Executive Summary: The Definitive Guide to US FTA ABSD Exemption
Americans can legally avoid Singapore's 60% Additional Buyer's Stamp Duty (ABSD) on their first residential property purchase through the US-Singapore Free Trade Agreement (FTA) exemption, paying zero ABSD like Singapore citizens.[1][3] This guide from Homejourney, your trusted partner for safe property transactions, exhaustively covers eligibility, processes, market insights, and strategies to maximize this advantage while prioritizing user safety and transparency.[1][2]
With foreign ABSD at 60% as of 2026, this exemption saves up to S$1.2 million on a S$2 million condo—transforming investment viability.[1][2] Homejourney verifies all data from official sources like IRAS and URA, helping you navigate confidently without risks.[3][6]
Key Takeaway: US citizens get PR-like tax treatment for their first buy, but strategic planning is essential for second properties and compliance.[1][4]
Table of Contents
- US-Singapore FTA: How the ABSD Exemption Works
- Eligibility Criteria for American Buyers
- Step-by-Step Application Process
- Eligible Property Types for US Citizens
- 2026 Market Data: American Investment Trends
- Financing and Cost Breakdown
- Investment Strategies and Portfolio Building
- Common Mistakes and How to Avoid Them
- Risks, Limitations, and Disclaimers
- Frequently Asked Questions
- Next Steps with Homejourney
US-Singapore FTA: How the ABSD Exemption Works
The US-Singapore Free Trade Agreement (USSFTA), signed in 2004, grants American citizens "national treatment" for stamp duties, treating them as Singapore citizens for ABSD on their first residential property.[1][3][5] This means zero ABSD—only standard Buyer's Stamp Duty (BSD) applies, unlike other foreigners facing 60% ABSD.[2][6]
IRAS confirms: US citizens receive the same stamp duty treatment as citizens for their first property; subsequent buys follow citizen rates (e.g., 20% ABSD on second).[3][8] This is not a loophole but a binding bilateral obligation, with ~250 FTA remission transactions yearly pre-2023, averaging S$150 million remitted.[5]
Insider Tip: From Homejourney's experience with verified US buyers, timing matters—apply remission post-sale to avoid upfront payment risks.[4]
ABSD vs. Exemption: Cost Comparison Table
| Buyer Type | S$1M Property | S$2M Property | Savings |
|---|---|---|---|
| US Citizen (1st Buy) | BSD ~S$11k (0% ABSD) | BSD ~S$24k (0% ABSD) | Up to S$1.2M |
| Other Foreigners | S$600k ABSD + BSD | S$1.2M ABSD + BSD | - |
| Singapore Citizen/PR (1st) | BSD ~S$11k | BSD ~S$24k | N/A |
Table based on 2026 IRAS rates; BSD tiers: 1-6%.[6] Homejourney's ABSD Stamp Duty Calculator & Guide 2026 | Homejourney ">ABSD Calculator verifies exact figures.[6]
Eligibility Criteria for American Buyers
You must be a US citizen (not green card holder) buying your first residential property in Singapore—no prior ownership counts.[1][3] Properties include condos, but landed needs Land Authority approval.[4]
Proof: US passport, sale agreement. No PR or residency required—purely citizenship-based.[2][8] Homejourney verifies docs pre-purchase for safety.
Common Misconception: Spouses qualify separately; joint buys count as first for both if neither owns prior property.[1]
Required Documents List
- Valid US passport (color copy)
- Sale & Purchase Agreement
- Proof no prior Singapore residential ownership (IRAS declaration)
- FTA Remission Application Form (IRAS e-Stamping)
- Bank statements if financing involved
Source: IRAS guidelines.[8] Homejourney's verified process ensures 100% compliance.
Step-by-Step Application Process
Step 1: Find property via Homejourney's Property Search ">safe search. Focus on condos in Districts 9-10 (Orchard) or 15 (East Coast)—popular with US buyers for yields 3-4%.[1]
Step 2: Sign Option to Purchase; pay 5% deposit. Declare US citizenship to agent.
Step 3: At completion (14 weeks), pay BSD via IRAS e-Stamping. Submit FTA remission app within 14 days if ABSD auto-charged.[4][8]
Step 4: IRAS refunds eligible ABSD (2-4 weeks). Track via Homejourney dashboard.
Timeline: 3-6 months total. Insider tip: Use lawyers familiar with FTA—Homejourney partners verify all.[1]
Eligible Property Types for US Citizens
US buyers can purchase any non-landed residential like condos, exec condos (post-MOP), or caveated apartments—no HDB without PR.[4] Landed requires SLA approval (rare for foreigners).[1]
See Homejourney's Types of Properties Foreigners Can Buy in Singapore | Homejourney ">foreigner property types guide. Prime picks: One Holland Village (D10, ~S$2.5M, 3% yield).[1]
2026 Market Data: American Investment Trends
Q3 2025 data shows Americans capturing disproportionate foreign buys due to zero ABSD, amid muted overall foreign activity.[1] Avg transaction: ~250 FTA/year, 2.5% of ABSD cases.[5]
US buyers favor city-fringe condos (D9-15): Prices up 5% YoY to S$2,200 psf; rents S$6-8k/month.[1][7] Homejourney's Projects Directory ">projects directory tracks verified data.
Top Districts for American Buyers Table
| District | Avg Price (S$M) | Yield (%) | Why Americans Love It |
|---|---|---|---|
| 9-10 (Orchard) | 2.8 | 3.2 | Walk to MRT, luxury amenities |
| 15 (East Coast) | 1.9 | 3.8 | Beaches, family-friendly |
| 19 (Serangoon) | 1.4 | 4.1 | Value growth, near US expat hubs |
Data synthesized from URA trends; Homejourney analyzes for trust.[1]
Financing and Cost Breakdown
No CPF for foreigners; LTV 50-75% via local banks (e.g., DBS, UOB).[1] Check Mortgage Rates ">Homejourney bank rates. TDSR: 55% debt cap.
Total costs (S$2M condo): Purchase 100%, BSD S$24k, legal S$5k, maintenance S$500/mth—post-purchase, Aircon Services ">Homejourney servicing keeps safe.
See Financing Options for Foreign Buyers in Singapore | Homejourney ">financing guide.[1]
Investment Strategies and Portfolio Building
Strategy 1: Buy prime condo first (zero ABSD), rent for yield, sell after 3-5 years appreciation.[1] Strategy 2: Family home in D15 for long-term hedge.[2]
Americans build via first buy, then commercial (no ABSD).[1] Homejourney simulates returns safely.
Common Mistakes and How to Avoid Them
- Mistake: Assuming exemption auto-applies—pay upfront, apply remission.[4] Avoid: Declare FTA early.
- Mistake: Buying second as first via entity—IRAS looks through.[3] Avoid: Homejourney verifies ownership history.
- Mistake: Ignoring TDSR—denied loans.[1] Avoid: Pre-approve via Bank Rates ">rates tool.
Real example: US buyer in The Marq (D9) saved S$900k but delayed remission—Homejourney prevents this.[1]
Risks, Limitations, and Disclaimers
Exemption first property only; second incurs 20% (citizen rate).[3] Policy changes possible, though FTAs stable.[5] Not financial advice—consult lawyers, IRAS.
Homejourney emphasizes safety: All info verified, no untrusted sources.
Frequently Asked Questions
Can green card holders claim US FTA exemption?
No, must be US passport holder.[1][3]
Does joint purchase with non-US spouse qualify?
Yes, if neither has prior ownership; both get first-buy treatment.[1]
What if I own overseas property?
Only Singapore ownership counts.[3]
How long for remission refund?
2-4 weeks post-approval.[4][8]
Can Americans buy HDB?
No, requires PR.[4]
2026 ABSD rates changed?
60% foreigners confirmed; US exempt first buy.[6]
Need to live in Singapore?
No residency required.[2]
Next Steps with Homejourney
1. Search verified properties: Property Search ">Homejourney search.
2. Calculate duties: ABSD Stamp Duty Calculator & Guide 2026 | Homejourney ">ABSD tool.
3. Check financing: Mortgage Rates ">Rates.
4. Contact Homejourney for personalized, safe guidance—your trusted journey starts here.
Homejourney prioritizes your safety with verified data, transparency, and feedback-driven support for confident US FTA ABSD avoidance.
References
- Singapore Property Market Analysis 1 (2026)
- Singapore Property Market Analysis 3 (2026)
- Singapore Property Market Analysis 2 (2026)
- Singapore Property Market Analysis 6 (2026)
- Singapore Property Market Analysis 4 (2026)
- Singapore Property Market Analysis 5 (2026)
- Singapore Property Market Analysis 8 (2026)
- Singapore Property Market Analysis 7 (2026)
