Strategies for Purchasing a Second Property in Singapore without ABSD

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Strategies for Purchasing a Second Property in Singapore without ABSD

In Singapore’s competitive real estate market, buyers often face Additional Buyer’s Stamp Duty (ABSD) when purchasing multiple properties. For those looking to expand their property portfolio, it is essential to understand How to avoid ABSD and the legal pathways available. This guide will provide valuable insights on How to buy second property in Singapore without absd, and offer tips for Avoiding ABSD Singapore.

Understanding ABSD

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To navigate the complexities of ABSD, it is crucial to grasp what it entails. ABSD is a tax imposed on buyers who purchase more than one residential property in Singapore. The rates vary based on the buyer’s residency status and the number of properties owned.

Strategies for Avoiding ABSD

  • Decoupling: This involves transferring ownership of the property to a spouse. For example, husband and wife jointly own the first property. The husband transfers his share to the wife, enabling him to purchase the second property without incurring ABSD.
  • Buying Under a Corporate Entity: Acquiring property through a company can sometimes bypass ABSD, though this method requires careful consideration of corporate tax implications and compliance with regulations.
  • Overseas Properties: Investing in properties outside Singapore can diversify one’s portfolio without the constraints of ABSD.
  • Trusts for Minors: Registering a property under a trust for children below 21 years may also be a viable way to manage and purchase properties without triggering ABSD.

Steps to Buy Second Property in Singapore without ABSD

  1. Evaluate your first property’s ownership structure – consider decoupling if jointly owned.
  2. Consult with a legal expert to ensure compliance with all regulations, especially when transferring ownership or buying under a corporate entity.
  3. Explore overseas property investments to widen your asset base.
  4. Consider setting up trusts for minors as another means of property ownership.
  5. Stay informed about changes in Singapore’s property laws to adapt your strategies accordingly.

FAQs on Avoiding ABSD in Singapore

Q: What is decoupling and how does it help in Avoiding ABSD Singapore?

A: Decoupling refers to changing the ownership of a property held by two parties (usually spouses) to a single owner, allowing the other to purchase another property as a first-time buyer without incurring ABSD.

Q: Are there risks associated with buying property under a corporate entity?

A: Yes, purchasing property through a company involves complex tax implications and regulatory compliance. It is essential to consult with financial and legal advisors.

Q: Can foreigners use these strategies to buy property in Singapore without ABSD?

A: Some strategies, like buying under a corporate entity or overseas property investment, can be utilized by foreigners. However, eligibility and regulations may vary, so professional advice is recommended.

Leveraging these strategies can provide a path to How to buy second property in singapore without absd, making real estate investment a more accessible and financially efficient venture.

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