On 26th April 2023, the Singapore Government announced an increase in ABSD (Additional Buyer’s Stamp Duty) rates. The increase is a cooling measure because there was growing demand for property among investors here and abroad. The cooling measures are to “promote a sustainable property market” which will take effect on 27th April 2023.
What is ABSD? ABSD (Additional Buyer’s Stamp Duty) was introduced in the year 2011. The word “additional” means this is tax paid on top of the Buyer Stamp Duty (BSD). Buyer Stamp Duty (BSD) is tax paid on documents signed when you buy or acquire property located in Singapore. ABSD is computed based on the valuation or the selling price of the property, whichever is higher.
Singapore Citizens
| Rates before 27th April 2023 | Rates on/after 27th April 2023 | |
| First residential property | 0% | 0% |
| Second residential property | 17% | 20% |
| Third and subsequent residential property | 25% | 30% |
Permanent Citizens
| Rates before 27th April 2023 | Rates on/after 27th April 2023 | |
| First residential property | 5% | 5% |
| Second residential property | 25% | 30% |
| Third and subsequent residential property | 30% | 35% |
Foreigners, Entities (companies or associations), Trustees and Developers
| Rates before 27th April 2023 | Rates on/after 27th April 2023 | |
| Foreigners | 30% | 60% |
| Entities (companies or associations) | 35% | 65% |
| Trustees | 35% | 65% |
| Developers | 35% (additional 5% if the entity is a housing developer; non-remittable) | 35% (additional 5% if the entity is a housing developer; non-remittable) |
What is the Additional Buyer’s Stamp Duty Rates (ABSD) for a 1.8 million Property?
Most Singaporeans will opt to purchase an additional property if they afford to. The various reasons can be for investment or passive income such as renting the property out.
For illustration purpose, the additional buyer’s stamp duty that you have to pay for a second property selling at S$1.8 million is $1.8 million x 20% = $360,000.
Seriously I will love to purchase a second property too. However, like AK said, “Pay a price too high and we could have a high price to pay in future“.