How to Legally Avoid Paying ABSD and Own Multiple Properties in Singapore

Are you keen to expand your property portfolio in Singapore, but you are apprehensive about the substantial Additional Buyer's Stamp Duty (ABSD)? You are merely one of a multitude of individuals, so there is no need for concern. Many prospective residents and investors in Singapore are looking for ways to circumvent this tax while maintaining ownership of a second property and other properties.

How to buy 2nd property in Singapore without ABSD while remaining compliant with the law is covered in this simple guide. Now, let us commence!

Purchase your first property under the name of only one spouse. This is a remarkable tip on how to buy 2nd property in Singapore without ABSD. This essentially means that the other spouse will be regarded as a first-time buyer when they purchase their subsequent property, despite the fact that they previously resided in the first property.

Therefore, how can you achieve this without succumbing to the heat? Checking the title deed to ensure that only one spouse is listed as the proprietor is your responsibility. Although the other spouse may be designated as an essential occupier, they are not eligible to be listed as a co-owner. Please be advised that this requirement is only applicable to petitioners for HDB units and is not mandatory for those interested in private properties.

Establishing a property trust for your child is an exceptional way to plan for their future and potentially prevent ABSD. This approach entails the procurement of a property and its subsequent transfer to a trust in which your child is the beneficiary. However, it is imperative to be aware of the most recent regulations and requirements in order to proceed.

Either way, you will have to pay cash to buy the property in trust, as banks typically do not offer loans for properties held in trust, especially when the beneficiary is a minor. Additionally, it is essential to engage the services of a seasoned conveyancing law firm to guarantee that the trust documents are drafted with meticulous attention to detail. The ABSD refund is contingent upon the trust deed meeting the specific requirements; otherwise, you may suffer substantial financial losses.

Do not permit the desire to circumvent ABSD to have a complete impact on your property investment decisions. Evaluate each opportunity to the fullest, considering the potential advantages, expenses, and your long-term objectives. We trust that the aforementioned recommendations on How to Buy 2nd Property in Singapore Without ABSD will serve as a reliable starting point for your search.