ABSD Guide for Foreigners
A clear breakdown of Additional Buyer's Stamp Duty for foreigners buying property in Singapore — rates, exemptions, remission options, and practical tips.
📌 Key Takeaways
- 💰 ABSD rate for foreigners: 60% across all residential property types
- 🏠 HDB is off-limits — foreigners cannot buy HDB flats
- 🌍 FTA nationals (US, Switzerland, Norway, Iceland, Liechtenstein) enjoy citizen-tier rates
- 🔄 Path to remission: Becoming a PR within 6 months qualifies for partial refund
- 📍 Commercial property — no ABSD applies to industrial/commercial properties
Current ABSD Rates (2025)
As of the April 2023 cooling measures — the most recent round of property curbs — the ABSD rate for foreigners buying any residential property in Singapore was raised to 60%. This applies to all foreigners, regardless of whether it's your first or fifth property.
| Buyer Profile | 1st Property | 2nd Property | 3rd+ Property |
|---|---|---|---|
| Singapore Citizen | 0% | 20% | 30% |
| Singapore PR | 5% | 30% | 35% |
| Foreigner | 60% | 60% | 60% |
Source: IRAS, "Additional Buyer's Stamp Duty," iras.gov.sg (2025). Rates effective from 27 April 2023.
Real Numbers — What Does 60% ABSD Mean?
Let's make this concrete. Say you're a foreigner looking to buy a S$2 million condo in Singapore. Here's what you're looking at:
Yes, you read that right — the ABSD alone is S$1.2 million on a S$2 million condo. That's why foreigners have largely retreated from Singapore's residential market since the 2023 cooling measures.
Free Trade Agreement (FTA) Exemptions
Here's an important nuance — not all foreigners are treated alike. Citizens of certain countries that have Free Trade Agreements with Singapore enjoy the same ABSD rates as Singapore citizens. These countries are:
United States
Switzerland
Norway
Iceland
Liechtenstein
If you're a national of any of these five countries, you pay 0% ABSD on your first residential property — same as a Singapore citizen. This is a massive advantage and one of the main reasons why US nationals remain active in Singapore's luxury condo market.
Source: IRAS, "ABSD Remission for FTAs," iras.gov.sg (2025).
ABSD Remission — Can You Get Your Money Back?
There's one scenario where you can get a partial refund. If you buy a property as a foreigner and subsequently become a Singapore PR within 6 months of the purchase date, you can apply for a remission of the ABSD.
What you get back: the difference between the 60% foreigner rate and the applicable PR rate. So if it's your first property, you'd get back 60% - 5% = 55% of the property price. That's huge — but the timeline is tight. You need to submit your PR application and get it approved within those 6 months.
Source: IRAS, "ABSD Remission — Becoming a Singapore PR," iras.gov.sg (2025).
What About Commercial Property?
ABSD only applies to residential property. If you buy a commercial property — think shophouses (commercial classification), offices, retail units, or industrial spaces — there is zero ABSD. You only pay the standard Buyer's Stamp Duty.
This is why you see many foreign investors gravitating toward commercial shophouses and industrial properties in Singapore. The 60% ABSD simply doesn't touch them.
⚠️ Important: Some properties look commercial but are residential. For example, a shophouse with residential use on upper floors is treated as residential for ABSD purposes. Always check the property's zoning with URA before you commit.
Alternatives for Foreign Investors
If 60% ABSD is too steep (which it is for most people), here are the options:
1. Get PR Status First
If you're eligible for PR, apply before buying. Once you're a PR, you pay 5% on your first property instead of 60%. That saves you hundreds of thousands of dollars.
2. Buy Commercial Property
No ABSD, but higher risk and different market dynamics. Commercial properties typically have higher yields but lower capital appreciation.
3. Buy as an FTA National
If you're a US citizen, Swiss, Norwegian, etc., you already have citizen-tier rates. Worth confirming your eligibility with a lawyer before proceeding.
4. Wait for Policy Changes
The 60% rate was introduced in April 2023 as a cooling measure. If the property market softens enough, the government could dial it back — but no one knows when or if that'll happen.
💡 Bottom Line
At 60% ABSD, buying residential property in Singapore as a foreigner is an expensive proposition. If you're not an FTA national — US, Swiss, Norwegian, Icelandic, or Liechtenstein — you're looking at paying more in stamp duty than in actual purchase price. The smart play? Get PR first, look at commercial property, or consult a lawyer to check if any remission schemes apply to your specific situation.