Singapore's Additional Buyer's Stamp Duty (ABSD) regime has tightened significantly over the past three years. For foreign nationals — defined as anyone who is not a Singapore Citizen or Permanent Resident — the ABSD rate on any residential property purchase currently stands at 60%. For entities (companies, trusts, and collective investment schemes), the rate is 65%. These are among the highest property transaction taxes in the developed world.
Current ABSD Rates at a Glance
- **Singapore Citizens (1st property):** 0%
- **Singapore Citizens (2nd property):** 20%
- **Singapore Citizens (3rd and subsequent):** 30%
- **Permanent Residents (1st property):** 5%
- **Permanent Residents (2nd and subsequent):** 30%
- **Foreigners (any residential property):** 60%
- **Entities:** 65%
These rates apply on top of Buyer's Stamp Duty (BSD), which is payable by all buyers. On a $3 million property purchased by a foreign national, total stamp duty — BSD plus 60% ABSD — would exceed $1.9 million.
Why So High?
The government has been explicit that the foreign buyer ABSD is a deliberate tool to keep Singapore housing predominantly for Singapore residents. The concern is that Singapore's small land area, high rental yield, and stable governance make it attractive as a wealth store for overseas capital — and that unchecked foreign buying would price local residents out of the private property market.
The rate was raised from 30% to 60% in April 2023, a step-change that fundamentally altered the economics for most foreign buyers. Transaction volumes from foreign nationals dropped sharply in the subsequent quarters, though the luxury segment remained relatively active given the smaller proportional impact of stamp duty on ultra-high-value purchases.
FTA Exemptions
Singapore has negotiated ABSD exemptions for nationals of four jurisdictions under its bilateral Free Trade Agreements. Qualifying nationals from these countries pay the same ABSD rates as **Singapore Citizens** — that is, 0% on their first residential property:
1. **United States** — under the US-Singapore Free Trade Agreement (USSFTA) 2. **Switzerland** — under the European Free Trade Association (EFTA)-Singapore FTA 3. **Norway** — under the EFTA-Singapore FTA 4. **Liechtenstein** — under the EFTA-Singapore FTA 5. **Iceland** — under the EFTA-Singapore FTA
Nationals of these countries must be natural persons (not companies) and must meet the applicable conditions. The exemption applies to the first residential property purchase only. Subsequent purchases follow standard Citizen ABSD rates (20% second property, 30% third and beyond).
This is a significant concession. An American national buying a $3 million condo pays zero ABSD on their first purchase, compared to the $1.8 million ABSD a non-FTA foreign national would pay.
Remissions for Citizens Selling Before Buying
Singapore Citizens who sell an existing residential property within **6 months** of purchasing a new one are eligible for an ABSD remission on the new purchase. The practical effect: if you are a Citizen buying your second property while intending to sell your first, you pay 20% ABSD upfront but receive a full refund after proving the sale of the original property within the 6-month window.
Permanent Residents have a similar remission — purchasing a new flat while selling a resale HDB flat within 6 months qualifies for a partial remission.
This remission is important for upgraders. It allows you to secure the new property first (avoiding the risk of having no home while searching) and then complete the sale of your existing property without permanently losing the ABSD paid.
Practical Implications for Foreign Buyers
For foreign nationals from non-FTA countries, the 60% ABSD makes Singapore residential property prohibitively expensive for most investment purposes. Gross rental yields on Singapore condominiums typically run 2.5%–3.5%. After ABSD, the breakeven holding period on a pure yield basis is often 15–20 years — making the economics work only for ultra-long-term capital preservation strategies.
Certain foreign buyers continue to purchase despite the ABSD: individuals relocating to Singapore for work who prefer ownership to renting, or ultra-high-net-worth individuals treating Singapore property as a component of a diversified wealth store rather than a yield instrument.
For FTA-eligible nationals (particularly Americans and Swiss), the calculus is fundamentally different. Zero first-purchase ABSD makes Singapore property genuinely competitive against other global gateway cities at similar price points.
What to Watch
The government has indicated that cooling measures will be reviewed periodically and adjusted based on market conditions. A reduction in the foreign buyer ABSD rate would likely trigger a meaningful uptick in transaction volumes and prices in the luxury segment. However, with housing affordability a politically sensitive issue in Singapore, a material relaxation of foreign buyer restrictions in the near term appears unlikely.
