26 Nov 2020
As I know ABSD is one of the factor or so called cost that u look into for investing residential property as a foreigner since it is the highest cost but do u look into other factors or cost before thinking of making a decision to use entity or individually for investment Singapore residential property ?
26 Nov 2020
Partner at Stacked Homes
Stamp duties in Singapore are quite straightforward. For foreigners, you would pay the Buyers Stamp Duty (BSD) and the Additional Buyers Stamp Duty (ABSD) of 20 per cent.
There is also a Sellers Stamp Duty (SSD), which will apply only if you sell the property within the first three years of buying it. Here's a guide on the rates: https://stackedhomes.com/editorial/guide-to-pro...
(Note that if you buy a property that then goes on collective sale within three years of purchase, you are still liable to pay the SSD; so do be careful when buying properties where there have been multiple near-succesful en-bloc attempts)
Regarding taxes, there are two different rates for owner-occupied properties, and properties that are being rented out. The tax rate is based on the Annual Value (AV) of the property, which is the estimated annual rental income it could generate (as determined by IRAS, it may not match the actual rental income generated).
The tax is on a tiered system. For example, for owner-occupied homes, it's zero percent of the first $8,000 of AV, four per cent on the next $47,000, six per cent on the next $15,000, and so forth.
For properties you rent out, it's 10 per cent on the first $30,000 of AV, 12 per cent on the next $15,000, 14 per cent on the next $15,000, and so forth.
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