What is Additional Buyer's Stamp Duty (ABSD) in Singapore?
The Additional Buyer's Stamp Duty (ABSD) in Singapore is a tax imposed on certain categories of property purchases, primarily aimed at managing the residential property market and preventing speculative buying. Homejourney, committed to ensuring a safe and trusted property transaction environment, provides clarity on how ABSD affects both locals and foreigners looking to invest in Singapore's real estate.
Who Needs to Pay ABSD and How Much?
ABSD rates vary depending on the buyer's residency status and the number of properties owned:
- Singapore Citizens buying their second residential property are charged 12%.
- Permanent Residents paying for their first property need to pay 5%, and 15% for subsequent properties.
- Foreigners and entities might pay up to 20% regardless of the number of properties owned.
These rates were adjusted as part of the government's measures to cool the property market and ensure sustainable growth in home ownership among locals.
Practical Steps to Calculate Your ABSD
Calculating your payable ABSD is crucial for making an informed decision in your property purchase. Here are steps to help you:
- Determine your residency status and count of properties owned.
- Identify the purchase price or market value of the property (whichever is higher).
- Apply the relevant ABSD rate to calculate the total duty payable.
Homejourney emphasizes the importance of these calculations in planning your financial commitments accurately.
ABSD Exemptions and Reliefs
There are certain conditions under which buyers can be exempt from ABSD or apply for remission:
- Married couples comprising a Singapore Citizen and a Permanent Resident may be eligible for a refund under specific conditions.
- Exemptions are also granted for certain types of property transfers, such as those between family members under specific circumstances.
Homejourney advises consulting with a legal expert to navigate these exemptions effectively.
FAQs About ABSD in Singapore
Q: Can ABSD be included in my home loan?
A: No, ABSD cannot be financed through your home loan and must be paid in full upfront.
Q: How soon after purchasing must I pay ABSD?
A: ABSD should be paid within 14 days after signing the Sales and Purchase Agreement when buying a property in Singapore.
Q: Are there any penalties for late payment of ABSD?
A: Yes, failing to pay ABSD on time can result in penalties, including fines or even legal action.
For more detailed information on how ABSD impacts your property purchases in Singapore, visit our comprehensive guide at Homejourney's Complete Guide to the Singapore Property Market.
Disclaimer
The information provided in this article is for general reference only. For accurate and official information, please visit HDB's official website or consult professional advice from lawyers, real estate agents, bankers, and other relevant professional consultants.
Homejourney is not liable for any damages, losses, or consequences that may result from the use of this information. We are simply sharing information to the best of our knowledge, but we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability of the information contained herein.