How to skip ABSD?

To avoid or minimize the Additional Buyer's Stamp Duty (ABSD) in Singapore, here are some strategies and conditions to consider:

Selling the First Property Before Buying the Next

If you plan to purchase a second property, selling your first property before committing to the new purchase can help you avoid paying ABSD. This involves arranging the sale of your existing property and utilizing the sale proceeds to purchase the new property under your name.

Joint Purchases and Ownership Restructuring

For married couples, purchasing a property under a single name can be an effective way to avoid ABSD for a second property. This is particularly useful if one spouse does not own any property. Additionally, decoupling, where joint owners restructure the ownership to enable one of them to buy another property without incurring ABSD, can be considered, though it requires careful planning and legal advice.

ABSD Remission for Married Couples

Married couples who jointly purchase a property may be eligible for ABSD remission under specific conditions. For instance, if both spouses are Singapore Citizens and this is their first or second residential property, they may qualify for remission.

Seniors' ABSD Refund

As of February 2024, single Singaporeans aged 55 and above can apply for an ABSD refund if they sell their first property within six months after buying a lower-value replacement property. This initiative supports seniors looking to downsize.

Exemptions for Certain Transactions

ABSD does not apply to the purchase of commercial or industrial properties, so investors looking to avoid ABSD might consider these types of properties instead.

Avoiding Artificial Setups

It is crucial to avoid contrived or artificial setups aimed at tax avoidance, such as the 99-to-1 scheme, as these can attract penalties and surcharges from the tax authority.

For more detailed information and to ensure compliance with the latest regulations, it is advisable to consult the official guidelines or a legal expert in Singapore real estate.

You can also find more information and updates on ABSD and other property-related topics on EdgeProp Singapore.