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The Ultimate Guide to Navigating Property Investments: Tips on Avoiding ABSD in Singapore

When considering property investments in Singapore, the issue of the Additional Buyer’s Stamp Duty (ABSD) often comes to the forefront. Here, we’ll explore how to avoid ABSD and provide insights into buying a second property in Singapore without ABSD. Read on to discover practical strategies for avoiding ABSD in Singapore.

Understanding ABSD in Singapore

The Additional Buyer’s Stamp Duty (ABSD) is a tax levied on property buyers in Singapore. It was introduced to cool down the housing market and curb speculation. The amount payable depends on the buyer’s residency status and the number of residential properties owned.

What Is ABSD?

  • A tax applied on top of the usual Buyer’s Stamp Duty (BSD).
  • Varies based on buyer’s residency: Singapore citizens, Permanent Residents (PRs), and foreigners.
  • Aimed at managing housing demand and ensuring affordability.

Strategies to Avoid ABSD

If you’re looking for how to buy second property in Singapore without ABSD, there are several strategies to consider:

Purchasing Under a Trust

  • Acquire the property under a trust for your children.
  • Avoids ABSD if the trust is irrevocable.

Decoupling Ownership

  • Shift one owner’s share to the other in joint ownership.
  • The selling owner can buy another property as a first-time buyer.

Buying Commercial Properties

  • ABSD only applies to residential properties.
  • Invest in commercial properties to bypass ABSD.

Read more about How to buy second property in singapore without absd here.

Foreigners Investing

  • Register under a Singapore-registered company.
  • Corporate purchases can qualify for exemptions.

FAQs: Avoiding ABSD in Singapore

What is the reason behind ABSD?

ABSD is implemented to stabilize the property market by discouraging speculative investments and ensuring that residential properties remain affordable for genuine home buyers.

Is it legal to avoid paying ABSD?

Yes, it is legal when done through legitimate methods. Consulting property lawyers and financial advisors is recommended to ensure compliance with local laws.

What are the ABSD rates?

  • Singapore citizens buying their second property: 12%
  • Permanent Residents for first property: 5%, second property: 15%
  • Foreigners for any property: 20%

Can ABSD be refunded?

Under certain conditions, ABSD can be refunded. For instance, if you’re upgrading to a new home and sell the first property within six months, you might be eligible for a refund.

By understanding how to avoid ABSD and exploring the options available, you can navigate the Singapore property market with greater ease and financial efficiency.

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