On 26 April 2023, the Ministry of Finance (MOF) announced a major revision to Additional Buyer’s Stamp Duty — and it moved fast. The new rates came into force on 27 April 2023, leaving little room for last-minute purchases at the old levels.
Why the haste? The stated aim was simple: cool the market and keep housing sustainable for residents. The changes affect a wide range of buyers, but the sharpest increases target foreign purchasers and entities that are not housing developers — in short, those buying residential property for investment or holding rather than building homes. Singapore citizens and permanent residents buying their first residential property remain unaffected by this change, a clear nod to protecting genuine owner-occupiers.
A practical point worth remembering: ABSD is payable in addition to the usual Buyer’s Stamp Duty (BSD). Both duties are assessed on the higher of the contract price or the market value, so declaring a lower purchase price won’t reduce your stamp duty bill.
Determining ABSD Liability
How do authorities decide whether ABSD applies to a purchase? It comes down to the buyer’s status at a single cut-off date: the date of purchase or acquisition. That date is defined as the earliest of:
- the date the Acceptance to the Option to Purchase (OTP) is signed;
- the date of the Sale & Purchase Agreement;
- the date of any instrument that places the property into trust; or
- where none of the above apply, the date of transfer.
Once that date is fixed, the assessment looks at a few clear facts: the number of residential properties the buyer already owns (including those held in trust or beneficially), whether the buyer is a Singapore citizen, permanent resident, foreigner or an entity, and whether the property is to be held in a living trust. Those simple data points determine the applicable ABSD treatment.
This approach is deliberately objective: the duty attaches based on the buyer’s situation at the point of contract rather than what might happen later.
ABSD Rate Structure
One headline from the reform is straightforward: entities that acquire residential property without an intention to undertake housing development will face a 65% ABSD.
Critically, the buyer must state its intention at purchase. That declaration is binding. If an entity declares “no development” at the point of purchase and pays ABSD at 65%, later changing its mind will not rewind the stamp duty outcome — the rules are clear that after-the-fact changes in intention do not affect ABSD treatment.
There is also a procedural requirement: all buyers and transferees must complete the ABSD Declaration Form. Where applicable, this form should be witnessed by lawyers. IRAS does not require automatic submission of the form on every transaction, but it must be made available if requested during compliance checks.
For entities that are bona fide housing developers, the regime is different. Developers face a combined ABSD exposure of 40% — that is 35%, which may be remitted under the ABSD Housing Developers Remission (subject to conditions), plus an additional non-remittable 5% that is payable on stamping and cannot be refunded.
Put simply: if you are not a housing developer and you’re an entity buying a residential asset for holding, expect a 65% levy.
Revised Rates
The revised matrix of BSD + ABSD after 27 April 2023 is as follows (high level):
- Singapore citizens
- 1st residential property: BSD up to 6%; no ABSD — total up to 6%.
- 2nd residential property: BSD up to 6%; ABSD 20% (up from 17%) — total up to 26%.
- 3rd residential property onwards: BSD up to 6%; ABSD 30% (up from 25%) — total up to 36%.
- Singapore permanent residents
- 1st residential property: BSD up to 6%; ABSD 5% — total up to 11%.
- 2nd residential property: BSD up to 6%; ABSD 30% (up from 25%) — total up to 36%.
- 3rd residential property onwards: BSD up to 6%; ABSD 35% (up from 30%) — total up to 41%.
- Foreigners
- Any residential property: BSD up to 6%; ABSD 60% (up from 30%) — total up to 66%.
- Non-housing developer entities
- Any residential property: BSD up to 6%; ABSD 65% (up from 35%) — total up to 71%.
- Transfers to / declaration of living trust
- Any residential property: BSD up to 6%; ABSD 65% (previously 35%, remissible subject to conditions). Total duty depends on the identifiable individual beneficiary and whether remission conditions are satisfied.
- Transfers pursuant to will, intestate succession or Muslim Law of Inheritance
- No BSD, no ABSD.
Those are the numbers from the MOF announcement. They’re large increases in some categories, and the point is blunt — to deter speculative buy-and-hold investment in residential stock, particularly by non-locals and corporate entities.
Transitional Provision
The government did build in a narrow safety valve for deals that were already in progress when the announcement was made. The pre-27 April 2023 ABSD rates will still apply, but only if all of these conditions are met:
- The OTP was granted on or before 26 April 2023.
- The OTP was exercised on or before 17 May 2023, or within its original validity period, whichever is earlier.
- The OTP was not varied (including any extension to its validity) on or after 27 April 2023.
Be aware: IRAS has stated it will not extend these deadlines. That means even where OTP validity technically runs past 17 May 2023, the buyer must have exercised by that date — or lose the transitional benefit. The relief is intentionally narrow; it covers only transactions genuinely mature before the rate change.
Final Thoughts
The April 2023 ABSD reform is a blunt instrument by design. It signals — clearly and deliberately — that Singapore will not tolerate easy, low-cost entry into its residential market for speculative or passive holding purposes. If you are a resident seeking a first home, the rules largely preserve your position. If you are a non-resident investor or a corporate holding vehicle, the cost of entry is now substantially higher.
So what should buyers and advisors do next? First, check the exact date that fixes ABSD liability on your file — the earliest of OTP acceptance, the Sale & Purchase Agreement, trust instrument or transfer. That single date determines your outcome. Second, treat the ABSD Declaration at face value: your stated intention at purchase matters, and a later change won’t help. Third, if you believe you might qualify as a housing developer, get clarity early — developer remissions exist, but they’re conditional and procedural.
In a market where policy can change quickly, planning beats reaction. This ABSD revision tightens the rules and narrows the windows for relief. Those who move thoughtfully — with clear documentation, early legal advice and a firm grip on timing — will manage compliance and costs far better than those who treat stamp duty as an afterthought.
