Understanding Buyer’s Stamp Duty (BSD) and Additional Buyer’s Stamp Duty (ABSD)


BSD and ABSD sound complicated, but they are fairly simple concepts. Let’s get to know a little more about them.

Buyer’s Stamp Duty (BSD) is simply the tax paid when you buy property in Singapore. The amount of tax is determined by looking at the purchase price or market value of the property, whichever is higher.

The rates are as follows for residential properties:

  • 1% for the first $180,000;
  • 2% for the next $180,000;
  • 3% for the next $640,000; and
  • 4% for the remaining amount.

The rate are as follows for non-residential properties:

  • 1% for the first $180,000;
  • 2% for the next $180,000;
  • 3% for the remaining amount.

This means that if you purchase a residential property with a market value of $1,000,000 that is higher than that of the purchase price, you will have to pay BSD of $24,600. This value is obtained by taking the sum of 1% of $180,000, 2% of $180,000 and 3% of $640,000.

As the name suggests, ABSD is simply an additional tax that liable buyers are required to pay on top of the existing Buyer’s Stamp Duty (BSD).

This is dependent on various factors:

  • Whether the buyer is a Singaporean, Singapore Permanent Resident, Foreigner or an Entity;
  • Whether the property is the first, second, third or subsequent; and
  • Whether the Option to Purchase (OTP) is granted on/before or after 5 July 2018.

The above table provides a comprehensive overview of the ABSD for the various scenarios.

Let’s take a look at one scenario:

  • Singapore Citizen
  • Second property
  • OTP on 19 February 2019

Looking at the table, we can see that this buyer will have to incur an ABSD of 12%.

This is just one of the many aspects of a mortgage loan. Contact Us if you are keen to learn more about how you can obtain the best mortgage loan and save up to thousands of dollars.