Information on ABSD and FTA Exemptions in Private Residential Properties

1. Private Residential Properties

Ownership Rules:

• Additional Buyer’s Stamp Duty (ABSD):
  • Singapore Citizens: 0% (1st property), 20% (2nd), 30% (3rd+).
  • Permanent Residents (PRs): 5% (1st), 25% (2nd), 30% (3rd+).
  • Foreigners: 60% (all properties) – except citizens of Free Trade Agreement (FTA) countries.
  • FTA Exemptions: Citizens of the U.S., Iceland, Norway, Switzerland, and Liechtenstein are exempt from ABSD on their first residential property purchase, aligning them with Singaporean citizens. Subsequent purchases by FTA nationals incur ABSD at citizen rates (20% for 2nd, 30% for 3rd+).
• Notes:
  • FTA buyers still pay the Buyer’s Stamp Duty (BSD): 1–6% (progressive rates based on property value).
  • Exemption applies only to primary residential properties; investment purchases (2nd property onwards) face ABSD.

Opportunities:

• FTA Advantage: Citizens of exempt countries enjoy lower entry costs (no ABSD on 1st property), making Singapore prime real estate more accessible.
• Investors from FTA nations can leverage this exemption to diversify portfolios with high-growth assets like CCR condos.

Risks:

• FTA nationals purchasing additional properties face steep ABSD hikes (e.g., 20% for 2nd property).
• Exemption applies only to citizens of FTA countries – PRs or entities (companies/trusts) from these nations do not qualify.

Key Regulations Across All Sectors

1. Foreign Ownership:
   • Residential: ABSD exemptions for FTA citizens create unique opportunities for targeted investors.
   • Non-FTA foreigners face a flat 60% ABSD, the highest in Asia.

Citizens of FTA partner nations (U.S., Iceland, Norway, Switzerland, Liechtenstein) benefit from ABSD exemptions on their first property, offering a strategic advantage in Singapore’s high-value private residential market. Investors from these countries should weigh long-term goals against ABSD tiers for multi-property portfolios.

*Sources: IRAS ABSD Guidelines (2024), U.S.-Singapore FTA (2004), Singapore Customs (FTA List).*