If you came here to learn all about Additional Buyer Stamp Duty, or, ABSD, you have come to the right place. Below are some frequently asked questions about ABSD as well as some tips we can offer you on how to legally avoid it. If our article doesn’t answer any of your questions on ABSD, be sure to write in to us at firstname.lastname@example.org. So let’s begin shall we?
- What is ABSD?
ABSD was first introduced on the 8th of December 2011. In the simplest of terms, ABSD is a government tax that is typically charged on the purchase of a second and subsequent residential property. These include HDB flats, residential shophouses (ABSD not applicable on commercial shophouses), condos and landed properties. However ABSD is charged depending on the buyer’s residential status.
- Why do we pay ABSD?
ABSD is a cooling measure implemented by the government to keep property prices affordable for Singapore citizens by managing the demand for residential properties. It also aims to discourage foreigners and other entities from purchasing residential properties, and more so multiple residential properties.
- Who needs to pay ABSD?
- Singaporean citizens who are purchasing a second and subsequent residential property.
- Singaporean permanent residents (PRs) who are buying their first residential property.
- Foreigners who are buying any residential property (except those under FTA*).
- Entities* buying any residential property.
* Foreigners under Free Trade Agreements (FTAs) include Nationals and Permanent Residents of Iceland, Liechtenstein, Norway or Switzerland and Nationals of the United States of America.
* Entities refer to an 1. unincorporated association/ 2. a trustee for a collective investment scheme when acting in that capacity/ 3. a trustee-manager for a business trust when acting in that capacity/ 4. 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.