ABSD (Additional Buyer Stamp Duty) is different from SSD (Seller Stamp Duty).
SSD is applied on Private Residential Property and Industrial property but excludes Commercial Property (eg. Office, Retail shop, Medical Suites)
Seller Stamp Duty (SSD) for Private Residential Property was previously imposed for 4 years within property purchase however, it was reduced to a 3-year time-frame in 2017. The latest SSD rate is as follows:
- 12% if the property is sold within the 1st year of purchase
- 8% if the property is sold within the 2nd year of purchase
- 4% if the property is sold within the 3rd year of purchase
SSD for Industrial property was imposed on 12 Jan 2013 to curb speculation and the rates are as below:
- 15% if the property is sold within the 1st year of purchase
- 10% if the property is sold within the 2nd year of purchase
- 5% if the property is sold within the 3rd year of purchase
- No SSD is payable if the industrial property is sold on the 4th year
Please note that SSD is computed by applying the requisite SSD rate on the selling price or the market value of the property, whichever is the higher as at the date of sale or disposal.
ABSD Rates are as follows:
Below are the frequently asked questions on the impact of Additional Buyer’s Stamp Duty on purchases made by Singaporean(s) and/or PR and/or foreigner.
ABSD affects ONLY Residential property. It doesn’t affect Commercial and Industrial property, which is why there are increasing significant interest flowing into Commercial and Industrial sectors.
Below are FAQ on ABSD for Residential Private Property extracted from IRAS website
Purchase by Singapore Citizens (SC)
Q1. I am a SC currently owning only one private apartment. I am considering to sell it and to buy a terrace house. Do I have to pay ABSD when I buy the terrace house?
If you have contracted to sell your only apartment before you exercise the Option to purchase the terrace house, you do not need to pay ABSD. But if you have not contracted to sell your apartment, your purchase of the terrace house will be your second property on which you need to pay ABSD at 7%.
Q2. I am a SC currently owning a private flat. If I were to downgrade to a HDB resale flat, do I have to pay ABSD on the HDB resale flat?
As HDB’s rules require buyers to dispose of their private properties within 6 months from the completion date of HDB resale flats, ABSD remission will be given upfront to purchasers of HDB flats. You do not need to pay ABSD when you buy the flat.
Q3. My wife and I are SC and we jointly own an apartment. We intend to jointly purchase a terrace house that is under construction. Do we need to pay ABSD?
The ABSD of 7% is payable as the terrace house will be your second property. However if you dispose of your apartment within 6 months from the date of TOP/CSC (whichever is earlier) of the terrace house, you may be eligible for the refund of the ABSD. Please see paragraph 10.2b for the conditions for refund.
Q4. My wife and I are SC and we jointly own one semi-detached house. I also inherited a 10% share of another flat from a deceased relative. If I now buy a condominium unit together with my son who does not own any property, do we have to pay ABSD on the purchase of the condominium unit?
Ownership of a partial interest in a property will add to the count of property owned by you. Thus you would have owned two residential properties before you purchase the condominium unit. The purchase of the condominium unit with your son will be your third residential property. Hence you and your son would have to pay ABSD at 10% on the purchase price/value of the condominium unit even though this will be your son’s first residential property.
Q5. I am a SC currently owning only a 20% share in a house co-owned with my mother. Should my mother transfer her 80% share of the house to me, do I need to pay ABSD? If I were to buy another private flat after that, what would be the ABSD rate?
You would have owned one residential property before your mother transfers her share to you. However the transfer of the 80% share of the same property to you would not add to the count of properties owned by you and hence would not be subject to ABSD. However, BSD is still payable on the acquisition of 80% interest in the property. Your subsequent purchase of the private flat would be your second property which would attract the ABSD rate of 7%.
Q6. I am a SC and I do not own any residential property. If I were to buy two units of flats together in one single deal from the developer, can both units be treated as my first property purchase so that I do not have to pay ABSD? If not, how would ABSD be levied and on which unit?
It does not matter that the properties are bought in one contract. You are buying two residential properties. You may select any one of the two units to be charged at the ABSD rate at 7% while the other would not be subject to ABSD.
Q7. I am a SC and I co-own a house with my mother. My husband who is also a SC does not own any residential property. If we buy our first matrimonial home jointly, do we need to pay ABSD?
The matrimonial home will be your second property and therefore both of you would have to pay ABSD at 7% even though it will be your spouse’s first property. However you may be eligible for the ABSD refund if you dispose of your interest in the house that is co-owned with your mother within 6 months from the date of purchase/TOP/CSC (whichever is applicable) of your matrimonial home.
Q8. I am a widow and I jointly own a terrace house with my son. We are both SC. We intend to downgrade to a private flat. Can we apply for ABSD refund if we dispose of the house within 6 months from the purchase of the flat?
You will not qualify for ABSD refund as the refund is only for purchase of second residential property by Singaporean married couples. You will need to dispose of your terrace house if you wish to avoid paying ABSD on your next purchase.
Purchase by SC and others (Singapore Permanent Residents (SPR) and Foreigners (FR))
Q9. I am a SC married to a SPR. We jointly own a private flat. If we buy another house jointly, what is the ABSD payable by us?
The purchase of the house will be your second property for both yourself and your spouse. As your spouse is a SPR, both of you would have to pay ABSD at 10% of the purchase price/value of the house. However you may be eligible for the ABSD refund if you dispose of your first property within 6 months from the date of purchase/TOP/CSC (whichever is applicable) of your second property.
Q10. I am a SC married to a SPR. We jointly own a 3-room HDB flat. If we upgrade to a 5-room flat, do we need to pay ABSD?
As HDB’s rules require buyers to dispose of their existing flats within 6 months from the possession of new HDB flats, ABSD remission will be given upfront. You do not need to pay ABSD when you buy the 5-room HDB flat.
Q11. I am a SC married to a SPR. We jointly own a 5-room HDB flat. If we upgrade to a private flat, do we need to pay ABSD?
The purchase of the house will be your second property for both yourself and your spouse. As your spouse is a SPR, both of you would have to pay ABSD at 10% of the purchase price/value of the house. However, you may be eligible for the ABSD refund for second residential property if you and your spouse dispose of the HDB flat within 6 months of the date of purchase/TOP/CSC (whichever is applicable) of your private flat.
Q12. I am a SC married to a SPR. Both of us do not own any property in Singapore. If we jointly purchase our first matrimonial home, do we need to pay ABSD?
SPRs are required to pay ABSD at 5% if they buy their first residential property on their own or jointly with SC. However if both you and your SPR spouse do not own any property and the matrimonial home is the only residential property owned by you and your spouse, you are eligible for the ABSD remission for spouses.
Q13. I am a SC and my wife is a FR. We jointly own one apartment which is our first matrimonial home and no other property. Would we be eligible for the ABSD remission if we upgrade to a terrace house and sell the apartment within 6 months of our purchase of the terrace house?
If you are able to fulfill all the conditions for ABSD refund for purchase of second property, the ABSD of 15% paid will be refunded to you.
Purchase by non-SC (ie SPR and FR)
Q14. I am a SPR buying my first HDB resale flat. Do I need to pay ABSD?
From 12 Jan 2013, SPR buying the first residential property including HDB flat would have to pay ABSD at 5%.
Q15. I am a SPR owning one private apartment. If I downgrade to a HDB resale flat, do I need to pay ABSD on the HDB flat?
As HDB’s rules require buyers to dispose of all their private properties within 6 months from the completion date of the HDB resale flats, the ABSD remission will be given upfront. You only need to pay ABSD at 5% instead of 10% when you buy the HDB flat.
Q16. I am a SPR owning a HDB flat. If I upgrade to a private condominium unit, do I need to pay ABSD on the condominium unit?
Yes, you need to pay ABSD of 10% as it is your second property.
Q17. I am a SPR. I am also a citizen of United States of America. There is a Free Trade Agreement signed between USA and Singapore. Which ABSD rate will apply to me when I buy my first residential property in Singapore?
You will be accorded the same treatment as a SC. You do not need to pay ABSD on your first property purchase. The ABSD rates of 7% and 10% will apply when you buy the second and additional residential properties respectively.
Q18. I am buying an apartment to be held in trust for my friend who is a Hong Kong citizen and who does not own any property in Singapore. Does ABSD apply as I am a SC?
When you buy the apartment as a trustee, you are required to declare the identity of the beneficiary, who is the intended owner. Since the beneficiary in this case is a foreigner, the ABSD rate of 15% applies.