In a global property market characterized by rising interest rates, inflation, and geopolitical uncertainty, one city-state continues to punch above its weight: Singapore. With its political stability, strong rule of law, and highly developed infrastructure, Singapore has emerged as one of the most attractive international real estate markets—not just for Asians, but increasingly for Americans.
And there’s one little-known but powerful reason why savvy U.S. investors are taking notice: Americans are exempt from Singapore’s hefty Additional Buyer’s Stamp Duty (ABSD).
What Is ABSD, and Why Does It Matter?
The Additional Buyer’s Stamp Duty (ABSD) is a property cooling measure introduced by the Singapore government to manage demand and curb speculation. It is an additional tax levied on top of the standard Buyer’s Stamp Duty (BSD), primarily aimed at foreign buyers and those purchasing second or subsequent properties.
As of April 2023, the ABSD for foreign buyers stands at a staggering 60% of the property price or market value—whichever is higher. That means a foreigner buying a S$2 million condo would typically need to pay S$1.2 million in ABSD alone.
But thanks to a unique Free Trade Agreement (FTA) between Singapore and the United States, American citizens are treated as Singapore Permanent Residents for property tax purposes. This means U.S. citizens buying their first property in Singapore pay no ABSD, just like locals and PRs.
Why This Is a Game-Changer for U.S. Investors
In high-demand cities like London, Hong Kong, or Sydney, foreign buyers face layers of tax barriers. In Singapore, Americans enjoy a near-local treatment that opens doors to:
- Prime real estate access without punitive taxes
- Stronger yields due to relatively affordable entry costs
- Diversification in a politically and economically stable environment
This ABSD exemption effectively gives Americans a unique head start over other foreign investors. For investors who might already have international exposure through equities or crypto, Singapore property offers a tangible, long-term hedge.
What Types of Properties Are Americans Buying?
Most foreign-friendly real estate in Singapore consists of private condominiums, as landed properties are typically off-limits to non-citizens. Americans are showing interest in:
- New launch condos in districts 9, 10, and 15
- Resale condominiums with strong rental potential near business districts
- Mixed-use developments close to MRT stations and shopping hubs
The combination of attractive rental yields, world-class amenities, and zero ABSD makes these assets particularly appealing to U.S.-based investors who may be looking for overseas alternatives to an overheated domestic market.
Financing Property in Singapore
Foreigners—including Americans—can finance property purchases in Singapore through local banks, subject to credit evaluation. Loan-to-value (LTV) ratios typically range from 55% to 75%, depending on income sources, debt obligations, and whether it is a first property.
Interest rates in Singapore follow the SORA benchmark (Singapore Overnight Rate Average), and while they’ve risen in tandem with global rates, they remain competitive.
For example, the latest home loan rates in Singapore reflect both fixed and floating options, with tenures of up to 30 years. Engaging a local mortgage advisory firm can help foreign buyers compare rates, understand Total Debt Servicing Ratio (TDSR) limits, and ensure regulatory compliance.
Legal Ownership and Tax Considerations
Ownership structures are straightforward. Foreigners can purchase private property under their own names or through a holding company (though the latter may incur higher taxes and legal complexity).
Property tax is relatively modest, and there are no capital gains taxes in Singapore. However, rental income is taxable and must be declared.
Given the complexity, it’s advisable for foreign investors to engage local tax consultants and conveyancing lawyers to ensure all aspects are properly handled.
Final Thoughts
While many countries are tightening regulations on foreign property ownership, Singapore’s unique ABSD exemption for Americans presents a rare opportunity. For U.S. citizens seeking a stable, high-growth market with world-class amenities and favorable tax treatment, Singapore stands out.
With careful due diligence, the right advisors, and an eye for strategic locations, American investors can leverage this advantage to build a profitable global real estate portfolio—without the punitive entry costs facing other foreign buyers.
