Additional Buyer Stamp Duty For Residential Properties

Singapore Government announced the introduction of the Additional Buyer’s Stamp Duty (ABSD) on 7 December 2011 which will affect those who buy or acquire residential properties (including residential land) on or after 8 Dec 2011.

Susequently on 11 Jan 2013, the Government announced the revised ABSD rates applicable to purchases or acquisitions of residential properties on or after 12 Jan 2013.

Affected buyers are required to pay ABSD on top of the existing Buyer’s Stamp Duty (BSD).

Affected Buyers & ABSD Rates

Between 8 Dec 2011 and 11 Jan 2013 (both dates inclusive), buyers or transferees who are :

a) Foreigners (FR) and entities would have to pay ABSD of 10% on the purchase or acquisition of any residential property.

b) Singapore Permanent Residents (SPR) who already own 1 or more residential properties would have to pay ABSD of 3% on the purchase or acquisition of another residential property.

c) Singapore Citizens (SC) who already own 2 or more residential properties would have to pay ABSD of 3% on the purchase or acquisition of another residential property.

From 12 Jan 2013, buyers or transferees who are :

a)      FR and entities would have to pay ABSD of 15% on the purchase or acquisition of any residential property.

b)(i)  SPR would have to pay ABSD of 5% on the purchase or acquisition of their first residential property.

(ii) SPR who already own 1 or more residential properties would have to pay ABSD of 10% on the purchase or acquisition of another residential property.

c)(i)  SC who already own one residential property would have to pay ABSD of 7% on the purchase or acquisition of the second residential property.

c)(ii) SC who already own two or more residential properties would have to pay ABSD of 10% on the purchase or acquisition of another residential property.

Buyer’s Stamp Duty (BSD) and Additional Buyer’s Stamp Duty (ABSD) Rates

Profile of buyer

BSD rates

ABSD rates (old) from 8 Dec 2011 to 11 Jan 2013

 ABSD rates (new) from 12 Jan 2013
FR and entities buying residential property

1% on first $180,000

2% on next $180,000

3% for the remainder

10%

15%

SPR buying 1st residential property

Nil

5%

SPR buying second and subsequent residential property

3%

10%

SC buying the first residential property

Nil

Nil

SC buying second residential property

Nil

7%

SC buying the third and subsequent residential property

3%

10%

 

Entity means a person who is not an individual, and includes an unincorporated association, a trustee for a collective investment scheme when acting in that capacity, a trustee-manager for a business trust when acting in that capacity and, in a case where the property conveyed, transferred or assigned is to be held as partnership property, the partners of the partnership whether or not any of them is an individual.

 

The ABSD is payable by affected buyers at fixed rates on the actual price paid or market value of the property whichever is the higher.

 

BSD continues to be payable by all property buyers at unchanged rates