ABSD for Singapore Citizens Buying Second Property

ABSD (Additional Buyer’s Stamp Duty) is a tax on top of the standard Buyer’s Stamp Duty (BSD) for residential property purchases. For Singapore citizens acquiring their second residential property, the ABSD rate is 20%, effective from 27 April 2023. This rate applies regardless of whether the property is under construction or completed, and is calculated on the higher of the purchase price or market value.

Current ABSD Rate: 20% on Second Property

The 20% ABSD for a second residential property is a significant cost. For a $1.5 million condo, ABSD alone amounts to $300,000 — payable within 14 days of exercising the Option to Purchase. This rate has not changed since the April 2023 cooling measures. It sits alongside the tiered BSD (up to 6% for the portion above $3 million) and cannot be offset by any grant or subsidy.

Remission: Selling First Home Within 6 Months

A married couple with at least one SC can apply for full ABSD remission on the second property if they sell their first residential property within 6 months of acquiring the second. Key conditions:

• The second property must be a matrimonial home, and both spouses must be listed as joint tenants or tenants-in-common.
• The first property must be sold (disposed of) within 6 months after the second property’s purchase date. Alternatively, if the first property was sold up to 6 months before the second purchase, remission still applies.
• The application is made via the Inland Revenue Authority of Singapore (IRAS) with supporting documents (sale agreement, discharge of mortgage, etc.).

How Remission Differs from a Refund

Unlike a refund, ABSD remission is conditional. Buyers must pay the full 20% ABSD upfront. If the conditions are met, IRAS will remit (refund) the ABSD with no interest. The processing time is typically 8–12 weeks. If the first property is not sold within the 6‑month window, the ABSD paid is forfeited, and no remission is granted. Extensions are not permitted except in exceptional circumstances (e.g., court delays in property transfer).

Historical ABSD Rates for Second Property

• Dec 2011 – Jan 2013: No ABSD for SC citizens.
• Jan 2013: 7% introduced in the 7th round of cooling measures.
• Jul 2018: Raised to 12%.
• Dec 2021: Increased to 17%.
• 27 Apr 2023: Current rate of 20%. The graduated hike reflects policymakers’ focus on curbing investment demand without penalising genuine owner-occupation.

Common Pitfalls When Claiming Remission

• Single-buyer trap: Remission only applies if both spouses are registered owners. Buying solely under one spouse’s name disqualifies the couple, even if they sell the first property within 6 months.
• Timing mismatch: Selling before the Option to Purchase (OTP) is exercised for the new property—more than 6 months earlier—disqualifies the remission. The sale must fall within the +/- 6‑month window.
• Rental during transition: Renting out the first property after buying the second does not affect remission eligibility, provided the property is eventually sold within the deadline.

FAQ

Can a single Singapore citizen get ABSD remission on a second property?
No. Remission is strictly for married couples. A single SC buying a second property must pay the full 20% ABSD and has no pathway to remission.

Does selling my HDB flat after buying a private condo qualify?
Yes. The first property can be HDB or private. Remission applies as long as the sale completes within the 6‑month window and all other conditions are met.

What if I inherit a second property?
ABSD does not apply to inherited residential properties. However, if you subsequently purchase a property while still holding the inherited one, that purchase is treated as a second property and 20% ABSD is due.

References

• Inland Revenue Authority of Singapore, “ABSD Remission for Married Couples” (2024)
• Ministry of Finance, Press Release on Property Market Measures (26 April 2023)
• Urban Redevelopment Authority, “Residential Property Act and Regulations” (2023)
• IRAS e-Tax Guide, “Additional Buyer’s Stamp Duty” (Third Edition, 2023)