, provided they apply for citizenship within 3 years of purchasing the property. This is a powerful incentive for PRs to pursue citizenship, as the refund can be worth hundreds of thousands of dollars.

Company Purchase Refund

If a Singapore incorporated company purchases a residential property and the company is later dissolved or the property is sold within 3 years, the ABSD paid may be refundable. This is relevant for investors who use corporate structures for property holding.

Removal of ABSD for HDB Flats

ABSD does not apply to the purchase of HDB flats, regardless of buyer type. This is one of the main reasons first-time buyers consider HDB flats as their entry point into the Singapore property market. You only pay the standard BSD (0-4%) on HDB purchases, making them significantly more affordable than private properties.

Tips to Minimize ABSD Costs

Smart property buyers use several strategies to reduce or eliminate ABSD liability:

1. Time Your Purchases Carefully

If you are a Singapore Citizen planning to buy a second property, ensure you sell your first property within 6 months to get a full ABSD refund. Do not list your first property for sale until you have signed the SPA for the second property, so you have a clear timeline.

2. Consider HDB First

Since ABSD does not apply to HDB flats, buying an HDB flat as your first property means you pay zero ABSD. When you later upgrade to a private property, you can claim the refund if you sell the HDB within the qualifying period.

3. Naturalize as a Citizen

For PRs, the difference between 5% and 0% ABSD on a first property is enormous. If you are eligible for citizenship, naturalizing before your first property purchase can save you significant money. However, citizenship processing can take 1-3 years, so plan accordingly.

4. Understand the 6-Month Rule

The 6-month window for selling your first property to claim a full refund is strict. IRAS does not grant extensions except in exceptional circumstances. Make sure your property sale is legally binding within the 6-month window.

5. Use a Property Agent

An experienced property agent can help you time your transactions correctly and ensure you meet all IRAS requirements for ABSD refunds. This is especially important if you are a foreigner or PR navigating the Singapore property market for the first time.

Common ABSD Mistakes to Avoid

Many buyers make costly mistakes related to ABSD. Here are the most common ones:

• Not timing the sale correctly: Selling your first property after 6 months means you only get a 50% refund instead of 100%. This can cost you tens of thousands of dollars.
• Assuming ABSD applies to commercial property: ABSD only applies to residential properties. Commercial properties such as shop lots and office spaces are exempt from ABSD.
• Not checking your eligibility for refunds: Some buyers never claim refunds they are entitled to. If you sold your first property within 6 months, make sure to file for the refund with IRAS.
• Miscalculating the ABSD on the market value: ABSD is charged on the higher of purchase price or market value. If IRAS determines the market value is higher, you will owe additional ABSD.
• Forgetting to declare all properties: When determining your ABSD rate, IRAS looks at all residential properties you own worldwide, not just in Singapore. Failing to declare overseas properties can result in penalties.

ABSD vs BSD: What Is the Difference?

It is important to understand the difference between ABSD and BSD, as both apply when buying property in Singapore:

Both BSD and ABSD must be paid within 14 days of signing the Sale and Purchase Agreement. Failure to pay on time results in a penalty of $10 per $1,000 of stamp duty unpaid, plus interest at 8% per annum.

Recent ABSD Changes in 2023-2024

The Singapore government has significantly increased ABSD rates multiple times in recent years to cool the property market. Key changes include:

• January 2023: ABSD for foreigners increased from 60% to 60% (no change), but the rate for entities increased from 65% to 65% (no change). However, the government introduced stricter enforcement.
• October 2023: No major ABSD rate changes, but IRAS intensified audits on ABSD refund claims.
• 2024: The government continued to maintain the current ABSD rates while focusing on supply-side measures to cool the market.

These rate increases reflect the government's commitment to keeping Singapore's property market stable and affordable for residents. Foreign buyers should expect ABSD to remain at 60% or potentially increase further in future budgets.

Frequently Asked Questions

Key Takeaways

• ABSD rates vary significantly by buyer type: 0% for citizens (1st), 5% for PRs, and 60% for foreigners.
• HDB flats are exempt from ABSD, making them an attractive first purchase.
• Refunds are available for Singapore Citizens who sell their first property within 6 months.
• PRs can claim refunds if they naturalize as citizens within 3 years of purchase.
• Plan your transactions carefully - timing your property sale can save you hundreds of thousands of dollars.

Conclusion

Additional Buyer's Stamp Duty is one of the most significant costs when buying property in Singapore. Understanding the rates, exemptions, and refund schemes can save you substantial money and help you make smarter property investment decisions.

If you are a Singapore Citizen buying your first home, you pay zero ABSD. If you are a PR, budget for 5% ABSD on your first property. If you are a foreigner, the 60% ABSD rate means you need to carefully evaluate whether a Singapore property investment is worth the additional cost.

For more information on Singapore property investment, check out our Singapore Property Investment Guide and HDB Loan vs Bank Loan comparison.

For official ABSD rate information, visit the Inland Revenue Authority of Singapore (IRAS) website. For property transaction guidelines, refer to the Urban Redevelopment Authority (URA).