Do I need to pay ABSD

Whether you should pay the Additional Buyer’s Stamp Duty (ABSD) depends on several factors, including your buyer profile, the number of properties you already own, and your intentions for the property.

Buyer Profile

• Singapore Citizens (SCs): If you are a first-time buyer, you do not need to pay ABSD. However, if you are buying a second or subsequent property, you will be subject to ABSD rates of 20% for the second property and 30% for the third and subsequent properties.
• Permanent Residents (PRs): You will pay 5% ABSD on your first property, 30% on your second property, and 35% on your third and subsequent properties.
• Foreigners: The ABSD rate is 60% for any residential property purchase.
• Entities/Trustees: The rate is 65% for entities and trustees.

Joint Purchases

If you are purchasing a property jointly with others, the ABSD rate will default to the highest rate applicable among the buyers. For example, if a Singapore Citizen and a foreigner purchase a property together, the 60% ABSD rate applicable to the foreigner will apply.

Exemptions and Refunds

• First-Time Buyers: SCs and PRs buying their first property are exempt from ABSD.
• Married Couples and Singles Aged 55+: There are provisions for refunding ABSD under certain conditions, such as selling the first property within six months of buying a second property.

Impact on Your Decision

Given the significant increase in ABSD rates, especially for foreigners and subsequent property purchases, it is crucial to consider the additional cost when deciding whether to proceed with a purchase. The increased ABSD rates are part of the government's cooling measures aimed at promoting a sustainable property market and prioritizing housing for owner-occupation.

If you are looking to avoid or minimize ABSD, you might consider strategies such as decoupling (selling one property to buy two, thereby avoiding higher ABSD rates) or ensuring that your purchase falls under one of the exempt categories.

For personalized advice, it would be beneficial to consult with a real estate expert or financial advisor to determine the best course of action based on your specific situation.