What is ABSD?
Additional Buyer's Stamp Duty (ABSD) is a tax on top of the standard Buyer's Stamp Duty (BSD) that applies when you buy residential property in Singapore. The rate depends on your citizenship status and how many properties you already own. As of April 2023, foreign buyers who are not covered by a Free Trade Agreement pay 60% ABSD on every residential purchase.
Sixty percent. For a $2 million property, that is $1.2 million in ABSD alone, before you even account for BSD. It is one of the highest property transaction taxes on any residential purchase anywhere in the world, and it is the main reason most foreign buyers do not buy residential property in Singapore.
Which is why the group of foreign nationals who pay zero ABSD on their first Singapore property often comes as a genuine surprise to people who hear about it for the first time.
ABSD rates at a glance
Before we get to the exemptions, here is the full picture of who pays what, based on current IRAS rates.
ABSD rates on or after 27 Apr 2023 (Source: IRAS)
| Buyer Type | 1st Property | 2nd Property | 3rd Property and Beyond |
|---|---|---|---|
| Singapore Citizen (SC) | 0% | 20% | 30% |
| Singapore PR (SPR) | 5% | 30% | 35% |
| Foreigner (non-FTA) | 60% | 60% | 60% |
| Entity / Company | 65% | 65% | 65% |
| FTA-exempt National* | 0% | 20% | 30% |
Key point
Nationals from the 5 FTA countries are treated exactly like Singapore Citizens for ABSD. That means 0% on a first property, 20% on a second, and 30% on a third and beyond. Not foreigner rates. Citizen rates.
The 5 countries
Two of Singapore's Free Trade Agreements include national treatment obligations that extend to the purchase of immovable property, which is the legal basis for the ABSD exemption. Nationals of the following five countries qualify.
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United States of America
Covered under the US-Singapore Free Trade Agreement, which entered into force in 2004. Includes national treatment for real property acquisition.
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Switzerland
Covered under the EFTA-Singapore Free Trade Agreement, which entered into force in 2003. Applies to all four EFTA member states.
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Norway
Also covered under the EFTA-Singapore FTA on the same basis as Switzerland.
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Iceland
Covered under the same EFTA-Singapore FTA as Switzerland and Norway.
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Liechtenstein
The fourth EFTA member state, also covered under the EFTA-Singapore FTA.
The key condition: it is about your passport, not where you live
The qualifying condition is nationality, not residency. Holding a passport from one of these five countries is what matters. A Swiss national living in London who buys a Singapore condo is treated the same as a Singapore Citizen for ABSD purposes. A US national who has lived in Singapore for ten years on an employment pass qualifies from the moment they sign the Option to Purchase. Where you bank, where you pay tax, and how long you have been in Singapore are irrelevant.
Why these five and not others?
Singapore has Free Trade Agreements with many more countries than these five, including Australia, Japan, South Korea, India, and the Gulf Cooperation Council states. But not every FTA includes national treatment obligations that extend specifically to immovable property. The US-Singapore FTA and the EFTA-Singapore FTA both do, in terms specific enough for IRAS to apply them directly to ABSD. Other FTAs either do not include property ownership provisions at all, or include them in a form that does not translate into the ABSD exemption. If your passport is from a country not on this list, the standard 60% foreigner rate applies regardless of any other trade relationship that country has with Singapore.
How this changes the numbers
For a qualifying national buying their first Singapore residential property, ABSD is zero. For a second property, it is 20%. Compare that to the 60% a standard foreign buyer pays on the same asset, and the difference in total acquisition cost on a $2 million property is $1.2 million on the first purchase and $800,000 on the second. That is not a rounding error. It fundamentally changes whether a Singapore residential property makes financial sense as an investment.
Example
A US national buying a $2M condo as their first property pays: BSD of approximately $69,600 and ABSD of $0. Total stamp duty: $69,600. A non-FTA foreigner buying the same property pays: BSD of approximately $69,600 and ABSD of $1,200,000. Total stamp duty: $1,269,600. Same property. Same price. Very different cost.
What still applies even with the exemption
- BSD still applies at the standard tiered rates for all buyers, starting at 1% and rising progressively to 6% on amounts above $3 million.
- HDB flat eligibility rules still apply. Most non-resident foreign nationals cannot buy HDB resale flats regardless of their FTA status.
- The TDSR framework governs how much you can borrow, the same as any other buyer.
- The exemption covers residential property only. Commercial and industrial property has separate ABSD treatment.
- ABSD rates have been revised multiple times since the framework was introduced in 2011. Always confirm current rates with IRAS or a qualified Singapore lawyer before transacting.
If you hold a passport from one of these five countries and you have been assuming you would face the full foreigner rate, it is worth revisiting the numbers. The investment case looks materially different once ABSD is off the table on a first purchase.
Frequently Asked Questions
Are US citizens exempt from ABSD on all Singapore residential properties, not just the first?
No. US nationals receive Singapore Citizen equivalent ABSD rates: 0% on their first residential property, 20% on their second, and 30% on their third and beyond. They are not exempt from ABSD on every purchase, only treated on par with Singapore Citizens rather than paying the standard 60% foreigner rate.
Does the FTA exemption apply to US Green Card holders or permanent residents?
No. The exemption is based on citizenship, not residency. A US Green Card holder who is not a US citizen does not qualify under the US-Singapore FTA and is subject to the standard 60% foreigner ABSD rate.
Can FTA nationals from these five countries buy HDB flats in Singapore?
Generally no. The ABSD exemption does not override HDB eligibility rules. Foreign nationals, including those from FTA countries, are not eligible to purchase HDB resale flats unless they meet other criteria such as being married to a Singapore Citizen.
Could other countries be added to the ABSD exemption list in future?
Possibly, but only through a new or renegotiated Free Trade Agreement that explicitly includes national treatment obligations for immovable property acquisition. As of the current IRAS framework, only the US-Singapore FTA and the EFTA-Singapore FTA include such provisions. Other FTAs either exclude property ownership entirely or do not extend to residential ABSD.