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Why Foreign Home Buyers Are Inclined Towards Singapore
Compared to most other nations, Singapore’s property market is controlled by the government to maintain its long-term stability. This is why, despite the global pandemic and subsequent economic decline, Singapore remains strong, thanks to steps taken that have directly contributed to the avoidance of property bubbles. Cooling measures, such as the Additional Buyer’s Stamp Duty, have been successful, while competitive rates continue to be offered for foreign buyers.
However, with rising demand and to ensure affordability for Singapore citizens, the government has implemented tax measures specifically targeting foreign buyers.
Types of Properties Foreigners Can Buy
Singapore has a well-defined set of laws dictating which properties foreigners are allowed to buy, with a balance between foreign investment openness and safeguarding residents’ housing requirements.
1. Private Apartments & Condominiums
Private condos and apartments are available for purchase by foreign buyers. Private apartments and condos provide trendy facilities, central-city locations and high rental demand and are hence the favourite among foreign investors.
2. Executive Condominiums (ECs) — Past 10 Years
Executive condominiums, being a mix of public and private housing, are only available to foreigners when they are fully privatized (after their 10-year Minimum Occupation Period).
3. Commercial & Industrial Properties
There are no restrictions for foreigners in purchasing offices, retail shops, shophouses (commercial), hotels, or industrial units. Significantly, commercial and industrial purchases are also exempt from Additional Buyer’s Stamp Duty (ABSD), as compared to residential properties.
4. Strata-Titled Landed Homes in Approved Developments
Foreigners are able to purchase some landed-type properties, such as cluster houses or townhouses, if they form part of sanctioned strata developments.
Duties for Foreign Buyers in 2025
Whether you’re shopping for your first HDB flat or scouting for a luxury condo, knowing the stamp duties is crucial to working out your total costs. These taxes are no mere line item — they are a big part of Singapore’s efforts to maintain property market stability, suppress speculation and put local homeowners first.
Stamp duties are the government’s tool for taxing property transactions and they serve a few goals: cooling an overheated market, dampening excessive speculation and giving native Singaporeans an edge over foreign buyers.
As a home buyer in 2025, you’ll encounter two main types: Buyer’s Stamp Duty (BSD) and, as a foreigner, Additional Buyer’s Stamp Duty (ABSD). Let’s break them down.
1. Buyer’s Stamp Duty (BSD)
Buyer’s stamp duty (BSD) is the tax that will be paid on accepting option to purchase/sale and purchase agreements. The tiered system is based on your property’s valuation. These duties are calculated on the bank’s property valuation or the purchase price, whichever is higher.
Portion of Property Price | BSD Rate |
First SGD 180,000 | 1% |
Next SGD 180,000 | 2% |
Next SGD 640,000 | 3% |
Next SGD $500,000 | 4% |
Next SGD $1,500,000 | 5% |
Remaining amount | 6% for residential |
For instance, if you buy a residential property worth SGD 2 million:
- 1% on first 180,000 = SGD 1,800
- 2% on next 180,000 = SGD 3,600
- 3% on next 640,000 = SGD 19,200
- 4% on remaining 1 million = SGD 40,000
- 5% on next 1.5 million (from 1.5M to 3M) = SGD 75,000
- 6% on remaining 1 million (from 3M to 4M) = SGD 60,000
Total BSD = 1,800 + 3,600 + 19,200 + 20,000 + 75,000 + 60,000 = SGD 179,600
2. Additional Buyer’s Stamp Duty (ABSD)
ABSD is only applicable to residential properties. This additional buyer’s stamp duty is indeed a tax only above the BDS rate. For instance, Singapore citizens pay for additional properties. Conversely, ABSD is paid for every property by permanent residents. Whereas it is 5% on the first property, the tax is 15% for every property thereafter. Lastly, foreigners are required to pay a 20% tax on all properties at the time of purchase in Singapore.
Profile of Buyer | ABSD rates from 16 Dec 2021 to 26 Apr 2023 | ABSD rates on or after 27 Apr 2023 |
Singapore Citizens (SC) buying first residential property1 | Not Applicable | Not applicable |
SC buying second residential property1 | 17% | 20% |
SC buying third and subsequent residential property1 | 25% | 30% |
Singapore Permanent Residents (SPR) buying first residential property1 | 5% | 5% |
SPR buying second residential property1 | 25% | 30% |
SPR buying third and subsequent residential property1 | 30% | 35% |
Foreigners (FR) buying any residential property1 | 30% | 60% |
Entities buying any residential property1 | 35% | 65% |
Housing Developers buying any residential property1 | 35%4 (Plus additional 5% (non-remittable)5) | 35%4 (Plus additional 5% (non-remittable)5) |
3. Seller’s Stamp Duty (SSD)
SSD is a property tax that a seller has to pay when he/she sell a property within 3-year holding period.
If you plan to resell the property soon, be aware of SSD:
- 12% if sold within 1 year
- 8% if sold within 2 years
- 4% if sold within 3 years
- No SSD if held for more than 3 years
4. Annual Property Tax
Owning property in Singapore also comes with annual property tax, based on the property’s Annual Value (AV)—the estimated rental income.
Owner-Occupier Tax rates (Effective 1 Jan 2025)
Annual Value ($) | Tax rate effective from 1 Jan 2025 | Property Tax Payable |
First $12,000 | 0% | $0 |
Next $28,000 | 4% | $1,120 |
First $40,000 | – | $1,120 |
Next $10,000 | 6% | $600 |
First $50,000 | – | $1,720 |
Next $25,000 | 10% | $2,500 |
First $75,000 | – | $4,220 |
Next $10,000 | 14% | $1,400 |
First $85,000 | – | $5,620 |
Next $15,000 | 20% | $3,000 |
First $100,000 | – | $8,620 |
Next $40,000 | 26% | $10,400 |
First $140,000 | – | $19,020 |
Above $140,000 | 32% |
For non-owner-occupied residential properties (e.g., investment/rental properties):
Non-Owner-Occupier Residential Tax Rates:
Annual Value | Effective 1 Jan 2024 | Property Tax Payable |
First 30,000 | 12% | $3,600 |
Next $15,000 | 20% | $3,000 |
First $45,000 | – | $6,600 |
Next $15,000 | 28% | $4,200 |
First $60,000 | – | $10,800 |
Above $60,000 | 36% |
For example, if your property’s AV is SGD 30,000:
- First 30,000 × 12% = SGD 3,600
Total property tax = SGD3,600 per year
For example, if your property’s AV is SGD 60,000:
- First 60,000 = SGD 10,800
Total property tax = SGD 10,800 per year
5. Legal Costs and Other Fees
Apart from taxes, foreign buyers should also budget for:
- Legal fees: SGD 2,500–5,000 (depending on complexity)
- Agent commission: ~1–2% (if you use a buyer’s agent)
- Loan stamp duty: 0.4% of loan amount, capped at SGD 500
And remember: foreigners are generally limited to 75% loan-to-value (LTV), so you must have at least 25% downpayment ready.
Changes and Trends to Watch in 2025
Several trends should be followed by foreign home buyers in Singapore in 2025. If prices continue to rise, the government could further implement cooling measures, including even steeper increases in the Additional Buyer’s Stamp Duty (ABSD) or tighter loan limits to discourage speculation.
On the sustainability side, initiatives like green building incentives are taking off, and property owners with sustainable certifications can potentially receive rebates or lower taxes, reflecting the national movement of Singapore toward environmental conscience.
Moreover, residential real estate has massive ABSD levies on foreigners, whereas office spaces, shophouses and industrial units are exempted. Thus, this makes an appealing as well as a strategic investment choice for global buyers seeking diversification without additional tax liabilities.
Conclusion
Singapore remains a premier real estate destination, but foreign buyers must navigate a complex web of taxes and duties. With the hefty 60 percent ABSD in 2025, the psychology of residential purchases would change and would be a serious commitment, not just a casual investment. That said, there are still opportunities to be had, particularly if you have an eye for commercial or are looking for a long-term hold on the residential side.
