Our First Condo Together. Why Is the ABSD 30%?
A couple purchasing their first matrimonial home asked me whether they’d have to pay Additional Buyer’s Stamp Duty (ABSD).
They’re married. He’s a Singapore citizen and owns no residential property; she’s a permanent resident who already owns a Singapore condo and paid 5% ABSD when she bought it.
Doesn’t that count as their first matrimonial home and qualify them for an ABSD waiver?
It can be their first home together and still be her second property. IRAS counts what each buyer already owns when they purchase, so marriage doesn’t reset her property count.
Why the joint purchase attracts 30%
| Buyer | Existing Singapore residential properties | New condo counts as | Individual ABSD rate |
|---|---|---|---|
| Singapore citizen husband | 0 | First property | 0% |
| PR wife | 1 | Second property | 30% |
| Wife, if she were a Singapore citizen instead | 1 | Second property | 20% |
These are IRAS’s current ABSD rates. For their joint purchase, IRAS takes the higher of his 0% and her 30%: 30% on the full condo value.
A 50/50 or 99/1 ownership split doesn’t reduce the rate. If she were a Singapore citizen instead, their joint purchase would attract 20% on the full value. IRAS explains the joint-buyer rule.
For a hypothetical condo with a price and market value of S$2 million, the ABSD is S$600,000. It’s one charge on the purchase, with ordinary Buyer’s Stamp Duty (BSD) payable separately.
Her earlier 5% ABSD doesn’t offset this bill. Quite a housewarming bill.
What if she sells first?
If she sells her condo before they buy, leaving neither spouse owning a residential property, their joint purchase can qualify for full upfront ABSD remission. They must be legally married and buy under only their 2 names, with at least 1 Singapore citizen spouse.
That remits the PR’s usual 5% first-property ABSD. BSD still applies.
For property counting, her condo is excluded once there’s a sale agreement and the buyer has exercised the relevant option. Merely listing it or issuing an option isn’t enough, but they don’t necessarily need to wait for legal completion. IRAS’s property-count rules explain the timing.
Can they buy first and sell later?
Yes. They pay 30% ABSD upfront, then can qualify for a full refund if she sells her existing condo within the required deadline. The old condo can be owned by her alone.
- New condo completed when bought: sell within 6 months of purchasing it.
- New condo uncompleted when bought: sell within 6 months of TOP or CSC, whichever is issued earlier.
At purchase, neither spouse can own an interest in more than 1 residential property. The new home must be bought under only their 2 names; they must remain married, keep its ownership unchanged until the old condo is sold, and acquire no other residential property in between.
Eligible purchases can receive automatic refunds when the intention to sell and claim is declared during e-Stamping. Where an application is required, submit it within 6 months of selling the old condo. IRAS lists the full remission conditions and refund procedure.
IRAS applies the sale deadline strictly, including during poor market conditions. Have the conveyancing lawyer confirm the dates; the sale generally counts when the buyer exercises the option or signs the applicable sale agreement.
Also check whether selling the old condo triggers Seller’s Stamp Duty within its applicable holding period.
If she keeps her existing condo, they can’t claim this married-couple refund. If she sells in time and meets the conditions, the refund covers the new purchase’s 30% ABSD, not her earlier 5%.
They still need to fund the S$600,000 upfront.
