As an American, buying a home in Singapore can be tricky, at least on the surface. If you’re wondering whether foreigners from another country can buy property in Singapore, the short answer is yes.
If you’re planning to buy from afar or to make a trip from L.A., Houston, London, Hong Kong or Dubai specifically to inspect properties, it’s essential to recognize the value of your time. Working with an inexperienced real estate agent for your level of investment could result in considerable financial losses or overpaying for a property. Partnering with a realtor who understands your investment threshold and has strong international connections in legal, accounting and other professional services can ensure an effortless and profitable transaction personalised to you.
Buying a House in Singapore as a U.S. Citizen
Anyone may buy and own property in Singapore, regardless of citizenship.
In fact, there are no laws that prevent an individual of any foreign citizenship from owning or buying a home in Singapore, and there are many wealthy foreign investors who purchase investment property such as apartments or condos, single-family homes, and even commercial properties, including shophouses.
So whether you’re a new resident searching for a two-story home near an international school or an investor interested in longer-term wealth creation in a stable and transparent market, several resources and options are available.
You can buy as many properties as you can invest, including residential, commercial or industrial. That being said, there are additional duties you need to know. But, let’s start with the different types of properties U.S. citizens can purchase in Singapore.
| U.S. Citizens can Purchase WITHOUT APPROVAL | U.S. Citizens MUST SEEK APPROVAL to Purchase |
|---|---|
| Condominium unit | Vacant residential land |
| Flat unit | Terrace house |
| Strata landed house (approved condominium development) | Semi-detached house |
| A leasehold estate in a landed residential property* | Bungalow/detached house |
| Shophouse (for commercial use) | Strata landed house** |
| Industrial and commercial properties | Landed residential property at Sentosa Cove |
| Hotel (registered under the provisions of the Hotels Act) | Shophouse (for non-commercial use) |
| Privatized Executive Condominium (more than 10 years old) | Association premises |
| Place of worship |
* For a term not exceeding 7 years, including any further term which may be granted by way of an option for renewal
** Not within an approved condominium development under the Planning Act (eg. townhouse or cluster house)
Luckily, Americans are afforded remissions under the Free Trade Agreement where U.S. citizens are not subject to the recent 60% hike in Additional Buyer’s Stamp Duty (ABSD) on their first residential property purchase in Singapore, significantly reduce the financial burden typically imposed on foreign buyers.
In Singapore’s Core Central Region (CCR), known for its luxury non-landed homes, foreign buyers consistently represent a significant market share. From Q4 2019 to Q1 2023, foreign purchases averaged 11.7% quarterly, with variations between 7.8% and 17.7%. High-net-worth individuals and families from America frequently invest in this area, viewing Singapore as a reliable destination for securing and growing capital through property investments.
In March 2024, new private home sales surged last month, with an increase of 46% from the same period the previous year, according to PropNex. In the CCR and other areas, the top-selling projects included:
Getting a Mortgage as an American Citizen
If you are prepared to purchase property in Singapore as part of a job relocation or as an overseas investment, here is some essential information.
Buying a house in Singapore as a U.S. citizen is simple if you plan to pay in cash or one lump sum. Obtaining a mortgage loan to purchase a home might be an intelligent investment choice — but the process can get a bit complex for non-citizens or Permanent Residents (PRs).
Your ability to get a mortgage in Singapore depends on your residency status, as U.S. citizens face different considerations regarding home loan eligibility compared to Singaporeans.
Lenders are required to verify the legal residency of applicants, complicating the process for foreign nationals whose primary residence is outside of Singapore. This requirement is driven by the need to manage risks associated with lending to non-residents who may not have stable or long-term ties to the country. Working with experienced real estate consultants such as Singapore Luxury Homes can be advantageous in navigating these challenges.
Banks offer a variety of loan packages, and factors such as a buyer’s income, employment status, and creditworthiness significantly influence loan eligibility. The Loan-to-Value (LTV) ratio, which indicates the maximum amount a bank can lend based on the property’s value, typically ranges from 50-70% for foreigners, varying by bank. Additionally, there are requirements for minimum cash down payments for foreign nationals.
TERMS AMERICANS SHOULD KNOW
Buyer's Stamp Duty (BSD)
The Additional Buyer’s Stamp Duty is an extra tax imposed on certain property purchases in Singapore to cool the residential market and discourage speculative buying. It applies to locals and foreigners, with foreigners facing a higher rate. The ABSD rate for foreigners is significantly higher than for Singapore citizens or Permanent Residents, underlining the government’s approach to prioritising housing affordability for its citizens.
Additional Buyer's Stamp Duty (ABSD)
The Additional Buyer’s Stamp Duty is an extra tax imposed on certain property purchases in Singapore to cool the residential market and discourage speculative buying. It applies to both locals and foreigners. The ABSD rate for foreigners is significantly higher than for Singapore citizens or Permanent Residents, underlining the government’s approach to prioritising housing affordability for its citizens.
ABSD Remissions
ABSD remissions can apply under specific conditions, such as for Singapore Citizens buying their first residential property, for foreigners and Permanent Residents (PRs) under certain Free Trade Agreements (United States, Switzerland, Iceland, Norway and Liechtenstein), and family transfers under specific conditions. Married couples with mixed residency status may qualify for rebates, and housing developers may receive remission for ABSD rates, although an additional 5% is non-remittable. Read our article, “Additional Buyer’s Stamp Duty (ABSD) Remissions & Exemptions for Foreign Investors”.
Land Dealings Approval
For foreigners to buy landed property in Singapore, approval from the Land Dealings Approval Unit (LDAU) is required. The process includes restrictions under the Residential Property Act, requiring applicants to have PR status for at least 5 years and to have made significant economic contributions to Singapore. Conditions post-approval include using the property solely for living purposes by the applicant and family, with a no-sale period of 5 years. The criteria for Sentosa properties are less strict and do not require PR status. Applications take about a month to process LDAU.
Mortgage Home Loan Eligibility
Foreign buyers in Singapore do face different considerations regarding home loan eligibility compared to locals. Banks offer varied loan packages, and a buyer’s income, employment status, and creditworthiness significantly influence loan eligibility. The Loan-to-Value (LTV) ratio, which indicates the maximum amount a bank can lend based on the property’s value, typically ranges between 50-70% for foreigners, varying by bank.
Resale Restrictions
Foreign buyers with LDAU approval for purchasing landed property in Singapore face no specific resale restrictions. However, the higher ABSD rates for foreigners compared to locals and PRs might influence the willingness of sellers to accept offers from foreign buyers. This discrepancy in ABSD rates could impact the ease with which foreign buyers can transact in the resale market.
Residential Property Act
The Residential Property Act has restrictions on what foreigners can buy, and acquiring a property requires meeting certain legal and economic contributions to Singapore. Approval from the government is needed for restricted properties, but non-restricted properties like apartments, strata landed houses in approved condominium developments, and commercial properties can be purchased more freely. Economic contribution and specific qualifications might influence your eligibility for owning property and potentially impact your visa status.
Taxes at Home for U.S. Citizens Buying Property in Singapore
Americans owning property overseas must consider several tax implications under U.S. tax law to ensure compliance and avoid penalties.
For example, if the property is rented out, the owner may be able to depreciate it on their U.S. tax return, similar to a domestic rental property. This depreciation reduces the taxable income generated by the property, providing a substantial tax benefit. Additionally, owners must report any rental income earned from the property on their U.S. tax returns. They may be eligible for foreign tax credits if they also pay taxes in the country where the property is located.
Engaging with a tax professional specializing in international tax law is advisable to navigate the complexities of owning property abroad. They can help you understand specific bilateral tax treaties between the U.S. and Singapore, which could offer additional tax benefits or obligations.
You can effectively manage the tax implications of owning property overseas by staying informed and compliant with U.S. and foreign tax regulations.
How can American Luxury Home Buyers Find the Best Real Estate Agent?
Buying a house or condominium can be immensely time-consuming. Your time, privacy, and long-term financial goals go beyond the simple property transaction.
In the U.S., online platforms such as Sotheby’s, Zillow and Redfin feature properties often listed by private sellers or are exclusive to specific real estate agents. In contrast, in Singapore, most listings are not exclusive and multiple real estate agents frequently list the same homes or condominiums.
Selecting the right real estate partner involves more than just the transactional aspects of purchasing a home, especially for luxury real estate buyers. Finding an agent who comprehends your financial and socioeconomic objectives is crucial. That’s why our top 1% real estate team is dedicated to helping you navigate the process effortlessly.
