Hello Editors of All Singapore Stuff,
The Government introduced the Additional Buyer’s Stamp Duty (ABSD) to be paid by people who buy or acquire residential properties in Singapore. If Singaporean citizens are buying property for the first time, they do not have the pay the expensive ABSD. Only Permanent Residents and Foreigners who wish to buy properties locally are subject to ABSD ranging from 5% to 15% of the property price.
ABSD was introduced in 2011 in order to curb the red hot property market in Singapore and after almost 4 years of measures, the property market is finally showing signs of slowly.
But to my surprise, when I checked out the IRAS website, some foreigners are exempt from the 15% ABSD and are free to buy their property in Singapore without having to pay the additional stamp duty tax.
Will this exemption not cause the property market to heat up again? Is the Government getting complacent and slowly allowing more foreigners to flood out the domestic property market again?
This was stated on IRAS website:
Nationals and/or Permanent Residents of the following countries who fall within the scope of the respective FTAs will be accorded with the same treatment as SCs.
Nationals and Permanent Residents of:-
Iceland Liechtenstein Norway Switzerland
United States of America