The Ultimate Guide to Stamp Duty for Foreigners Buying Property in Singapore

Apr 13, 2024

Are you a foreigner looking to invest in real estate in Singapore? Understanding the intricacies of stamp duty is crucial before making your purchase. At SG Luxury Homes, we specialize in catering to the needs of international buyers and ensure a smooth and transparent transaction process. Let's dive into the details of stamp duty for foreigners buying property in Singapore.

What is Stamp Duty?

Stamp duty is a tax imposed on legal documents, including property transactions, in Singapore. For foreigners purchasing property in Singapore, stamp duty is a significant consideration that affects the overall cost of the investment.

Stamp Duty Rates for Foreigners

Foreign buyers are subject to additional stamp duty rates compared to Singaporean citizens and permanent residents. The rates vary based on the type of property being purchased and whether it is a residential or commercial property.

Residential Property

  • Additional Buyer's Stamp Duty (ABSD): Foreigners are required to pay ABSD on top of the standard Buyer's Stamp Duty (BSD) rates. The ABSD rates for foreigners range from 20% to 30%.
  • Seller's Stamp Duty (SSD): Foreigners may also be liable for SSD if they sell the property within a certain holding period.

Commercial Property

  • For foreign buyers acquiring commercial properties, the stamp duty rates are different from residential properties. It is essential to consult with a tax advisor or legal expert to understand the specific requirements and rates applicable to commercial transactions.

Exemptions and Considerations

While stamp duty is mandatory for property transactions in Singapore, there are certain exemptions and considerations that may apply to foreigners. These may include:

  • Specific exemptions for certain types of properties or transactions
  • Provisions under any existing Free Trade Agreements (FTAs) or Reciprocal Exemption Orders (REOs)
  • Special schemes or incentives for foreign investors

Consultation and Expert Advice

Navigating the complex landscape of stamp duty for foreigners buying property in Singapore requires expert guidance. At SG Luxury Homes, our real estate agents specialize in assisting international clients with all aspects of property transactions, including stamp duty considerations. We work closely with legal and tax experts to ensure that our clients receive the best advice tailored to their specific needs.

Final Thoughts

Investing in luxury homes in Singapore as a foreign buyer can be a rewarding experience, but it is essential to be well-informed about the regulatory requirements, including stamp duty. By partnering with a reputable real estate agency like SG Luxury Homes, you can navigate the process confidently and make sound investment decisions.

For more information on stamp duty for foreigners buying property in Singapore or to explore our home services for international clients, contact SG Luxury Homes today. Let us help you find your dream property in the vibrant city-state of Singapore.

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