ABSD for Foreigners Buying Residential Property in Singapore

了解ABSD for Foreigners Buying Residential Property in Singapore - 完整指南与实用信息

ABSD for Foreigners Buying Residential Property in Singapore

Singapore imposes an Additional Buyer’s Stamp Duty (ABSD) on residential property purchases, and foreigners face the highest rate. As of 2026, the ABSD rate for non-individuals and foreigners (any person who is not a Singapore citizen or permanent resident) is 60% of the property’s purchase price or market value, whichever is higher. This duty is paid on top of the existing Buyer’s Stamp Duty.

What Is ABSD and Who Counts as a Foreigner?

ABSD is a tax layered on top of standard Buyer’s Stamp Duty to cool residential demand. Foreigner under ABSD rules means any purchaser who is not a Singapore Citizen (SC) or Singapore Permanent Resident (SPR). US citizens and nationals from Iceland, Liechtenstein, Norway, or Switzerland are treated as SCs for stamp duty under their respective free trade agreements, so they do not pay the foreigner rate.

Current ABSD Rate for Foreigners: 60% Since 2023

The foreigner ABSD rate was doubled from 30% to 60% on 27 April 2023. The government has not adjusted this rate since; all residential purchases by foreigners completing on or after that date incur the 60% charge. For context, a foreigner buying a S$1,500,000 condo pays S$900,000 in ABSD alone, before factoring in Buyer’s Stamp Duty (around S$42,600).

How ABSD Is Calculated and Paid

ABSD is computed on the higher of the purchase price stated in the sale contract or the property’s market value as assessed by IRAS. It is payable within 14 days of exercising the Option to Purchase or signing the Sale & Purchase Agreement. Late payment attracts penalties of up to 5% per month overdue, until the duty is settled in full.

Exemptions: When a Foreigner Pays 0% ABSD

Foreigners who are US citizens or nationals of EFTA states (Iceland, Liechtenstein, Norway, Switzerland) get the same ABSD treatment as Singapore Citizens for the first residential property. They pay 0% ABSD on that first purchase. All other property purchases remain subject to the prevailing ABSD rates for the entity type (e.g., second property for these exempt nationals attracts SC rate: 20% as of 2026).

Remission Conditions: Can Foreigners Get ABSD Refunded?

ABSD remission for foreigners is extremely narrow. The most common path is via the spouse remission scheme. A foreigner married to an SC can apply for a refund of the ABSD paid (including the 60% foreigner component) if they jointly purchase a matrimonial home, sell any existing residential properties within 6 months of the purchase or TOP, and meet owner-occupation conditions. The remission only applies to the ABSD for the foreigner-spouse; there is no remission if the foreigner is buying alone.

How the 60% Rate Shapes Buying Behaviour

The 60% duty has effectively sidelined pure foreigner speculative interest in private residential property. Transaction volumes by foreigners fell by over 80% in the quarters following the 2023 change. Most foreign buyers now rent instead, or channel funds into commercial and industrial properties (which are exempt from ABSD). Those who still buy are typically long-term residents highly committed to Singapore, often using the spouse remission route after marriage to an SC.

FAQ

Can a foreigner buy a HDB flat? No. HDB flats are restricted to SCs and SPR households. Foreigners cannot purchase any HDB flat directly, ABSD rules are irrelevant for that segment.

Does a foreigner pay ABSD on a condo resale? Yes. ABSD applies equally to new launches and resale private residential units. The 60% rate is tied to the buyer’s profile, not the property’s age.

Are trustees or companies considered foreigners? Yes. For ABSD purposes, trusts and non-individual entities (companies) are charged the same 60% rate unless the beneficial owner is an SC or SPR individual and meets specific requirements.

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