Singapore’s 60% property tax makes London, New York look cheap

SINGAPORE has the highest property tax rate for foreign buyers among major global markets after the city-state doubled the duty on Thursday (Apr 27).

The 60 per cent Additional Buyer’s Stamp Duty that foreigners now pay for a home in Singapore means the city’s levies exceed those of other international hubs including Hong Kong, London and New York by a large margin, noted Savills. 

“We are pretty adamant that this is not only going to deter but will put a brake on investments” in Singapore, said Mark Elliott, head of international residential sales at Savills in Hong Kong. “It will be great for London, the US and other markets.”

For a purchase of a property worth US$5 million, a foreign buyer will have to pay 65 per cent in taxes in Singapore, including other levies, compared with about 4 per cent in New York and 15 per cent in London, data from Savills show. That is about US$3.25 million. 

The city-state also has about double the tax rate of Hong Kong and Vancouver, which have raised duties on non-resident buyers after past inflows of money, particularly from mainland Chinese, helped drive up property prices.

Hong Kong is a likely beneficiary of Singapore’s policy change because more mainland Chinese may buy luxury residential properties in the territory instead, according to Bloomberg Intelligence. While Hong Kong charges 30 per cent stamp duties on home purchases by foreigners, those who later become permanent residents can get most of it refunded as part of the city’s efforts to attract talent. BLOOMBERG