Tightening Process Involving Decoupling by Families or Couples Who May Wish to Buy An Additional Property
10 May 2023Parliamentary Question by Mr Yip Hon Weng:
To ask the Deputy Prime Minister and Minister for Finance (a) whether the Ministry or IRAS will tighten the processes involving decoupling by families or couples who may wish to buy an additional property; and (b) whether the Ministry will also tighten processes for foreign families who buy multiple properties under the names of different family members to avoid the Additional Buyer's Stamp Duty.
Parliamentary Reply by Deputy Prime Minister, and Minister for Finance Mr Lawrence Wong:
The Government recognises that families and individuals may enter into various property purchase and ownership arrangements for different reasons and needs, and taking into account the tax and non-tax consequences. Depending on the arrangement, Additional Buyer’s Stamp Duty (ABSD) may be payable.
Today, ABSD is tiered by property count for Singaporean Citizen and Permanent Resident buyers. No ABSD applies for Singaporean Citizen buyers purchasing their first residential property. Foreigners are liable for the highest individual ABSD rate of 60%, regardless of the number of properties they own. So even if foreign families buy multiple properties under the names of different family members, they will still have to pay the ABSD of 60% for each property.
The Government will continue to monitor the residential property market closely, and consider the appropriate adjustments needed to promote a stable and sustainable property market.