Mastering Singapore Real Estate: Avoiding the 60% ABSD

At a Glance

• BSD (Buyer’s Stamp Duty): A base tax ranging from 1% to 6% of the purchase price.
• ABSD (Additional Buyer’s Stamp Duty): 60% for foreigners; 5% for Permanent Residents (PRs) on their first home.
• SSD (Seller’s Stamp Duty): Updated in July 2025; up to 16% tax if sold within 4 years.

Are you losing sleep over Singapore’s sky-high rent? For many newcomers, seeing millions of won (thousands of dollars) disappear into rent every month naturally leads to the question: "Wouldn't it be better to just buy a home?" However, Singapore’s real estate market has a tax system quite different from Korea’s, and jumping in without preparation can lead to serious financial consequences.

With property regulations tightening over the last few years, tax calculations have become increasingly complex. Today, I’ll break down everything you need to know about property taxes in 2026 for Singapore residents. For your convenience, calculations are based on an exchange rate of 1,150 KRW per 1 SGD.

1. The Standard Tax for Everyone: BSD (Buyer's Stamp Duty)

BSD is the basic tax that every buyer must pay when purchasing a home in Singapore, regardless of their residency status. It is similar to Korea’s acquisition tax. The tax rate is tiered, meaning the more expensive the property, the higher the tax burden.

For example, if you purchase a condo for SGD 2,000,000 (approx. 2.3B KRW), you will pay about SGD 69,600 (approx. 80.04M KRW) in BSD alone. This tax must be paid in cash within 14 days of exercising the Option to Purchase (OTP), so ensure you have the funds ready when planning your finances.

2. The Foreigner's Hurdle: ABSD (Additional Buyer's Stamp Duty)

The biggest barrier in the Singapore property market is the ABSD. Introduced by the government to prevent market overheating, it imposes staggering rates on foreigners. Following the April 2023 revision, the rate for individual foreign buyers remains at 60% in 2026.

• Foreigners (including EP/SP holders): 60% regardless of the number of properties
• Singapore Permanent Residents (SPR): 5% for the 1st home, 30% for the 2nd, 35% for the 3rd or more
• Singapore Citizens (SC): 0% for the 1st home, 20% for the 2nd, 30% for the 3rd or more

If a Korean family without PR status buys a SGD 2,000,000 condo, they must pay SGD 1,200,000 (approx. 1.38B KRW) just in ABSD. The tax itself is over half the price of the house! Unfortunately, South Korea is not among the FTA countries (like the US or Switzerland) that receive ABSD exemptions, so Korean nationals must pay the full amount.

3. Preventing Speculation: Changes to SSD (Seller's Stamp Duty)

Taxes aren't just for buying; they also apply if you sell too quickly. This is called the SSD. Note that regulations were tightened on July 4, 2025, extending the holding period from 3 years to 4 years and increasing the tax rates.

You should now approach property ownership with a plan to hold for at least 4 years to avoid tax losses. Selling within the first year incurs a 16% tax on the sale price, making it very likely you would lose money rather than see a profit.

4. Practical Real Estate Tips for Residents

Here are some practical tips I’ve gathered for Korean parents considering home ownership in Singapore. These strategies can help protect your significant assets.

• Prioritize PR Status: The difference between a 60% tax for foreigners and 5% for PRs is massive. On a SGD 2,000,000 home, you save about SGD 1,100,000 (approx. 1.265B KRW). If you plan to stay long-term, apply for PR as soon as possible.
• The Decoupling Strategy: PR couples often buy their first home under only one spouse's name. This allows the other spouse to buy a second property later as a 'first-time buyer,' paying only 5% ABSD instead of the 30% rate for a second property.
• Check Korean Remittance Regulations: When bringing funds from Korea, you must file an 'Overseas Real Estate Acquisition Report' with your foreign exchange bank. Without this, you may face difficulties proving the source of funds when you eventually sell the house and try to move the money back to Korea.
• HDB Eligibility: If condos are too expensive and you are looking at HDB resale flats, remember that both spouses must have held PR status for at least 3 years to be eligible to buy.

While Singapore’s property taxes are heavy, the market is known for being transparent and stable. Use these figures to plan your budget carefully. If you have any questions, feel free to leave a comment!

Sources

• IRAS (Inland Revenue Authority of Singapore)
• MAS (Monetary Authority of Singapore)
• PropertyGuru Singapore
• HDB (Housing & Development Board)

Exchange Rate: 1 SGD ≈ 1,150 KRW (As of Feb 6, 2026)