For many Chinese nationals, Singapore property is a safe-haven asset – but the current 60% Additional Buyer’s Stamp Duty (ABSD) on foreign buyers makes every move extremely costly.[1][4][8] This Homejourney guide explains, in clear and practical terms, how Chinese nationals can legally reduce ABSD in Singapore, what is realistically possible under IRAS rules, and how to avoid unsafe or illegal schemes.
Drawing on on-the-ground experience with mainland Chinese, Hong Kong and Taiwanese clients in districts like Orchard, Marina Bay, Novena and East Coast, this guide combines local insights with official regulations to help you plan safely and confidently.
Executive Summary: Legal ABSD Reduction for Chinese Buyers
Key point: For most mainland Chinese nationals buying residential property, ABSD is a flat 60% of the higher of purchase price or market value, regardless of whether this is your first or third home.[1][3][4][8] There is no general exemption or reduced rate for PRC citizens.
However, there are legal ABSD mitigation strategies that can significantly reduce your total tax burden or avoid ABSD entirely, if you plan correctly:
- Buying non-residential property (commercial, industrial, some shophouses) – no ABSD applies to such properties for foreigners.[2]
- Structuring your family profile (e.g. spouse or children with other citizenships, PR, or future Singapore citizenship) to benefit from lower ABSD tiers in the long term.[4][7][9]
- Using the correct buyer profile (e.g. eligible FTA nationality family members) where applicable – though this rarely applies to PRC nationals directly.[3][9]
- Optimising holding structure and number of properties per person to avoid higher ABSD tiers for Singapore Citizens/PRs in mixed-status families.[4][7][8]
- Choosing the right property type and price segment to manage total taxes, mortgage, and long-term returns, instead of overpaying ABSD for speculative purchases.
At the same time, any attempt to “reduce ABSD” using sham arrangements (e.g. nominee buyers, fake divorces, round-tripping funds) is illegal and heavily scrutinised by IRAS and MAS. Homejourney’s priority is user safety, so this guide only covers fully legal ABSD reduction methods and explains what you must avoid.
Table of Contents
- Chapter 1: Understanding ABSD for Chinese Nationals in 2025
- Chapter 2: Legal Principles – What You Can and Cannot Do
- Chapter 3: Strategy 1 – Avoid ABSD with Non-Residential Properties
- Chapter 4: Strategy 2 – Family Profile & Citizenship / PR Planning
- Chapter 5: Strategy 3 – Property Type, Price Band & Ownership Structuring
- Chapter 6: Financing, LTV, and TDSR Considerations for Chinese Buyers
- Chapter 7: Common Illegal or Risky ABSD Schemes to Avoid
- Chapter 8: Step-by-Step Safe Buying Process for Chinese Nationals
- FAQ: ABSD Mitigation for PRC Buyers – Real Questions Answered
- Next Steps & How Homejourney Protects Your Interests
Chapter 1: Understanding ABSD for Chinese Nationals in 2025
1.1 What is ABSD in Singapore?
Additional Buyer’s Stamp Duty (ABSD) is a tax payable on top of standard Buyer’s Stamp Duty (BSD) when you buy or acquire residential property in Singapore.[8] ABSD is based on:
- The buyer’s profile (citizenship / residency status, and number of residential properties owned globally).
- The number of residential properties the buyer already owns at time of purchase.[4][7][8]
- Whether the buyer is an individual, an entity, or a trustee.[4][8]
IRAS publishes the official ABSD tables and updates them when cooling measures change.[8] As at 2025, the latest major change for individuals was on 27 April 2023, when the ABSD for foreigners buying any residential property doubled from 30% to 60%.[1][3][4]
1.2 Current ABSD Rates for Chinese Nationals (2025)
Mainland Chinese nationals (PRC passports) are treated as foreigners for ABSD purposes.[2][3][4][8] They are not covered by the Free Trade Agreement (FTA) remission that applies to US and some European nationals.[3][9]
This 60% rate applies to the entire purchase price or market value, whichever is higher.[3][4][8] For example, a S$3 million new launch condo in Newton would incur S$1.8 million in ABSD for a PRC buyer, on top of BSD.
1.3 ABSD vs BSD – Don’t Confuse Them
Buyer’s Stamp Duty (BSD) is payable by all property buyers and is based on a tiered structure depending on price and property type.[4] ABSD is an additional layer for certain profiles. Even if you manage to legally reduce ABSD, you will still pay BSD.
As at 2025, residential BSD is charged using a progressive rate table (for instance, up to 6% for amounts above S$3 million).[4][8] You can find a detailed breakdown and worked examples in Homejourney’s resources: Homejourney: Guide to ABSD Stamp Duty Calculator and Guide , ABSD Stamp Duty Calculator and Guide 2025 | Homejourney Singapore .
1.4 Where ABSD Does Not Apply
ABSD applies only to residential property as defined by URA zoning and IRAS.[8] This is the first major opening for legal ABSD reduction for Chinese buyers – by looking beyond standard condos.
- No ABSD on non-residential property (offices, retail, industrial, hotels) for foreigners.[2]
- ABSD still applies to most landed residential properties (including Sentosa Cove), even if foreigners are allowed to purchase them.[2][8]
Later chapters will show how Chinese investors use this rule to reduce ABSD exposure without breaking any laws.
Chapter 2: Legal Principles – What You Can and Cannot Do
2.1 IRAS and MAS: Why Authorities Watch Foreign Buyers Closely
In recent years, Singapore has tightened scrutiny on foreign property purchases, especially following several high-profile money laundering cases involving Chinese nationals.[5] Banks now conduct stricter source-of-funds checks, and IRAS is alert to suspicious ABSD “avoidance” structures.
ABSD rules are set out in IRAS’ official guidance on Additional Buyer’s Stamp Duty.[8] Any scheme designed with the main purpose of avoiding ABSD can be challenged by IRAS under anti-avoidance provisions, and back-dated ABSD with penalties and interest may be imposed.
2.2 Fully Legal vs Questionable ABSD Mitigation
Homejourney only recommends strategies that fall into the “fully legal and transparent” category:
- Using property types that are genuinely exempt from ABSD (e.g. commercial units).[2][8]
- Buying under the correct citizenship/PR status as recognised by IRAS.[4][7][9]
- Following formal remission processes where applicable (e.g. for certain married couples under IRAS remission rules).
Questionable or illegal strategies include:
- Using a nominee buyer (e.g. a Singaporean friend) while the beneficial owner is foreign.
- Arranged or fake divorces purely to lower ABSD and keep properties separate.
- Misrepresenting source of funds or ownership when applying for a bank loan.
- “Back-to-back” arrangements where the foreign buyer secretly funds a local buyer who then transfers the property.
These expose you to investigation, fines, and even criminal liability. In this guide we will flag these clearly so you can avoid them.
2.3 Important Disclaimer
This guide is for general information and education for Chinese buyers. Property tax rules can change, and your personal situation may be complex. Always:
- Check the latest ABSD tables and conditions on IRAS.[8][9]
- Consult a qualified Singapore law firm or tax advisor before acting.
- Obtain written advice for complex structuring or family arrangements.
Homejourney does not provide legal or tax advice, but we help you ask the right questions to professionals and avoid unsafe shortcuts.
Chapter 3: Strategy 1 – Avoid ABSD with Non-Residential Properties
3.1 Why Non-Residential Property is the Cleanest ABSD Reduction Path
The most straightforward way for Chinese investors to reduce ABSD legally is to focus on property types where ABSD simply does not apply.[2][8] URA and IRAS levy ABSD only on residential zoned properties.
In the last few years, we have personally seen PRC families pivot from luxury condos in Orchard Boulevard to:
- Grade A strata offices in the CBD (Raffles Place, Tanjong Pagar).
- Retail units in city-fringe malls (Novena, Paya Lebar).
- Industrial B1/B2 units near key logistics nodes (Jurong, Tai Seng).[2]
These investors accept slightly different risk-return dynamics in exchange for zero ABSD and often higher rental yields.[2]
3.2 Property Types with No ABSD for Chinese Nationals
Based on current rules, these property categories are generally ABSD-free for foreigners, including Chinese nationals, because they are not residential:[2][8]
In practice, “no ABSD property Singapore” for Chinese investors often refers to such commercial and industrial opportunities.[2]
3.3 Example: Comparing Residential vs Commercial Costs
Assume a PRC investor is deciding between:
- Option A: S$3.0m new launch condo in River Valley (residential).
- Option B: S$3.0m freehold commercial shophouse in Tanjong Pagar (purely commercial zoning).[2]
Indicative upfront tax impact:
References
- Singapore Property Market Analysis 1 (2025)
- Singapore Property Market Analysis 4 (2025)
- Singapore Property Market Analysis 8 (2025)
- Singapore Property Market Analysis 3 (2025)
- Singapore Property Market Analysis 2 (2025)
- Singapore Property Market Analysis 7 (2025)
- Singapore Property Market Analysis 9 (2025)
- Singapore Property Market Analysis 5 (2025)
