Quahe Woo & Palmer LLC
Can anyone (including foreigners) own and occupy real estate in your jurisdiction (including shares in property owning companies)? Are there any restrictions?
Yes. Anyone can own and occupy real estate, including holding shares in property-owning companies in Singapore, save for restrictions on foreigners purchasing residential property as defined in the Residential Property Act 1976, such as bungalows, semi-detached houses, and terrace houses. There are no restrictions to purchasing condominiums, apartments and commercial properties such as office, retail and industrial units.
Are there restrictions on lending for the purchase of real estate by foreign companies? If so briefly give an outline?
There are no restrictions and foreign companies can obtain financing from banks, financial institutions and other parties in Singapore for the purchase of real estate.
Buying
Please provide a short summary of the fees and costs (including tax) relating to buying real estate in your jurisdiction.
In Singapore, the fees and costs generally include the following: -
- Buyer’s Stamp Duty (BSD) which is payable on all real estate purchases. It is calculated based on the purchase price or market value of the property, whichever is higher. BSD is charged progressively from 1% to 6%.
- In addition to BSD, Additional Buyer’s Stamp Duty (ABSD) may be payable on purchases of residential property. If applicable the amount of ABSD payable ranges from 5% to 65% of the purchase price or market value of the property, whichever is higher.
- Goods and Service Tax (GST), at the prevailing rate of 9% which is often payable when buying commercial properties.
- Registration fees.
- Legal fees.
- Valuation fees.
Owning
Are there taxes applicable to owning real estate and can the burden of the taxes be passed to someone else (e.g. a tenant or an occupier - not being the owner
In Singapore, real estate owners are subject to annual property tax, which is calculated based on the annual value of the property.
While annual property tax is primarily the owner’s responsibility, it can be passed on to a tenant or occupier by agreement. However, the real estate owner remains legally liable for payment of the tax.
Tax Breaks
Are there tax breaks or other incentives for foreigners to buy real estate in your jurisdiction? If so, what are they?
There are no tax breaks or other incentives for foreigners to buy real estate in Singapore.
How is the ownership of Real Estate evidenced in your jurisdiction?
In Singapore, the ownership of most of the real estate is evidenced by a certificate of title, issued by the Registrar of Titles.
Is it possible to keep the identity of owners of real estate confidential in your jurisdiction?
In Singapore, the identities of real estate owners are not confidential. Members of the public can purchase a title search on any property for a prescribed fee, which will reveal the identities of the owners.