Understanding ABSD Stamp Duty Complete: Complete Buying Process Guide is critical before you commit to any home or investment property in Singapore, because the Additional Buyer’s Stamp Duty (ABSD) can add hundreds of thousands of dollars to your purchase and must be paid within strict IRAS timelines.
In this Homejourney guide, we walk through the complete buying process – from checking your ABSD profile to paying stamp duty safely – so first-time buyers, upgraders, investors, and foreigners can plan with confidence and avoid costly mistakes.
This article is a focused cluster guide that supports our main pillar, ABSD Stamp Duty Complete Guide 2025: Homejourney Safe Buyer Handbook ABSD Stamp Duty Complete Guide 2025: Homejourney Safe Buyer Handbook . For detailed rate tables and cost breakdowns, read it together with our ABSD Stamp Duty 2025 Cost Guide: Homejourney Safe Buyer Edition ABSD Stamp Duty 2025 Cost Guide: Homejourney Safe Buyer Edition .
What Is ABSD in Singapore? (Quick Definition for Buyers)
Additional Buyer’s Stamp Duty (ABSD) is a tax on top of Buyer’s Stamp Duty (BSD) that applies when you buy or acquire residential property in Singapore, depending on your citizenship or residency status and how many residential properties you already own.[2][1]
Key points every buyer should know:
- ABSD applies only to residential property (e.g. HDB flats, condos, landed homes, ECs).[2]
- You pay ABSD in addition to normal Buyer’s Stamp Duty (BSD).[2][1]
- ABSD and BSD are based on the higher of purchase price or market value of the property.[2][1]
- Payment must be made via IRAS e-Stamping within 14 days of signing the Option to Purchase (OTP) or Sale & Purchase (S&P) in Singapore, or 30 days if signed overseas.[2][1][5]
In 2025, high ABSD rates – especially 60% for foreigners and up to 30–35% for multiple-property owners – mean a wrong assumption can blow up your budget. Homejourney’s role is to help you verify these numbers safely before you even place an option fee.
Current ABSD Rates 2025: What You’ll Actually Pay
As of 2025, the ABSD rates for residential properties are:[1][3][2]
- Singapore Citizens (SC)
- 1st residential property: 0% ABSD
- 2nd residential property: 20% ABSD
- 3rd & subsequent residential properties: 30% ABSD - Singapore Permanent Residents (PR)
- 1st residential property: 5% ABSD
- 2nd residential property: 30% ABSD
- 3rd & subsequent residential properties: 35% ABSD[3][6] - Foreigners (individuals)
- Any residential property: 60% ABSD[1][3][7] - Entities (companies, trusts without look-through, associations)
- Any residential property: 65% ABSD[2][7] - Housing developers (entities buying residential land/sites)
- 35% ABSD + 5% non-remittable ABSD (total 40% upfront, with partial remission possible under strict conditions).[2][1]
These rates are based on IRAS’ official ABSD schedule and remain in force in 2025.[2][1][3] For the most current confirmation, Homejourney always recommends checking directly with IRAS or using a trusted calculator such as our ABSD Stamp Duty Calculator & Guide 2025 .
Step-by-Step: Safe ABSD Buying Process in Singapore
The safest way to handle ABSD is to build it into your buying process before you pay any option fee. Here is a practical sequence most Homejourney users follow.
Step 1: Confirm Your Buyer Profile and Property Count
ABSD is highly sensitive to two things: who you are and how many properties you already own.[2][3]
- Confirm your residency status
- Singapore Citizen, PR, or foreigner – use your NRIC or FIN as reference.
- If you recently got PR, IRAS may treat you as PR from the date of PR approval; check directly with IRAS if unsure.[2] - Count your existing residential properties
- Include HDB (BTO, resale), ECs, condos, landed homes, and share in jointly-owned properties.
- For couples, ABSD depends on each person’s profile and whether you buy as joint tenants or tenants-in-common.[2]
Insider tip (local context): Many Sengkang or Punggol upgraders assume that once they apply to sell their BTO, it no longer counts. In reality, until your flat is legally disposed (completion), it typically still counts as an existing property for ABSD purposes. Always clarify with your lawyer before exercising any OTP.
Step 2: Check HDB, CPF, and Loan Rules (for Upgraders)
For HDB owners upgrading to a condo or second home, ABSD interacts with several policies:
- HDB rules
- Minimum Occupation Period (MOP) must be met (usually 5 years) before you can buy private property without restrictions.[HDB policy – general knowledge]
- HDB does not allow you to own a BTO and private property at purchase in certain cases – always check latest HDB circulars. - CPF usage and refunds
- Any CPF used in your current property (including accrued interest) must be refunded when you sell.
- CPF can be used to pay ABSD and BSD, subject to OA balance and withdrawal limits.[CPF Board – general rule] - Loan-to-Value (LTV) and TDSR/MSR
- MAS-imposed LTV is lower if you already have an outstanding housing loan, which affects how much cash/CPF you need.
- Total Debt Servicing Ratio (TDSR) caps total monthly debt at 55% of gross income for private property loans.
- Mortgage Servicing Ratio (MSR) applies to HDB and EC purchases and caps housing loan repayment at 30% of gross income.[MAS guidelines – general rule]
At this stage, use Homejourney’s bank rates comparison page Bank Rates to estimate how much you can borrow and whether your planned ABSD and BSD can still fit within your safe budget.
Step 3: Estimate Your Stamp Duty (BSD + ABSD) Before Viewing
Before you start shortlisting units on Homejourney’s property search Property Search , build a rough cost model using:
- Buyer’s Stamp Duty (BSD) – tiered tax up to 6% on residential property since 15 Feb 2023, applied on the higher of purchase price or market value.[1][6]
- ABSD – as per rates above, applied on the same value.[1][2]
A simple formula many of our users in Hougang, Tampines, or Clementi use to gut-check affordability is:
Estimated total stamp duty = BSD (tiered) + ABSD (flat % based on profile)
Use our dedicated calculator guide to run these numbers safely before you even call an agent.
Step 4: Structure Your Purchase (Sequence, Decoupling, Timing)
Once you know your likely ABSD amount, you and your lawyer can decide if you need to:
- Sell first, then buy to avoid or lower ABSD (common for HDB upgraders in estates like Bukit Batok or Yishun).
- Buy first, then sell – but this may trigger ABSD temporarily, which you might only be able to claim remission for in certain cases (e.g. married couples buying a new home jointly and selling the first within a set timeframe, subject to IRAS rules).[2]
- Consider decoupling (one spouse sells share to the other) to allow one spouse to buy another property as first-timer – but this is complex and may involve BSD and legal costs. Always seek legal and tax advice; it is not suitable for everyone.
Important safety note: IRAS provides limited ABSD remission in very specific scenarios (e.g. married couples with at least one SC spouse buying a 2nd home jointly and selling the first within a prescribed period), and approval is not automatic.[2] Homejourney strongly advises using a conveyancing lawyer and referring to IRAS’ official ABSD remission rules instead of relying on hearsay.
