Answer
Property Stamp Duty for Trusts in Singapore
Buying property through a trust in Singapore triggers the highest ABSD rate — 65% of the purchase price, on top of the standard BSD. This was designed to shut down tax-avoidance schemes. Here’s how it works.
Answer: Property purchased via a trust incurs 65% ABSD plus standard BSD. On a $2,000,000 property, that’s $1,300,000 ABSD + $69,600 BSD = $1,369,600 total stamp duty. Remission may be available if the trust names a Singapore Citizen beneficiary buying their first property.
How Trust ABSD Works
When a trustee purchases residential property in Singapore on behalf of a trust, IRAS treats the purchase at the highest ABSD tier — 65%. This applies regardless of whether the beneficiary is a Singapore Citizen, PR, or foreigner.
The 65% rate has been in effect since 27 April 2023. Before this, trusts paid the same ABSD as the beneficiary’s profile, which created a loophole for wealthy buyers.
Stamp Duty Breakdown for Trusts
| Purchase Price | BSD | ABSD (65%) | Total Stamp Duty |
|---|---|---|---|
| $1,000,000 | $24,600 | $650,000 | $674,600 |
| $1,500,000 | $44,600 | $975,000 | $1,019,600 |
| $2,000,000 | $69,600 | $1,300,000 | $1,369,600 |
| $5,000,000 | $239,600 | $3,250,000 | $3,489,600 |
ABSD for trusts = 65% of purchase price. BSD is the standard progressive rate. ABSD must be paid in cash — CPF cannot be used.
Trust vs Individual — ABSD Comparison
To see why trusts are almost never worth it for stamp duty purposes:
| Buyer Profile | ABSD on $2,000,000 |
|---|---|
| SC — 1st property | $0 |
| SC — 2nd property | $400,000 |
| PR — 1st property | $100,000 |
| Foreigner | $1,200,000 |
| Trust / Entity | $1,300,000 |
Trusts pay more than any individual buyer profile. The only scenario where trust ABSD is the same as individual is for entities (companies), which also pay 65%.
When Can You Get ABSD Remission?
IRAS allows ABSD remission for trusts in limited cases:
- Named beneficiary at purchase: The trust must identify the beneficiary at the time the property is acquired (not after).
- SC first property: The named beneficiary must be a Singapore Citizen who does not own any other residential property at the time of purchase.
- Apply to IRAS: Submit a remission application with supporting documents. IRAS will assess on a case-by-case basis.
Discretionary trusts (where the beneficiary is not named at the time of purchase) do not qualify for any remission. The full 65% applies.
When Do Trusts Still Make Sense?
Despite the 65% ABSD, trusts are still used for:
- Estate planning: Holding property for minor children or family succession (not for tax avoidance but for legal structure).
- Asset protection: Shielding property from personal liability in certain legal structures.
- Commercial property: ABSD applies only to residential property. Commercial and industrial properties held in trust do not incur ABSD.
For most individual buyers, buying in your own name is always cheaper than using a trust.
Calculate your stamp duty
See the exact BSD and ABSD for any buyer profile and purchase price.
FAQ
Why is ABSD for trusts so high at 65%?
The government raised trust ABSD to 65% in April 2023 to close a loophole. Before this, wealthy buyers used trusts to hold property under a beneficiary with a lower ABSD profile (e.g. naming a child as beneficiary). The 65% rate removes any tax advantage and matches the entity (company) rate.
Can I get a refund of the 65% ABSD if the trust beneficiary is a Singapore Citizen?
Possibly. If the trust identifies the beneficiary at the time of purchase AND the beneficiary is a Singapore Citizen buying their first residential property, you can apply to IRAS for ABSD remission. The refund depends on the beneficiary meeting all conditions. If the trust is discretionary (no named beneficiary), no remission is available.
Related
- Stamp Duty for Foreigners — 60% ABSD breakdown
- ABSD for SC 2nd Property — 20% rate
- Property Decoupling — legal ABSD avoidance strategy
- ABSD Complete Guide
Last updated Feb 2026. ABSD rates effective 27 Apr 2023 (source: IRAS). This is informational, not financial or legal advice.