Buying Property Through a Company or Trust: Navigating Singapore’s 65% ABSD Regime

Key Takeaways

High-net-worth parents and investors exploring corporate or trust structures to buy Singapore residential property in 2026 must navigate one of the strictest tax regimes in the world. Under Inland Revenue Authority of Singapore (IRAS) regulations, purchasing any residential unit through a company or a living trust attracts a flat 65% Additional Buyer's Stamp Duty (ABSD)—meaning a S$2.2 million condominium triggers S$1,430,000 in ABSD alone.

While corporate entities cannot recover that 65% levy (unless they are licensed housing developers subject to strict 5-year development and sale conditions), parents setting up an identifiable living trust for a minor child can apply to IRAS for an ABSD (Trust) remission refund within six months of the instrument date.

"Buying a condo in trust for your child is a powerful legacy tool—but only if you have the liquidity to pay the full property price plus 65% ABSD in cash upfront while waiting for IRAS remission." — PropertySpy Market Note

To qualify for the full 65% refund—if the child is a Singapore Citizen with zero existing property count—the trust must be irrevocable, the beneficial ownership must vest immediately and unconditionally in the child, and the upfront 65% ABSD must still be paid in full before IRAS processes the refund.

Structuring Family Wealth & Multi-Property Holdings Safely

Before committing to a trust purchase, decoupling a matrimonial home, or acquiring an investment unit, verify your exact cash-flow requirements and IRAS remission eligibility with qualified tax counsel. Contact PropertySpy for a comprehensive breakdown of multi-property structuring options.