The Additional Buyers Stamp Duty (ABSD) is the bogeyman facing property investors.
Even if you can afford to pay it, the hefty stamp duty gobbles up a huge chunk of your eventual returns.
But is there a way around it? Here are some alternatives:
First, a quick summary of the ABSD if you’re not sure what we’re talking about
The ABSD is a tax applied to residential property purchases in Singapore. The ABSD is a percentage of your property price or valuation, whichever is higher.
Singapore citizens pay ABSD of 12 per cent on their second property purchase, and 15 per cent on the third or subsequent property purchase.
Singapore Permanent Residents pay ABSD of five per cent on their first property purchase, and 15 per cent on all subsequent purchases.
Foreigners* pay 20 per cent ABSD on property purchases.
Entities pay 25 per cent ABSD on property purchases (this is relevant if you intend to buy the property through your company).