ABSD for Taiwanese Citizens: 60% Stamp Duty Guide 2026

ABSD for Taiwanese Citizens: The Definitive 60% Stamp Duty Guide for 2026

If you're a Taiwanese citizen considering purchasing property in Singapore, understanding the Additional Buyer's Stamp Duty (ABSD) is non-negotiable. As a foreigner—including Taiwan nationals—you face a flat 60% ABSD rate on your first residential property purchase, and 65% on any subsequent properties. This represents one of the world's highest property transfer taxes and can easily exceed S$1 million on a luxury condo purchase.

At Homejourney, we prioritize your safety and financial security by providing verified, transparent information to help you make confident decisions. This comprehensive guide breaks down every aspect of ABSD for Taiwanese buyers, from calculation mechanics to strategic planning approaches that can help optimize your investment structure.

Table of Contents

• Executive Summary: What Taiwanese Buyers Must Know
• Why ABSD Matters: Real Cost Impact on Your Investment
• ABSD Rates for 2026: The Complete Breakdown
• Step-by-Step ABSD Calculation Process
• Real-World Scenarios: Taiwanese Investors in Singapore
• Understanding BSD vs ABSD: Don't Confuse These Duties
• The Marriage Exception: Blended Rates for Foreign Spouses
• Payment Timeline and IRAS Requirements
• Strategies to Minimize Your Tax Burden
• Common Mistakes Taiwanese Buyers Make
• Comprehensive FAQ Section
• Next Steps: Your Path Forward with Homejourney

Executive Summary: What Taiwanese Buyers Must Know

Taiwanese nationals purchasing residential property in Singapore are classified as foreigners under Singapore's tax system, regardless of employment status, visa type, or length of residence. This classification triggers the 60% ABSD rate—the highest in the world and unchanged since April 2023.

On a S$2 million property (a typical luxury condo in prime districts like Orchard or Marina Bay), you'll pay approximately S$1.2 million in ABSD alone, plus an additional S$64,600 in Buyer's Stamp Duty (BSD), totaling S$1,264,600 in stamp duties before any mortgage payments or renovation costs. This represents 63% of the purchase price in transfer taxes alone.

The critical insight: your ABSD liability is determined exclusively by your residential status on the date of purchase. No amount of time spent in Singapore, employment history, or personal circumstances will lower your rate. However, strategic structures—such as joint purchases with a Singaporean spouse or careful timing of property acquisitions—can significantly reduce your overall tax burden.

Homejourney's role is to ensure you understand these obligations fully and make informed decisions. We verify all rates against official IRAS sources and provide transparent cost breakdowns so you can accurately model your investment thesis before committing capital.

Why ABSD Matters: Real Cost Impact on Your Investment

Many Taiwanese investors underestimate ABSD's impact on their investment returns. Unlike development costs or renovation expenses that add value to a property, ABSD is a pure transfer tax that reduces your equity position from day one.

Consider this practical example: You purchase a S$2.5 million luxury condo in District 9 (Orchard area) as your first Singapore property. Your total stamp duties will be approximately S$1,594,600—representing 63.8% of the purchase price. If you financed 70% of the purchase price through a bank mortgage (S$1.75 million), your initial equity position is only S$750,000, but you've already paid S$1,594,600 in taxes. This means your property must appreciate by at least 21% just to break even on the tax burden alone.

This is why foreign investors must carefully evaluate their investment thesis. Unlike Singapore Citizens who pay 0% ABSD on their first property, or SPRs who pay only 5%, Taiwanese buyers face an immediate and substantial financial headwind. Your property must deliver exceptional rental yields or capital appreciation to justify the tax burden.

Homejourney helps you navigate this reality by providing accurate cost projections and connecting you with financing options specifically designed for foreign buyers. Our property search tool allows you to identify high-yield properties in districts with strong rental demand, helping you maximize returns despite the ABSD burden.

ABSD Rates for 2026: The Complete Breakdown by Buyer Profile

Singapore's ABSD system uses a tiered approach based on buyer residential status. Here's the complete breakdown for 2026:

Critical point for Taiwanese buyers: Your ABSD rate does not improve over time. Whether you've lived in Singapore for 6 months or 6 years, whether you hold a work visa, EP (Employment Pass), or any other status, your rate remains 60% on the first property and 65% on any subsequent purchases. The only way to access lower rates is to obtain Singapore Permanent Resident (SPR) status or Singapore Citizenship—processes that typically require 2-5 years of residence and meeting specific criteria.

The 60% ABSD rate for foreigners was introduced in April 2023, doubling from the previous 30% rate. This represents a significant policy shift aimed at prioritizing housing for Singapore citizens and permanent residents while cooling speculative foreign demand. The rate has remained unchanged through 2026 and is expected to continue indefinitely.

Step-by-Step ABSD Calculation Process for Taiwanese Buyers

Step 1: Confirm Your Buyer Profile with IRAS

Before calculating anything, you must officially confirm your residential status with the Inland Revenue Authority of Singapore (IRAS). This determination is non-negotiable and forms the foundation of your entire ABSD liability. Contact IRAS directly or engage a property lawyer to verify whether you're classified as a foreigner, SPR, or (if applicable) a Singapore Citizen.

For Taiwanese nationals, this classification is straightforward: you will be classified as a foreigner unless you hold Singapore Citizenship. Even if you're married to a Singaporean or have lived here for years, you remain a foreigner for ABSD purposes unless you've completed the citizenship process.

Step 2: Determine the Property Valuation

ABSD is calculated on the higher of the purchase price or the IRAS valuation. This is critical: if you negotiate a favorable purchase price but IRAS values the property higher, you pay ABSD on the IRAS valuation. For example, if you purchase a property for S$1.8 million but IRAS values it at S$2 million, your ABSD is calculated on S$2 million, not S$1.8 million.

IRAS valuations are typically based on comparable recent transactions in the same building or nearby properties. Luxury properties in prime districts (Orchard, Marina Bay, Sentosa Cove) often have IRAS valuations close to market price, while older properties in less prime areas may have lower valuations. Always ask your conveyancing lawyer to obtain an IRAS valuation estimate before making an offer.

Step 3: Calculate Buyer's Stamp Duty (BSD)

BSD applies to all buyers—citizens, PRs, and foreigners alike. For 2026, BSD uses a tiered structure:

• First S$180,000: 1% (maximum S$1,800)
• S$180,001 to S$360,000: 2% (maximum S$3,600)
• S$360,001 to S$1,000,000: 3% (maximum S$19,200)
• Above S$1,000,000: 4%

For a S$2 million property, BSD calculation works as follows: (S$1,800) + (S$3,600) + (S$19,200) + (S$40,000 on the remaining S$1 million) = S$64,600.

BSD is a separate charge from ABSD and is also due within 14 days of signing the Option to Purchase. Many Taiwanese buyers mistakenly believe ABSD is their only stamp duty obligation and are surprised by the additional BSD charge.

Step 4: Calculate ABSD

For Taiwanese buyers purchasing their first property: ABSD = Property Valuation × 60%

For a S$2 million property: ABSD = S$2,000,000 × 60% = S$1,200,000

For subsequent properties: ABSD = Property Valuation × 65%

Step 5: Calculate Total Stamp Duty Obligation

Total Stamp Duty = BSD + ABSD

Using our S$2 million example: S$64,600 (BSD) + S$1,200,000 (ABSD) = S$1,264,600

This amount is due within 14 days of signing the Option to Purchase (OTP). Your conveyancing lawyer will typically handle e-stamping with IRAS on your behalf, but you must ensure funds are available to meet this deadline. Late payment incurs penalties at 4% per annum plus interest.

Real-World Scenarios: Taiwanese Investors in Singapore

Scenario A: First-Time Buyer, Mid-Range Condo

Property Details: S$1.2 million 3-bedroom condo in Novena (District 11), a popular area with strong rental demand and good MRT connectivity.

Buyer Profile: Taiwanese citizen, first property purchase

Calculations:

• BSD: (S$1,800) + (S$3,600) + (S$19,200) + (S$7,600 on remaining S$200,000) = S$32,200
• ABSD: S$1,200,000 × 60% = S$720,000
• Total Stamp Duty: S$752,200

Investment Context: A S$1.2 million condo in Novena typically generates monthly rental income of S$4,500–S$5,500 from expatriate tenants. With a 70% mortgage (S$840,000), your initial equity is S$360,000, but you've already paid S$752,200 in taxes. Your property must appreciate by 209% just to break even on the tax burden—a daunting threshold. However, if you hold for 10+ years and the property appreciates to S$1.8 million while generating consistent rental income, the long-term returns can justify the initial tax burden.

Scenario B: Luxury Investment, Prime District

Property Details: S$2.5 million luxury condo in Orchard (District 9), one of Singapore's most prestigious addresses with strong capital appreciation history.

Buyer Profile: Taiwanese investor, first property purchase

Calculations:

• BSD: (S$1,800) + (S$3,600) + (S$19,200) + (S$60,000 on remaining S$1.5 million) = S$84,600
• ABSD: S$2,500,000 × 60% = S$1,500,000
• Total Stamp Duty: S$1,584,600

Investment Context: This represents 63.4% of the purchase price in stamp duties alone. A S$2.5 million Orchard condo typically generates S$6,500–S$8,000 monthly rental income. With a 70% mortgage (S$1.75 million), your initial equity is S$750,000. The property must appreciate by 211% to break even on taxes. However, Orchard properties have historically appreciated 3–5% annually over 10-year periods, which could result in significant capital gains despite the high tax burden.

Scenario C: Second Property Purchase

Property Details: S$1.8 million condo in Marina Bay (District 1), purchased 2 years after first property purchase.

Buyer Profile: Taiwanese investor, second property purchase

Calculations:

• BSD: (S$1,800) + (S$3,600) + (S$19,200) + (S$32,000 on remaining S$800,000) = S$56,600
• ABSD: S$1,800,000 × 65% = S$1,170,000
• Total Stamp Duty: S$1,226,600

Investment Context: Your ABSD rate increases from 60% to 65% on the second property. This represents a 5 percentage point increase, adding S$90,000 in additional tax compared to the first property. Most Taiwanese investors purchasing multiple properties in Singapore do so sequentially over several years rather than simultaneously, allowing them to spread the capital outlay and manage cash flow more effectively.

Understanding BSD vs ABSD: Don't Confuse These Duties

One of the most common mistakes Taiwanese buyers make is conflating BSD and ABSD. These are two separate, distinct taxes that apply to different aspects of the property transaction.

Buyer's Stamp Duty (BSD)

What it is: A tax on the transfer of property ownership, calculated as a percentage of the purchase price using tiered rates.

Who pays: All buyers—Singapore Citizens, PRs, foreigners, and entities.

Rate structure: Progressive tiers ranging from 1% to 4% depending on property value.

Purpose: General government revenue; applies universally to all property transactions.

Example: On a S$2 million property, BSD is S$64,600.

Additional Buyer's Stamp Duty (ABSD)

What it is: An additional tax specifically targeting foreign property buyers and certain domestic buyers purchasing additional properties.

Who pays: Foreigners (60%/65%), SPRs purchasing 2nd+ properties (25%/30%), Singapore Citizens purchasing 3rd+ properties (25%), and entities purchasing any property (25%/30%).

Rate structure: Flat percentage based on buyer profile and property number.

Purpose: Policy tool to cool foreign demand and prioritize housing for citizens and permanent residents.

Example: On a S$2 million property, a Taiwanese buyer pays S$1,200,000 in ABSD.

Key Difference: BSD is a standard tax that applies to everyone; ABSD is an additional, discretionary tax that applies only to specific buyer categories. As a Taiwanese buyer, you pay both BSD and ABSD, making your total stamp duty burden significantly higher than Singapore Citizens or even SPRs.

The Marriage Exception: Blended Rates for Foreign Spouses

Singapore's ABSD rules include a significant exception for foreign nationals married to Singapore Citizens or PRs. If you're a Taiwanese national married to a Singaporean, you can potentially reduce your ABSD burden substantially through a joint purchase structure.

How the Blended Rate Works

When a foreigner and a Singapore Citizen purchase property jointly, ABSD is calculated separately on each owner's proportional share:

• The Singaporean spouse's share receives the Citizen rate (0% on first property)
• The Taiwanese spouse's share receives the foreigner rate (60%)

If you and your Singaporean spouse purchase a S$2 million property with equal 50% ownership, the calculation is:

• Singaporean spouse's 50% share: S$1,000,000 × 0% = S$0
• Taiwanese spouse's 50% share: S$1,000,000 × 60% = S$600,000
• Total ABSD: S$600,000 (instead of S$1,200,000)

This represents a 50% reduction in ABSD liability—a substantial savings of S$600,000.

Critical Conditions and Limitations

This exception only applies if both names appear on the title deed. If the property is registered solely in your spouse's name, you receive no ABSD benefit. Additionally, if either spouse already owns other residential properties in Singapore, higher ABSD tiers may apply to subsequent purchases.

For example, if your Singaporean spouse already owns one property, purchasing a second property jointly would trigger the spouse's 17% ABSD rate on their share, reducing your overall savings. Always model the tax impact of single versus joint purchase structures with a conveyancing lawyer before committing.

The same blended rate approach applies if you're married to an SPR, though the SPR spouse's rate would be 5% on the first property and 25% on subsequent properties, rather than 0%.

Strategic Implications for Taiwanese Couples

If you're a Taiwanese couple (both non-citizens), this exception provides no benefit—you both pay 60% ABSD on your respective shares. However, if one spouse has obtained Singapore Citizenship or SPR status, joint ownership becomes strategically advantageous. Many Taiwanese investors structure their purchases around spousal citizenship timelines to maximize tax efficiency.

Payment Timeline and IRAS Requirements

Understanding the payment timeline is critical. Missing ABSD and BSD payment deadlines triggers penalties and can create legal complications in your property transaction.

Key Dates in the Property Purchase Timeline

Day 1: Offer and Acceptance – You make an offer on the property. At this stage, no stamp duties are triggered.

Days 1-7: Option to Purchase (OTP) Period – The seller grants you an option to purchase, typically valid for 7–14 days. During this period, you conduct inspections, arrange financing, and finalize your decision. No stamp duties are triggered during the OTP period.

Day of OTP Exercise: You sign the OTP acceptance and pay the option fee (typically 1% of purchase price). This is when BSD and ABSD become due.

Within 14 Days of OTP Exercise: You must pay both BSD and ABSD to IRAS. This is the critical deadline. Your conveyancing lawyer will typically coordinate e-stamping with IRAS, but you must ensure funds are available.

Days 15-60: Completion Period – After stamp duties are paid, you proceed to complete the purchase. This typically involves final inspections, mortgage disbursement, and transfer of ownership.

Payment Mechanics and Penalties

Both BSD and ABSD are paid directly to IRAS through your conveyancing lawyer's e-stamping system. You cannot pay these duties to the seller or your real estate agent. Your lawyer will provide a payment instruction with the exact amount and IRAS account details.

If you fail to pay within 14 days, IRAS imposes penalties:

• Late payment interest: 4% per annum on the unpaid amount
• Additional penalties: IRAS may pursue legal action to recover unpaid duties
• Transaction complications: Your property transfer cannot be completed until all stamp duties are paid

For a S$1.2 million ABSD payment, delaying payment by just 30 days costs approximately S$12,000 in interest and penalties. This is why coordinating closely with your conveyancing lawyer is essential.

CPF and ABSD: Can You Use CPF to Pay ABSD?

No. ABSD cannot be paid using CPF funds. CPF can only be used for mortgage payments and certain other property-related costs, but not for stamp duties. You must have liquid cash or bank funds available to pay ABSD and BSD within 14 days of exercising the OTP.

This is a critical planning point for Taiwanese buyers. If you're relying on financing to cover most of the purchase price, you still need to have approximately 60–65% of the property value available as liquid capital to cover ABSD alone. For a S$2 million property, this means having S$1.2 million in cash reserves—a substantial requirement that many investors underestimate.

Strategies to Minimize Your Tax Burden

While you cannot eliminate the 60% ABSD rate as a Taiwanese buyer, several legitimate strategies can help optimize your overall tax position.

Strategy 1: Joint Purchase with Singaporean Spouse

As discussed earlier, if you're married to a Singaporean Citizen or SPR, structuring the purchase as a joint ownership can reduce your ABSD liability by 25–50% depending on ownership percentages. This is the most effective tax optimization strategy available to Taiwanese buyers with Singaporean spouses.

Ensure both names appear on the title deed and consult with your conveyancing lawyer to structure the ownership percentages optimally based on your specific circumstances.

Strategy 2: Timing Multiple Property Acquisitions

If you're planning to purchase multiple properties, spacing purchases over several years (rather than simultaneously) allows you to spread the capital outlay and manage cash flow more effectively. However, note that your ABSD rate increases from 60% to 65% on the second property, so timing doesn't reduce your percentage rate—it only helps with cash flow management.

Strategy 3: Purchasing Through a Corporate Entity

Some Taiwanese investors consider purchasing property through a Singapore-incorporated company or investment vehicle. Corporate entities face a 25% ABSD rate on the first property and 30% on subsequent properties—significantly lower than the 60% individual rate.

However, this strategy has substantial drawbacks:

• Complexity: Requires company incorporation, director appointments, and ongoing compliance
• Financing challenges: Banks are more restrictive with mortgage lending to corporate entities
• Exit complications: Selling property owned by a company involves corporate restructuring and potential capital gains taxes
• Regulatory scrutiny: IRAS closely examines corporate property purchases to prevent ABSD avoidance

Most Taiwanese investors find the added complexity outweighs the tax savings. Consult a tax advisor before pursuing this approach.

Strategy 4: Negotiating Purchase Price

Since ABSD is calculated on the higher of purchase price or IRAS valuation, negotiating a lower purchase price can reduce your ABSD liability. However, this only works if the IRAS valuation is higher than your negotiated price.

For example, if a property has an IRAS valuation of S$2 million but you negotiate a purchase price of S$1.9 million, your ABSD is still calculated on S$2 million (the higher amount). However, if you negotiate the price down to S$1.8 million and IRAS values it at S$1.9 million, your ABSD is calculated on S$1.9 million—a modest savings of S$60,000.

Always request an IRAS valuation estimate before making an offer, as this determines your actual tax liability.

Strategy 5: Obtaining SPR or Citizenship Status

The most effective long-term strategy is obtaining Singapore Permanent Resident (SPR) status, which reduces your ABSD rate from 60% to 5% on the first property. However, SPR applications typically require 2+ years of continuous residence in Singapore and meeting specific criteria (employment, investment, or family ties).

If you're planning a long-term presence in Singapore, exploring SPR eligibility can provide substantial tax savings on future property purchases. Consult with an immigration advisor to understand your eligibility and timeline.

Common Mistakes Taiwanese Buyers Make

Mistake 1: Underestimating Total Stamp Duty Costs

Many Taiwanese buyers focus exclusively on ABSD and forget about BSD. On a S$2 million property, the combined stamp duty is S$1,264,600—not just S$1,200,000. This additional S$64,600 in BSD is often overlooked in financial planning, leading to insufficient cash reserves at closing.

Solution: Always calculate both BSD and ABSD together. Use the tiered BSD formula to determine your exact obligation before making an offer.

Mistake 2: Not Confirming IRAS Valuation Before Making an Offer

Some Taiwanese buyers negotiate a purchase price without understanding that IRAS might value the property higher. If IRAS valuation exceeds your negotiated price, you pay ABSD on the higher amount—potentially triggering a significantly higher tax bill than anticipated.

Solution: Ask your conveyancing lawyer to obtain an IRAS valuation estimate before making an offer. Factor this into your offer price negotiations.

Mistake 3: Assuming ABSD Rates Will Decrease

Some Taiwanese investors delay purchases hoping ABSD rates will decrease. The 60% rate has been in place since April 2023 and shows no signs of changing. In fact, the government has indicated this rate is permanent policy. Delaying your purchase in hopes of rate reductions is a risky strategy.

Solution: If you've identified a property that meets your investment criteria, proceed with the purchase based on current rates. Don't speculate on future rate changes.

Mistake 4: Not Planning for the 14-Day Payment Deadline

Some Taiwanese buyers exercise the OTP without having sufficient liquid funds available to pay stamp duties within 14 days. This creates cash flow crises and potential penalties.

Solution: Before exercising the OTP, confirm that you have the full ABSD and BSD amount in a Singapore bank account or accessible through your mortgage lender. Coordinate with your banker to ensure mortgage disbursement timing aligns with the 14-day stamp duty deadline.

Mistake 5: Overlooking the Marriage Exception

Taiwanese investors married to Singaporeans sometimes purchase property solely in their own name, missing the opportunity to reduce ABSD through joint ownership. This represents a significant missed tax optimization opportunity.

Solution: