Can foreigners buy property in Singapore

Leasehold and freehold

There are 2 types of property tenure in Singapore: leasehold and freehold. HDB and executive condominium is 99 years leasehold. Private apartment and condominium tenure are mainly 99 years, 999 years or freehold. For leasehold property, the land belongs to the state which lease the property for a fee. At the end of the tenure, the land will be returned back to the government. The common question asked is, can foreigners buy property in Singapore with freehold tenure? Foreigners are not restricted to own any particular tenure type.

Singapore property tax

There are few taxes payable upon purchasing property In Singapore. Buyer stamp duty tax, seller stamp duty tax, yearly property tax, rental income tax, and goods and service tax.

Buyer stamp duty composed of the normal stamp duty (3% - SGD 5400) for property below SGD 1,000,000 and (4% - SGD 15,400) for property at or above SGD 1,000,000. The additional buyer stamp duty tax for foreigners is 30%. Under the respective Free Trade Agreement, if you are holding citizenship or permanent residents of Iceland, Liechtenstein, Norway, Switzerland, and United States of America you are exempted from additional buyer stamp duty for your first property.

Seller stamp duty is payable if you sell your property within 3 years from the day you bought. The rate is 12% on the first year and gradually decrease each year.

Yearly property tax of residential property depends on the utilization of the property whether is for own use or it meant to be rented out. If is for own use, the tax rate is range from 0 - 12% of the annual value. If the residential property is rented out, the tax rate is range from 10 - 20% of the annual value. Yearly property tax rate for commercial property is at 10% of the annual value.

Annual value is estimated gross annual rent of the property if it were to be rented out , excluding furniture, furnishings and maintenance fees. It is determined based on estimated market rentals of similar or comparable properties.

Rental income tax rates payable is the net rental income after deducting all the expenses such as interest on the mortgage, agent commission on securing first tenant, maintenance fee, property tax, and many more other claimable expenses. The net rental income tax rate is 22% for foreigners.

Goods and service tax in Singapore is 7% and it is payable for individual who purchase Singapore commercial property if the seller is GST registered individual/company.

More detail on property tax please visit our article on property tax in Singapore

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The Past And Future

Many local and foreign investors have already made staggering amount of profit by investing property in Singapore and yet there are also many who have regretted because they did not buy and missed the profit. So they question now is not can foreigners buy property in Singapore? but are you ready to seize the opportunity to invest? The economy and Singapore property market will continue to grow along with the continuing progress of building the country with better infrastructure (new MRTs, Highway), political stability, easy of doing business, low unemployment and massive job creation.

One Belt One Road

Singapore has been identified to be part of One Belt One Road which initiated by Chinese government. With its current position as a hub to South East Asia, One Belt One Road initiative will take Singapore economy and property price into higher level and those who invested early will stand for high potential capital appreciation.