In the competitive real estate market of Singapore, understanding How to avoid ABSD can give you a significant advantage. Here, we explore various strategies for avoiding ABSD Singapore and how you can purchase a second property without the hefty additional buyer’s stamp duty (ABSD) fees.
1. Leveraging Joint Ownership
One effective method to buy a second property in Singapore without ABSD is through joint ownership with a family member who does not currently own any property.
Transfer ownership of your first property to a family member.
Ensure the family member qualifies as a genuine co-owner (e.g., spouse or child).
Buy the second property under the joint names without incurring ABSD.
2. Utilizing a Property Trust
Setting up a property trust can be a viable way to sidestep ABSD requirements:
Establish a trust with a family member as the beneficiary.
Purchase the second property through the trust.
Ensure all procedures comply with Singapore law.
3. Decoupling Property Ownership
Decoupling, or part-buying, is another strategy to explore:
Transfer ownership of your first property solely to your spouse or another family member.
Proceed to buy the second property under your name.
Remember to consult legal experts to ensure compliance.
Frequently Asked Questions (FAQs)
What is ABSD?
ABSD, or Additional Buyer’s Stamp Duty, is a tax imposed by the Singapore government on certain property purchases to cool the real estate market.
Who is eligible for ABSD exemptions?
Singapore citizens purchasing their first property, as well as nationals and permanent residents from certain countries with Free Trade Agreements, are exempt from ABSD.
Can foreigners avoid ABSD in Singapore?
Foreigners typically cannot avoid ABSD. However, exploring joint ownership and property trusts may offer some relief.
Is decoupling expensive?
Decoupling can involve significant legal fees and additional stamp duties. It is essential to weigh these costs against the potential ABSD savings.
Understanding How to buy a second property in Singapore without ABSD can offer substantial financial benefits. By following these strategies for avoiding ABSD Singapore, you can make informed decisions and optimize your investments in Singapore’s dynamic real estate market.
