Savvy investors often seek ways to minimize costs while expanding their property portfolios. Here’s a comprehensive guide on how to avoid ABSD, a tricky but achievable endeavor for those looking to buy second property in Singapore without ABSD.

Understanding Additional Buyer’s Stamp Duty (ABSD)

ABSD was implemented to cool Singapore’s real estate market. It’s essential for buyers to factor this into their financial planning when considering a second property.

Effective Strategies for Avoiding ABSD Singapore

Follow these proven strategies to help you navigate the regulatory landscape:

1. Decoupling

This method involves transferring ownership of a jointly-owned property into a single name, allowing the other party to purchase another property without incurring ABSD.

• Legal and administrative costs apply.
• Ensure both parties trust each other implicitly.

2. Purchasing Under Trust

Buying a property under a child’s name through a trust can be a viable option.

• This approach often requires substantial liquidity as loan options might be limited.
• Seek legal advice to ensure compliance.

3. Foreigners From FTAs

Nationals from certain Free Trade Agreement (FTA) countries are exempt from ABSD for their first property purchase.

Read more about Avoiding ABSD Singapore here.

• Includes nationalities from the USA, Switzerland, Norway, Iceland, and Liechtenstein.

Step-by-Step Guide on How to Buy a Second Property Without ABSD

1. Research: Thoroughly understand ABSD rules and exceptions.
2. Financial Assessment: Ensure you have the necessary funds to cover costs.
3. Explore Exemptions: Check eligibility for FTAs if applicable.
4. Legal Counsel: Consult a lawyer for legal structuring strategies like decoupling or trusts.
5. Proceed with Purchase: Once all the planning is complete, make your acquisition.

FAQs

Here are some frequently asked questions about avoiding ABSD Singapore:

Can Singapore Citizens Avoid ABSD When Buying a Second Property?

ABSD applies to Singapore citizens buying second and subsequent properties. However, legal strategies and exemptions, like trust purchases, can help minimize or avoid the duty.

Is Decoupling Feasible for All Property Types?

Decoupling is generally more feasible for private properties than HDB flats due to stricter regulations on HDB ownership transfers.

What are the Risks Involved in Trust Purchases?

Trust purchases carry risks such as limited financing options and potential conflicts of interest. Legal guidance is crucial in executing such a strategy successfully.

How Does Being a Foreigner Exempt Me from ABSD?

Citizens from FTA countries can buy their first property in Singapore without ABSD. This exemption is part of Singapore’s trade agreements with these nations.

Implementing the right strategies can significantly reduce or eliminate the financial burden of ABSD when planning to expand your property holdings in Singapore. Careful planning and professional advice are key to achieving your investment goals effectively.