EFTA Singapore FTA Property Benefits: Switzerland, Norway, Iceland Explained | Homejourney

This Homejourney guide explains, in practical detail, how the EFTA FTA Singapore rules give citizens of Switzerland, Norway and Iceland a powerful advantage when buying residential property in Singapore – including potential EFTA ABSD remission that lets you pay the same Additional Buyer’s Stamp Duty (ABSD) rates as Singapore Citizens.

Written from the ground in Singapore and based on official IRAS and Ministry of Finance information, this is designed as the definitive, safety‑first resource for European Free Trade Association (EFTA) buyers planning a property purchase here.

Executive Summary: Why the EFTA–Singapore FTA Matters for Property Buyers

Under the Singapore–European Free Trade Association Free Trade Agreement (ESFTA), nationals of Iceland, Liechtenstein, Norway and Switzerland are entitled to “national treatment” for certain taxes, including ABSD on residential property in Singapore.[4][6]

According to the Ministry of Finance, this means that qualifying nationals from these countries are accorded similar tax treatment as Singapore Citizens when buying residential properties – which in practice can translate into ABSD remission that removes the usual 60% foreign‑buyer ABSD for an eligible first property.[4][6]

For Swiss, Norwegian and Icelandic buyers, this can save millions of dollars on a prime District 9 or Marina Bay condominium, and is one reason why a small but steady stream of EFTA families and professionals choose Singapore for long‑term residence and wealth preservation.[3][4]

1. EFTA, ESFTA & European Free Trade – Property Basics
2. How EFTA ABSD Remission Works in Singapore
3. What Swiss, Norwegian & Icelandic Citizens Can Buy
4. Detailed Stamp Duty & Cost Breakdown (2025)
5. Financing, LTV, TDSR & CPF Rules for EFTA Buyers
6. Step‑by‑Step Safe Buying Process with Homejourney
7. Decision Framework: Where & What to Buy
8. Common Mistakes EFTA Buyers Make – and How to Avoid Them
9. Long‑Term Ownership, Taxes & Maintenance Planning
10. Frequently Asked Questions (FAQ)

1. EFTA, ESFTA & European Free Trade – Property Basics

1.1 What is EFTA and the ESFTA with Singapore?

The European Free Trade Association (EFTA) is a bloc consisting of Switzerland, Norway, Iceland and Liechtenstein. Singapore has a dedicated free trade agreement with EFTA, commonly called the ESFTA (Singapore–European Free Trade Association FTA).[4][5]

Most people think of FTAs purely in terms of trade and tariffs – cheaper exports, simplified customs, and investment protections.[5][8] However, Singapore’s ESFTA also contains a “national treatment” obligation that extends to certain forms of taxation, including property‑related taxes for qualifying individuals.[4][6]

In plain language: if you are a qualifying citizen of Switzerland, Norway or Iceland, Singapore may not discriminate against you in certain tax areas compared to its own citizens, as long as you satisfy the conditions under the FTA and local regulations.

1.2 How Does European Free Trade Connect to Property in Singapore?

For property buyers, the ESFTA matters because of its effect on Additional Buyer’s Stamp Duty (ABSD) – a major upfront tax on residential property purchases in Singapore.

IRAS, Singapore’s tax authority, explicitly lists foreigners eligible for ABSD remission under Free Trade Agreements, including nationals of Iceland, Liechtenstein, Norway and Switzerland.[6]

The Ministry of Finance has also confirmed in Parliament that under the ESFTA, nationals and permanent residents of these four EFTA countries receive similar tax treatment to Singapore Citizens when buying residential properties, via ABSD remission.[4]

For a Swiss family buying a S$3 million River Valley condo, this can be the difference between paying 0% ABSD on a first property versus the standard 60% ABSD that most foreigners currently face.[3][4]

1.3 Key Property Terms Explained Simply

BSD (Buyer’s Stamp Duty): A tax payable on all property purchases in Singapore, based on the purchase price or market value (whichever is higher). Applies to everyone, including Singaporeans, PRs and foreigners.
ABSD (Additional Buyer’s Stamp Duty): An extra tax on top of BSD, specifically for residential properties. Most foreigners pay the highest ABSD rate (currently 60% for residential properties).[3]
EFTA ABSD remission: A special remission (waiver) of ABSD for qualifying nationals of Iceland, Liechtenstein, Norway and Switzerland, so that they are treated like Singapore Citizens for ABSD purposes.[4][6]
ESFTA: The Singapore–EFTA Free Trade Agreement that grants national‑treatment obligations, forming the legal basis for this ABSD remission.[4][5]
Residential vs non‑residential: ABSD only applies to residential property (condos, apartments, landed homes, etc.). Commercial and industrial properties are not subject to ABSD.[3]

2. How EFTA ABSD Remission Works in Singapore

2.1 Official Basis for EFTA ABSD Benefits

Two official sources underpin the EFTA property benefits in Singapore:

IRAS ABSD Remission List: IRAS maintains a dedicated page on “Foreigners Eligible for ABSD Remission under Free Trade Agreements (FTAs)”, where nationals of Iceland, Liechtenstein, Norway and Switzerland are specifically recognised.[6]
Ministry of Finance Parliamentary Reply: The Deputy Prime Minister & Minister for Finance stated that under the ESFTA’s national treatment obligation, nationals and permanent residents of the four EFTA states enjoy similar tax treatment as Singaporeans in purchasing residential properties in Singapore.[4]

Over 2018–2022, an average of around 250 property transactions per year obtained ABSD remission due to FTAs, accounting for about 2.5% of all ABSD‑attracted transactions and around S$150 million per year in ABSD remitted.[4] This shows that while the scheme is niche, it is consistently used by informed buyers and their advisers.

2.2 Who Qualifies for ESFTA ABSD Remission?

Based on IRAS and MOF information, the following typically need to be satisfied for EFTA ABSD remission:[4][6]

You are a citizen or permanent resident of Iceland, Liechtenstein, Norway or Switzerland.
You are buying a residential property in your own name (or in certain approved joint arrangements – which should be checked carefully with IRAS or your lawyer).
You meet all the conditions set out in IRAS’ remission rules, including any required undertaking or declaration at the time of purchase.

Homejourney strongly recommends that every EFTA buyer seeking remission:

Obtains written confirmation from their conveyancing lawyer that they qualify; and
Double‑checks the latest IRAS conditions before exercising the Option to Purchase.

This is essential, because if you proceed assuming you qualify but IRAS later rejects the remission, you may be liable for the full 60% ABSD plus interest and penalties.

2.3 What Does “Same ABSD Treatment as Singapore Citizens” Mean?

According to MOF, the ESFTA national‑treatment obligation means that qualifying EFTA nationals receive similar tax treatment as Singapore Citizens when they purchase residential properties in Singapore.[4]

In practice, this usually means:

First residential property: ABSD rate similar to Singapore Citizens (currently 0% for Singapore Citizens buying their first residential property for owner‑occupation).[3]
Second and subsequent residential properties: ABSD rates aligned with those that apply to additional properties for Singapore Citizens (higher, but still significantly below the standard 60% foreign‑buyer rate).[3]

Important: the remission is not automatic. You must meet IRAS’ qualification criteria and follow the required procedures to obtain it.[6] Always treat this as a legal‑tax matter to be handled with professional support, not something to rely on based solely on informal advice or marketing.

2.4 Simple Comparison Table: Standard Foreign Buyer vs EFTA ESFTA Buyer

Buyer Type	ABSD on First Residential Property (2025)	ABSD on Second Residential Property (indicative)	Notes
Standard foreign buyer (no FTA)	Typically 60% of purchase price or market value (whichever is higher)[3]	Also 60% (no preferential band)[3]	Highest ABSD band in Singapore
EFTA buyer (Swiss, Norwegian, Icelandic) qualifying for ESFTA remission	Same as Singapore Citizen, which is 0% on first residential property for owner‑occupation (subject to conditions)[3][4][6]	Same tier as Singapore Citizen’s additional property (significantly lower than 60%)[3]	Requires satisfaction of IRAS remission conditions under ESFTA[6]

Disclaimer: Exact ABSD rates change over time. Always verify the applicable rates and remission conditions with IRAS, MOF or a qualified tax professional before committing to a purchase.

3. What Swiss, Norwegian & Icelandic Citizens Can Buy in Singapore

3.1 Property Types Open to Foreigners (Including EFTA Nationals)

Under Singapore law, foreign buyers – including EFTA nationals – generally can buy the following residential properties, subject to the usual rules and ESFTA remission where applicable:[3]

Private condominiums and apartments in all districts (e.g. Orchard, River Valley, Novena, East Coast, Queenstown).[3]
Strata‑landed homes within approved condominium developments (cluster houses).[3]
Private apartments in mixed‑use developments (e.g. integrated developments above malls like VivoCity/HarbourFront or Paya Lebar Quarter), as long as the unit is classified as residential.
Privatised Executive Condominiums (ECs) older than 10 years, which are fully opened to foreign ownership.[2][3]

HDB flats and new ECs remain tightly controlled for citizen and PR households and are generally not accessible to foreigners (including EFTA nationals) except through limited scenarios such as non‑citizen spouse schemes, which still have strict conditions. For a deeper overview, see Homejourney’s guide: Types of Properties Foreigners Can Buy in Singapore Types of Properties Foreigners Can Buy in Singapore | Homejourney .

3.2 Landed Property & Sentosa Cove

For landed homes (terrace, semi‑detached, bungalow), Singapore’s Residential Property Act is restrictive. Foreigners generally cannot buy landed residential property on the main island unless they obtain special approval from the Land Dealings Approval Unit (LDAU).[3]

However, there is one notable exception:

Sentosa Cove landed homes: Foreigners can apply for LDAU approval to buy landed houses in Sentosa Cove, subject to strict conditions (typically owner‑occupation and no renting out).[3]

EFTA nationals are treated like other foreigners for access to landed property, but they may enjoy ESFTA‑based ABSD remission on qualifying purchases once approval is granted. Your conveyancing lawyer should confirm this interaction in writing before you pay any non‑refundable deposits.

3.3 Real‑World Example: Swiss Family Buying Near Orchard

Imagine a Swiss couple relocating to Singapore to work in the CBD and near One‑North. They shortlist a S$3.5 million, 3‑bedroom condo in Orchard, a 5‑minute sheltered walk from Orchard MRT Exit D via ION Orchard – a route I personally walk often when cutting through from the MRT to Paterson Road in the evenings.[3]

Without ESFTA remission, they would face:

BSD at standard rates, plus
ABSD at 60% → S$2.1 million in ABSD alone.[3]

With ESFTA ABSD remission (and if treated as equivalent to a first‑property Singapore Citizen), their ABSD on a first owner‑occupied property could be 0%, saving S$2.1 million upfront and dramatically changing their budget for renovation, schooling and investments.[3][4]

4. Detailed Stamp Duty & Cost Breakdown (2025)

4.1 Current BSD & ABSD Structure (Overview)

As of 2024–2025, Singapore applies progressive BSD rates on property purchases, with higher tiers for higher‑value properties. ABSD is charged on top of BSD at different rates depending on buyer profile and number of properties owned.[3][6][9]

For most foreigners, ABSD is 60% on any residential purchase.[3] But ESFTA‑qualified EFTA nationals may obtain remission that aligns their ABSD treatment with Singapore Citizens.[4][6]