{"id":49017,"date":"2023-04-28T16:48:43","date_gmt":"2023-04-28T08:48:43","guid":{"rendered":"https:\/\/www.99.co\/singapore\/insider\/?p=49017"},"modified":"2024-12-07T18:55:03","modified_gmt":"2024-12-07T10:55:03","slug":"absd-remission","status":"publish","type":"post","link":"https:\/\/www.99.co\/singapore\/insider\/absd-remission\/","title":{"rendered":"How does the ABSD affect home purchases by SC\/PR or SC\/Foreigner buyers?"},"content":{"rendered":"
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Buying a property can be daunting and complicated, especially if it is your first time. On the financial side, it is not just the home loan<\/a> that you need to take note of. There are other (often hidden) things to consider, such as the stamp duty<\/a> and property tax<\/a>.<\/p>\n

For Singaporeans, if it is their first home, they are exempted from paying the Additional Buyer\u2019s Stamp Duty (ABSD)<\/a>.<\/p>\n

But it is a different story for those buying with a PR or foreigner. Even if it is their first residential property, they are still subjected to the ABSD.<\/p>\n

What is ABSD?<\/h2>\n

The Additional Buyer\u2019s Stamp Duty (ABSD) is a stamp duty paid on top of the Buyer\u2019s Stamp Duty (BSD)<\/a>. The payable rate depends on the residential status of the buyer and the number of residential properties under their name. How much you will need to pay is then computed based on the property price or valuation, whichever is higher.<\/p>\n

It is a cooling measure designed to bring down property prices and make housing more affordable for Singaporeans. So the ABSD rates are higher for non-Singaporeans and those with more than one residential property.<\/p>\n

The latest change in the rates took effect on 27 April 2023<\/a>, almost 1.5 years after the previous hike in December 2021<\/a>. The ABSD rate for Singaporeans was increased from 17% to 20% for their second residential property.<\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n
<\/td>\n<\/td>\nABSD rate from 16 December 2021 to 26 April 2023\u00a0<\/b><\/td>\nABSD rate from 27 April 2023<\/b><\/td>\nIncreased by\u00a0<\/b><\/td>\n<\/tr>\n
Singapore citizens\u00a0<\/b><\/td>\nFirst residential property\u00a0<\/b><\/td>\n0%\u00a0<\/span><\/td>\n0%<\/span><\/td>\n–<\/span><\/td>\n<\/tr>\n
<\/td>\nSecond residential property<\/b><\/td>\n17%<\/span><\/td>\n20%<\/span><\/td>\n3%\u00a0<\/span><\/td>\n<\/tr>\n
<\/td>\nThird and subsequent residential property<\/b><\/td>\n25%\u00a0<\/span><\/td>\n30%<\/span><\/td>\n5%\u00a0<\/span><\/td>\n<\/tr>\n
Permanent Residents (PR)<\/b><\/td>\nFirst residential property<\/b><\/td>\n5%<\/span><\/td>\n5%\u00a0<\/span><\/td>\n–<\/span><\/td>\n<\/tr>\n
<\/td>\nSecond residential property<\/b><\/td>\n25%\u00a0<\/span><\/td>\n30%<\/span><\/td>\n5%\u00a0<\/span><\/td>\n<\/tr>\n
<\/td>\nThird and subsequent residential property<\/b><\/td>\n30%<\/span><\/td>\n35%\u00a0<\/span><\/td>\n5%\u00a0<\/span><\/td>\n<\/tr>\n
Foreigners^<\/b><\/td>\nAny residential property<\/b><\/td>\n30%<\/span><\/td>\n60%<\/span><\/td>\n30%\u00a0<\/span><\/td>\n<\/tr>\n
Entities\u00a0<\/b><\/td>\nAny residential property<\/b><\/td>\n35%\u00a0<\/span><\/td>\n65%<\/span><\/td>\n30%<\/span><\/td>\n<\/tr>\n
Trustees<\/b><\/td>\nAny residential property<\/b><\/td>\n35%*\u00a0<\/span><\/td>\n65%<\/span><\/td>\n30%<\/span><\/td>\n<\/tr>\n
Housing developers<\/b><\/td>\nAny residential property<\/b><\/td>\n35% (remittable) + 5% (non-remittable)\u00a0<\/span><\/td>\n35% (remittable) + 5% (non-remittable)<\/span><\/td>\n–<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

*The ABSD rate for trustees<\/a> was from 9 May 2022 to 26 April 2023.\u00a0<\/i><\/small><\/p>\n

^Excluding Nationals and Permanent Residents of Iceland, Liechtenstein, Norway, and Switzerland, and Nationals of the United States of America, who will be subject to the same stamp duty rate as Singaporeans.<\/i><\/small><\/p>\n

For PRs buying their second residential property, the increase was even higher from 25% to 30%. It is even steeper for foreigners, as the ABSD rate has been doubled from 30% to 60%.<\/p>\n

The thing about the ABSD is that if you are buying with another person with a different profile (that is, based on the number of residential properties owned and residency status), the ABSD payable will be based on the profile with the higher ABSD rate.<\/p>\n

The exception<\/a> to this is for buyers who are:<\/p>\n