facebookWhy would someone invest in residential properties by investing under Singapore company name vs individually as foreigner? - Seedly

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Anonymous

25 Nov 2020

βˆ™

Property

Why would someone invest in residential properties by investing under Singapore company name vs individually as foreigner?

To anyone who is in the real estate sector, can I check with you if anyone know why would someone invest in residential properties by investing under Singapore company name vs individually as foreigner? I realised that the ABSD is 25% of now, since it is the same % using entities or investing individually, what are the advantages over and another? Is there other beneficials such as tax etc? Please do share with me. Thank you

AMA Stacked Homes

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Ryan Ong

25 Nov 2020

Partner at Stacked Homes

One of the reasons may just be visibility; if you own a company that buys then property, then you are less directly visible as the owner of the property (it can still be traced, it's just less obvious).

Another reason could be related to financing. For example, they may want to use a company to obtain a business loan to purchase the property, as opposed to the usual home loan.

Do let us know the specific context however, and we may be able to tell you more. As an aside, note that the ABSD for foreigners is 20 per cent, but the ABSD rate for entities is 25 per cent.​​​

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