For most buyers of a second or subsequent property, Additional Buyer's Stamp Duty (ABSD) is the largest single cost in the whole transaction — often far bigger than legal fees or renovation. Yet it is also the cost people plan for last. Here is a clear, practical guide to how ABSD works in 2026 and how to plan around it properly.

What ABSD is

ABSD is a tax paid on top of the standard Buyer's Stamp Duty when you buy residential property. It is charged as a percentage of the purchase price or market value (whichever is higher), and how much you pay depends on two things: your residency status and how many residential properties you already own.

Who pays, and roughly how much

As a guide for 2026 (always confirm the latest figures on IRAS.gov.sg before you commit):

  • Singapore Citizens — 0% on your first residential property, 20% on your second, and 30% on the third and beyond.
  • Permanent Residents — 5% on the first, 30% on the second, 35% on subsequent.
  • Foreigners — 60% on any residential purchase.
  • Entities / trusts — 65% (with an additional layer for trusts).

Because the jump from the first to the second property is so steep for citizens (0% to 20%), ABSD is usually the deciding factor in how a second home is bought, not just whether it is affordable.

The married-couple remission

A married couple buying a home together where at least one spouse is a Singapore Citizen may be eligible for ABSD remission on a replacement property — provided they sell their existing home within the stipulated timeframe. This is one of the most useful (and most misunderstood) reliefs, and getting the sequencing right is essential to qualify.

Legitimate ways to plan for ABSD

  • Buy under one name. Purchasing in a single name preserves the other spouse's "first property" status for a future purchase — the foundation of most upgrade and investment strategies.
  • Decoupling. Transferring one co-owner's share to the other can free up a "first-timer" count for a second purchase. It has its own costs and rules — see our guide to decoupling.
  • Sequence your sale and purchase. Selling before you buy your replacement home can avoid triggering ABSD altogether, or qualify you for remission.
  • Budget for it from day one. Treat ABSD as part of your entry cost, not an afterthought — it changes your realistic budget and therefore your shortlist.

The bottom line

ABSD rewards planning and punishes improvisation. Before you fall in love with a second property, map out the ownership structure, the sequencing and the remission timeline — that is where the real money is saved. Want this mapped to your exact situation? Get a free SmartMove Report and I will show you the most tax-efficient way to make your next move.