60% ABSD for Foreigners: What You Need to Know

Singapore's property cooling measures now include 60% Additional Buyer's Stamp Duty (ABSD) for foreign buyers. Here's the complete breakdown.

Current ABSD Rates

Effective April 27, 2023:

| Buyer Profile | 1st Property | 2nd Property | 3rd+ Property |
|--------------|--------------|--------------|---------------|
| Singapore Citizen | 0% | 20% | 30% |
| Permanent Resident | 5% | 30% | 35% |
| Foreigner | 60% | 60% | 60% |
| Entity/Trust | 65% | 65% | 65% |

Impact on Foreign Buyers

Example Calculation:
$2M condo purchase by foreigner:

  • BSD: ~$64,600

  • ABSD (60%): $1,200,000

  • Total stamp duty: $1,264,600

    • That's an additional 63% on top of purchase price before you even move in!

    Why the Increase?

    Government Rationale:

  • Prioritize housing for Singaporeans

  • Cool overheated market

  • Reduce speculative buying

  • Ensure sustainable price growth

    • Historical Context:

  • 2011: ABSD introduced at 10%

  • 2013: Raised to 15%

  • 2018: Raised to 20%

  • 2021: Raised to 30%

  • 2023: Doubled to 60%

    • Who Is Affected?

    Foreign Buyers Include:

  • Non-residents purchasing property

  • PRs buying their second property face 30%

  • Companies and trusts face 65%

    • Exemptions:

  • US nationals (Free Trade Agreement): Treated as Singapore Citizens

  • Some other nationalities with FTAs may have different rates

    • Options for Foreign Buyers

    Alternative Strategies:

  • Apply for PR First: Reduces ABSD significantly

  • Rent Instead: Build savings while waiting

  • Buy Commercial: Different tax structure

  • Wait for Policy Changes: Market conditions evolve

    • Impact on Market

    Observed Effects:

  • Significant drop in foreign purchases

  • Prices stabilizing in luxury segment

  • Developers adjusting strategies

  • Rental market potentially affected

    • For PRs Planning to Buy

    Better Than Foreigners:

  • First property: Only 5% ABSD

  • Second property: 30% ABSD

  • Pathway to citizen status reduces future ABSD

    • Calculating Total Costs

    Full Cost Breakdown:

    | Item | Amount (on $1.5M) |
    |------|-------------------|
    | Purchase Price | $1,500,000 |
    | BSD | $44,600 |
    | ABSD (Foreigner 60%) | $900,000 |
    | Legal Fees | $3,000 |
    | Agent Commission | Usually paid by seller |
    | Total | $2,447,600 |

    Professional Advice

    Before Purchasing:

  • Consult tax advisor

  • Understand total costs

  • Consider long-term plans

  • Explore residency pathways

    • Looking Ahead

    What Could Change:

  • ABSD rates reviewed periodically

  • Economic conditions affect policy

  • Market stability may allow adjustments

  • No guarantees on future rates

    • Conclusion

    The 60% ABSD makes Singapore property very expensive for foreigners. If you're committed to buying, factor in all costs carefully. For many, exploring PR status or renting may be more practical options until circumstances change.