ABSD Stamp Duty: Investment vs Own Stay Guide | Homejourney
ABSD rates differ sharply between own stay and investment properties in Singapore. Singapore Citizens (SC) pay 0% ABSD for their first own stay property but 17% on a second for investment, while Permanent Residents (SPR) face 5% on first own stay versus 25% on second for investment, and foreigners pay 60% regardless.[1][2][3]
Homejourney prioritizes your safety in property decisions by verifying data from official sources like IRAS and URA. This cluster article breaks down ABSD Singapore differences for own stay versus investment, helping you calculate additional buyer stamp duty accurately. It links to our pillar guide on ABSD Stamp Duty Complete for broader insights.ABSD Singapore 2026: Complete Rates, Calculator & Guide | Homejourney
What is ABSD and Why Own Stay vs Investment Matters
Additional Buyer's Stamp Duty (ABSD) is a tax on residential property purchases beyond the base Buyer's Stamp Duty (BSD), aimed at cooling the market.[3] Own stay means your primary residence; investment means rental or additional holdings. The distinction drives massive cost differences—up to millions for investors.
In 2026, with property prices stable yet high (e.g., S$1.5M average condo), understanding ABSD rates prevents overpaying.[1] For instance, a Singapore Citizen buying a S$1.5M condo as own stay (first property) pays only BSD (~S$55,600), but as investment (second property), adds S$255,000 ABSD.[1]
Homejourney's verified calculators ensure transparency, building trust for first-time buyers and investors alike.
2026 ABSD Rates: Own Stay vs Investment Breakdown
ABSD applies based on your buyer profile and property count. Own stay typically qualifies for lower rates on first/second properties; additional ones are deemed investment.[1][2][3]
- Singapore Citizens (SC): 0% first (own stay), 17% second (often investment if not replacing), 25% third+.[1][2]
- Permanent Residents (SPR): 5% first (own stay), 25% second (investment), 30% third+.[1][3]
- Foreigners: 60% first (even own stay), 65% subsequent (investment).[1][2]
Key: ABSD is on full purchase price, unlike tiered BSD. Use Homejourney's projects directory Projects for real-time price checks.
BSD + ABSD Comparison Table
| Buyer Profile | Property Type | BSD (S$1.5M Property) | ABSD | Total Stamp Duty |
|---|---|---|---|---|
| SC First (Own Stay) | Condo S$1.5M | S$55,600[1] | 0% | S$55,600 |
| SC Second (Investment) | Condo S$1.5M | S$55,600[1] | 17% (S$255,000) | S$310,600[1] |
| SPR First (Own Stay) | HDB S$900K | S$30,600[1] | 5% (S$45,000) | S$75,600[1] |
| SPR Second (Investment) | Condo S$1.5M | S$55,600[1] | 25% (S$375,000) | S$430,600 |
| Foreigner (Own Stay/Investment) | Any S$2M | S$92,200[1] | 60% (S$1.2M) | S$1,292,200[1] |
This table shows investment jumps costs 4-20x for locals.[1] Foreigners face uniform high rates, making own stay barely viable without Decoupling (for couples).
How to Calculate Your ABSD: Step-by-Step
Follow these steps for precise stamp duty estimates:
- Determine Profile: SC, SPR, Foreigner? Check via IRAS e-Stamping.[3]
- Count Properties: Existing HDB/condos count; own stay is first/second if primary residence.[1]
- Calc BSD: Tiered: 1% first S$180K, 2% next S$180K, 3% to S$1M, 4% to S$1.5M, 5% to S$3M, 6% after.[4]
- Add ABSD: Profile rate x full price. E.g., SC investment: 17% x S$1.5M = S$255K.[1]
- Total: BSD + ABSD. Pay within 14 days of Option to Purchase.[3]
Pro Tip: Use CPF for stamp duty on own stay (not investment excess). Check bank rates Bank Rates or mortgage rates Mortgage Rates via Homejourney for financing impact.
Investment vs Own Stay: Decision Framework
Own Stay Pros: Lowest ABSD (0-5%), MSR/TDSR relief, CPF full use. Ideal for families in areas like Punggol (HDB S$600K-900K).[1]
Investment Cons: High ABSD (17-65%), LTV limits drop to 55% for second+, rental income taxed. E.g., S$2M condo investment yields ~3% but ABSD eats 30% upfront.[1]
- Choose Own Stay if: First buyer, need shelter, prices rising 5-7% YoY.
- Choose Investment if: High liquidity, Decoupled (one spouse sells first), target yields >5% post-tax.
Foreigners: Own stay rarely beats 60% ABSD unless luxury (e.g., Sentosa Cove).[2] Consult pros; Homejourney verifies data for safe choices.
Common Mistakes and Insider Tips
Mistake 1: Assuming second HDB is 0% ABSD—it's 17% if not disposing first within timeline.[1] Tip: Decouple via one spouse selling; plan 6 months ahead.
Mistake 2: Foreigners ignoring 60% on landed (e.g., Bukit Timah S$5M+).[2] Tip: Joint ventures with SC can remit, but verify via lawyer.
Insider: For upgrades, time sales post-MOP (5 years HDB). Use Homejourney's property search Property Search for verified listings in Toa Payoh or Bedok.
Hidden Cost: Legal fees S$2K-5K; factor into TDSR (60% debt cap).ABSD Stamp Duty Complete: Financing & Loan Options | Homejourney
Financial Strategies and Next Steps
Fund ABSD via cash/CPF Ordinary Account (own stay only). Investors: Budget 20-60% extra. Post-purchase, maintain with aircon services Aircon Services .
Action Steps:
- Search verified properties on Homejourney Property Search .
- Calculate via our tools; link to projects Projects Directory .
- Engage advisor for Decoupling/Remission.
- Monitor trends: ABSD Stamp Duty Complete: Price Trends & Market Analysis | Homejourney .
Disclaimer: Rates per IRAS Feb 2026; consult professionals. Homejourney provides info, not advice.[3]
FAQ: ABSD Investment vs Own Stay
Q1: Can SC avoid 17% ABSD on second property?
A: Yes, by selling first within 6 months (Joint Tenancy Decoupling) and declaring own stay. Apply for remission via IRAS.[1][3]
Q2: Is ABSD different for HDB vs Condo?
A: No, same rates apply to all residential. HDB own stay often 0-5% first-time.[1]
Q3: Foreigners: Own stay or investment same ABSD?
A: Yes, 60% first, 65% after—regardless of intent.[2]
Q4: Can I use CPF for investment ABSD?
A: Limited; excess over own stay allowance must be cash.[3]
Q5: How does ABSD affect LTV for investments?
A: Second+ properties: 55% LTV max, plus TDSR 55%.ABSD Financing & Loans 2026: Complete Guide by Homejourney
Master ABSD Stamp Duty Complete: Investment vs Own Stay Guide with Homejourney's trusted platform. Start your safe journey: Search verified properties today. Explore our pillar: ABSD Singapore 2026: Complete Rates, Calculator & Guide | Homejourney .
