Disclaimer (Block 1): This article is for educational purposes only and is intended to assist CEA-registered property agents in understanding regulatory frameworks. It does not constitute financial, tax, or legal advice. LEVR's calculations are indicative only. Always verify rates and eligibility with your bank, HDB, CPF Board, or a licensed financial advisor before advising clients.
Why ABSD Normally Applies to Foreign Buyers
Singapore's Additional Buyer's Stamp Duty (ABSD) applies to all residential property purchases by foreigners at a rate of 60% (as of the April 2023 rate hike). This rate applies regardless of how long the foreigner has lived in Singapore, what visa they hold, or whether they are purchasing for owner-occupation or investment.
However, Singapore has entered into bilateral Free Trade Agreements (FTAs) with certain countries that include commitments on national treatment for investment. Under these agreements, nationals of qualifying countries are treated as Singapore Citizens for ABSD purposes on their first residential property purchase — meaning they pay 0% ABSD on the first property, just as a Singapore Citizen would.
Which Nationalities Currently Qualify for the FTA ABSD Exemption?
The ABSD FTA exemption currently applies to the following nationals on their first residential property purchase in Singapore:
- United States citizens and nationals — under the United States-Singapore Free Trade Agreement (USSFTA), which came into force in 2004
- Nationals of Iceland, Liechtenstein, Norway, and Switzerland — under the European Free Trade Association (EFTA)-Singapore Free Trade Agreement
Nationals of other countries — including the broader European Union member states and all other nationalities not listed above — are not covered by an FTA that grants ABSD exemption and pay the full 60% foreigner ABSD rate. The FTA exemption is strictly limited to the specific nationals listed. British nationals, for example, are not covered despite the UK-Singapore Free Trade Agreement, which does not include equivalent national treatment provisions for stamp duty.
The Scope of the FTA Exemption
The FTA ABSD exemption applies only in specific circumstances. Agents must understand its limits:
- First residential property only: The FTA exemption gives qualifying nationals the same ABSD treatment as a Singapore Citizen. A Singapore Citizen pays 0% ABSD on their first property, 20% on the second, and 30% on the third and subsequent. The same rates apply to FTA-exempt nationals — they are not exempt from all ABSD, only from the elevated foreigner rate on the first property
- Property count applies: If an FTA-exempt national already owns one residential property in Singapore (regardless of whether it was acquired as a foreigner at 60% ABSD or as an FTA buyer at 0%), the second property is subject to the 20% SC second- property rate, not the 60% foreigner rate
- Citizenship not permanent residency: The exemption applies based on citizenship of the qualifying country — permanent residents of the US, Switzerland, or Norway who are not nationals do not qualify. Agents must verify the client holds the qualifying country's citizenship (passport), not just residency
- Residential property only: The ABSD exemption applies to residential property. Commercial property transactions are not subject to ABSD regardless of nationality
How to Claim the FTA ABSD Exemption
The ABSD remission for qualifying FTA nationals is applied through the IRAS stamp duty process:
- The buyer must declare their qualifying nationality at the time of stamping. The OTP or Sale & Purchase Agreement must be stamped through the IRAS e-Stamping portal, and the applicable ABSD remission must be claimed at that stage
- The buyer will need to provide proof of citizenship of the qualifying country (typically a copy of the qualifying country's passport or certificate of citizenship)
- The remission is not automatic — if the stamp duty is calculated and paid at the foreigner rate (60%) in error, the buyer must apply to IRAS for a refund. Refund applications must be submitted within a prescribed time period after stamping
- Agents should ensure the buyer's conveyancing solicitor is informed of the FTA exemption early in the transaction so that the correct stamp duty rate is calculated and the remission is claimed in the initial stamp duty submission
| Nationality | FTA ABSD Exemption? | First Property ABSD Rate |
|---|---|---|
| US citizens / nationals | Yes (USSFTA) | 0% |
| Swiss nationals | Yes (EFTA-SSFTA) | 0% |
| Norwegian nationals | Yes (EFTA-SSFTA) | 0% |
| Icelandic nationals | Yes (EFTA-SSFTA) | 0% |
| Liechtenstein nationals | Yes (EFTA-SSFTA) | 0% |
| EU member state nationals (German, French, etc.) | No | 60% |
| British nationals | No | 60% |
| All other foreign nationals | No | 60% |
Frequently Asked Questions
Q: Does the FTA exemption apply to a US Green Card holder who is not a US citizen?
A: No. The ABSD FTA exemption under the USSFTA applies to US citizens and nationals — not to US permanent residents (Green Card holders) who are not US citizens. A Green Card holder who is a citizen of another country (e.g., a Chinese national with US permanent residency) pays the full 60% foreigner ABSD rate on their first Singapore residential property. Only holders of US citizenship or US nationality qualify.
Q: If a US citizen marries a non-FTA foreigner and they buy jointly, does the FTA exemption apply?
A: The ABSD rate applicable to a joint purchase is determined by the buyer who attracts the higher ABSD rate. If a US citizen purchases jointly with a non-FTA foreigner (e.g., a German national), the 60% foreigner rate applies to the German national's share. The US citizen's share would qualify for the FTA exemption rate, but the overall ABSD calculation depends on the split of ownership and the applicable rates for each buyer's profile. This scenario requires careful stamp duty calculation by the conveyancing solicitor before the purchase is committed.
Q: Can a qualifying FTA national claim the 0% ABSD rate on a commercial property?
A: This question is largely academic — commercial property transactions are generally not subject to ABSD regardless of the buyer's nationality. ABSD applies only to residential property purchases. A US or EFTA national buying a commercial shophouse, office unit, or industrial property does not pay ABSD (though Buyer's Stamp Duty still applies). The FTA ABSD exemption is therefore primarily relevant for residential property purchases.
Disclaimer (Block 3): LEVR's calculator outputs are estimates based on inputs provided and current regulatory parameters as known at time of publication. They are not a guarantee of borrowing capacity, stamp duty liability, or CPF eligibility. Regulatory thresholds and rates may change. Always verify with IRAS, your bank, or a licensed financial advisor before making financial decisions.