The government of Singapore has increased taxes for property buyers in the city-state, amid rising prices.
Singapore has revised its additional buyers’ stamp duty (ABSD) or property tax with the highest rate for foreigners, entities and trustees. From 30 percent, the government now requires foreigners to pay 60 percent of tax. Meanwhile, the tax rate for entities and trusted hiked to 65 percent from 35 percent previously.
Although the tax rate for first residential properties bought by Singapore citizens and permanent residents did not change, the government increased the requirement for those who want to buy their second property by 3 percent to 20 percent or third property by 5 percent to 30 percent.
The ABSD rate has been in effect since 27 April 2023, according to an announcement. The policy change follows strong demand from locals as well as foreign investors.
«If left unchecked, prices could run ahead of economic fundamentals, with the risk of a sustained increase in prices relative to incomes,» said the Ministry of National Development.
