Understanding Additional Buyer's Stamp Duty (ABSD) is essential for anyone purchasing property in Singapore, whether you're a first-time buyer, investor, or foreign national. The ABSD can significantly impact your total property acquisition costs, and miscalculating it could lead to unexpected financial burdens. At Homejourney, we're committed to helping you navigate this complex tax landscape with transparency and accuracy, ensuring you can make confident, informed decisions about your property investment.
What is ABSD and Why It Matters
Additional Buyer's Stamp Duty (ABSD) is a tax imposed on top of the standard Buyer's Stamp Duty (BSD) when purchasing property in Singapore[1]. Unlike BSD, which applies to all property purchases, ABSD is conditional—you only pay it based on your residency status and how many properties you already own. The ABSD was introduced to moderate property price growth and promote sustainable homeownership in Singapore's competitive real estate market.
For property buyers in Singapore, ABSD represents a substantial cost that can range from 5% to 60% of the property's purchase price, depending on your circumstances[1]. This makes understanding and accurately calculating ABSD critical before committing to any property purchase. Homejourney's commitment to user safety means providing you with verified, current information so you can budget accurately and avoid surprises during your property transaction.
Current ABSD Rates in 2025
The most recent ABSD rate changes took effect on 27 April 2023, and these rates remain current as of 2025[1]. The rates vary significantly based on your residency status and property count:
- Singapore Citizens: 0% for first property, 17% for second property, 25% for third and subsequent properties
- Permanent Residents (PRs): 5% for first property, 25% for second property, 30% for third and subsequent properties
- Foreigners: 60% for any property purchase (doubled from 30% in April 2023)
These rates were revised to promote owner-occupation and create a more sustainable property market[1]. For foreign buyers—including Taiwanese nationals, mainland Chinese citizens, and other international investors—the 60% ABSD rate represents a significant consideration in property investment decisions. If you're a Taiwan citizen or ROC national looking to purchase property in Singapore, understanding this rate is fundamental to your investment strategy.
How ABSD is Calculated
ABSD calculation is straightforward: the rate is applied directly to the property's purchase price or market value, whichever is higher[1]. Unlike BSD, which uses a tiered marginal rate system, ABSD applies a flat percentage across the entire property value.
Example Calculation: If you're a Singaporean citizen purchasing a second property valued at S$800,000, your ABSD would be S$800,000 × 17% = S$136,000. This amount is paid in addition to the BSD, which would be calculated separately using the marginal rate system.
For foreign buyers, the calculation is equally straightforward but the impact is more substantial. A Taiwan national purchasing a S$1.5 million property would pay S$1,500,000 × 60% = S$900,000 in ABSD alone. This underscores why accurate calculation is essential—it fundamentally affects investment feasibility and return projections.
ABSD vs. BSD: Understanding the Difference
While both ABSD and BSD are stamp duties on property purchases, they serve different purposes and apply under different circumstances[1]. BSD applies to all property purchases regardless of residency or property count, using marginal rates that increase with property value. The current BSD rates range from 1% on the first S$180,000 to 6% on amounts exceeding S$3 million for residential properties[1].
ABSD, by contrast, is conditional and applies a flat rate. It's only payable if you meet certain criteria—typically owning multiple properties or being a non-resident. This distinction is critical: a first-time buyer who is a Singapore citizen pays only BSD, while a Singaporean purchasing a second property pays both BSD and ABSD on top of each other.
Understanding this layering is essential for accurate budgeting. When you use Homejourney's property search tools, you can explore different properties and understand the complete tax implications before making an offer, ensuring transparency in your decision-making process.
Using an ABSD Stamp Duty Calculator Effectively
An ABSD stamp duty calculator simplifies what could otherwise be complex manual calculations[2]. To use a calculator effectively, you'll need to input:
- Property type (residential or non-residential)
- Purchase price or market value
- Your nationality and residency status
- Number of properties you currently own
- Whether it's a joint purchase and co-buyer details
The calculator instantly displays your BSD, ABSD, and total stamp duty payable[2]. This real-time calculation helps you understand the true cost of property ownership before you commit financially. At Homejourney, we emphasize the importance of using verified calculators that reflect current 2025 rates, as outdated calculators can lead to significant budgeting errors.
For Taiwanese buyers and other foreign nationals, the calculator provides clarity on the substantial 60% ABSD liability, helping you evaluate whether Singapore property investment aligns with your financial goals and investment timeline.
Special Considerations for Foreign Buyers
Foreign buyers face the highest ABSD burden at 60%, making this calculation particularly critical for international investors[1]. Taiwan nationals, PRC citizens, and other foreign investors must factor this substantial cost into their investment analysis. The 60% rate means that on a S$2 million property, you'd pay S$1.2 million in ABSD alone—before considering BSD, agent commissions, legal fees, and other acquisition costs.
However, certain foreign nationals may qualify for exemptions under Free Trade Agreement (FTA) provisions. If you're a national of an FTA country, you may be eligible for reduced or zero ABSD on certain property types. For detailed guidance on whether you qualify for FTA benefits, refer to Homejourney's complete guide for FTA nationals buying property in Singapore with no ABSD.
Additionally, if you're a Taiwan national or ROC citizen specifically, Homejourney's complete guide for Taiwan nationals buying property in Singapore 2025 provides detailed information on ABSD implications and strategies for Taiwanese buyers navigating Singapore's property market.
Total Acquisition Costs: Beyond ABSD
While ABSD is a significant expense, it's only one component of your total property acquisition costs. When budgeting for a property purchase, you must account for:
- Buyer's Stamp Duty (BSD): Calculated using marginal rates, typically 1-6% of property value
- Legal and conveyancing fees: Usually S$1,500-S$3,000 depending on property value
- Agent commission: Typically 1-2% of purchase price (split between buyer and seller)
- Property inspection and valuation: S$300-S$800
- CPF withdrawal fees: If using CPF for purchase (HDB properties)
- Mortgage-related costs: Loan processing, insurance, valuation fees
For a foreign buyer purchasing a S$1.5 million property, total stamp duty alone (BSD + ABSD) could exceed S$1 million, representing a 67% cost on top of the purchase price. This is why working with trusted advisors and using verified calculators—like those available through Homejourney—is essential to avoid financial surprises.
Timeline and Payment of ABSD
ABSD is payable within 14 days of the date of execution of the instrument of transfer[1]. This means you must have the funds available to cover stamp duty shortly after your property transaction is finalized. Unlike some costs that can be negotiated or financed, stamp duty is a fixed government obligation with strict payment deadlines.
Planning your cash flow around this timeline is critical. Many buyers coordinate with their mortgage lender to ensure funds are available for stamp duty payment while simultaneously managing down payment requirements. Homejourney recommends working with a mortgage advisor to understand your complete financing picture, including stamp duty obligations. You can explore current mortgage rates and lending options through Homejourney's bank rates page to understand your financing options.
Common ABSD Mistakes to Avoid
Underestimating total costs: Many buyers focus only on the purchase price and down payment, forgetting that ABSD can add hundreds of thousands of dollars to the total acquisition cost. Always calculate the complete cost picture before making an offer.
Miscounting property ownership:
