ABSD Impact When Buying as a Entity (Company/Trust) in Singapore

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Residential property purchased by an entity (company, trust, or non-individual) pays the highest ABSD rate: 65% on the purchase price. This is in addition to BSD (~3% effective). There is no remission available. The 65% rate is designed to discourage entity-based residential acquisition; commercial property by entities pays normal BSD only (no ABSD).

The 65% entity ABSD is the highest stamp-duty rate in the Singapore residential property framework, designed to channel residential property ownership toward natural persons (citizens, PRs, individual foreigners) rather than corporate vehicles. The rate was raised from 35% to 65% in successive cooling-measure rounds (2018, 2021, 2023).

For an entity acquiring residential property, the effective tax burden combining BSD (~3%) + ABSD (65%) + the lack of any individual-owner concessions (no owner-occupier property tax rebate) makes corporate residential ownership economically punitive except in narrow institutional or compliance contexts.

Three structural rules:

Entity definition is broad — Any non-individual (company, partnership, trust, association, statutory body, sovereign vehicle) buying residential property triggers the entity ABSD. Single-member LLCs do not get individual treatment.

Trusts trigger entity ABSD even if individual beneficiary — Settling residential property into a trust for the benefit of an individual still triggers the 65% rate at the moment of acquisition by the trustee. Post-2023 rules tightened this further; some bare-trust structures formerly used to defer ABSD are now caught.

No remission, no exemption — Unlike SC matrimonial remission, there is no entity-side remission for subsequent disposal. The 65% is permanent.

For: First-time buyersHDB upgradersInvestors
Source: URA REALIS
Data as of June 2026

Additional Buyer's Stamp Duty (ABSD) is the single biggest cash outlay you will make above the purchase price itself. Rates scale with buyer profile (citizen vs PR vs foreigner vs entity) and property count, and they have been revised upward multiple times since 2011 as a cooling-measure lever. This article translates the current IRAS schedule into concrete dollar figures at six realistic price points so you can size your cash-on-hand requirement before signing any OTP.

ABSD is cash, not loan
Banks will not lend against ABSD. You must have it in cash or CPF before completion. Plan for the full stamp duty figure (65% ABSD plus 1–6% BSD) in addition to the down payment.

As a Entity (Company/Trust), you pay an Additional Buyer's Stamp Duty (ABSD) rate of 65% on the purchase price or market value of any residential property in Singapore (whichever is higher). This is on top of the standard Buyer's Stamp Duty (BSD).

Stamp Duty at Different Price Points

The table below shows the combined BSD + ABSD payable at various purchase prices:

Purchase PriceBSDABSD (65%)Total Stamp Duty% of Price
$500,000$9,600$325,000$334,60066.9%
$1,000,000$24,600$650,000$674,60067.5%
$1,500,000$44,600$975,000$1,019,60068.0%
$2,000,000$69,600$1,300,000$1,369,60068.5%
$3,000,000$129,600$1,950,000$2,079,60069.3%
$5,000,000$249,600$3,250,000$3,499,60070.0%

What This Means for Your Budget

At a purchase price of $1.5 million, your total stamp duty is $1,019,600 — that's money you need upfront on top of your down payment. Factor this into your affordability calculation.

Entity ABSD comparison: S$2M residential acquired by various buyer types:

Buyer TypeBSD (~3%)ABSDTotal Stamp + Tax
SC individual, 1st property~S$64,600S$0~S$64,600
SC individual, 2nd property~S$64,600S$400,000 (20%)~S$464,600
PR individual, 1st property~S$64,600S$100,000 (5%)~S$164,600
Foreign individual~S$64,600S$1,200,000 (60%)~S$1,264,600
Entity (any)~S$64,600S$1,300,000 (65%)~S$1,364,600

The 5pp gap between foreigner-individual (60%) and entity (65%) closes most "buy via Singapore SPV" structuring; the entity rate is explicitly designed to prevent this workaround.

Sources & methodology. ABSD schedule per IRAS ABSD rate table. BSD tiered rates per IRAS BSD rate table. Non-residential entity treatment per IRAS non-residential property stamp duty.

  1. Do not use entity vehicles for residential investment. The 65% rate makes direct individual ownership materially more efficient in nearly all cases.
  2. Consider commercial property if entity holding is required. Commercial property by entity pays normal BSD only (no ABSD), preserving the entity-vehicle benefits.
  3. For trust structures, get specialist tax advice. Post-2023 rules narrowed trust-based ABSD avoidance significantly; some legitimate trust arrangements (wills, charitable bequests, minor-beneficiary holdings) may still qualify for case-by-case treatment.
  4. Document the bona-fide commercial substance. If proceeding with entity acquisition for genuine non-investment reasons (operations, employee housing, etc.), prepare documentation in case of IRAS review.

Methodology & Sources

This analysis covers full-year 2026 data and refreshes one-time.

Transaction data sourced from URA REALIS.

  • ABSD rates effective from 27 April 2023
  • BSD brackets per Stamp Duties Act (progressive scale up to 6%)

Median values used to minimise outlier impact. PSF = price per square foot.

Frequently Asked Questions

When do I pay ABSD?
ABSD is payable within 14 days of signing the Sale & Purchase Agreement (or OTP exercise for resales). You cannot defer it without incurring penalties.
Can I claim an ABSD refund?
Singapore Citizen married couples can apply for a refund of ABSD paid on a second property if they sell their first property within 6 months of purchase (or within 6 months of TOP for a new launch). See IRAS for the current rules.
Does ABSD apply to commercial or industrial property?
No — ABSD applies only to residential property. Commercial and industrial properties are subject to their own stamp duty schedules (no ABSD, but GST may apply).
Can a single-member LLC qualify for individual ABSD rates?

No. The LLC is a separate legal entity from its member; entity ABSD (65%) applies regardless of single-membership.

What about a family trust holding the matrimonial home?

Settling residential property into a trust generally triggers entity ABSD at acquisition (65%). Pre-existing matrimonial home transferred into a trust may have specific treatment; get IRAS-direct ruling before structuring.