Introduction

In Singapore, where housing affordability is a significant concern, the government has implemented various measures to support its citizens in securing suitable accommodation. One such initiative is the Additional Buyer’s Stamp Duty (ABSD) concession tailored for single Singapore Citizen (SC) seniors (“the ABSD Concession”).

ABSD

The Additional Buyer’s Stamp Duty (ABSD) is a tax imposed on certain property transactions in Singapore. It is typically levied on top of the existing Buyer’s Stamp Duty (BSD) and applies to additional properties purchased by buyers. However, in a bid to facilitate homeownership among single seniors, the government introduced a concessionary rate for eligible Singaporean seniors.
This concession aims to provide financial relief and facilitate flexibility for elderly individuals aged 55 and above who may wish to secure a new home prior to selling the old one.

Eligibility Criteria

Prior to the introduction of the ABSD Concession, only married couples (which consist of at least 1 SC) with an existing residential property can enjoy an ABSD refund on their replacement private property. However, from 16 February 2024 onwards, single Singapore Citizen (SC) seniors aged 55 and above purchasing a second residential property may be eligible to receive a refund of the Additional Buyer’s Stamp Duty (ABSD) paid on the second property, subject to meeting the following conditions: –

1. ABSD must have been paid on the second residential property;

2. Each first residential property is either:-
a. solely owned by a single SC aged 55 and above; or
b. owned with single SCs aged 55 and above who are immediate family members. Family members in this case is limited to a parent, child or sibling;

3. The owners of each first residential property must be the owners of the second residential property. Any additional owners purchasing the second residential property with the owners of each first residential property must also be single SCs aged 55 and above who are immediate family members;

4. The buyer(s) do not own more than one residential property each at the point of purchasing the second residential property, and have not purchased or acquired any other residential property since the purchase of the second residential property;

5. The buyer(s) disposes the first residential property(s) (whether co-owned or separately owned) within six months after: –
a. For completed properties – the date of purchase (the date of the Acceptance to the Option to Purchase or the date of the Sale and Purchase Agreement) of the second property for completed property, or
b. For uncompleted properties – the issue date of the Temporary Occupation Permit (TOP)/Certificate of Statutory Completion (CSC), whichever is earlier.

6. There should be no change of ownership in the second residential property at the time of the sale of each first residential property;

7. The value of the second residential property must be less than the value of each of the first residential property(s) sold; and

8. The application for refund of ABSD is made within six months after the date of sale of the first residential property(s).

Additionally, the property purchase must align with the guidelines set forth for residential properties, including both public and private housing.

Reduced ABSD Rates and Compliance:

Under this concession, eligible seniors enjoy reduced ABSD rates, contributing to significant savings during property acquisition. However, compliance with legal requirements is paramount. Applicants must accurately declare their eligibility and adhere to all relevant regulations throughout the transaction process. Any misrepresentation or failure to comply could lead to penalties or legal consequences.

Reducing ABSD rates for eligible seniors not only serves as an incentive for homeownership but also aligns with broader policy objectives, such as promoting social equity and supporting the aging population. By encouraging seniors to invest in suitable housing options, the government aims to enhance their quality of life while ensuring compliance with legal standards.

Legal Implications and Considerations

Seniors can leverage this concession to fulfil their housing needs. However, while the ABSD Concession offers tangible benefits, seniors must consider various legal implications before proceeding with a property purchase. Seeking legal advice or engaging qualified professionals can help seniors navigate these complexities and make informed decisions.

Should you have any property related enquiries, please feel free to contact us for a consultation.