Navigating ABSD: A Guide for Investors
By Bloom Realty Team | Dec 20, 2025 | 7 min read
Additional Buyer's Stamp Duty (ABSD) has become a permanent fixture in Singapore's property landscape. Since its introduction in 2011, rates have only trended upwards. For investors, understanding ABSD is no longer just about compliance—it's about calculating viability.
Current ABSD Rates (2025 Snapshot)
| Profile | 1st Property | 2nd Property | 3rd & Subsequent |
|---|---|---|---|
| Singapore Citizen | 0% | 20% | 30% |
| Permanent Resident | 5% | 30% | 35% |
| Foreigner | 60% | 60% | 60% |
| Entities/Trusts | 65% | 65% | 65% |
The "Matrimonial Home" Remission
Many couples worry about upgrading. If you buy a new home before selling your existing one, you must pay ABSD upfront. However, married couples (with at least one Singapore Citizen) can apply for a full remission if they sell their first property within 6 months of purchasing the second (or 6 months after TOP if uncompleted).
Note for PRs: Two PRs buying together do not qualify for this remission unless one attains Citizenship before the purchase.
Strategic Exemptions: Free Trade Agreements (FTAs)
Did you know that nationals from certain countries are accorded the same stamp duty treatment as Singapore Citizens? Under FTAs, nationals from the USA, Iceland, Liechtenstein, Norway, and Switzerland are exempt from the 60% foreigner ABSD rate for their first residential property. This is a massive advantage that is often overlooked.
Conclusion
ABSD is a hurdle, but not a roadblock. By planning your portfolio structure—using trusts (carefully), buying under a single name initially, or leveraging commercial properties (0% ABSD)—you can continue to build wealth in Singapore real estate efficiently.