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Additional Buyer's Stamp Duty (ABSD)

Liable buyers are required to pay ABSD on top of the existing Buyer’s Stamp Duty (BSD). ABSD and BSD are computed on the purchase price as stated in the dutiable document or the market value of the property (whichever is the higher amount).

The ABSD rates have been adjusted on 6 Jul 2018. You may refer to the attached ABSD Fact Sheet (PDF, 508KB) for an overview of more details on the adjusted ABSD rates and the ABSD remission for acquisition of residential properties during the transitional period.

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Determining ABSD Liability

The ABSD liability will depend on the profile of the buyer as at the date of purchase or acquisition of the residential property:
A. Whether the buyer is an individual or an entity
B. The residency status of the buyer and
C. The count of residential properties owned by the buyer

Date of Purchase or Acquisition refers to

Date of execution of the Acceptance to the Option to Purchase or
Date of Sale & Purchase Agreement or
Date of transfer where (1) and (2) are not available nor applicable

A. Whether the Buyer is an Individual or an Entity

An entity means a person who is not an individual. It includes the following:

An unincorporated association
A trustee for a collective investment scheme when acting in that capacity
A trustee-manager for a business trust when acting in that capacity
The partners of the partnership whether or not any of them is an individual, where the property conveyed, transferred or assigned is to be held as partnership property

If a property is jointly purchased by buyers of different profiles, the profile with the highest ABSD rate will apply on the entire value purchased.

If A purchases a residential property to be held on trust for the beneficial owner B, ABSD is charged based on the profile of the beneficial owner, B.

B. The Residency Status of the Buyer

The applicable ABSD rate is based on the nationality of the buyer on the date of purchase. You must have been granted the residency status by the Immigration and Checkpoint Authority (ICA) as at the date of purchase in order to enjoy lower ABSD liability. The date of issue reflected in the IC collection slip would be taken as when the residency status was granted.

C. The Count of Residential Properties Owned by the Buyer

1. Count from Date of Contract or Agreement

If a Contract or an Agreement to purchase the property has been signed, that property is to be included in the count of properties owned by a buyer (A) from the date of acceptance of the agreement, even if it has not been legally transferred to him as he already has an equitable interest in the property.

This also includes the purchase of an uncompleted unit from the developer if the Sale & Purchase Agreement has been signed.

Similarly, the property is to be excluded from the count of properties owned by a buyer (A) if there is already a Contract or an Agreement to sell his property and the new buyer (B) has executed his option to buy the property.

2. Full Count for Partial Ownership and Joint Ownership

As long as a buyer owns any interest in a property, that property will be included in the count of properties owned by him. For example, if a person jointly owns a property with his wife, and owns 20% share of another property with his sibling, the number of properties owned by him is counted as two properties.

3. Property held on Trust

If A purchases a residential property to be held on trust for the beneficial owner (B), the property will be included as a count for B.

4. Purchase of Multiple Properties in One Transaction

Although many properties may be bought under a single contract, each property will be counted as a separate property. Where applicable, the buyer may choose any one of the multiple properties to be subject to ABSD. For example, if a Singapore Citizen who does not own any residential property decides to purchase two residential properties in one contract, he may choose any one of the units to be subject to ABSD.

In the case of a building with multiple units approved by URA but under a single title, ABSD will be based on the number of multiple units.

5. Properties acquired to be included in the property count

Apart from properties that have been purchased, properties acquired or transferred by way of gift, inheritance, release, settlement, declaration of trust (where the beneficial interest of the property passes to the beneficiary), letter of authority and exchange are to be included in the property count.

6. HDB Shop with Living Quarters and Shophouse

HDB shops with living quarters or shophouses with a portion permitted for residential use will be included as a residential property count.

7. Exclusion of Properties Gazetted for Compulsory Acquisition

All residential properties gazetted for compulsory acquisition are to be excluded from the count of properties.

8. Exclusion of Properties Located Outside Singapore

All residential properties located outside Singapore are to be excluded.

Rates and Computation

**ABSD Rates on the higher of the purchase price or market value**
Profile of Buyer	ABSD Rates from 8 Dec 2011 to 11 Jan 2013	ABSD Rates from 12 Jan 2013 to 5 Jul 2018	ABSD Rates on/ after 6 Jul 2018
Singapore Citizens (SC) buying first residential property¹	Not applicable	Not applicable	Not applicable
SC buying second residential property¹	Not applicable	7%	12%
SC buying third and subsequent residential property¹	3%	10%	15%
Singapore Permanent Residents (SPR) buying first residential property¹	Not applicable	5%	5%
SPR buying second and subsequent residential property¹	3%	10%	15%
Foreigners (FR) buying any residential property	10%	15%	20%
Entities² buying any residential property	10%	15%	25%³
Entities² buying any residential property	10%	15%	plus Additional 5% for Housing Developers⁴ (non-remittable)⁵

For BSD rates, click here.

ABSD is to be rounded down to the nearest dollar, subject to a minimum duty of $1.

¹ Whether owned wholly, partially or jointly with others.

² An Entity means a person who is not an individual. It includes the following:

An unincorporated association,
A trustee for a collective investment scheme when acting in that capacity,
A trustee-manager for a business trust when acting in that capacity
The partners of the partnership whether or not any of them is an individual, where the property conveyed, transferred or assigned is to be held as partnership property.

³ As entities, developers will also be subject to the ABSD rate of 25% for entities. Developers may apply for remission of this 25% ABSD, subject to conditions.

⁴Housing Developers refer to entities in the business of housing development (i.e. construction and sale of housing units) with respect to the subject property acquired.

⁵ This 5% ABSD for Housing Developers is in addition to the 25% ABSD for all entities. This 5% will not be remitted, and is to be paid upfront upon purchase of residential property.

Example: A Foreigner purchases a unit at a market value of $2 million on 6 Jul 2018 and the ABSD rate of 20% applies.

Computation of ABSD
20% of $2,000,000	= $400,000
ABSD Payable	$400,000

All entities will be subject to the new ABSD rate of 25%. In addition, housing developers are subject to an additional non-remittable ABSD rate of 5% upon stamping, i.e. aggregate ABSD rate of 30%. Such developers may apply for remission on the ABSD rate of 25% under the ABSD remission for development of 4 or less units or housing accommodation or ABSD remission for development of 5 or more units of housing accommodation.

Entities who are acquiring residential properties with no intention to carry out housing development (i.e. construction and sale of housing units) with respect to the subject property acquired should pay the ABSD rate of 25%.

It is important for the purchasing entity to decide whether it will undertake housing development of the subject property at the point of purchase, in order to ascertain the applicable ABSD treatment. Any subsequent change of intention will not be considered for stamp duty purposes. For example, entities who have paid the ABSD rate of 25% will not qualify for the ABSD Housing Developers Remission, even if they fulfil the remission conditions subsequently. Similarly, developers who paid the ABSD rate of 5% and applied for the ABSD Housing Developers Remission cannot withdraw their application subsequently. If they are unable to meet the remission conditions, the remitted ABSD of 25% will be recovered with interest.

Remission for acquisition of residential properties during the transitional period

There is a transitional remission for residential properties acquired on or after 6 Jul 2018 such that the former ABSD rates, instead of the new ABSD rates will apply. For buyers to be eligible for the remission, all of the following conditions must strictly be met:

The option to purchase (“OTP”) is granted on or before 5 Jul 2018;
The OTP is exercised* on or before 26 Jul 2018 or the date of expiry of the OTP validity period, whichever is the earlier; and
The OTP is not varied (including any extension of the validity period) on or after 6 Jul 2018.

*For stamp duty purposes, the OTP is considered exercised when the Acceptance to OTP or Sale and Purchase Agreement (whichever applicable) is executed, i.e. signed by the buyer.

No remission is applicable for SC or SPR buying 1st residential property as there is no change to their ABSD rates.

To apply for the remission, please email the typewritten Application Form for ABSD Transitional Remission (in Word.doc format) to estamp@iras.gov.sg under the subject “ABSD Transitional Remission – Insert Property Address” within 14 days from the date of execution of the instrument.

For applicants who declared in the application form that they are also applying for ABSD Housing Developers Remission, please include the following supporting documents in your email. You may wish to note that we would e-stamp the document for BSD when we process your remission for ABSD. Hence, please do not e-stamp the document for BSD separately.

Supporting documents:

Option granted (if any)
Executed Sale Contract

For all other applicants, there is no need to email the instrument or other documentary evidences to IRAS for the purpose of this application unless specifically requested by IRAS.

Once we have processed your application, you will receive an email on the payment instructions and to download your stamp certificate after payment has been cleared.

FAQs

For purchase by Singapore Citizens (SC)
- I am an SC currently owning only one private apartment. I am considering to sell it and buy a terrace house. Do I have to pay ABSD when I buy the terrace house?
  
  If you have contracted to sell your only apartment before you execute the Acceptance to the Option to Purchase for the terrace house, you do not need to pay ABSD.
  But if you have not contracted to sell your apartment, your purchase of the terrace house will be your second property on which you need to pay ABSD at 12%.
- I am a SC currently owning a private flat. If I were to downgrade to an HDB resale flat, do I have to pay ABSD on the HDB resale flat?
  
  As HDB’s rules require buyers to dispose of their private properties within 6 months from the completion date of HDB resale flats, ABSD remission will be given upfront to purchasers of HDB flats. You do not need to pay ABSD when you buy the flat.
- My wife and I are SC and we jointly own an apartment. We intend to jointly purchase a terrace house that is under construction. Do we need to pay ABSD?
  
  The ABSD of 12% is payable as the terrace house will be your second property. However, if you dispose of your apartment within 6 months from the date of TOP/CSC (whichever is earlier) of the terrace house, you may be eligible for the refund of ABSD.
- My wife and I are SC and we jointly own one semi-detached house. I also inherited a 10% share of another property from a deceased relative. If I now buy a condominium unit together with my son who is an SC and does not own any property, do we have to pay ABSD on the purchase of the condominium unit?
  
  Ownership of a partial interest in a property will add to the count of property owned by you. Thus you would have owned two residential properties before you purchase the condominium unit. The purchase of the condominium unit with your son will be your third residential property. Hence you and your son would have to pay ABSD at 15% on the purchase price/value of the condominium unit even though this will be your son’s first residential property.
- I am a SC currently owning only a 20% share in a house co-owned with my mother. Should my mother transfer her 80% share of the house to me, do I need to pay ABSD? If I were to buy another private flat after that, what would be the ABSD rate?
  
  As you are a Singapore citizen who only owns one residential property and are acquiring additional interest in the same property from the co-owner, no ABSD is payable on the acquisition.
  However, please note that BSD is still payable on the acquisition of your mother’s 80% share of the property.
  Your subsequent purchase of the private flat would be your second property which would attract the ABSD rate of 12%.
- I am a SC and I co-own a house with my mother. My husband who is also a SC does not own any residential property. If we buy our first matrimonial home jointly, do we need to pay ABSD?
  
  The matrimonial home will be your second property and therefore both of you will have to pay ABSD at 12% even though it will be your spouse’s first property. However, you may be eligible for the ABSD refund if you dispose of your interest in the house that is co-owned with your mother within 6 months from the date of purchase/TOP/CSC (whichever is applicable) of your matrimonial home.
- I am a SC. I own 2 residential properties, 1 of which I own jointly with my mother, and the other with my husband. My husband now wishes to transfer his share of the jointly owned property to me. Do I need to pay ABSD on the transfer given that I already own half share in the property?
  
  As you are a Singapore citizen owning two properties (albeit partial interest in each property), the acquisition of your husband’s half share would be counted as your third property and subject to 15% ABSD.
  However, as you are a Singapore citizen who owns two properties and are acquiring additional interest in one of the two properties which you already have a partial interest in, there is a remission available which would reduce the ABSD to 12%. Please apply for the remission by submitting a request for e-Assessment at the e-Stamping Portal.
  Please note that BSD is still payable on the acquisition of your husband’s half share.
- I am a SC. I own 3 residential properties, 2 in my sole name and the other jointly with my husband. My husband now wishes to transfer his share of the jointly owned property to me. Do I need to pay ABSD on the transfer given that I already own half share in the property?
  
  As you are a Singapore citizen owning three properties, the acquisition of your husband’s half share would be counted as your fourth property and subject to 15% ABSD.
  Please note that BSD is still payable on the acquisition of your husband’s half share.
- I am a widow and I jointly own a terrace house with my son. We are both SC. We intend to downgrade to a condominium unit. Can we apply for ABSD refund if we dispose of the terrace house within 6 months from the purchase of the condominium unit?
  
  No. You will not qualify for ABSD refund as the ABSD refund is a special concession given only to Singaporean married couples, to facilitate their changing of homes.. You will need to dispose of your terrace house if you wish to avoid paying ABSD on your next purchase.
For purchase by SC and others (Singapore Permanent Residents (SPR) and Foreigners (FR))
- I am a SC married to a SPR. We jointly own a private apartment. If we buy another house jointly, what is the ABSD payable by us?
  
  The purchase of the house will be your second property for both yourself and your spouse. As your spouse is a SPR, both of you will have to pay ABSD at 15% of the purchase price/ market value of the house. However, you may be eligible for the ABSD refund if you and your spouse dispose of your first property within 6 months from the date of purchase/ TOP/ CSC (whichever is applicable) of your second property.
- I am a SC married to a SPR. We jointly own a 3-room HDB flat. If we upgrade to a 5-room flat, do we need to pay ABSD?
  
  As HDB’s rules require buyers to dispose of their existing flats within 6 months from the possession of new HDB flats, ABSD remission will be given upfront. You do not need to pay ABSD when you buy the 5-room HDB flat.
- I am a SC married to a SPR. We jointly own a 5-room HDB flat. If we upgrade to a private flat, do we need to pay ABSD?
  
  The purchase of the house will be your second property for both yourself and your spouse. As your spouse is a SPR, both of you will have to pay ABSD at 15% of the purchase price/ market value of the house. However, you may be eligible for the ABSD refund for second residential property if you and your spouse dispose of the HDB flat within 6 months of the date of purchase/ TOP/ CSC (whichever is applicable) of your private flat.
- I am a SC married to a SPR. Both of us do not own any property in Singapore. If we jointly purchase our first matrimonial home, do we need to pay ABSD?
  
  SPRs are required to pay ABSD at 5% if they buy their first residential property on their own or jointly with SC. However, if both you and your SPR spouse do not own any property and the matrimonial home is the only residential property owned by you and your spouse, you are eligible for the ABSD remission for spouses.
- I am a SC and my wife is a FR. We jointly own one apartment which is our first matrimonial home and no other property. Would we be eligible for the ABSD remission if we upgrade to a terrace house and sell the apartment within 6 months of our purchase of the terrace house?
  
  If you are able to fulfil all the conditions for ABSD refund for purchase of second property, the ABSD of 20% paid will be refunded to you upon application.
For purchase by non-SC
- I am a SPR buying my first HDB resale flat. Do I need to pay ABSD?
  
  From 12 Jan 2013, SPR buying their first residential property including HDB flat would have to pay ABSD at 5%.
- I am a SPR owning one private apartment. If I downgrade to a HDB resale flat, do I need to pay ABSD on the HDB flat?
  
  As HDB’s rules require buyers to dispose of all their private properties within 6 months from the completion date of the HDB resale flats, the ABSD remission will be given upfront. You only need to pay ABSD at 5% instead of 15% when you buy the HDB flat.
- I am a SPR. I am also a citizen of United States of America. There is a Free Trade Agreement signed between USA and Singapore. Which ABSD rate will apply to me when I buy my first residential property in Singapore?
  
  You will be accorded the same treatment as a SC. You do not need to pay ABSD on your first property purchase. The ABSD rates of 12% and 15% will apply when you buy the second and additional residential properties respectively.
- If I am in the process of obtaining my SC or SPR at the time of purchase, can I later apply for a remission to enjoy lower ABSD rates based on my new residency status?
  
  The applicable ABSD rate is based on the nationality of the buyer on the date of purchase. You must have been granted the residency status by the Immigration and Checkpoint Authority (ICA) as at the date of purchase in order to enjoy lower ABSD liability. The date of issue reflected in the IC collection slip would be taken as when the residency status was granted.
Property Type
- I am buying a HDB shop with living quarters. Is ABSD payable?
  
  ABSD is payable only on the apportioned value of the living quarters. You may get a professional valuer to value the living quarters.
- I am buying a strata shop unit. Is ABSD payable?
  
  If the strata unit is permitted to be used as a shop by a Written Permission given under section 14(4) of the Planning Act for a period exceeding 10 years, ABSD is not payable.
- I am buying a mixed-use development on land zoned ‘Residential’. Is ABSD payable?
  
  As the land is zoned ‘Residential’ and hence the development is capable of being developed or used for fully residential purposes, ABSD is payable.
- I am buying a semi-detached house which has been approved as a child care centre for three years. Is ABSD payable?
  
  ABSD is payable as this is a residential property and the use as a child care centre is only a temporary permitted use.
Property Count
- I am a SC owning one house in Malaysia but none in Singapore. Is ABSD payable when I buy my first residential property in Singapore?
  
  Only residential properties in Singapore are included in the property count which is used to determine ABSD liability. As this is your first residential property in Singapore, ABSD is not payable.
- I only own a three-storey shophouse which comprises a ground floor shop and two separate residential units on the second and third storeys. They are held under one title. What is the count of residential properties owned by me?
  
  As the two residential units are physically separate units, they are counted as two units owned by you even though they do not have separate titles.
- I am a SC. My only house has been gazetted to be compulsorily acquired by the Government. If I buy another residential property now, do I need to pay ABSD?
  
  Properties gazetted for compulsory acquisition will be excluded from the count of properties. As such, your count of properties owned is zero and hence ABSD will not be payable on your purchase of the next residential property.
Payment
- When must BSD and ABSD be paid?
  
  BSD and ABSD must be paid within 14 days from the date of the signed Contract or Agreement. Where the Contract or Agreement is executed (signed) overseas, BSD and ABSD must be paid within 30 days of the receipt of the Contract or Agreement in Singapore. A document is considered to be duly stamped only when stamp duty is fully paid. Audit checks will be conducted by IRAS to ensure that BSD and ABSD are duly paid. Under the Stamp Duties Act, a penalty of 4 times the amount of unpaid duty can be imposed.
- What if I do not have enough funds to pay ABSD? Can ABSD be deferred or paid by instalments?
  
  Stamp duty is an upfront cost that a buyer has to consciously set aside when he decides to purchase a property. It must be paid in full and cannot be deferred. Inadequate payment or late payment of stamp duty is tantamount to non-stamping and penalties would apply.
- How do I pay ABSD?
  
  Where BSD and ABSD are payable on the same document, you should pay both BSD and ABSD using the same form named Buyer’s Stamp Duty (and ABSD, if applicable) available at our e-Stamping portal (https://estamping.iras.gov.sg) The form is located under the header of ‘Sale and Purchase / Transfer’.
Others
- If a seller were to backdate the date of offer of his Option upon the request of the buyer to avoid paying ABSD, is this an offence?
  
  Yes, it is an offence under Section 62 of Stamp Duties Act to evade stamp duty by executing a document where facts and circumstances are not fully and truly set forth. Any person guilty of such an offence shall be liable on conviction to a fine not exceeding $10,000 or to imprisonment for a term not exceeding 3 years or to both.
- I bought a condominium unit from a developer who has offered me 15% direct cash discount and this discount is also stated in the document to be stamped. Should I pay stamp duty on the purchase price before or after discount?
  
  The amount of direct cash discount may be deducted from the purchase price to determine what is the amount of consideration for stamp duty purpose. This is provided that the nett price is still reflective of the market value.
- I did not have to pay ABSD on the purchase of my new flat because I managed to sell my previous property just before the purchase of my new flat. However, my buyer has now aborted the purchase of my previous property. Do I need to pay ABSD on my new flat now?
  
  You are to disclose to IRAS the failed sale of your previous property and the circumstances of the aborted sale. Whether ABSD would be clawed back from you and what further action would be taken by IRAS would depend on the circumstances of the case. For information, the Commissioner of Stamp Duties may invoke the anti-avoidance provision under Section 33A of the Stamp Duties Act if there is reason to suspect that the sale of your previous property was fictitious and was schemed to avoid or reduce payment of ABSD.

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Categories

Additional Buyer's Stamp Duty (ABSD)

Determining ABSD Liability

A. Whether the Buyer is an Individual or an Entity

B. The Residency Status of the Buyer

C. The Count of Residential Properties Owned by the Buyer

Rates and Computation

Remission for acquisition of residential properties during the transitional period

Related

Stamp Duty Calculator

e-Learning Video - ABSD for Home Buyers

FAQs

For purchase by Singapore Citizens (SC)

For purchase by SC and others (Singapore Permanent Residents (SPR) and Foreigners (FR))

For purchase by non-SC

Property Type

Property Count

Payment

Others

Inland Revenue Authority of Singapore