A Singapore Permanent Resident (PR) is considered a foreigner person.
Is there any restriction on the property that foreigners can buy?
Yes. The land area of the property must not exceed 1,393.5 sq metres or 15,000 sq feet. In addition, the property must not be situated within a good class bungalow (GCB) area.
As foreigners are not allowed to own Good Class Bungalows (GCB) , can foreigners set up a property investment company in Singapore to invest in Good Class Bungalows (GCB)?
What if the purchase is done through a joint venture (JV) business entity registered in SG via a partnership or limited company between a Singaporean and a foreigners and what maximum stake can the foreigners have in the JV company to qualify it to buy landed properties?
An entity means a person who is not an individual.
It includes the following:
•An unincorporated association
•A trustee for a collective investment scheme when acting in that capacity
•A trustee-manager for a business trust when acting in that capacity
•The partners of the partnership whether or not any of them is an individual, where the property conveyed, transferred or assigned is to be held as partnership property
A foreign company within the meaning of the Residential Property Act is a company that is not a Singapore company.
A Singapore company is one which is incorporated in Singapore and where all its directors and members/shareholders are Singapore citizens and if a member/shareholder is a company, it must be a Singapore company, and so on. The ultimate beneficiaries of the company must be Singapore citizens. Hence if the joint venture company have any foreigners at all, it will be classed as a foreign company, and cannot buy good class bungalow (GCB).
Is the property investment company that they registered in Singapore exempted from the 15% stamp duty since it is a Singapore company?
From July 2018, buyers or transferees who are : Foreigners (FR) would have to pay ABSD of 20% on the purchase or acquisition of any residential property.
Entities would have to pay ABSD of 25% on the purchase or acquisition of any residential property, Plus additional 5% for developers.
What is the maximum loan that the Singapore company can qualify for?
Non-individuals/ entities maximum loan is capped at 15%.
Kindly advice on Additional Buyer’s Stamp Duty (ABSD) remission requirements for married couple.
ABSD remission may be applicable to a married couple who purchases a second residential property jointly, if the remission conditions are met. The couple must include a Singapore Citizen. The main conditions are as follows:
ABSD has been paid on the second residential property.
The first residential property (co-owned or separately owned) is sold within 6 months from the date of purchase of the second property for completed property or the issue date of the Temporary Occupation Permit (TOP) / Certificate of Statutory Compliance (CSC), whichever is earlier, if the property was uncompleted at the time of purchase.
The married couple has not purchased or acquired any other residential property since the purchase of the second residential property.
6 months is based on option exercised date.
It takes about 1 month for IRAS to process and for ABSD remission to be passed to law firm.
E.g. Husband is Singapore citizen. Wife is Foreigner ( NON PR).
Own 1 landed A in husband’s sole name.
If they buy landed B in Husband’s sole name, Husband Pays 12% ABSD as second property. Thereafter, Husband sells off landed A.
Can Buyers claim back 12% ABSD once landed A is sold ?
No, 12% ABSD cannot be claimed back. In IRAS eyes, Matrimonial property is a Property jointly owned in 2 names of husband and wife.
If property is in one name, It cannot be classed as Matrimonial property.
Also, even if a property can be classed as a Matrimonial property, the property A must be sold off within 6 months.