Singapore has always been a popular destination in South East Asia for tourists, business owners, investors, and expatriates. Singapore ranked first for the best country for expatriates in the 2018 HSBC Expats Annual Report, due to the standard of education, safety, cleanliness, lifestyle and business opportunities.

Known for good governance, political stability, excellent infrastructure, and highly skilled workforce, it is no wonder more foreigners have been setting their sights on the little red dot as their new country of residence or place of business.

Whether you have been eyeing for an good investment property or want a piece of Singapore to call your home, look no further. In this article, we will give you the lowdown on what to expect when purchasing properties in Singapore as a foreigner

Before we begin, let’s start by defining what foreigners are. If you are not a Singaporean Citizen, Singapore PR, Singaporean society, Singaporean limited liability partnership or a Singaporean company – it means that you are a foreigner in Singapore.

Now you will have to decide whether you are looking for residential or non-residential properties. Most people will want to purchase residential properties which are, of course, those suited for dwelling and living. There are two sub-categories for residential properties – restricted and non-restricted properties, which we will go into in a bit. Non-residential properties are those set aside for commercial or industrial use, such as office buildings, hotels, places of worship, education institutions. Non-residential properties have fewer hoops to jump through before you purchase them and are not subject to as many taxes as residential properties.

Now let’s talk about restricted and unrestricted residential properties. The Residential Property Act enacted in 1973 placed priority on Singapore Citizens so they can have a significant share of the property market. HDB apartments were then set aside for only Singaporeans to purchase and live.

So what properties can foreigner buy? Unrestricted properties include condominiums, executive condominiums more than ten years old and landed houses in Sentosa Cove. Condos are a popular choice amongst Singaporeans and expats alike due to the added amenities that they offer within the comfort of your own home.

Properties that are restricted fall under this list:

  • vacant residential land;
  • terrace houses;
  • semi-detached houses;
  • bungalow/detached houses;
  • strata landed houses which are not within an approved condominium development under the Planning Act (e.g. townhouse or cluster house);
  • shophouses (for non-commercial use);
  • association premises;
  • places of worship;
  • worker’s dormitory/service apartment/boarding house (not registered under the provisions of the Hotels Act).


Most expatriates have no qualms going for unrestricted properties. But if you are set on purchasing any of the restricted properties; you will need to apply for a Qualifying Certificate from the government. Assessment is on a case-by-case basis, and you will need to provide proof of “exceptional economic contribution” to Singapore. A variety of factors are considered, such as your after-tax wages, a safe range being S$7,000 to S$10,000 per household per month. Education level, investment activity and career path could also play a part in consideration of your case.

Popular areas that expats choose to purchase properties include Orchard – in the heart of town, Tanjong Pagar – the darling of the Central Business District. Tiong Bahru has been affectionately dubbed as the ‘Brooklyn of Singapore’ and many flock to Holland Village due to its central location and enclave of dining and entertainment options.

Regardless of who you are, anyone purchasing a property in Singapore is liable to pay Buyer Stamp Duty (BSD) tax. The amount of tax to pay is reflective of the purchase price of your property. For the first $180,000, it will be 1%, the second $180,000 is 2%, the next $640,000 is 3%, and whatever remaining value of the house computed at 4%.

There is also Additional Buyer Stamp Duty (ABSD) on top of that, an additional tax introduced as part of cooling measures to prevent property prices from inflating. Regardless of the number of properties you own in Singapore, foreigners will need to fork out 20% of the purchase price as ABSD tax.

However, if you are a US Citizen, National and Permanent Resident from Switzerland, Liechtenstein, Norway and Iceland, good news! You do not pay ABSD for your first property in Singapore. These taxes were implemented as cooling measures because many foreigners were purchasing Singapore properties during the economic boom.

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