ABSD Stamp Duty Complete: Your Step-by-Step Buying Process Guide
The Additional Buyer's Stamp Duty (ABSD) is a key tax paid alongside Buyer's Stamp Duty (BSD) during Singapore property purchases, determined by buyer profile and property count. This cluster article details the complete buying process involving ABSD, from calculation to payment, helping first-time buyers, investors, and foreigners navigate it safely with Homejourney's trusted tools.
As part of our pillar on ABSD Singapore 2026: Complete Rates, Calculator & Guide, this guide provides tactical steps for seamless transactions in 2026's market, where ABSD rates have risen significantly for non-first-time buyers.[1][2]
Understanding ABSD and BSD in the Buying Process
ABSD applies on top of BSD for residential properties, based on the higher of purchase price or market valuation. Singapore Citizens (SC) pay 0% on their first property but 20% on the second and 30% on third/subsequent. Singapore Permanent Residents (SPR) face 5% on first, 30% on second, and 35% on third/subsequent. Foreigners and entities pay 60% and 65% respectively on any property.[1][3]
BSD tiers are progressive: 1% on first S$180,000, up to 6% above S$3 million for most buyers.[2] Use Homejourney's verified calculators linked to official IRAS data for precise estimates before committing.
Who Pays What? 2026 ABSD Rates Table
| Buyer Profile | 1st Property | 2nd Property | 3rd+ Properties |
|---|---|---|---|
| Singapore Citizen | 0% | 20% | 30% |
| Singapore PR | 5% | 30% | 35% |
| Foreigner | 60% | 60% | 60% |
| Entity | 65% | 65% | 65% |
Rates apply to the entire property value for joint purchases, using the highest profile.[1] For trusts, pay 65% upfront and apply for remission within 6 months based on beneficiary profile.[1][3]
Step-by-Step Buying Process with ABSD Integration
The process starts with property search on Homejourney's property search, ensuring verified listings for safety.
- Exercise Option to Purchase (OTP): Pay option fee (S$1,000-S$10,000, typically 1% refundable). No stamp duty yet.[2]
- Sign Sale & Purchase Agreement (S&P): Within 14-21 days. Pay 5% deposit here.
- Calculate & Prepare Stamp Duties: Use IRAS e-Stamping within 14 days of S&P (30 days if signed overseas). Compute BSD + ABSD.[1][2]
- Pay Stamp Duties: Full amount due; use CPF Ordinary Account for reimbursement later.
- Completion & Title Transfer: Pay balance (usually 3-12 weeks later). IRAS stamps documents.
Timeline: OTP to completion averages 8-12 weeks for resale HDB/condos. Delays incur penalties up to 50% surcharge.[2]
How to Calculate and Pay ABSD Accurately
For a S$2 million condo, an SC buying second property pays BSD (~S$102,000) + ABSD (20% = S$400,000), totaling ~S$502,000.[2] Foreigners: BSD + 60% (S$1.2 million ABSD).
Payment Methods (IRAS Approved):
- GIRO, PayNow QR, AXS
- Internet banking, TT
- SingPost bureaus (e.g., Chinatown, 10am-8pm)
- Cheque/cashier's order
No instalments; full payment required. Homejourney verifies these via official sources, prioritizing your secure transaction.[1][2] Check financing impacts via Homejourney bank rates and TDSR/MSR buying guide.
Practical Tips and Common Mistakes to Avoid
Insider Tip: For couples, buy under one name to preserve lower ABSD for the other (e.g., SC first property at 0%). Confirm status via ICA before purchase.[1]
Mistakes to Avoid:
- Misjudging profile: Joint buy with foreigner triggers 60% on all.[1]
- Late payment: 14-day deadline or face penalties/TR O.[2]
- Forgetting valuation: Pay on higher of price/valuation.
- No remission check: Eligible buyers (e.g., selling within time) can remit.[2]
Real Example: A Tampines resale HDB (S$600k) for SC second buy: ABSD S$120k. Plan CPF usage carefully under MSR/TDSR limits.
Financial Considerations and CPF Usage
ABSD/BSD payable from cash/CPF OA; reimburse CPF post-payment. Factor into LTV (max 75% for first property) and TDSR (60% debt servicing).[2] Hidden costs: Legal fees (S$2k-5k), valuation (S$500+).
Compare HDB vs bank loans via HDB vs bank buying guide. Post-purchase, maintain with Homejourney aircon services.
Disclaimer: This is general info; consult professionals for advice. Rates as of 2026 per IRAS.[1]
FAQ: ABSD Stamp Duty in Singapore Buying Process
What is the deadline to pay ABSD?
Within 14 days of S&P signing in Singapore (30 days overseas).[2]
Can I use CPF for ABSD?
Yes, pay first then reimburse from CPF OA.[2]
Does joint ownership affect ABSD rates?
Yes, highest profile applies to full value.[1]
Are there ABSD remissions in 2026?
Yes, for selling existing properties or specific trusts within timelines.[1][2]
How does ABSD impact foreigners buying condos?
60% flat rate on any property, plus BSD.[3]
Next Steps with Homejourney
Search verified properties on Homejourney property search, calculate via our tools, and explore projects at projects directory. For market trends, see ABSD Price Trends. Homejourney ensures safe, transparent buying—start your journey today.
