Investing in Singapore Property? What Every US Citizen Should Know About ABSD

Singapore’s property market is one of the most attractive in Asia. Luxury condos, city-fringe apartments, and waterfront developments draw buyers from around the globe. But for many international investors, the Additional Buyer’s Stamp Duty (ABSD) has become a financial headache. Paying up to 60% extra on top of your property price? That can quickly turn a $2 million purchase into a $3.2 million transaction.

Here’s the twist: US citizens enjoy a legitimate advantage thanks to the US–Singapore Free Trade Agreement (FTA). That means there’s a way to invest in Singapore property without facing the same ABSD rates that most foreigners do — a legal perk that can save hundreds of thousands.

How It Actually Works

The rule kicks in automatically if you’re a US citizen buying under your own name. There’s no need to apply for Permanent Residency or submit any special request — the Inland Revenue Authority of Singapore (IRAS) recognises it under the FTA.

However, it only applies to individual ownership. If you’re buying jointly with a non-US citizen, ABSD may still apply to your partner’s share.

Example:

• A US citizen purchasing a $2 million condo would pay $0 in ABSD.
• A UK citizen buying the same property? A painful $1.2 million in ABSD alone.

This advantage isn’t a loophole — it’s an established benefit for American buyers, giving you a real financial edge in one of Asia’s most competitive markets.

Here Are the Countries Also Exempted from ABSD

While the US–Singapore FTA gets most of the attention, a few other countries enjoy similar treatment through their own Free Trade Agreements with Singapore.

According to the Inland Revenue Authority of Singapore (IRAS), nationals (and in some cases Permanent Residents) from the following countries are accorded the same stamp-duty treatment as Singapore Citizens for their first residential property purchase:

• United States of America – Nationals
• Iceland – Nationals and Permanent Residents
• Liechtenstein – Nationals and Permanent Residents
• Norway – Nationals and Permanent Residents
• Switzerland – Nationals and Permanent Residents

Key Notes:

• The remission applies to the first residential property purchase by the eligible individual.
• For subsequent purchases, eligible buyers pay the same ABSD rates as Singapore Citizens (5% on the second property, 10% on the third and beyond).
• The benefit applies to individual buyers only — companies and trusts do not qualify.
• Joint purchases with non-eligible co-buyers may forfeit the remission.
• Proof of nationality or PR status must be provided to the Inland Revenue Authority of Singapore for validation.

This policy reflects Singapore’s Free Trade Agreement commitments, giving certain nationalities — especially Americans — a distinct advantage in the housing market.

👉 Want to find out how you can take advantage of this ABSD exemption and invest smartly in Singapore? Learn more at Property Sense here!

Other Costs You Should Know

While ABSD can be avoided, other standard costs still apply:

• Buyer’s Stamp Duty (BSD): All buyers, including US citizens, must pay BSD based on the property value.
• Legal and conveyancing fees: These are standard for any purchase.
• Mortgage and financing costs: Your choice of lender and loan structure will determine this.

Understanding these nuances is key. With the right guidance, US buyers can maximise the ABSD advantage while managing all other costs efficiently.

Why Timing Matters

Singapore’s property market moves quickly. Popular districts like Orchard, East Coast, and Upper Thomson often sell out within days of launch. Prices are steadily rising, and prime developments remain highly sought-after.

For US buyers, the ABSD exemption isn’t just a perk — it’s a strategic advantage. It allows you to:

• Stretch your budget further for a larger or better-located unit.
• Allocate savings into interior upgrades, renovations, or even a second property.
• Take advantage of Singapore’s strong rental yields and long-term capital appreciation.

How Property Sense Can Help

Navigating Singapore’s property market can feel daunting, but Property Sense specialises in helping US citizens make the most of this ABSD advantage.

We provide guidance on:

• Identifying projects with strong investment potential.
• Understanding ABSD and other legal nuances.
• Structuring purchases to minimise unnecessary costs.
• Navigating co-ownership scenarios.

With expert support, you can make confident, informed decisions and move quickly in a fast-paced market.

Being a US citizen in Singapore isn’t just about owning a passport — it’s about unlocking an advantage most other foreigners don’t have. With ABSD relief on your first residential purchase, you can invest smarter, save significantly, and enter one of Asia’s most stable property markets with confidence.

Need help to buy a property in Singapore? Consult Property Sense here today!