Buying Property Through a Company or Trust Singapore 2026: $1,430,000 ABSD on a $2,200,000 Condo

Expert takeaway: For a home, buying a Singapore condo through a company almost never makes sense in 2026. On a $2,200,000 unit, the 65% ABSD for entities adds $1,430,000 in tax. Only three routes reliably soften that rate: a properly drafted trust for named individuals, genuine housing development, and non-residential property.

Many business owners and wealthier families ask whether buying property through a company or trust in Singapore can save tax, protect assets or simplify succession. It used to be a real planning question. Since April 2023, the stamp duty bill makes the answer clear in most cases. There are still some narrow situations where an entity or trust structure works, and they are worth understanding before you sign an Option to Purchase.

Buying Property Through a Company in Singapore: What the 65% ABSD Rule Says in 2026

MAS announced the current rates in April 2023, raising ABSD rate from 35% to 65% for entities or trusts purchasing any residential property, except for housing developers. According to the IRAS ABSD page, entities buying any residential property pay 65% for purchases on or after 27 Apr 2023. Entities paid 15% in 2013 and 25% from 2018, so the rate has gone up sharply over a decade.

IRAS defines the scope broadly. An entity means a person who is not an individual. That covers private limited companies, unincorporated associations and partnerships holding property as partnership property. There is no first-property concession: the 65% applies to the first unit an entity buys. Trusts follow the same rule. IRAS states that any conveyance, assignment or transfer on sale of residential property to a trustee to hold on trust is charged at the ABSD (Trust) rate of 65%. Source: IRAS stamp duty pages, rates in force for purchases on or after 27 April 2023.

The $2,200,000 Worked Example: Company vs Individual Stamp Duty

We use a $2,200,000 purchase because it fits the buyers who usually ask about company ownership. In 2026, that price buys a 3-bedroom new launch in the OCR or a 2-bedroom in the RCR. An individual buyer at this level needs real income. With a 75% loan of $1,650,000 over 30 years, the MAS 4% floor rate puts the stress-test instalment at about $7,877 a month. Under the 55% TDSR, that needs a gross household income of roughly $14,300 a month with no other debts. You can test your own numbers with our affordability calculator for TDSR and loan quantum.

The BSD is the same whoever buys. Here is the band-by-band working under the IRAS BSD rates:

The ABSD depends on who the buyer is, and the gap is large:

A company pays more stamp duty on this unit than a foreigner does, and $1,430,000 more than a Singaporean first-time buyer. For comparison, an individual Singapore Citizen with a first housing loan needs a $550,000 downpayment: at least $110,000 in cash, with up to $440,000 from CPF OA, plus the $79,600 BSD, for $629,600 in total. A company cannot use a director's CPF savings. The MAS LTV rules cap a housing loan to a borrower that is not an individual at 15% LTV, so a company can borrow at most $330,000 on a $2,200,000 condo and must fund $1,870,000 in cash, before the $1,509,600 of stamp duties: about $3,379,600 upfront for a $2,200,000 unit. Both BSD and ABSD are payable within 14 days of exercising the option. Our stamp duty calculator for BSD and ABSD by buyer profile shows the bill for your own scenario, and our guide to how BSD and ABSD work together explains the bands.

Buying Through a Trust in 2026: When the 65% ABSD Is Refunded

Trusts are where the planning still has value. MOF explained in May 2022 that ABSD (Trust) was introduced so that ABSD will be payable even if there is no identifiable beneficial owner at the time the residential property is transferred into a trust. The 65% is the default. However, IRAS offers a refund: the amount remitted will be based on the difference between the ABSD (Trust) rate of 65% and ABSD rate corresponding to the profile of the beneficial owner with the highest applicable ABSD rate.

The conditions are strict. Under the 2022 remission rules, a beneficiary qualifies only if their beneficial ownership is not, under the terms of the trust, revocable, variable, or subject to any condition subsequent. The 65% must be paid first, and the application is made within 6 months after the date of execution of the instrument. Here is how this works on a $2,200,000 condo:

The first two rows match IRAS's own examples. For a minor child's first property, the total amount of ABSD refunded will be the full 65% ABSD that had been paid earlier. The third row is the trap. IRAS rejects a trust where a child's share depends on graduating, and says that deferred beneficial ownership that would only vest in the future will not meet the condition for ABSD (Trust) remission. Even when the refund succeeds, the family still has to fund $1,430,000 for up to six months. There is a second catch: the residential property transferred into the trust will be added to property count of any identifiable beneficial owner. Your child's next purchase will therefore be treated as a second property. This counting logic is the same one behind our case study of a couple who nearly paid $376,000 in ABSD.

When a Company Purchase Still Makes Sense

1. Genuine housing development. The acquisition of sites by housing developers or their trustees are subject to 40% ABSD of which, 35% ABSD may be remitted upfront subject to conditions. The developer must start building within 2 years and provide proof of completion of housing development of 5 or more units of housing accommodation and disposal of all units of housing accommodation in the development within 5 years. The remaining 5% is never refunded. If fewer than 90% of units are sold in time, IRAS claws back the full 35% for sites bought on or after 16 December 2021. This route is for developers only, not for families buying one home.

2. Non-residential property. ABSD applies only to residential property. A company buying a $2,200,000 office unit, or a shophouse approved for commercial use on every floor, pays BSD at non-residential rates: $1,800 + $3,600 + $19,200 + $20,000 + $35,000 = $79,600, and no ABSD. Be careful with zoning, though. IRAS treats land zoned Residential, Commercial and Residential, or White as residential even if it is to be developed for non-residential purpose.

3. Asset protection or succession goals that justify the cost. Some families accept the 65% upfront because they will recover most of it through a vested bare trust. Others plan through a will instead. IRAS does address testamentary trusts separately, so get advice before assuming a will works the same way as a living trust.

Workarounds do not hold up either. If you buy shares in a residential property-holding company and cross the significant-owner threshold, IRAS charges Additional Conveyance Duties of Buyer's Stamp Duty at 1% to 6%; plus Additional Buyer's Stamp Duty at 65% (flat rate). Treatment is fixed at the date of purchase, and any subsequent change of intention will not be considered for stamp duty purposes.

Opportunities vs Risks of Entity and Trust Ownership

• Opportunity: A vested bare trust for a minor child can bring ABSD down to $0 on that child's first property. It also lets parents control the asset while the child is young.
• Opportunity: Commercial and industrial assets held in a company avoid ABSD completely. The entity question matters most for business owners buying non-residential premises.
• Risk: A refund is not guaranteed. A single contingent clause, a missed 6-month deadline or a beneficiary who is not yet born removes the full $1,430,000 refund.
• Risk: For a developer that falls short, IRAS can impose a heavy penalty. Where there was no intention to meet the conditions, IRAS may claw back the rightful amount of stamp duty i.e., up to 65% and impose a 50% surcharge on the additional duty payable.
• Risk: Co-ownership is a cheaper alternative for most families. Our guide to joint tenancy vs tenancy-in-common covers how to split shares without using an entity.

If you have decided to buy in your own name and are comparing 3-bedroom options around this budget, our Amberwood at Holland review is a useful benchmark for pricing in District 10.

Ownership structure is one of the few property decisions where a single drafting error can cost seven figures, and it cannot be fixed after stamping. If you are weighing a company, trust or personal purchase, or want to check whether a trust deed would qualify for the ABSD refund before you exercise an option, the PropertyNet.SG team can model the stamp duty, cash flow and financing for your own case. Reach out for independent, personalised advice before you commit.