Part of buying a property in Singapore, aside from choosing the right location and handling all the legal documents, is to be aware of the property taxes you will need to pay. Here is a list of property tax in Singapore depending on the type of Singapore property you are purchasing.
1. Stamp Duty Tax
This property tax applies to anyone buying a residential or commercial property in Singapore.
The tax rate for commercial and residential Singapore properties increases by 1% on the first and second SGD 180,000. The preceding tax rate for properties above SGD360,000 is 3%.
2. Additional stamp duty tax
Any individual or corporate organisation who will buy a residential property in Singapore needs to pay the additional stamp duty tax. This has been implemented since 12 Jan 2013 to cool off Singapore property rates and avoid the economic bubble in the Singapore property market.
Singapore citizens need to pay the additional stamp duty tax if they are purchasing their second Singapore property and above. However, Singapore permanent residents and foreigners will pay the additional stamp duty tax for their first property and above.
3. Goods and service tax (GST)
When buying Singapore properties from a seller who is also a GST member, the GST applies. This property tax in Singapore is currently at 7%.
4. Seller stamp duty tax
Imposed on February 2010, the seller stamp duty was implemented to prevent owners from selling their property within a short period of time to gain quick profit. This property tax applies to residential and industrial properties.
5. Annual property tax
The Annual property tax is not exclusive to Singapore. It is paid for by every property owner in different countries as well. The amount of annual property tax a resident should pay varies for an owner-occupied property and an overseas property investment.
To compute the annual property tax, multiply the annual property rate to the tax rate, with the annual rate excluding fittings, furniture and service charge.
5. Rental Income Tax
Residents who rent out part or whole unit of their Singapore property will pay the rental income tax. Singapore’s net rental income tax rate for foreigners is now 22%, after a two percent increase starting this 2017. Computing the rental income tax rate excludes mortgage, property tax, maintenance fee and other claimable expenses.
If you are a foreigner buying a property in Singapore, you may visit Yazhou Property blog to check out condos as well as other properties in Asia. Information regarding loans and guidelines on purchasing an overseas property investment is also shared on our Facebook page.