If you are a foreigner looking to invest in property in Singapore, there are rules and regulations you need to know. While foreigners can purchase both public and private properties, there are restrictions on what you can and cannot buy. For instance, under the Residential Property Act, foreigners are restricted from purchasing landed properties in Singapore.
To be eligible to buy property in Singapore as a foreigner, you need to satisfy certain criteria. This includes obtaining approval from the Singapore Land Authority (SLA) for certain types of properties. The SLA will assess your request on a case-by-case basis, taking into account factors such as the depth of your ties to Singapore, whether you are a Permanent Resident (PR), and how long you have been living and working in Singapore.
In addition to eligibility criteria, there are financial considerations to take into account when buying property in Singapore as a foreigner. For example, you will need to pay Additional Buyer’s Stamp Duty (ABSD) on top of the purchase price. This can range from 5% to 20% of the property value, depending on your residency status and the number of properties you already own in Singapore.
Key Takeaways
- Foreigners are restricted from purchasing landed properties in Singapore.
- Eligibility criteria for buying property in Singapore as a foreigner includes obtaining approval from the Singapore Land Authority (SLA).
- Foreign buyers of property in Singapore are subject to Additional Buyer’s Stamp Duty (ABSD).
Eligibility Criteria for Foreign Buyers
As a foreigner looking to purchase property in Singapore, there are certain eligibility criteria you must meet. These criteria are outlined in the Residential Property Act, which regulates the purchase of residential property by foreigners in Singapore.
Understanding the Residential Property Act
The Residential Property Act was introduced in 1973 to regulate the ownership of residential property by foreigners in Singapore. Under the act, foreigners are defined as individuals who are not Singapore citizens, Singapore companies, Singapore limited liability partnerships, or Singapore associations. Singapore Permanent Residents (SPRs) are also considered foreigners for the purposes of the act.
The act divides residential properties in Singapore into two categories: restricted properties and non-restricted properties. Restricted properties are those that require approval from the Singapore Land Authority before they can be purchased by foreigners. Non-restricted properties, on the other hand, can be purchased by foreigners without the need for approval.
Types of Properties Accessible to Foreigners
Foreigners can purchase non-restricted properties such as private condominiums, apartments, and landed properties in Singapore. However, there are restrictions on the purchase of restricted properties such as HDB flats and landed properties.
Foreigners can only purchase HDB flats that have completed the Minimum Occupation Period (MOP) of 5 years. Foreigners are not allowed to purchase executive condominiums (ECs) that are still within the MOP.
Foreigners can purchase landed properties in Sentosa Cove, subject to approval by the Land Dealings Approval Unit (LDAU). For landed properties outside of Sentosa Cove, foreigners must form a Singapore company or limited liability partnership to purchase the property.
In conclusion, as a foreigner looking to purchase property in Singapore, it is important to understand the eligibility criteria and restrictions outlined in the Residential Property Act. By doing so, you can make an informed decision on the type of property you can purchase and ensure a smooth and hassle-free transaction.
Financial Considerations
When purchasing property in Singapore as a foreigner, there are several financial considerations that you need to keep in mind. This section will provide you with a detailed overview of the key financial aspects that you need to consider before investing in Singapore’s property market.
Stamp Duty Obligations
As a foreigner, you will be required to pay both Buyer’s Stamp Duty (BSD) and Additional Buyer’s Stamp Duty (ABSD) when purchasing property in Singapore. The BSD is calculated based on the purchase price of the property, while the ABSD is calculated based on your residency status and the number of properties you currently own in Singapore.
If you are a foreigner purchasing your first residential property in Singapore, you will be required to pay ABSD of 20% of the property’s market value. However, if you are a foreigner who already owns one or more residential properties in Singapore, the ABSD will be higher.
Additional Costs and Legal Fees
In addition to the stamp duty obligations, there are several other costs and legal fees that you need to consider when purchasing property in Singapore. These include:
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Legal fees: You will need to engage a lawyer to handle the legal aspects of the property purchase. The legal fees can range from $2,500 to $3,500 depending on the complexity of the transaction.
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Valuation fees: You may also need to engage a professional valuer to determine the market value of the property. The valuation fees can range from $200 to $500.
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Agent fees: If you engage a property agent to help you with the purchase, you will need to pay a commission of 1% to 2% of the purchase price.
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Mortgage fees: If you require a mortgage to finance your property purchase, you will need to pay various fees such as processing fees, legal fees, and valuation fees.
It is important to factor in all these costs and fees when calculating the total cost of purchasing a property in Singapore as a foreigner. Keep in mind that property prices in Singapore can be quite high, so it is crucial to have a clear understanding of all the financial obligations involved before making a purchase.
Overall, purchasing property in Singapore as a foreigner can be a complex and expensive process. However, with careful planning and a clear understanding of the financial obligations involved, you can make a well-informed decision and invest in Singapore’s vibrant property market.
Acquisition Process
If you’re a foreigner looking to buy property in Singapore, it’s important to understand the acquisition process. This secti