Decoupling Property in Singapore: A Strategic Investment Move

In Singapore’s competitive real estate market, “decoupling” has become a popular strategy among property investors seeking to optimize their portfolios and minimize tax liabilities. Decoupling refers to the process where one co-owner of a jointly-owned property transfers their share to the other co-owner, effectively allowing the former to be considered a first-time buyer for future property purchases. This tactic primarily aims to circumvent the hefty Additional Buyer’s Stamp Duty (ABSD) imposed on second and subsequent property acquisitions.

Understanding the Additional Buyer’s Stamp Duty (ABSD)

The ABSD was introduced as part of Singapore’s measures to cool the property market and curb speculative investments. The ABSD rates vary depending on the buyer’s residency status and the number of properties owned. For Singapore citizens, the ABSD rate is 17% on the second property and 25% on the third and subsequent properties. Permanent Residents face higher rates, while foreigners encounter the highest ABSD rates, starting at 30% for any property purchase.

The Decoupling Process

Decoupling involves a legal and financial restructuring of property ownership. For example, if a married couple, Alex and Maria, jointly own a property, they can decouple by transferring Alex’s share of the property to Maria. This transfer results in Maria becoming the sole owner of the existing property, allowing Alex to purchase a new property as a first-time buyer, thereby avoiding Decoupling property singapore the ABSD on the second property.

The decoupling process requires several steps:

  1. Legal Assessment: Both parties must consult with a lawyer to ensure the transfer complies with all legal requirements and to draft the necessary documents, including the Deed of Transfer.
  2. Valuation and Stamp Duty: The property may need a new valuation to determine the market value of the transferred share. The transfer will attract stamp duty based on the current market value.
  3. Refinancing: If there is an outstanding mortgage on the property, refinancing might be necessary. The sole owner must demonstrate the ability to service the entire loan independently.
  4. Completion of Transfer: Once all legal and financial arrangements are in place, the transfer can be executed, and the sole ownership will be reflected in the property title.

Benefits of Decoupling

The primary benefit of decoupling is the potential savings on ABSD. By enabling one party to purchase a property as a first-time buyer, significant tax savings can be realized. This strategy also provides greater flexibility in managing property investments and estate planning. Additionally, decoupling can facilitate the redistribution of property assets among family members, aligning with long-term financial goals and investment strategies.

Risks and Considerations

While decoupling offers substantial benefits, it is not without risks and costs. Legal fees, stamp duties, and potential refinancing costs must be factored into the decision-making process. Furthermore, the transfer may attract the Seller’s Stamp Duty (SSD) if the property is sold within a certain holding period.

Moreover, the decision to decouple should consider future market conditions and potential regulatory changes that could impact the benefits. Investors must also be mindful of the financial implications of one party assuming full ownership responsibilities, including the ability to service the mortgage independently.


Decoupling has emerged as a strategic move for property investors in Singapore, offering a viable method to mitigate the impact of ABSD and optimize property investment portfolios. However, it requires careful planning, professional advice, and a thorough understanding of the associated risks and costs. By strategically navigating the decoupling process, investors can enhance their property holdings and achieve their long-term investment objectives in Singapore’s dynamic real estate market.