Additional Buyer's Stamp Duty (ABSD)

1. Date of execution of the Acceptance to the Option to Purchase or
2. Date of Sale & Purchase Agreement or
3. Date of instrument which places the residential property on trust or
4. Date of transfer where (1), (2) and (3) are not available nor applicable.

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.

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.

If multiple properties are jointly purchased by buyers of different profiles, each property will be counted as a separate property and the profile with the highest ABSD rate will apply on each property as if the buyers are acquiring the properties jointly under separate instruments. For example, a Singapore Citizen who owns one residential property decides to purchase three residential properties ("Property A, B and C") together with a Singapore Permanent Resident who does not own any residential property, in a single contract. The ABSD rates applicable on the purchase of Property A, B and C are 17%^, 25%* and 30%^# respectively. 

^17% because Property A is the Singapore Citizen's second residential property, whose profile is higher than his co-purchaser's (Singapore Permanent Resident's first residential property).

*25% because Property B is the Singapore Citizen's third residential property and the Singapore Permanent Resident's second residential property. Both profiles attract a 25% ABSD rate.

^#30% because Property C is the Singapore Permanent Resident's third residential property, whose profile is higher than his co-purchaser's (Singapore Citizen's third and subsequent property).

Some living trusts may be structured such that there is no identifiable beneficial owner at the time when the residential property is transferred into the trust. Before the introduction of ABSD (Trust), ABSD would not apply in such a situation. To promote a stable and sustainable residential property market, the Government has thus introduced ABSD (Trust) of 35%, which will apply for any conveyance, assignment or transfer on sale of residential property into a living trust irrespective of whether there are identifiable beneficial owners of the property. ABSD (Trust) will apply on any such conveyance, assignment or transfer on sale of residential property into living trusts, where the transfer occurs on or after 9 May 2022.

ABSD (Trust) is applicable to any transfer of residential property into a living trust (including existing trusts), where any of these are executed on or after 9 May 2022.

Thus, ABSD (Trust) will not be applicable where the residential property was already held on trust before 9 May 2022.

The residential property transferred into the trust will be added to property count of any identifiable beneficial owner of that property, regardless of whether there is a remission of ABSD (Trust).

The private residential market has been buoyant, despite the economic impact of COVID-19. Private housing prices have risen by about 9% since 1Q2020. Even though House Price-to-Income ratio remain below the historical average, there is clear upward momentum. Amid the low interest rate environment, transaction volumes in the private housing market have also been high despite the COVID-19 situation. If left unchecked, prices could run ahead of economic fundamentals, and raise the risk of a destabilising correction later on. Borrowers would also be vulnerable to a possible rise in interest rates in the coming years. 

The Government has therefore decided to implement a set of measures to cool the private residential market.  The measures are calibrated to dampen broad-based demand, especially from those purchasing property for investment instead of owner-occupation.

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 17%.

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 17%.

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 25% 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 17%. 

Please note that BSD is still payable on the acquisition of your husband’s half share. You can e-Stamp at the e-Stamping Portal to obtain the remission certificate.  

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 25% ABSD.

Please note that BSD is still payable on the acquisition of your husband’s half share.

ABSD liability is determined based on the buyer’s profile at the point of purchasing a property and does not change notwithstanding subsequent changes to the buyer’s profile.

The point of purchase refers to the date you signed your:

a) Date of Acceptance of the Option to Purchase* or

b) Date of Sale and Purchase Agreement or

c) Date of Agreement for Lease (for new HDB flat) or

d) Date of Transfer where the above a), b) and c) are not applicable. 

*Excludes an Option to Purchase that is subject to the execution/ signing of the Sale and Purchase Agreement

If you received the in-principle approval for your application for SC/ SPR by the Immigration & Checkpoints Authority (ICA) before purchasing the property, please submit an e-appeal through the e-stamping portal. Notwithstanding your appeal request, you will need to pay the ABSD within 14 days of purchasing the property. Your appeal will be assessed on a case-by-case basis and if successful, the ABSD will be refunded to you after all the remission conditions have been met.

If you only received ICA’s in-principle approval after purchasing the property, your appeal will not be successful.