ABSD remission does not mean ABSD is waived upfront, it still has to be paid in full at the point of purchase, within 14 days of exercising the Option to Purchase. Remission is a refund claimed afterward once the conditions are met.
For the matrimonial home route, the conditions are: both spouses must be named on the title of the new property, the existing matrimonial home must be sold within 6 months of the later of the new property's completion or TOP, and neither spouse can own any other residential property at the time the new property is purchased. Miss any condition and the ABSD paid is not refunded.
Two narrower remission paths also exist. A housing developer buying residential land for a build and sell project can get ABSD remitted, subject to an additional charge if units remain unsold after 5 years. A living trust that pays the 65 percent trust rate upfront can reclaim the difference down to a named beneficiary's individual ABSD rate, provided the beneficiary is identifiable at the point of purchase. Restructuring, formerly decoupling, is a separate strategy for freeing up a spouse's ABSD status and is not remission.
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Book a free 30 minute callWinfred Quek is an Associate Marketing Consultant at Crestbrick Pte Ltd (CEA Licence No. L31010886H). CEA R073319H. This page is for general information only and does not constitute financial, investment, or legal advice. Verify current figures with IRAS, HDB, CPF Board, or MAS before making any decision.