For a small group of foreign buyers, Singapore offers something almost unheard of in 2025: the ability to buy private residential property with no ABSD, thanks to Free Trade Agreements (FTAs). This guide explains, in practical detail, how eligible FTA nationals can legally enjoy an FTA ABSD exemption when buying Singapore property – and how Homejourney helps you do it safely and confidently.
Drawing from on-the-ground experience in districts like Orchard, River Valley, and East Coast, and referencing current regulations, this is your complete guide for FTA nationals buying property in Singapore with no ABSD – whether you are a first-time buyer, upgrading family, or seasoned investor.
Table of Contents
- 1. Overview: FTA Nationals & No ABSD in Singapore
- 2. Who Qualifies as an FTA National for ABSD Exemption?
- 3. Property Types FTA Nationals Can Buy (With and Without Approval)
- 4. Taxes & Duties: BSD, ABSD, and FTA Exemption Explained
- 5. Financing, LTV, TDSR: How Much You Can Borrow
- 6. Step-by-Step Buying Process for FTA Nationals
- 7. Investment Strategy: Using the FTA ABSD Exemption Wisely
- 8. Common Mistakes FTA Nationals Make (And How to Avoid Them)
- 9. Cost Breakdown & Hidden Costs to Budget For
- 10. How Homejourney Protects FTA Buyers: Safety, Due Diligence & Tools
- 11. FAQ: FTA Nationals, No ABSD & Singapore Property Rules
1. Overview: FTA Nationals & No ABSD in Singapore
Singapore’s ABSD regime is one of the strictest in the world. Since 2023, most foreigners pay 60% ABSD on any residential purchase, on top of Buyer’s Stamp Duty (BSD).
But under certain Free Trade Agreements, citizens of specific countries are legally treated as if they were Singapore Citizens for the purpose of ABSD on their residential property purchases.[1][3][8]
In practical terms, if you are an eligible FTA national, you can buy a private condo in, say, River Valley for S$2.5 million and pay no ABSD on your first residential property – while another foreigner might pay S$1.5 million in ABSD alone at the 60% rate.
This makes understanding FTA ABSD exemption critical for:
- Foreign professionals on EP / S Pass planning to stay long term.
- Overseas investors comparing Singapore to London, Sydney, or Hong Kong.
- Singaporeans with FTA-national spouses considering joint purchases.
- Existing foreign owners planning to restructure holdings.
Homejourney’s role is to translate these complex rules into clear, actionable steps, and to verify every crucial detail so you don’t risk a regulatory misstep or unexpected million-dollar tax bill.
2. Who Qualifies as an FTA National for ABSD Exemption?
2.1 The Key FTA Countries for ABSD
Under Singapore’s Free Trade Agreements, nationals of certain countries are given ABSD treatment equivalent to Singapore Citizens for residential property purchases.[1][8]
Most practitioner guides and law firm briefings consistently list US, Switzerland, Norway, Iceland, and Liechtenstein as FTA nationals who are exempt from the “foreigner” ABSD rate and instead follow the Singapore Citizen schedule for ABSD.[1][3][8]
Important: FTA ABSD exemption is a tax rule. It does not change rules on what you can buy under the Residential Property Act (e.g. landed houses still need approval). It also does not make you eligible for HDB flats.
2.2 Conditions to Enjoy FTA ABSD Treatment
Based on current tax practice and IRAS guidance (which your conveyancing lawyer should confirm for your exact scenario), FTA ABSD treatment generally requires:
- You hold citizenship of an FTA country (passport, not just long-term visa).
- Your name appears as a purchaser on the Option to Purchase and subsequent Sale & Purchase Agreement.
- Your purchase is a residential property (ABSD is only on residential).
- You meet any conditions around joint purchase (see below).
2.3 Joint Purchases: Mixed Nationalities and FTA Status
Real cases we often see include:
- US citizen + Singapore citizen spouse.
- US citizen + non-FTA foreigner spouse (e.g. from China, India, Indonesia).
- Swiss citizen + Singapore PR co-owner.
IRAS applies ABSD based on a combination of the buyers’ profiles. For mixed profiles, ABSD may be charged at the highest applicable rate among buyers, unless conditions for remission are satisfied (for example, under the “married couple” remission rules when upgrading). Your lawyer must check the latest IRAS practice before you commit to the Option.
This is an area where Homejourney strongly recommends:
- Getting a written ABSD computation from your lawyer or tax advisor before exercising the Option.
- Using Homejourney’s ABSD tools and guides such as ABSD Stamp Duty Calculator & Guide 2025 | Homejourney and ABSD Stamp Duty Calculator and Guide 2025 | Homejourney Singapore .
3. Property Types FTA Nationals Can Buy
3.1 HDB Flats and Executive Condominiums (ECs)
Even with FTA ABSD exemption, you are still considered a foreigner for HDB purposes:
- Non-PR foreigners (including FTA nationals) cannot buy HDB flats.[2][5][6]
- Resale HDB is allowed only for certain Singapore Citizens / PR households – foreign buyers are excluded.
For Executive Condominiums (ECs):
- Brand-new ECs (still under MOP) are reserved for SC/PR households; foreigners cannot buy.[2]
- Resale EC (6–10 years old) can be bought by SCs and PRs only.[2]
- After 10 years, the EC becomes fully privatized and foreigners (including FTA nationals) may buy.[2]
3.2 Private Condominiums & Apartments
This is the main playground for FTA nationals using ABSD exemption.
- Foreigners can freely buy private condos and apartments without special approval, regardless of FTA status.[1][2][3][5]
- As an FTA national, your advantage is on the ABSD rate, not eligibility.
In practical terms, if you are a US citizen eyeing a 2-bedroom in District 9 (Orchard / River Valley):
- Typical 2-bedroom new launch (2025): S$2.1m–S$2.6m depending on project and floor.
- You can buy as easily as any foreigner – but pay ABSD like a Singapore Citizen.
3.3 Landed Property & Strata Landed
Under the Residential Property Act, foreigners face restrictions:
- Mainland landed houses (terraces, semi-Ds, bungalows, GCBs) require approval from the Land Dealings Approval Unit (LDAU).[3][5][7]
- Some strata-landed housing in condo developments may also be restricted.[5]
- Sentosa Cove landed is a special case where foreigners may buy without the usual mainland conditions, but approval rules can still apply.[5][7]
FTA ABSD exemption does not override these ownership restrictions. It only affects whether you pay ABSD and at what rate, if you are allowed to buy that property in the first place.
3.4 Commercial & Mixed-Use Properties
Most commercial properties (office, retail, hospitality) do not attract ABSD, and foreigners are generally allowed to buy them freely.[3][5]
For mixed-use buildings (e.g. shop-unit plus residential upstairs), ABSD applies to the residential portion only. FTA status may help on ABSD for that residential element, but you still must consider zoning, financing, GST (for some commercial deals), and usage rules.
4. Taxes & Duties: BSD, ABSD, and FTA Exemption Explained
4.1 Buyer’s Stamp Duty (BSD) – Applies to Everyone
BSD is payable by all buyers, including FTA nationals, and is computed on the higher of purchase price or market value. Rates are progressive and were last revised in 2023; your lawyer or the latest IRAS calculator should confirm exact rates at the time you buy.
Homejourney encourages all buyers to run BSD and ABSD numbers through up-to-date tools such as our ABSD & stamp duty guides: ABSD Stamp Duty Calculator & Guide 2025 | Homejourney and ABSD Stamp Duty Calculator and Guide 2025 | Homejourney Singapore .
4.2 ABSD – Foreigner vs FTA National
For non-FTA foreigners, public sources and market guides describe ABSD on residential purchases as 60% in the current regime.[3][4][6][8]
For FTA nationals (US, Switzerland, Norway, Iceland, Liechtenstein), several practitioner guides state that no ABSD applies for their first residential property purchase, because they are treated like Singapore Citizens for ABSD.[1][3][8]
Disclaimer: ABSD rates and remission rules are periodically updated by the Singapore government. Always confirm with IRAS, MAS-announced policy updates, or your lawyer at the exact time of purchase. Homejourney does not provide legal or tax advice but ensures you have the latest verified references.
4.3 Example: Cost Difference – FTA vs Non-FTA Foreigner
Assume you’re comparing a S$2.5m new launch condo in Tanjong Rhu, a popular East Coast location with direct access to the Thomson-East Coast Line:
- Non-FTA foreigner: ABSD at 60% = S$1.5m in tax on top of BSD.
- US citizen (FTA national) buying first property: ABSD 0% – pay only BSD.
This S$1.5m difference is why wealthy US and EFTA buyers are increasingly active in prime districts and core central region new launches, as covered by recent market reports from sources like Straits Times Housing News and EdgeProp Property News .
5. Financing, LTV, TDSR: How Much You Can Borrow
5.1 Loan-to-Value (LTV) Limits
LTV limits in Singapore are governed by MAS and apply regardless of nationality. Broadly (subject to policy changes and bank-specific criteria):
- Up to 75% LTV if it is your first housing loan and loan tenure & borrower age fall within MAS guidelines.
- Lower LTV (e.g. 45% or 35%) if you already have an existing housing loan or exceed age/tenure limits.
References
- Singapore Property Market Analysis 1 (2025)
- Singapore Property Market Analysis 3 (2025)
- Singapore Property Market Analysis 8 (2025)
- Singapore Property Market Analysis 2 (2025)
- Singapore Property Market Analysis 5 (2025)
- Singapore Property Market Analysis 6 (2025)
- Singapore Property Market Analysis 7 (2025)
- Singapore Property Market Analysis 4 (2025)
