All about Tax Issues When Buying Singapore Property

Tax issues when purchasing and investing in a Singapore property

What is property tax?
Property Tax is a tax on properties in Singapore. These include HDB flats, houses, apartments, factories, shops, offices and land. The amount of Property Tax payable per year is computed based on a percentage (tax rate) of the Annual Value of the property.

What is the property tax rate?
The tax rate for owner-occupied residential property is 4% of the annual value of the property and the tax rate for not owner-occupied residential property is 12% of the annual value of the property.
Foreigners who own landed properties have to pay a surcharge of 10% of the annual value.

Can I be granted the owner-occupied residential rate for all my properties if I reside in 3 different properties?
No. You can only be granted the owner-occupied rate for only 1 property.

Can I choose to have the owner-occupied residential rate of 4% if I own a HDB flat and a private apartment?
No. The owner-occupied residential rate can only be for your HDB flat. If you own 2 or more private properties, you can choose to have the owner-occupied residential rate for any of them.

What is the residential property tax rate for companies with ownership of the property?
Companies with ownership of the property is not owner-occupied residential property hence that tax rate is 12% even if the company maybe using the residential property as employees' lodging.

If the seller did not pay for the outstanding property tax after I had purachased his/her property, am I liable to pay for him/her?
The Inland Revenue Authority of Singaoire (IRAS) looks at the property and not the owner for property tax. Therefore you are liable to pay his/her property tax.

How do I know if the Seller has paid for the property tax?
You can ask your lawyer to request the seller to produce the receipt for property tax or the Confirmation Note issued by the Comptroller of Property Tax.

How do I find out the amount of tax for the property that I am buying?
You can request the Seller for his current property tax bill.