ABSD, BSD & CPF: The True Cost of Buying a Second Property

Thinking of buying an investment property or a second home in Singapore? Before browsing listings, calculate the total transaction cost. Stamp duties can be a large part of the capital you need upfront.

1. Buyer's Stamp Duty (BSD)

BSD is paid by all buyers, on the higher of purchase price or market value, on a progressive scale:

• First $180,000: 1%
• Next $180,000: 2%
• Next $640,000: 3%
• Next $500,000: 4%
• Next $1,500,000: 5%
• Amount above $3,000,000: 6%

2. Additional Buyer's Stamp Duty (ABSD)

ABSD is charged on top of BSD and depends on your residency status and how many residential properties you already own:

Profile	1st	2nd	3rd+
Singapore Citizen	0%	20%	30%
Permanent Resident	5%	30%	35%
Foreigner	60%	60%	60%

Example: a Singapore Citizen buying a second home at S$1.5 million pays ABSD of 20%, i.e. S$300,000, on top of BSD.

3. Can you use CPF?

• Timing: Stamp duties are due to IRAS within 14 days of signing. CPF disbursement can take time, so many buyers pay cash first and reimburse from CPF later.
• Retirement sum rule: For a second property, you generally must set aside the Basic Retirement Sum before using excess CPF OA funds.

The headline price is only part of the story — ABSD alone can add six figures to a second-property purchase.

Summary checklist

Budget for the downpayment (minimum 5% cash plus the rest in cash/CPF), plus BSD and ABSD. Rates change — always confirm current figures with IRAS and speak to a mortgage specialist before placing a deposit.

This is general information, not financial advice.