PLAN YOUR BUDGET
HOW TO OWN PROPERTY IN SINGAPORE
Property Taxes for Foreigners
In planning your budget, you also need to consider how long do
you intend to hold on to the property. The Singapore government
levies a 4-12% Seller’s Stamp Duty (SSD) for any individual selling
a home within the first three years of purchase. You need to
consider the property taxes too.
The Singapore government imposed an Additional Buyers Stamp
Duty (ABSD) of 15% on foreign buyers to curb foreign property
speculation on top of the regular Buyer's Stamp Duty (BSD) that
every purchaser is subject to. However, if you're a citizen or
permanent resident of countries under certain free trade
agreements, such as Iceland, Lichtenstein, Norway, Switzerland
and the USA (citizens only), you'll be exempt from the ABSD.
The Inland Revenue Authority of Singapore (IRAS) collect the 2 stamp duties imposed on the buyer:
Buyer’s Stamp Duty- the 1-3% ad valorem tax to be paid by the buyer. Irrespective of your nationality, Singapore citizen or foreigner, you need to settle this taxation charge.
Additional Buyer’s Stamp Duty -this tax is only applicable to residential properties. Foreigners should pay a flat tax duty of 15% upon acquisition of any residential property. Whereas if you’re a Singapore citizen, the tax percentage is pro-rated.
Here’s how BSD is calculated for example the property price is S$500,000:
Unlike the BSD, the ABSD is only applied to residential property. Here’s how ABSD is calculated:
If you require financing for the purchase, you can borrow funds from the local bank. Bank financing for expatriates are available and the requirements needed typically depends on your credit evaluation.
Regardless of the type of property you purchase, its location and measurement, you need to pay certain taxes or Stamp Duty for the said asset.
Do not forget the “other” fees associated with your purchase like legal fees, agent’s commission, registration charges, transfer of ownership and all others. Once you add up all the fees you’ll have to pay as a buyer, you can expect to add from 7-16% of the property price onto your bill.
Summary of Other Fees as the buyer:
Real Estate Agent Fee (if applicable)