Stamp duties are one of the largest upfront costs when purchasing property in Singapore. In 2026, Buyer’s Stamp Duty (BSD) and Additional Buyer’s Stamp Duty (ABSD) continue to play a critical role in shaping affordability, investment decisions, and ownership structures. While many buyers understand the broad concepts, fewer fully appreciate how rates are applied, when payment is due, and how different buyer profiles are treated.

This article provides a comprehensive explanation of BSD and ABSD in Singapore for 2026, covering how duties are calculated, who pays what, special rules for trusts and entities, and whether stamp duties can be paid using CPF or must be settled in cash.

What Is Buyer’s Stamp Duty (BSD)?

Buyer’s Stamp Duty is a tax payable on documents executed for the transfer or sale and purchase of property located in Singapore. BSD applies to both residential and non-residential properties and is payable regardless of the buyer’s nationality or residency status. In every transaction, BSD is computed based on the higher of the purchase price stated in the document or the market value of the property.

BSD is unavoidable for most property buyers. Even where ABSD applies, BSD remains payable as the base layer of stamp duty.

Requirement to Pay BSD

BSD is payable when documents relating to the transfer or sale and purchase of property are executed. The date of execution refers to the date on which the document is signed and delivered. This typically means the Acceptance of Option to Purchase or the Sale and Purchase Agreement must be signed on the actual date it is executed.

Where benefits are associated with the acquisition, their treatment for stamp duty purposes depends on how they are structured and disclosed. If a cash discount is explicitly stated in the document and is payable immediately upon execution, the discount may be deducted from the purchase price for stamp duty computation, provided the net price remains reflective of market value.

Non-cash benefits, such as furniture vouchers, rental guarantees, cars, or lucky draw prizes, are not deductible from the purchase price for stamp duty purposes, even if stated in the document. If any benefit, whether cash or non-cash, is not stated in the document to be stamped, it is also not deductible.

For each sale and purchase transaction, the first instrument executed is liable to full ad valorem stamp duty. Subsequent documents relating to the same transaction are generally not subject to further stamp duty.

BSD Rates for Residential Properties in 2026

BSD for residential properties is calculated using a progressive tiered structure. With effect from 15 February 2023, the top marginal BSD rate for residential properties increased to 6 percent. These rates remain applicable in 2026.

The BSD rates for residential properties are:

• First $180,000 at 1%
  
• Next $180,000 at 2%
  
• Next $640,000 at 3%
  
• Next $500,000 at 4%
  
• Next $1,500,000 at 5%
  
• Remaining amount at 6%
  
  

BSD is rounded down to the nearest dollar, subject to a minimum duty of one dollar.

What Is Additional Buyer’s Stamp Duty (ABSD)?

Additional Buyer’s Stamp Duty is imposed on top of BSD and applies only to certain buyer profiles or ownership situations. ABSD is designed as a demand-management measure and varies based on the buyer’s residency status, the number of residential properties owned, and whether the buyer is an individual or an entity.

ABSD is computed based on the higher of the purchase price or market value, similar to BSD. The applicable rate is determined as at the date of execution of the purchase instrument.

ABSD Rates and Computation (Applicable in 2026)

The ABSD rate depends on three key factors: whether the buyer is an individual or entity, the buyer’s residency profile, and the count of residential properties owned at the time of purchase.

For joint purchases involving buyers of different profiles, the highest applicable ABSD rate applies to the entire property value.

The ABSD rates applicable in 2026 are:

• Singapore Citizens buying their first residential property: No ABSD
  
• Singapore Citizens buying their second residential property: 20 percent
  
• Singapore Citizens buying their third and subsequent residential properties: 30 percent
  
• Singapore Permanent Residents buying their first residential property: 5 percent
  
• Singapore Permanent Residents buying their second residential property: 30 percent
  
• Singapore Permanent Residents buying their third and subsequent residential properties: 35 percent
  
• Foreigners buying any residential property: 60 percent
  
• Entities buying any residential property: 65 percent
  
• Housing developers buying any residential property: 35 percent plus an additional 5 percent non-remittable ABSD, with the remaining portion subject to remission if qualifying conditions are met
  
  

These rates reflect the significant tightening introduced from 27 April 2023 and remain unchanged in 2026.

Residential Properties Held on Trust and ABSD (Trust)

Residential properties acquired under a trust structure are subject to a special ABSD regime known as ABSD (Trust). Any conveyance, assignment, or transfer on sale of a residential property to a trustee to be held on trust, as well as any instrument chargeable in a similar manner, attracts ABSD (Trust) at a flat rate of 65 percent.

For stamp duty purposes, the date of execution of the purchase instrument is the date on which the document is signed. The trust instrument must also be signed, sealed, and delivered on the day it is executed. Any mismatch in timing may affect the stamp duty treatment.

Remission of ABSD (Trust)

In certain situations, ABSD (Trust) may be partially remitted via a refund. Remission may apply where the property is held on trust solely for one or more identifiable individual beneficiaries. The refund amount is calculated based on the difference between the ABSD (Trust) rate of 65 percent and the ABSD rate applicable to the beneficial owner with the highest ABSD liability.

Importantly, the full 65 percent ABSD (Trust) must be paid upfront. An application for remission must be made to IRAS within six months from the date of execution of the instrument.

Entities and Housing Developers

An entity refers to a buyer that is not an individual. This includes unincorporated associations, trustees for collective investment schemes, trustee-managers of business trusts, and partnerships where the property is held as partnership property. Entities acquiring residential properties are subject to ABSD at 65 percent.

Housing developers are subject to a different ABSD framework. While the headline ABSD rate remains 35 percent, an additional 5 percent non-remittable ABSD applies. The remaining portion may be remitted upfront if development and sale conditions are met within prescribed timelines.

When Must BSD and ABSD Be Paid?

BSD and ABSD must be paid within 14 days from the date of execution of the purchase instrument if it is signed in Singapore. If the document is signed overseas, stamp duty must be paid within 30 days after the document is received in Singapore.

Late payment may result in penalties and interest. Buyers should ensure that stamp duty obligations are factored into transaction timelines to avoid delays or compliance issues.

Can BSD and ABSD Be Paid Using CPF or Cash?

Whether stamp duties can be paid using CPF or must be settled in cash depends on the type of property purchased.

For HDB properties, including both Build-To-Order (BTO) flats and resale HDB flats, BSD and ABSD (if applicable) can be deducted directly from the CPF Ordinary Account, subject to sufficient balance and CPF usage conditions.

For private property purchases, the treatment differs. For new launch private properties, BSD and ABSD can generally be deducted directly from CPF, similar to HDB transactions, provided CPF usage rules are satisfied.

However, for resale completed private properties, BSD and ABSD must usually be paid upfront in cash. Buyers may subsequently apply for CPF reimbursement from their CPF Ordinary Account, subject to CPF limits and approval. This distinction is important for cash-flow planning, especially where ABSD amounts are substantial.

En-Bloc and Multiple Property Purchases

Where multiple properties are acquired collectively, stamp duty is calculated based on the total purchase price of all properties if there is a single contract or if the purchases are dependent and conditional on one another. In such cases, one instrument is stamped at ad valorem duty on the total consideration.

This treatment commonly applies to en-bloc or block purchases and prevents stamp duty from being avoided through document structuring.

Common Mistakes Buyers Make

Many buyers underestimate stamp duty exposure or misunderstand how rates apply. Common mistakes include assuming joint purchases reduce ABSD, overlooking trust-related ABSD implications, or failing to plan for cash payment requirements in completed private property transactions.

Another frequent issue is misunderstanding buyer profile determination. ABSD rates are based on the buyer’s residency status as at the date of purchase, not when status is later granted.

Avoiding tax for Decoupling

Decoupling arrangements, where ownership is restructured to reduce or avoid ABSD, are an area closely scrutinised by the authorities. If IRAS determines that a transaction is structured primarily to avoid stamp duties, it may be regarded as tax avoidance.

In such cases, IRAS has the power to disregard the arrangement, impose the full stamp duties payable, and levy penalties of up to four times the amount of tax undercharged, in addition to late payment interest.

Buyers should be aware that not all decoupling strategies are acceptable, and improper execution can result in significant financial consequences. It is therefore critical to seek proper advice before proceeding.

Always check with Fairloan Mortgage Advisory before executing any decoupling or ownership restructuring, so that the transaction is assessed carefully and carried out in compliance with prevailing regulations.

Fairloan Thoughts

BSD and ABSD significantly affect the total cost of property ownership in Singapore. In 2026, with high ABSD rates for second properties, foreigners, entities, and trust structures, understanding how stamp duties are computed and paid is essential.

Proper planning before committing to a purchase can prevent costly surprises and improve overall affordability. Buyers should consider ownership structure, timing, and payment method carefully, especially when CPF usage is involved.

Given the complexity and high financial impact of stamp duties, professional guidance can be invaluable. Understanding how BSD and ABSD apply to your specific situation ensures that you enter the transaction fully informed and financially prepared.