All You Need to Know About BSD & ABSD in Singapore

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Requirement to Pay BSD

You are required to pay BSD for documents executed for the sale and purchase of property located in Singapore. BSD will be computed on the purchase price as stated in the document to be stamped or market value of the property (whichever is the higher amount)
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Buying or Acquiring Property

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STAMP DUTIES

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Additional Buyer’s Stamp Duty (ABSD)

Liable buyers are required to pay ABSD on top of the existing Buyer’s Stamp Duty (BSD). ABSD and BSD are computed on the purchase price as stated in the dutiable document or the market value of the property (whichever is the higher amount).

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What is Buyer Stamp Duty and Additional Buyer Stamp Duty (ABSD)?

Stamp duty is a tax on documents relating to the purchase or lease of a property. It is to be paid by the buyer within 14 days after the date of the document (e.g. Sale & Purchase Agreement, Tenancy Agreement) if the document is signed in Singapore. If the document is signed overseas, it has to be paid within 30 days after the date of its receipt in Singapore.
It is an offence to use a document for which Stamp Duty has not been paid on. It is also important to note that only a document where Stamp Duty is paid can be admitted as evidence in the court in cases of disagreements. More details can be found here: IRAS: What is Stamp Duty?
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BUYER’S STAMP DUTY IN SINGAPORE: ALL YOU NEED TO KNOW ABOUT IT

Frequently Asked Questions on ABSD

If I buy a residential property with someone who already owns another residential property, how much ABSD do I have to pay?

In the event that a property is jointly acquired, the profile with the highest ABSD rate will be applied.

Can I buy a residential property under a company or trust?

Yes you can, the ABSD rate of a non-individual will apply.

I purchased a property that is under construction and a title deed has not been issued yet. If I purchase another property, do I have to pay ABSD?

A property is considered in the count of properties if a contract or agreement to purchase the property has been signed. This includes if the property has not been legally transferred, as well as an uncompleted unit purchased from developer under a Sale & Purchase Agreement. Read our article on the other mathematical considerations in buying property.

I own half shares in 2 properties. Am I considered as owning 1 property if I want to buy the next?

A property is considered in the count of properties if an owner owns any share of interest in a property, be it a partial share or in full.

I own a property on behalf of someone else. Do I have to pay ABSD if I want to buy another property?

If a property is held in trust for a beneficial owner, the property is considered as a count for he/she.

If I buy 2 properties at the same time, do I have to pay ABSD?

If more than 1 property is bought together under a single contract, each property will be counted separately. Additionally, the buyer can choose the property to be subjected to ABSD.

A property was passed down to me in a will. Does that count as 1 property if I want to buy the next?

Any property acquired or transferred by gift, release, settlement, declaration trust letter of authority and exchange are each considered as a count of property.

I own a HDB commercial shophouse with living quarters upstairs. Does it count?

A property is considered in the count of properties if a HDB shophouse or shop with living quarters is permitted for residential use.

Beating the Additional Buyer’s Stamp Duty

De-coupling and Part-purchase

One method for a couple to avoid paying ABSD on a second residential property purchase is to do what is known as a de-coupling and part-purchase of the ownership of the first property. This essentially involves removing one spouse from the ownership of the first property. That way, he or she can buy a new property without paying ABSD for what is a second property owned by the couple. What does this entail?
As most married couples purchase their matrimonial home as joint tenants, de-coupling results in Spouse A becoming the sole owner of the existing property and Spouse B purchasing a new property. This would require the following steps:
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