Legal & Tax
Ownership Of Property
A Singapore Citizen or must be 21 years of age and above to own a property in Singapore.
Any person who is not a Singapore Citizen (a “Foreign Person”) and who wishes to buy a type of property which requires approval, will be required to seek approval under the Residential Property Act. Each applicant is assessed on a case-by-case basis.
Types of Property for which a Foreign Person must seek approval to purchase under the Residential Property Act:
- Vacant residential land;
- Terrace house;
- Semi-detached house;
- Bungalow/detached house;
- Strata landed house which is not within an approved condominium development under the Planning Act (e.g. townhouse or cluster house);
- Shophouse (for non-commercial use);
- Association premises;
- Place of worship; and
- Worker’s dormitory/serviced apartments/boarding house (not registered under the provisions of the Hotels Act).
Types of Property for which a Foreign Person can purchase without approval under the Residential Property Act:
- Condominium unit;
- Flat unit;
- Strata landed house in an approved condominium development;
- A leasehold estate in a landed residential property for a term not exceeding 7 years, including any further term which may be granted by way of an option for renewal;
- Shophouse (for commercial use);
- Industrial and commercial properties; and
- Hotel (registered under the provisions of the Hotels Act).
Buying Costs
Buyer Stamp Duty (BSD)
Buyers (any nationality) are required to pay BSD for the sale and purchase of property in Singapore. BSD is computed on the purchase price or the market value of the property (whichever is the higher amount).
For Residential Properties purchased on or after 20 Feb 2018:
| Purchase Price or Market Value of the Residential Property | BSD Rates |
| First S$180,000 | 1% |
| Next S$180,000 | 2% |
| Next S$640,000 | 3% |
| Remaining Amount | 4% |
For Non-Residential Properties purchased on or after 20 Feb 2018:
| Purchase Price or Market Value of the Non-Residential Property | BSD Rates |
| First S$180,000 | 1% |
| Next S$180,000 | 2% |
| Remaining Amount | 3% |
Additional Buyer Stamp Duties – ABSD
ABSD will need to be paid by the Buyer (in addition to BSD) if the Buyer is already the owner of a property in Singapore and the Buyer wishes to buy another or if the Buyer is not a Singapore Citizen. ABSD is computed on the purchase price or the market value of the property (whichever is the higher amount).
ABSD rates on/after 6 July 2018:
| Singapore Citizen | ABSD Rates |
| Singapore Citizens (SC) buying first residential property | N.A. |
| SC buying second residential property | 12% |
| SC buying third and subsequent residential property | 15% |
| Singapore Permanent Resident | ABSD Rates |
| Singapore Permanent Residents (SPR) buying first residential property | 5% |
| SPR buying second and subsequent residential property | 15% |
| Foreigner | ABSD Rates |
| Foreigners (FR) buying any residential property | 20% |
Selling Costs
Seller Stamp Duty (SSD) is payable on all residential properties, residential lands and industrial properties sold within a certain duration. SSD is computed on the sale price of the property or market value of the property (whichever is higher).
For Residential Properties purchased on and after 11 March 2017:
| Holding Period | SSD Rate |
| Up to 1 year | 12% |
| More than 1 year and up to 2 years | 8% |
| More than 2 years and up to 3 years | 4% |
| More than 3 years | No SSD payable |
For Industrial Properties purchased on or after 12 January 2013:
| Holding Period | SSD Rate |
| Up to 1 year | 15% |
| More than 1 year and up to 2 years | 10% |
| More than 2 years and up to 3 years | 5% |
| More than 3 years | No SSD payable |
Under Singapore law, a person (known as the Payer) who makes payment(s) of a specified nature to a non-resident company or individual (known as Payee) may be required to withhold a percentage of that payment and pay the amount withheld (called 'Withholding Tax').
Gifts
Ad Valorem stamp duty is payable on the acquisition of property, which will include acquisition of property by way of gift. This is calculated based on the prevailing market value of the Property at the time of the gift/transfer.
Holding Costs
Property tax applies for property ownership in Singapore and applies whether the property is rented-out, owner-occupied or vacant. If the Property is owner-occupied, one can apply for a concessionary tax rate for the property tax. This is payable annually.
Rental income (the full amount of rent and related payments received when you rent out the Property less allowable deductibles) is subject to income tax.
For condominiums, there is also a monthly maintenance fees to be paid to the Management Corporation Strata Title. This maintenance fee covers the cost of the upkeep of the buildings, ground, the common areas of the property and for the provision of amenities and services. The monthly fee and varies depending on several factors including the location, size of apartment. This is payable usually quarterly.
Property Taxes
Property tax rates on owner-occupied and non-owner occupied residential properties are applied on a progressive scale. All other properties continue to be taxed at 10% of the Annual Value.
Owner-Occupier Tax Rates (Residential Properties)
Owner-occupied residential properties may be condominiums, HDB flats or other residential properties where the owner lives in ("occupies") the property. Owner-occupied residential properties enjoy owner-occupier tax rates.
| Owner-Occupier Tax Rates | ||
|---|---|---|
| Annual Value ($) | Effective 1 Jan 2015 | Property Tax Payable |
| First $8,000 Next $47,000 | 0% 4% | $0 $1,880 |
| First $55,000 Next $15,000 | - 6% | $1,880 $ 900 |
| First $70,000 Next $15,000 | - 8% | $2,780 $1,200 |
| First $85,000 Next $15,000 | - 10% | $3,980 $1,500 |
| First $100,000 Next $15,000 | - 12% | $5,480 $1,800 |
| First $115,000 Next $15,000 | - 14% | $7,280 $2,100 |
| First $130,000 Above $130,000 | - 16% | $9,380 |
Non-owner-occupier Residential Tax Rates (Residential Properties)
Non-owner occupied residential properties may be condominiums, HDB flats or other residential properties. The owner does not live in ("occupy") the property and, therefore, owner-occupier tax rates do not apply.
The following tax rates apply to non-owner occupied properties except for those in the exclusion list.
| Non-owner-occupier Residential Tax Rates | ||
|---|---|---|
| Annual Value ($) | Effective 1 Jan 2015 | Property Tax Payable |
| First 30,000 Next $15,000 | 10% 12% | $3,000 $1,800 |
| First $45,000 Next $15,000 | - 14% | $4,800 $2,100 |
| First $60,000 Next $15,000 | - 16% | $6,900 $2,400 |
| First $75,000 Next $15,000 | - 18% | $9,300 $2,700 |
| First $90,000 Above $90,000 | - 20% | $12,000 |
Property Gains Tax
Generally, the gains derived from the sale of a property in Singapore are not taxable as it is a capital gain.
Taxable Gains from Sale of Property
The gains may be taxable if the individual buys and sells property with a profit-seeking motive, or deemed to be trading in properties. Whether a person is deemed to be carrying on a trade will depend on individual circumstances. Some criteria used to assess if you are trading in properties are as follows:
- Frequency of transactions (buying and selling of properties);
- Reasons for acquiring and selling of property;
- Financial means to hold the property for long term; and
- Holding period
FAQ
What types of properties can foreigners buy in Singapore?
Foreigners can purchase private properties such as apartments and condominiums, but will need government approval to buy landed properties like bungalows. Foreigners can only buy executive condominiums that are a minimum of 10 years old. Foreigners cannot purchase HDB flats in Singapore.
At what age can you buy a house in Singapore?
To purchase a resale HDB flat, the minimum age is 21 years old, provided that you are purchasing as part of a family nucleus. If you are purchasing a resale HDB flat as a single person, the minimum legal age is 35 years old if you are unmarried or divorced, and 21 years old if you are widowed or orphaned. To purchase private property, the minimum legal age is 21 years old. However, there are cases where a purchase can be made under a trust if the property owner is under 21.
Can a foreigner buy an apartment in Singapore?
Foreigners can own condominium units and private apartments, no matter the location or the price. Having said that, foreigners cannot buy subsidized housing (HBD apartments) governed by the Housing & Development Board in Singapore.
Who can buy landed property in Singapore?
You need to be a PR for at least 5 years and make 'significant contributions' that's primarily based on your income assessable for tax in Singapore.
What property Can foreigners buy in Singapore?
Can foreigners buy property in Singapore? Yes, foreigners can buy property in Singapore, but with certain restrictions. Only Singapore nationals and permanent residents can avail of the subsidized housing by the Housing & Development Board (HBD).
How many properties can you own in Singapore?
According to the Housing Board, even if they have fulfilled the MOP, PRs who own an HDB flat and their essential family members who occupy the unit must dispose their HDB flat within six months of buying a completed or off-plan private residential property in Singapore.
Can company buy landed property in Singapore?
Typically, foreigners buying landed residential property in Singapore do not need approval from the Singapore Land Authority if the property is a strata landed home in an approved condo development, or leasehold residential property in a landed estate for a maximum term of seven years, including any further term which ...
Can PR buy a house in Singapore?
First, you are only eligible to buy a BTO flat if your spouse is a Singapore citizen. It's not possible for two PRs to buy a new flat – your only options are a resale HDB flat, or private property (condos, landed property, etc.) ... Third, a single PR cannot buy a HDB flat (including resale flats.)
Can I set up a company to buy property?
Most landlords will need to set up special purpose vehicle in order to buy the property. ... If you're already a buy-to-let owner, transferring property into a company has its own tax implications. The property has to be sold at market value.
