Property Investment in Singapore for Foreigners

 

 

Singapore is one of the powerhouses of Asia. The city-state is known to be business-friendly and top companies from across the world are located here. Many foreigners come to Singapore to work. You may have wondered about the modalities involved for foreigners investing in property in Singapore.

 

We tell you all you want to know about buying real estate in Singapore for foreigners. The information given will help you plan your real estate investment in Singapore.

 

Buying real estate in Singapore

1. Who is a foreigner?

For the purpose of property investment, a foreigner is anyone who is not a citizen of Singapore. Even Singapore permanent residents are considered foreigners.

 

2. Can foreigners buy property in Singapore?

Yes, foreigners are permitted to invest in property in Singapore. However, there are a few restrictions in terms of what you can buy and what you can’t. All these are governed by the Residential Property Act of 2005. Foreigners can only buy property if they are over the age of 21. Children can own property in a trust made by parents. It would be transferred to their names once they turn 21.

 

3. What properties can foreigners buy and what is not allowed?

Foreigners can buy all the following types of properties in Singapore:

 - Condominium or apartment unit.
 - Strata landed houses in a condominium development that has been approved.
 - Landed property on Sentosa cove.
 - Leasehold estate in a landed residential property for not more than 7 years.
 

If you want to buy other properties, for example, land on the main island, then you need permission. Foreigners need to take approval from the Singapore Land Authority. Approvals are given on a case-to-case basis. If you have, as a foreigner, contributed to the country’s economic development, then you can expect a quick approval.

 

4. What taxes are applicable to foreigners?

All foreigners who want to buy property in Singapore need to pay ABSD or Additional Buyer’s Stamp Duty. For foreigners, ABSD is 30%. This turns out to be a significant number and you need to keep this in mind while buying property. The tax rate is lower for Singapore permanent residents (varies from 5% to 25%). 

An important point to note here is ABSD is not applicable for nationals from the US, Switzerland, Norway, Iceland, and Liechtenstein. 

 

5. What is the procedure for foreigners to buy property in Singapore?

 - Find out details of properties for sale. Make sure you are permitted to buy these properties.
 - Hire a real estate agent to help you, they would charge you 1% of the sale price. They can help you get the best deal and do a lot of groundwork saving you time. 
 - Negotiate with the seller to try and get the best price. Review the agreement.
 - Get a bank loan if needed.
 - Complete the sale registration and get the documents transferring ownership to you. That’s it, the purchase is complete.
 

If you are looking for property investment ideas in Singapore, you can consider investing in Tembusu Grand. This upcoming project has luxury condos located in a convenient place (District 15). It is a great investment, one that will give you good returns over the years.