BSD and ABSD Explained for Private Property Buyers in Singapore

Singapore’s property market is dynamic and competitive, and one of the key factors influencing private property transactions is stamp duty. Whether you’re a first-time buyer or a seasoned investor, understanding Buyer’s Stamp Duty (BSD) and Additional Buyer’s Stamp Duty (ABSD) is crucial for managing costs and making informed decisions. In this article, we’ll break down what BSD and ABSD are, how they work, and what buyers need to know when purchasing private resale properties.

What is Buyer’s Stamp Duty (BSD)?

Buyer’s Stamp Duty is a tax imposed on all property purchases in Singapore. It applies to residential, commercial, and industrial properties. BSD is calculated based on the purchase price or market value of the property, whichever is higher.

BSD Rates (as of 2024):

• 1% on the first $180,000
• 2% on the next $180,000
• 3% on the next $640,000
• 4% on the remaining amount above $1 million

For example, if you purchase a property for $1.5 million, the BSD calculation would look like this:

• 1% on the first $180,000 = $1,800
• 2% on the next $180,000 = $3,600
• 3% on the next $640,000 = $19,200
• 4% on the remaining $500,000 = $20,000

Total BSD = $44,600

What is Additional Buyer’s Stamp Duty (ABSD)?

ABSD is an additional tax imposed on certain categories of property buyers to curb speculation and stabilize the property market. ABSD applies on top of BSD and varies depending on the buyer’s profile (citizenship and the number of properties owned).

ABSD Rates (as of 2024):

• Singapore Citizens:
  • 0% for the first property
  • 20% for the second property
  • 30% for the third and subsequent properties
• Permanent Residents (PRs):
  • 5% for the first property
  • 30% for the second and subsequent properties
• Foreigners:
  • 60% on all properties
• Entities (including companies):
  • 65% on all properties

How BSD and ABSD Impact Private Resale Buyers

When purchasing a private resale property, BSD and ABSD can significantly affect the total transaction cost. For example, if a Singapore Citizen buys a second property worth $2 million:

• BSD = $64,600
• ABSD (20%) = $400,000
• Total Stamp Duty = $464,600

Understanding these costs upfront can help buyers budget effectively and avoid surprises during the transaction process.

Refund of Additional Buyer’s Stamp Duty (ABSD) for Second Residential Property.

When a buyer purchase a second residential property, they are required to pay the ABSD, which is calculated as a percentage of the property’s purchase price or market value, whichever is higher. However, there are provisions in place for refunds, particularly in situations where buyers meet certain conditions or criteria.

ABSD Rates and Remission for Married Couple

Source: IRAS Remission of ABSD for a Married Couple

ABSD Remission for purchase of second residential property by single SC seniors

For purchases of second residential property on or after 16 Feb 2024, single SC seniors aged 55 and above can claim a refund of ABSD paid on the second residential property, subject to the following conditions:

a. ABSD has to be paid on the second residential property;

b. Each first residential property is solely owned by a single SC aged 55 and above, or with single SCs aged 55 and above who are immediate family members¹;

c. The owners of each first residential property need to be the owners of the second residential property. Any additional owners purchasing the second residential property with the owners of each first residential property must also be single SCs aged 55 and above who are immediate family members;

d. The buyer(s) do not own more than one residential property each at the point of purchasing the second residential property, and have not purchased or acquired any other residential property since the purchase of the second residential property;

e. The buyer(s) disposes the first residential property(s) (whether co-owned or separately owned) within six months after

• the date of purchase² of the second property for completed property, or
• the issue date of the Temporary Occupation Permit (TOP)/Certificate of Statutory Completion (CSC), whichever is earlier, if the property was uncompleted at the point of purchase;

f. There should be no change of ownership in the second residential property at the time of the sale of each first residential property;

g. The value of the second residential property is less than the value of each of the first residential property(s) sold³; and

h. The application for refund of ABSD is made within six months after the date of sale⁴ of the first residential property(s).

¹ _{Immediate family members refer to one’s parent, child, or sibling.}

²_{Date of Sale and Purchase / Acquisition refers to: 
a) Date of Acceptance of the Option to Purchase or
b) Date of Sale and Purchase Agreement only where (a) is not available nor applicable or
c) Date of Transfer only where (a) and (b) are not available nor applicable.}

 ³ _{The value refers to the higher of the purchase price or market value of the residential purchased/sold. The value of the second residential property is that as at the date of purchase of the second residential property, while the value of the first residential property is that as at the date of sale of the first residential property.}

⁴ _{Date of Sale / Disposal refers to:
a) Date of Acceptance of the Option to Purchase by the buyer or
b) Date of Sale and Purchase Agreement signed by the buyer only where (a) is not available nor applicable or
c) Date of Transfer only where (a) and (b) are not available nor applicable.}

How to apply

You can apply for the ABSD refund of the second residential property via the  e-Stamping Portal using the following steps:

1. Select “Request”
2. Select “Apply for Assessment / Appeal”
3. Select “Assessment (including remission and penalty)”
4. Please indicate that the document has been stamped by selecting “Yes” and enter the Document Ref No. Click “Continue” to fill in the rest of the details and submit the online form thereafter.
   If the document has not been stamped, please stamp the document and make payment of 20% ABSD before applying for refund. To stamp the document, select “Stamping” > “Sale & Purchase – Purchase/Acquisition” > Select the relevant form:
   • For purchase of residential property, select the relevant document description (e.g. “Sale and Purchase Agreement” or “Acceptance to Option to Purchase”) and fill in the details. 
5. At the “Supporting Documents” page, under “Additional Information”, please key in:“ABSD Concession for Single SC Seniors”.
   
   
   Please also submit the following supporting documents with your application:
   
   1. Copy of the exercised Option to Purchase / Sale and Purchase Agreement (if applicable) for the purchase of the second residential property; and
   2. Copy of the exercised Option to Purchase / Sale and Purchase Agreement (if applicable) for the sale of the first residential property(s).

Conclusion

Navigating Buyer’s Stamp Duty and Additional Buyer’s Stamp Duty is essential for anyone purchasing private resale properties in Singapore. While BSD applies universally, ABSD can significantly increase costs. By understanding the rules and exploring methods to manage these duties, buyers can make more informed decisions and potentially reduce their tax burden. As Singapore’s property market evolves, staying updated on policy changes will be key to successful property investments.