If you are a foreign national considering a residential property purchase in Singapore, the first number you need to understand is 60. That is the percentage of the purchase price — on top of all other costs — that the Singapore government charges as Additional Buyer's Stamp Duty. On a S$3 million apartment in Orchard, that is S$1.8 million in tax alone. This guide explains exactly what ABSD is, who pays it, who is exempt, and how informed buyers plan around it.
What is ABSD?
Additional Buyer's Stamp Duty is a property tax introduced by the Singapore government in 2011 to cool residential property demand and keep housing affordable for Singaporeans. It is charged on top of the standard Buyer's Stamp Duty (BSD), which applies to all property purchases regardless of buyer profile.
Unlike BSD — which is progressive and based on the purchase price — ABSD is a flat percentage applied to the full purchase price or market value, whichever is higher. The rate depends entirely on two factors: your residency status and how many residential properties you already own in Singapore.
The 2025 ABSD rate table
The current rates below have been in force since 27 April 2023 and remain unchanged as of mid-2026.
| Buyer Profile | 1st Property | 2nd Property | 3rd & Beyond |
|---|---|---|---|
| Singapore Citizen | 0% | 20% | 30% |
| Singapore Permanent Resident | 5% | 30% | 35% |
| Foreigner (non-FTA) | 60% | 60% | 60% |
| FTA nationals (US, EEA*) | 0% | 20% | 30% |
| Entity / Company | 65% | 65% | 65% |
*FTA nationals: US, Iceland, Liechtenstein, Norway, Switzerland. See FTA section below for full details.
The key point for foreign buyers: the 60% rate applies to every residential property purchase regardless of how many you already own. There is no tiered system, no first-property concession, and no sign the rate will be reduced in the near term. Since the rate doubled from 30% to 60% in April 2023, foreign buyer transactions in the Core Central Region fell by over 59% in a single quarter.
What does 60% actually cost?
The numbers are significant enough that every foreign buyer should run them before viewing a single property. Here is what ABSD adds to purchases at common Singapore luxury price points.
Sample cost breakdown — S$3,000,000 condo, foreign buyer
Two additional points worth understanding. First, ABSD cannot be paid using CPF savings — it must be paid entirely in cash, within 14 days of signing in Singapore (30 days if signed overseas). Second, if you purchase jointly with a Singapore Citizen, the 60% rate still applies to the entire purchase price — not just your share.
Who is exempt? The FTA nationalities
Under Singapore's Free Trade Agreements, nationals and permanent residents of certain countries are treated identically to Singapore Citizens for ABSD purposes. This means they pay 0% ABSD on their first residential property, with the standard Singapore Citizen rates of 20% and 30% applying to subsequent purchases.
FTA-eligible nationalities (as of 2025)
The FTA exemption applies to nationals of these countries only — it does not extend to other nationalities regardless of how long they have lived there or held permanent residency. If you are an American citizen buying your first Singapore home, you pay zero ABSD. If you are a British citizen, you pay 60%.
To claim the FTA exemption, your conveyancing lawyer applies through the IRAS e-stamping portal. The process is straightforward and does not require a separate application — just ensure your lawyer is aware of your nationality at the outset.
The foreign-spouse remission
One meaningful relief exists for couples where one partner is a Singapore Citizen and the other is a foreigner. If you are jointly purchasing your first matrimonial home — a property you intend to live in, not rent out — you can apply to IRAS for a full ABSD remission after the purchase.
The process works as follows: the couple pays the 15% ABSD upfront (based on the foreigner's profile being the higher rate in a joint purchase with a first-time SC buyer). After the purchase, they apply to IRAS for a full remission. The refund is typically approved within several weeks, provided the property is used as the matrimonial home and the Singapore Citizen spouse does not own any other residential property.
Important: this remission applies to the first matrimonial home only. If either spouse owns any other residential property, the remission will not be granted. Engage your conveyancing lawyer before signing to confirm eligibility — the application window is time-limited.
How ABSD has evolved — a brief history
Understanding the trajectory helps buyers assess whether rates might change. Every ABSD revision since 2011 has been an increase. There has never been a reduction.
2011
ABSD introduced at 10% for foreigners — the first time Singapore imposed a buyer-specific stamp duty on residential property.
2013
Rate raised to 15% for foreigners as property prices continued to rise.
2018
Increased to 20% — the first major escalation targeting foreign investment demand.
2021
Raised to 30% amid a post-pandemic property surge.
April 2023
Doubled to 60% in a single announcement — the most aggressive cooling measure in Singapore property history, explicitly targeting foreign investment demand and pre-emptive speculative buying.
What foreign buyers are doing now
Despite the 60% rate, Singapore continues to attract foreign buyers — particularly ultra-high-net-worth individuals for whom the ABSD is a manageable transaction cost relative to the asset quality, political stability, and long-term appreciation potential Singapore offers.
Foreign buyer activity in the CCR fell from 4.7% of total condo purchases in 2022 to 1.8% in 2024 following the rate increase. However, the buyers who remain in the market tend to be at the very top of the wealth spectrum — those purchasing at the S$5–20 million and above price point, where the ABSD is a known cost factored into the acquisition thesis rather than a deterrent.
For buyers considering Singapore at lower price points, the most common strategic approaches include: purchasing through a PR spouse if eligible, pursuing Singapore Permanent Residency before purchasing, or focusing on commercial property (which carries zero ABSD for any buyer, including foreigners).
Frequently asked questions
Can I avoid ABSD by purchasing through a company?
No. Entities and companies face an even higher rate of 65% ABSD on residential property. This route does not offer an advantage and carries significant additional legal and tax complexity. IRAS actively monitors structures designed to avoid stamp duty and can impose a 50% surcharge on avoidance arrangements.
Does ABSD apply to all residential property types?
Yes — ABSD applies to all residential property purchases including condominiums, apartments, landed homes, and executive condominiums (after the 5-year minimum occupation period). It does not apply to commercial property, shophouses with commercial use, or industrial property.
What if I become a Singapore PR after purchasing?
ABSD is calculated based on your residency status on the date of purchase. Obtaining PR status after the purchase does not entitle you to a refund of the higher foreigner ABSD rate previously paid.
Is ABSD included in the bank loan?
No. ABSD cannot be financed through a mortgage and must be paid in full in cash within 14 days of signing in Singapore (30 days if signed overseas). Unlike BSD, it cannot be paid using CPF funds. This cash requirement is often the most significant practical consideration for foreign buyers.
Does ABSD apply to new launches and resale properties equally?
Yes. The same ABSD rates apply regardless of whether the property is a new launch, a completed resale unit, or an uncompleted project purchased directly from a developer. The duty is calculated on the purchase price or market value, whichever is higher.
Navigating ABSD as a foreign buyer?
I work with buyers across all nationalities and budget profiles — including foreign nationals, PRs, and FTA-eligible buyers. A short conversation can clarify your options before you commit to anything.
Chat with Andee on WhatsAppAll ABSD rates and regulations referenced in this article are based on IRAS guidelines as of mid-2026. Stamp duty rates and property regulations are subject to change by the Singapore government. This article is for general informational purposes only and does not constitute financial, legal, or tax advice. Always consult a qualified conveyancing lawyer and licensed property agent before making any property decision. Andee Ching, CEA No. R071050B, Huttons Asia Pte Ltd, Licence No. L3008899K.