The Current ABSD Rate for Foreigners
As at Q2 2026 (rates effective April 2023):
| Buyer Profile | 1st Property | 2nd Property | 3rd+ Property |
|---|---|---|---|
| Singapore Citizen | 0% | 20% | 30% |
| Singapore PR | 5% | 30% | 35% |
| Foreigner | 60% | 60% | 60% |
| Entity / Company | 65% | 65% | 65% |
Source: IRAS. Rates verified as of Q2 2026.
For foreigners, the rate is flat across all property purchases — it does not increase with the second or third property because it is already at the ceiling.
Who Is Classified as a Foreigner?
A “foreigner” for ABSD purposes is anyone who is not a Singapore Citizen (SC) or Singapore Permanent Resident (SPR).
This includes:
- Employment Pass (EP) holders
- Long-Term Visit Pass (LTVP) holders
- Dependent Pass (DP) holders
- Tourists and non-residents
- Holders of any other non-PR visa
Foreign status is determined at the time of purchase, based on the buyer’s residential status on the date the Option to Purchase (OTP) is exercised, or the date of the sale and purchase agreement if no OTP is used.
The FTA Exemptions: Who Can Buy at SC Rates
Three groups of foreign nationals are entitled to ABSD rates equivalent to Singapore Citizens under Free Trade Agreements:
- Nationals of the United States — under the US-Singapore FTA
- Nationals of Iceland, Liechtenstein, Norway — under the EFTA-Singapore FTA
- Nationals of Switzerland — under the EFTA-Singapore FTA
These nationals pay 0% ABSD on their first residential property in Singapore. On subsequent properties, SC rates apply (20% on second, 30% on third+).
Important: The exemption applies to nationals only — not permanent residents or visa holders of those countries. A US Green Card holder who is not a US citizen does not qualify. A Swiss national on an EP does qualify. Verify nationality (not residency) when advising FTA-eligible clients.
ABSD on Joint Purchases Involving a Foreigner
When a foreigner purchases jointly with a Singapore Citizen or PR, the higher ABSD rate applies to the entire purchase price.
Example: A Singapore Citizen married to an Australian national buys a $1.5m condo together. The foreigner rate of 60% applies to the full $1,500,000 — not split.
This is a common mistake in mixed-nationality couples. Many assume the SC rate applies to the SC’s “share” of the property. It does not. ABSD is charged on the full purchase price at the rate applicable to the buyer attracting the highest rate.
The only exception is the ABSD remission for married couples — but this remission applies only to SC/SC and SC/SPR couples meeting specific conditions. A foreign spouse does not qualify.
What Foreign Clients Can Buy
Foreigners are not permitted to purchase:
- HDB flats (public housing) — restricted to SCs and qualifying SPRs
- Executive Condominiums (ECs) during the primary sale window — only SCs and SPRs may purchase new ECs directly from developers
- Landed residential properties — foreigners generally cannot purchase landed property without specific approval from the Land Dealings Approval Unit (LDAU)
Foreigners can purchase:
- Private condominiums (freehold or leasehold)
- Apartments in mixed-use developments
- Certain strata landed units in approved condominium developments
For landed property, direct clients to seek legal advice. LDAU approvals are rare and subject to specific criteria.
Practical Guidance for CEA Agents
Disclose the ABSD cost upfront. The 60% ABSD is not an optional fee — it is payable within 14 days of exercising the OTP or signing the S&P. A client who is surprised at the point of commitment is a client who may not complete.
Confirm nationality, not residency. Always ask for the passport of a foreign client. Do not assume nationality from where they live or work. FTA status depends on citizenship.
Never advise on ABSD remission strategies. There are legal structures that some promoters claim reduce ABSD exposure. These arrangements carry significant legal risk and are outside CEA agent scope. Direct clients to their lawyers.
Stamp the transaction accurately. Understating the buyer’s profile to obtain a lower ABSD rate is a criminal offence under the Stamp Duties Act. It is not your role to optimise the client’s stamp duty — it is your role to ensure they understand what they owe.
Full Cost Example
A $2,000,000 condo purchase by a foreign buyer:
| Cost | Amount |
|---|---|
| Purchase price | $2,000,000 |
| BSD (on $2m residential) | ~$74,600 |
| ABSD (60%) | $1,200,000 |
| Total stamp duty | ~$1,274,600 |
That is 63.7% of the purchase price in stamp duty alone, before legal fees, agent commission, or mortgage costs. Presenting this number clearly — and early — is part of your professional obligation as a CEA-registered agent.