ABSD is the single most expensive line item in any Singapore property transaction once you cross into second-property territory or non-citizen profiles. The rates jumped sharply in April 2023 and have remained in force through 2026. Here are the current rates, the rules around joint purchases, and the legitimate remission paths most buyers don't know about.
Current 2026 ABSD rates
ABSD is computed on the higher of purchase price or market value, with no tiering. The rate depends entirely on buyer profile and existing property count.
| Buyer profile | 1st residential | 2nd residential | 3rd+ residential |
|---|---|---|---|
| Singapore Citizen (SC) | 0% | 20% | 30% |
| Singapore Permanent Resident (SPR) | 5% | 30% | 35% |
| Foreigner | 60% | 60% | 60% |
| Entity (company, trust, etc) | 65% | 65% | 65% |
| Housing developer | 40% (5% non-remittable) | — | — |
Foreigners pay 60% on every residential property regardless of count. Entities pay 65% — the highest rate — to discourage corporate ownership of residential.
Worked examples
For a SGD 2,500,000 residential purchase:
- SC, 1st property: SGD 0 ABSD
- SC, 2nd property: SGD 500,000 ABSD (20%)
- SPR, 1st property: SGD 125,000 ABSD (5%)
- SPR, 2nd property: SGD 750,000 ABSD (30%)
- Foreigner, any property: SGD 1,500,000 ABSD (60%)
- Entity: SGD 1,625,000 ABSD (65%)
BSD is on top of all of this — a further ~SGD 94,600 for a SGD 2.5M residential purchase under the current BSD schedule.
Joint purchase rules
This is the rule that catches many couples by surprise. Joint buyers pay the highest applicable ABSD rate on the entire property, not pro-rata.
Examples:
- SC + SC (both first-time): 0% ABSD. Standard.
- SC + SPR (both first-time): 5% ABSD on the full price (PR rate applies).
- SC + Foreigner (both first-time): 60% ABSD on the full price (foreigner rate applies).
- SC (first-time) + SC (owns one already): 20% ABSD on the full price (second-property rate applies).
For mixed-status couples this is a major decision: buying solely in the lower-rate spouse's name often saves significant duty, but introduces estate, financing, and decoupling implications.
Counting your properties
What counts as "owning a property" for ABSD purposes:
- Any residential property in Singapore, in whole or in part (even 1% ownership counts)
- Beneficial ownership via trust generally counts
- Inherited properties count (with some narrow exceptions during the estate administration period)
- HDB ownership counts toward residential property count
Overseas property does NOT count. A Singapore citizen who owns three condos in London and is buying their first Singapore property pays 0% ABSD.
The four major remission paths
1. Free Trade Agreement nationals
Citizens of five nationalities qualify for the same ABSD rate as Singapore citizens under their countries' FTAs:
- United States (US-Singapore Free Trade Agreement)
- Switzerland (EFTA)
- Iceland (EFTA)
- Norway (EFTA)
- Liechtenstein (EFTA)
This is the largest single optimisation most foreign buyers don't know about. An American buying a SGD 2M condo pays 0% ABSD instead of SGD 1.2M. Full guide to FTA-based remission.
2. Married couple ABSD refund
A married couple buying their first jointly-owned residential property may apply for full ABSD refund if they sell their existing matrimonial home within 6 months of:
- The completion date (for resale purchases), or
- The Temporary Occupation Permit issuance date (for new launches)
This route is used heavily by upgrading families. Strict timing requirements; your conveyancing lawyer files the remission application with IRAS.
3. Decoupling
For couples buying a second property: one spouse transfers their share of the first property to the other, making the transferring spouse a "first-time buyer" for the next purchase. Saves 20% ABSD on the second property.
Costs: BSD on the transferred share (calculated on the market value of that share), legal fees (~SGD 5,000–8,000), and any prepayment penalty on the existing mortgage. Run the all-in maths before committing. Full decoupling guide.
4. Building a new house on land you already own
If you own a freehold landed plot and reconstruct on it, the reconstruction does not trigger a new ABSD event. The plot is already yours.
What to do before you sign the OTP
- Confirm your buyer profile (citizen, PR, foreigner, entity) and existing residential property count.
- Confirm spouse profile if buying jointly. Calculate joint ABSD vs sole-name ABSD.
- If foreign, check FTA eligibility based on nationality of passport at OTP date.
- If upgrading and selling existing home, plan the 6-month sale window. Get pricing strategy locked before completion.
- If buying second property as a couple, evaluate decoupling vs paying ABSD. Sometimes ABSD is cheaper than the all-in decoupling cost.
The bottom line
ABSD is the most asymmetric line in your transaction: get the structure right and you pay zero; get it wrong and you pay 30–65% of the price. The structural decisions (who buys, in what name, when, with what existing property held) are made before the OTP, not after. If you're entering a transaction where ABSD will exceed SGD 100,000, a one-hour consultation pays for itself many times over.
Request a private ABSD assessment for your specific situation.