Understanding ABSD: The Complete Stamp Duty Calculator Guide for Singapore Property Buyers
The Additional Buyer's Stamp Duty (ABSD) is a tax levied on property purchases in Singapore that significantly impacts your total acquisition costs—particularly if you're a foreign buyer, Singapore Permanent Resident, or purchasing multiple properties. At Homejourney, we believe transparency about these costs is essential for making confident property decisions. This guide walks you through ABSD rates, calculation methods, and provides practical examples to help you understand exactly what you'll pay.
ABSD applies on top of the standard Buyer's Stamp Duty (BSD) and is calculated based on your residency status and the number of residential properties you own. For foreign buyers, this tax can represent a substantial portion of your purchase costs, making accurate calculation crucial during your property search on Property Search .
What is ABSD and Who Pays It?
ABSD is a tax on the purchase of residential property in Singapore that only affects Singapore Permanent Residents and foreigners, along with certain entities.[3] Singapore Citizens purchasing their first residential property are exempt from ABSD entirely, but face increasing rates on subsequent purchases.
The key principle: ABSD is calculated on the purchase price or market value of the property, whichever is higher.[5] This means if a property is valued at $2.5 million but you negotiate a purchase price of $2.3 million, the ABSD will be calculated on the $2.5 million valuation figure.
Current ABSD Rates by Residency Status (2026)
ABSD rates depend entirely on your residency classification. Here's the current rate structure:
- Singapore Citizens: 0% on first property, 20% on second property, 30% on third and subsequent properties[1]
- Singapore Permanent Residents (SPRs): 5% on first property, 30% on second property, 35% on third and subsequent properties[1]
- Foreigners: 60% on any residential property[1]
- Entities (companies): 65% on any residential property[6]
- Housing Developers: 35% plus an additional 5% non-remittable ABSD (40% total)[6]
These rates represent a significant cost consideration. For a foreign buyer purchasing a $2 million property, ABSD alone would total $1.2 million—before accounting for BSD and other acquisition costs.
How to Calculate ABSD: Step-by-Step
Calculating ABSD is straightforward once you know your residency status and property count. The formula is simple:
ABSD = (Purchase Price or Market Value, whichever is higher) × Your Applicable ABSD Rate
Let's work through a practical example for a Singapore Citizen purchasing their second residential property:
- Purchase price: $2,000,000
- Market valuation: $2,100,000
- Applicable ABSD rate for 2nd property (SC): 20%
- ABSD payable: $2,100,000 × 20% = $420,000
For foreign buyers, the calculation is equally straightforward but the impact is significantly larger. A foreigner purchasing a $1.5 million property would pay: $1,500,000 × 60% = $900,000 in ABSD alone.
Understanding the Difference Between ABSD and BSD
Many first-time buyers confuse ABSD with BSD—they're different taxes that stack on top of each other. Buyer's Stamp Duty (BSD) applies to all property purchases and is calculated using a progressive rate structure based on property value.[1]
BSD rates are:
- First $180,000 at 1%
- Next $180,000 at 2%
- Next $640,000 at 3%
- Next $500,000 at 4%
- Next $1,500,000 at 5%
- Remaining amount at 6%[1]
For properties valued under $1 million, you can use this shortcut formula: (3% × purchase price or market value) – $5,400.[2] For a $600,000 property, BSD would be: (3% × $600,000) – $5,400 = $12,600.
ABSD is then calculated separately and added to your BSD. So for a foreign buyer purchasing a $600,000 property: BSD ($12,600) + ABSD ($360,000) = $372,600 total stamp duty.
ABSD Calculation Examples by Buyer Type
Example 1: Singapore Citizen, First Property ($1.2 Million)
Singapore Citizens enjoy a significant advantage on their first property purchase—no ABSD applies. Only BSD is payable:
- Purchase price: $1,200,000
- ABSD rate: 0% (first property exemption)
- ABSD payable: $0
- BSD payable: ($1,200,000 × 4%) – $15,400 = $32,400
- Total stamp duty: $32,400
Example 2: SPR, Second Property ($1.8 Million)
Singapore Permanent Residents face ABSD from their first purchase and increasing rates thereafter:
- Purchase price: $1,800,000
- ABSD rate: 30% (second property)
- ABSD payable: $1,800,000 × 30% = $540,000
- BSD payable: ($1,800,000 × 5%) – $30,400 = $59,600
- Total stamp duty: $599,600
Example 3: Foreign Buyer, Any Property ($2.5 Million)
Foreign buyers face the highest ABSD rate regardless of how many properties they own:
- Purchase price: $2,500,000
- Market valuation: $2,700,500
- ABSD rate: 60% (applies to all foreign purchases)
- ABSD payable: $2,700,500 × 60% = $1,620,300
- BSD payable: ($2,700,500 × 6%) – $60,400 = $102,230
- Total stamp duty: $1,722,530
For foreign buyers, understanding these costs upfront is critical. Homejourney's Foreigner Mortgage Singapore: Complete 2026 Financing Guide | Homejourney provides comprehensive guidance on financing options that account for these substantial acquisition costs.
Important ABSD Rules and Exceptions
Property Ownership Counting
When determining whether you're buying a first, second, or third property, Singapore counts all residential properties you own—including jointly owned properties. If you own a condominium unit and your spouse owns a terrace house, you're both counted as owning one property each. When you purchase a new property together, the higher ABSD rate applies to the couple.
Option to Purchase (OTP) Timing
ABSD applies when you exercise the Option to Purchase (OTP), not when you complete the transaction. This creates an important planning consideration: if you're selling a property and buying simultaneously, ABSD may apply if you exercise the OTP for your new purchase before your buyer exercises the OTP for your current property.[1]
Market Value vs. Purchase Price
ABSD is always calculated on whichever is higher—the purchase price or the official market valuation. If you negotiate a property down significantly below market value, you'll still pay ABSD on the higher valuation figure.[1] This protects the government from undervalued transactions.
Financing Considerations for Foreign Buyers
For foreign buyers, the 60% ABSD rate creates substantial upfront costs that must be factored into your financing strategy. Most banks in Singapore offer Bank Rates that can help you structure your purchase, but ABSD is typically paid from your own funds at the point of stamping.
Key financing points for foreign buyers:
- ABSD is non-negotiable: You cannot reduce or defer this tax—it must be paid when you stamp the property
- Bank loans typically cover 75-80% of property value: The remaining 20-25% (plus all stamp duties) must come from your own funds
- Total acquisition costs: Budget for BSD + ABSD + legal fees + survey fees, typically totaling 8-10% of purchase price for foreign buyers
- CPF cannot be used: Foreign buyers cannot use CPF for any property purchase in Singapore
Our comprehensive guide on Financing Options for Foreign Buyers in Singapore 2026 explores loan structures and down payment strategies specifically designed for foreign purchasers.
When ABSD Doesn't Apply
While ABSD applies broadly to residential property purchases, certain exceptions exist:
- Singapore Citizens' first property: Complete exemption from ABSD
- Non-residential properties: ABSD only applies to residential properties; commercial and industrial properties are exempt
- Inherited properties: Generally exempt from ABSD (though BSD still applies)
- Properties acquired through court orders: May qualify for exemptions in specific circumstances
Homejourney's Types of Properties Foreigners Can Buy in Singapore 2026 explores which property types are available to foreign buyers and how ABSD applies differently across residential categories.
Planning Your Property Purchase: ABSD Budgeting Tips
1. Calculate Total Acquisition Costs Early
Don't focus only on the purchase price. For foreign buyers, budget an additional 8-10% for all stamp duties and fees. For a $2 million property, this means setting aside $160,000-$200,000 beyond the purchase price.
2. Use Property Search Tools Strategically
When searching properties on Property Search , factor ABSD into your maximum budget. A property listed at $2 million will actually cost a foreign buyer approximately $2.9-3.1 million when all costs are included.
3. Understand Your Loan-to-Value Limits
Banks typically lend 75-80% of property value to foreign buyers. This means you need 20-25% down payment plus all stamp duties from your own funds. On a $2 million property, you'd need approximately $500,000-$600,000 in liquid funds.
4. Consider Timing for Multiple Purchases
If you're planning to purchase multiple properties as an SPR, understand that your ABSD rate jumps from 5% (first) to 30% (second) to 35% (third). Timing these purchases strategically can impact your overall costs.
5. Verify Property Valuation
Before making an offer, understand the official valuation. If it's significantly higher than the asking price, your ABSD will be calculated on that higher figure. Request a valuation report from your bank early in the process.
Common ABSD Mistakes to Avoid
Mistake 1: Forgetting ABSD Exists
Many first-time buyers focus entirely on the purchase price and mortgage, overlooking that ABSD can add hundreds of thousands of dollars to the total cost. At Homejourney, we emphasize that understanding all costs upfront is essential for making confident decisions.
Mistake 2: Miscounting Your Properties
Jointly owned properties and properties held by spouses both count toward your property tally. Married couples should verify their combined property count before purchasing to ensure they apply the correct ABSD rate.
Mistake 3: Not Accounting for Market Valuation
Negotiating a lower purchase price doesn't reduce ABSD if the official valuation is higher. Some buyers are shocked to discover they're paying ABSD on a valuation $200,000-$300,000 above their actual purchase price.
Mistake 4: Underestimating Total Acquisition Costs
ABSD + BSD + legal fees + survey + insurance typically total 8-10% of purchase price. Foreign buyers often underestimate this, then face cash flow challenges during the purchase process.
Mistake 5: Overlooking Timing Issues with OTP
If you're simultaneously selling and buying, the timing of when you exercise each OTP matters significantly. Exercising the purchase OTP before your sale OTP is exercised can trigger unexpected ABSD on your new purchase.
