Additional Buyer’s Stamp Duty (ABSD) is, without a doubt, one of the least liked terms in Singapore.
This disfavour for ABSD applies not just to Singaporeans (who certainly pay the least hefty ABSD amounts when they buy a property), but PRs and Foreigners as well.
Numerous changes have been made to ABSD rates over the years, with many growing to hate this form of stamp duty following every revision – the most recent of which raised rates even higher, making serious headlines.
But there are two sides to this coin…
For one, ABSD helps to deter ‘get-rich-quick’ house flippers, while also saving us from a terrifying reality – homes we can’t afford.
In this article, we break the ABSD topic down, making the concept simpler for you to understand.
We’ll first be exploring a brief history on the origins of ABSD, followed by how it actually works and impacts your transaction costs as a home seller (regardless of citizenship).