Knowing Your ABSD Category
There are things to consider before purchasing a home. Another essential thing to reflect on is to know your ABSD Category by heart most especially in today’s world.
The ABSD liability will depend on the profile of the buyer as at the date of purchase or acquisition of the property:
A. Whether the buyer is an individual or an entity
B. The residency status of the buyer and
C. The count of residential properties owned by the buyer
Being a Singaporean has so many advantages over foreign residents of Singapore. As a Singaporean, you get to enjoy buying a property for the first time since your purchase will be absolutely free from ABSD taxes. But as you go along and purchase your second, third and many other properties, you can look forward to a 7% and a 10% tax for the respective purchased property.
If you are a foreigner residing permanently in Singapore which is commonly referred as PRs, your property purchases will have a 5% tax from the total purchase price.
Consequently, you can anticipate a 10% tax for the transacted price of the purchased property.
For foreign buyers and non-resident purchasers, you will have a 15% tax for every purchased property.
You may also look at the CPF usage.