Buying residential property through a company is often floated as a way to hold real estate for investment, succession or asset protection. Before going down that road, there is one number every director and adviser must understand: the Additional Buyer’s Stamp Duty (ABSD) that applies when an entity acquires residential property in Singapore. For companies and other non-individual buyers, that rate is 65%, and it is charged on top of the ordinary Buyer’s Stamp Duty. This 2026 guide explains how ABSD applies to companies, how it is calculated, the limited reliefs available, and the practical implications for structuring.
Raffles Corporate Services works with a panel of experienced Singapore law firms who offer cost-effective and efficient legal service and advice. This article is general information only and is not legal advice.
It is written for business owners, family-office principals and directors weighing whether to hold residential property in a corporate vehicle. The stakes are high: get the structure wrong and the stamp duty alone can dwarf any benefit.
What is ABSD?
ABSD is an additional stamp duty imposed on certain buyers of residential property in Singapore, layered on top of the standard Buyer’s Stamp Duty (BSD). It was introduced as a property cooling measure and has been progressively raised. The rate a buyer pays depends on the buyer’s profile: Singapore citizens, permanent residents, foreigners and entities are each treated differently, with entities at the top of the scale.
Crucially, ABSD is charged on the higher of the purchase price or the market value of the property, and it is payable in addition to BSD, not instead of it. Both duties fall due shortly after the property is acquired.
The 65% entity rate
Under the rates in force in 2026, an entity buying any residential property pays 65% ABSD. For ABSD purposes, an entity is a person who is not an individual, which captures companies, partnerships, associations and trustees. This is five percentage points higher than the 60% rate that applies to foreign individuals, and it applies from the very first residential property the entity buys, with no lower rate for a “first” purchase.
On top of the 65% ABSD, the entity also pays BSD. BSD on residential property is charged on a tiered scale rising to the top marginal rate for higher-value homes. Stacking the two duties together means a company can face stamp duty of roughly 70% or more of the property value on day one. Compared with the equivalent charge on a Singapore-citizen individual buying a first home, the difference is enormous, and it is deliberate: the policy is designed to discourage the use of entities to acquire residential property.
A worked illustration
Suppose a company buys a residential property for S$3 million. The 65% ABSD alone is S$1.95 million. Add BSD (charged on the tiered scale on the same S$3 million), and the total upfront stamp duty comfortably exceeds S$2 million. The company must fund that duty out of cash, on top of the purchase price and legal costs, and it is not recoverable. That single figure is usually enough to make holding residential property in a company uneconomic unless there is a compelling non-tax reason.
Trusts are treated like entities
The rules also catch trusts. Where residential property is transferred into a living trust, ABSD applies at the entity rate. This closed a route that was previously used to hold property for beneficiaries. A separate “ABSD (Trust)” remission may be available in limited circumstances where there are identifiable beneficial owners who are individuals, but it must be applied for within a strict deadline and the trust must meet specific conditions. Trust structures for property therefore need careful, specialist advice before, not after, the purchase.
Is there any relief for companies?
Reliefs from the entity ABSD rate are narrow and conditional. The most relevant is ABSD remission for licensed housing developers, which is available to qualifying developers that acquire residential land to build and sell housing, subject to conditions including selling all units within a prescribed period. This is a developer relief, not a general concession for ordinary investment holding companies.
For a typical trading or investment company, there is no relief that reduces the 65% rate on a residential purchase. This is why residential property is very rarely held directly in an operating company, and why anyone considering it should map the full stamp-duty cost before committing.
Commercial and industrial property is different
ABSD applies to residential property. It does not apply to commercial or industrial property such as offices, shops, warehouses and factories. A company acquiring an office unit or a warehouse pays BSD but not ABSD. This is a key distinction: holding non-residential property in a company is a common and unremarkable arrangement, and the punitive entity rate simply does not arise. Our guide to setting up a company for property investment looks more broadly at structuring and the tax considerations for corporate property holding.
Structuring implications
The 65% entity rate shapes how residential property should, and should not, be held. A few practical points follow.
First, buying residential property in a company purely to avoid personal-name ownership almost never makes sense once the ABSD is factored in. Second, transferring an existing residential property from an individual into a company is itself a chargeable acquisition by the company and attracts the entity ABSD, so “moving” property into a company is expensive. Third, where property already sits in a company and shares change hands instead, stamp duty on the share transfer and specific anti-avoidance rules for property-holding entities come into play. In short, the stamp-duty consequences must be modelled before any structure is chosen.
Frequently asked questions
Does the 65% rate apply to a company’s first residential property?
Yes. Unlike individuals, entities do not get a lower rate for a first property. The 65% ABSD applies from the first residential purchase.
Does ABSD apply if the company buys a commercial unit?
No. ABSD applies only to residential property. Commercial and industrial property attract BSD but not ABSD.
Can I avoid ABSD by putting the property in a trust?
Generally no. Transfers of residential property into a living trust are charged ABSD at the entity rate. A limited ABSD (Trust) remission may apply where beneficial owners are identifiable individuals, but only on strict conditions and within a deadline.
Where are the official rates published?
The current rates and remission rules are published by IRAS. Rates are periodically revised, so always confirm the figure in force at the date of purchase.
How we can help
Deciding how to hold property is a structuring question with a very large stamp-duty price tag attached. Raffles Corporate Services helps clients model the full BSD and ABSD cost of holding residential or commercial property personally versus through an entity, and set up the appropriate vehicle where it makes sense. If you are planning a property acquisition, talk to us before you sign, when the structure can still be optimised.
This article is for general information only and does not constitute tax or legal advice. Stamp duty rates change; confirm the current rates and reliefs with IRAS or a qualified adviser before acting.
— The Editorial Team, Raffles Corporate Services
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