What Is ABSD and Who Does It Affect?

ABSD, or Additional Buyer’s Stamp Duty, is an extra tax paid on top of the standard stamp duty when buying residential property in Singapore. For foreign buyers, it is one of the biggest reasons property is no longer the obvious first step for deploying capital into the country.

Today, Singapore Citizens pay no ABSD on their first residential property, while Permanent Residents and foreign buyers face much higher rates. For foreign individuals, the rate is now 60 percent on any residential property purchase. Entities and trusts face even higher rates.

The impact is not small. On a 5 million dollar property, a foreign buyer would pay 3 million dollars in ABSD alone, before legal fees, standard stamp duty, and any other acquisition costs are added. That changes the equation immediately.

This is why ABSD matters far beyond property. For many offshore investors, it forces a broader capital allocation question. If placing money into Singapore through real estate has become that expensive, what other structures make more sense?

That is where insurance linked solutions and other non property structures start to attract more attention. For investors thinking about capital preservation, succession, and efficient deployment, ABSD is often the point that shifts the conversation.