Property Ownership Overview
Singapore has significant restrictions on foreign property ownership, designed to prioritize housing for citizens and PRs while cooling the property market.
What Foreigners Can Buy
| Property Type | Foreigners | PRs | Citizens |
|---|---|---|---|
| Private condos/apartments | ✅ Yes (with ABSD) | ✅ Yes | ✅ Yes |
| Landed property (houses) | ❌ No* | ❌ No* | ✅ Yes |
| HDB flats (public housing) | ❌ No | ✅ After 3 yrs PR | ✅ Yes |
| Sentosa Cove landed | ✅ With approval | ✅ With approval | ✅ Yes |
*Requires special approval from Singapore Land Authority, rarely granted
💡 Practical Reality: Most American expats buy private condominiums. The 30% ABSD (reduced from 60% due to US-Singapore FTA) is still substantial but makes ownership more feasible than for other foreigners.
Additional Buyer's Stamp Duty (ABSD)
ABSD is an extra tax on property purchases, introduced to cool the market. Rates vary significantly by buyer status.
Current ABSD Rates (2024)
| Buyer Profile | 1st Property | 2nd Property | 3rd+ |
|---|---|---|---|
| Singapore Citizen | 0% | 20% | 30% |
| Permanent Resident | 5% | 30% | 35% |
| Foreigner (General) | 60% | 60% | 60% |
| US Citizen (FTA) | 30% | 30% | 30% |
ABSD is in addition to regular Buyer's Stamp Duty (BSD), which is up to 6% for properties over S$1.5M. A US citizen buying a S$2M condo pays ~S$664,600 in total stamp duties (BSD + ABSD).
Example: S$2 Million Condo Purchase
| Cost Component | Amount |
|---|---|
| Purchase Price | S$2,000,000 |
| BSD (tiered up to 6%) | ~S$64,600 |
| ABSD (30% for US citizen) | S$600,000 |
| Legal fees (est.) | ~S$3,000 |
| Total Upfront | ~S$2,667,600 |
US-Singapore Free Trade Agreement
The US-Singapore FTA provides preferential treatment for American property buyers.
FTA Benefits
- ABSD reduced from 60% to 30% for US citizens
- Applies to natural persons (not US companies)
- Must be purchasing as individual, not through entity
- Same treatment as Singapore PRs for ABSD purposes
Qualifying for FTA Rate
- Must be US citizen (passport holders)
- US Green Card holders do NOT qualify
- Must declare nationality at purchase
- Cannot use US company or trust to avoid ABSD
💡 Other FTA Countries: Citizens of Iceland, Liechtenstein, Norway, and Switzerland also get the 30% FTA rate. All other foreigners pay 60%.
Types of Property
Private Condominiums
The most common option for expats:
- Full ownership (freehold or 99-year leasehold)
- No citizenship/PR restrictions
- Range from S$1M studios to S$50M+ penthouses
- Monthly maintenance fees (S$300-1,500+ typical)
- Facilities: pool, gym, security, parking
Landed Property
Houses with land (bungalows, semi-detached, terrace houses):
- Restricted under Residential Property Act
- Foreigners and PRs need SLA approval (rarely granted)
- Exception: Sentosa Cove (approval more readily given)
- Citizens-only in practice
HDB Flats (Public Housing)
- ~80% of Singapore residents live in HDB
- Foreigners cannot buy
- PRs can buy resale HDB after 3 years
- New BTO flats reserved for citizens
Commercial/Industrial Property
- No ABSD on commercial property
- Foreigners can buy freely
- Different financing and tax treatment
Buying Process
Typical Timeline
- Option to Purchase (OTP): 1% deposit, 14-21 days to decide
- Exercise Option: Additional 4% deposit (5% total)
- Completion: 8-12 weeks, pay remaining 95% + stamp duties
Financing for Foreigners
- Singapore banks lend to foreigners (EP holders, etc.)
- Typical LTV: 75% for first property
- Lower LTV for subsequent properties
- Income documentation required
- Interest rates: ~3-4% (variable)
Singapore limits monthly debt payments to 55% of gross income. This includes all debts globally, which can affect Americans with US mortgages or student loans.
Key Professionals Needed
- Property agent: Licensed by CEA
- Conveyancing lawyer: Handles legal transfer
- Bank/mortgage broker: For financing
Property Tax Considerations
Singapore Property Tax
- Annual tax on property based on Annual Value (AV)
- Owner-occupied: 0-16% (progressive)
- Non-owner-occupied: 12-36% (higher rates)
- Paid to IRAS annually
Capital Gains
- Singapore: No capital gains tax on property sale
- However: Seller's Stamp Duty (SSD) if sold within 3 years
- SSD: 12% (Year 1), 8% (Year 2), 4% (Year 3)
While Singapore has no capital gains tax, US citizens must report worldwide capital gains to the IRS. You may owe US tax on property profits, though Foreign Tax Credit may apply for Singapore taxes paid.
Rental Income
- Rental income taxable in Singapore (if tax resident)
- Also reportable to IRS for US citizens
- Tax treaty helps avoid double taxation
Renting vs. Buying Analysis
Why Many Expats Rent
- 30% ABSD is substantial upfront cost
- SSD locks you in for 3 years minimum
- Uncertain tenure in Singapore
- Rent is often covered by employer
- Flexibility to move between areas
When Buying Makes Sense
- Long-term commitment to Singapore (5+ years)
- Planning to get PR (ABSD drops to 5%)
- Want to build equity rather than pay rent
- Have substantial capital for ABSD
Rental Market
- Typical 2-year leases
- 2-month deposit + 1-month advance
- Diplomatic clause: early termination with notice
- Rental yields: 2-4% typically
After Purchase: Ongoing Costs
| Cost | Typical Amount | Frequency |
|---|---|---|
| Maintenance fees | S$300-1,500+ | Monthly |
| Property tax | Varies by AV | Annual |
| Home insurance | S$200-500 | Annual |
| Repairs/upkeep | Budget 1% of value | Annual |