Singapore slaps 35% ABSD on residential property transfers into living trust

An Additional Buyer’s Stamp Duty (ABSD) of 35% will be imposed on any transfer of residential property into a living trust.

Prior to this regualtion, the transfer of a residential property to a living trust is subject to buyer's stamp duty. Whether or not additional buyer's stamp duty is payable depends on the nature of the beneficial owner of the trust. When a residential property is transferred to an inter vivos trust, no additional stamp duty is payable if the trust has no identifiable beneficial owner.

A living trust is a trust set up while the principal is alive.

Under current regulations, ABSD may or may not be payable upon such a transfer, depending on the profile of the beneficial owner of the residential property transferred into the trust.

Is it a good new?
ABSD can promote a stable and sustainable residential property market, it can close loophole.