Singapore Doubles Property Tax for Foreign Buyers in Effort to Cool Market

• Sommana Yan
• 30 April 2023
• Local News
• 3346 Views

In a move to address concerns over the affordability of housing for locals and maintain its position as a competitive financial hub, Singapore has raised taxes on property purchases.

The Ministry of Finance, National Development Ministry, and Monetary Authority of Singapore have jointly announced that stamp duties for foreign buyers will increase from 30% to 60%. While Singaporeans and permanent residents will also face an increase in tax, it will only apply to their secondary and additional properties.

Those buying their second residential property will pay an Additional Buyer’s Stamp Duty (ABSD) rate of 20%, up from 17%, and those purchasing their third and subsequent residential properties will pay an increased rate of 30%, up from 25%.

The decision to raise tax rates comes as Singapore’s property market continues to heat up following the country’s easing of COVID-19 restrictions and reopening of borders.

According to the joint statement released by the government agencies, the increased tax rates aim to moderate demand from foreign buyers and support Singaporeans’ aspirations of homeownership. The statement also noted that the government will continue closely monitoring the property market and adjust policies as needed to maintain a stable and sustainable housing market.

Real estate experts expect that the tax hike will significantly impact the demand for properties from foreign buyers, who have been a driving force behind the surge in Singapore’s property market in recent years. The move is likely to be well-received by locals who have been struggling to afford properties in a market where prices have been skyrocketing.

• Business and Market
• Economy and Finance