Singapore Real Estate
What do London have in common – the capital of Misty Albion, bathing in the rays of the Cypriot sun of Limassol, never sleeping New York and stiff Zurich? The answer is simple: all these cities are universally recognized as centers of finance on a global scale. Can this list be expanded? Of course – Singapore! Moreover, the prospects for the Russian investment market are more than optimistic.
Multiple evidence of economic success can be cited without difficulty to ensure a stable real estate market. This includes GDP growth, and a way out of the crisis, and the strengthening of the national currency, the emergence of new jobs, a balanced labor market, and investment by world-class corporations. Therefore, recently, Russian businessmen more and more see for themselves the benefit and the opportunity to cooperate with successful rapidly developing companies in Asia. It has already become a tradition to hold Russian-Singaporean economic forums in which senior figures of both countries take part.
Buying Property in Singapore
What to say about the island of Singapore? The word “stability” is very suitable for him: inexpensive mortgages, new jobs, lack of inflation and restrictions on foreigners acquiring commercial and industrial real estate. Singapore is a highly successful region, not only as a center of finance and development in Asia, but also in terms of its predictability.
Regarding residential real estate, the average price per square meter is about 8 thousand SGD (Singapore dollars), for real estate of an elite class – about 18 thousand SGD. This is lower than in New York, Monaco or London, and the low level of both offers and unsold housing with constantly growing demand makes the Singapore real estate market very attractive for investment.
Ownership of residential real estate for foreigners is quite limited. Condominiums, small-sized apartments in housing complexes, houses with plots on about. Sentosa, objects (there are restrictions) without land. For the purchase of free land, bungalows, townhouses, houses with plots, government apartments, a special permit from the Singapore Land Administration will be required.
Many restrictions on the purchase of real estate can be circumvented by obtaining permanent resident status. For this, it is necessary to invest in real estate from 2 million SGD, half of which is allowed to invest in the private residential sector.
When buying primary real estate, you first need to pay 5% of the purchase amount, within a month – another 15%. Subsequent payments are made at different stages of construction, and after the construction of the facility and receipt of the act of its delivery, the final amount is paid.
Singapore Property Tax
The tax on the purchase of real estate consists of two parts:
General Buyer Fees (BSD).
Its size depends on the value of real estate and amounts to: 1% for objects worth up to 180 thousand SGD, 2% – up to 360 thousand SGD, 3% – more than 360 thousand SGD.
Additional fee from the buyer of real estate (ABSD).
For citizens of Russia, it is 15% of the value of real estate.
These taxes must be paid within 2 weeks to the Singapore Internal Revenue Office. If the funds are not paid within three months, the buyer is liable to a fine equal to the unpaid duty. When this period is exceeded, the amount of the penalty becomes 4-fold. If the buyer still does not pay the fee, he faces a fine of 10 thousand SGD or even a 3-year prison term.
Subsequent sales of property are subject to an additional charge (SSD). Its size depends on the term of ownership of real estate and is: 16% for resale in the first year, 12% in the second, 8% in the third and 4% in the fourth.
Rental income for permanent residents and foreigners spending at least 183 days a year in Singapore is progressive and ranges from 0 to 20%. For non-residents, income from property rental is taxed at a flat rate of 20%.