For foreigners, to dampen investment from foreigner investors who see local residential properties as an attractive investment class, ABSD has been doubled from 30% to 60% for any residential property purchase. Similarly, the ABSD for:
- Corporations and other entities that are not housing developers (as defined in paragraph (1) of Article 3 in the First Schedule to the Stamp Duties Act 1929)
acquiring residential properties has been increased from 35% to 65%.
Our alert details the adjusted ABSD rates for acquisitions made on and after 27 April 2023 as well as the applicable transitional provisions.
Adjusted ABSD rates
The following aspects of the buyer's profile as at the date of purchase or acquisition of the residential property will determine the ABSD rate:
- Whether the buyer is an individual or an entity
- The profile of the buyer (Singapore citizen, Singapore permanent resident or foreigner)
- The number of residential properties owned by the buyer (including residential property beneficially owned and held in trust but excluding all residential properties located outside Singapore)
- Whether the residential property is to be held in a living trust
As set out by the Inland Revenue Authority of Singapore (IRAS), the new ABSD rates for acquisitions made on and after 27 April 2023 are as follows:
| Profile of buyer |
ABSD rates |
| from 16 December 2021 to 26 April 2023 |
after 27 April 2023 |
(% increase) |
| Singapore citizens buying first residential property |
0% |
0% |
(-) |
| Singapore citizens buying second residential property |
17% |
20% |
(3%) |
| Singapore citizens buying third and subsequent residential property |
25% |
30% |
(5%) |
| Singapore permanent residents buying first residential property |
5% |
5% |
(-) |
| Singapore permanent residents buying second residential property |
25% |
30% |
(5%) |
| Singapore permanent residents buying third and subsequent residential property |
30% |
35% |
(5%) |
| Foreigners buying any residential property |
30% |
60% |
(30%) |
| Entities buying any residential property |
35% |
65% |
(30%) |
|
Housing developers buying any residential property
|
35% |
35% |
(-) |
|
Plus additional 5%
(non-remittable)
|
Plus additional 5%
(non-remittable)
|
(-) |
| Trustees buying any residential property |
35%
(from 9 May 2022)
|
65% |
(30%) |
Transitional provision
The IRAS will apply, as a transitional provision, the ABSD rates before 27 April 2023 only to buyers meeting all of the following conditions:
- The option to purchase (OTP) is granted by sellers to potential buyers on or before 26 April 2023.
- This OTP is exercised (i.e., the acceptance to OTP or the Sale and Purchase Agreement (whichever is applicable) is signed) on or before 17 May 2023, or within the OTP validity period, whichever is earlier.
- This OTP has not been varied (including any extension of the validity period) on or after 27 April 2023.
Further, the IRAS has indicated it will not extend the deadlines in the ABSD transitional remission rules, even in cases where the validity period of the OTP extends beyond or commences after 17 May 2023.
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