Buying a Condo as a Foreigner in Singapore: What You Should Know

Time Business News

04-05-2025

Singapore is a top destination for foreign investors due to its political stability, robust economy, and strong property rights. If you're a non-citizen planning to invest in real estate here, buying a condominium is one of the most straightforward ways to enter the market. However, there are important regulations, costs, and taxes to consider before you commit.
In this guide, we'll cover everything you need to know about buying a condo as a foreigner in Singapore—from eligibility requirements to taxes like the Buyer's Stamp Duty (BSD) and Additional Buyer's Stamp Duty (ABSD).
In Singapore, the Residential Property Act places restrictions on the types of properties foreigners can buy. This is to ensure that landed homes are preserved primarily for Singapore citizens.
However, private condominiums are exempt from these restrictions. They're classified as non-landed residential properties and are open to foreign ownership without prior approval from any government authority. Located in strategic districts with high rental demand
Access to premium facilities (pools, gyms, function rooms)
Gated communities offering security and privacy
Potential for capital appreciation in land-scarce Singapore
Yes, foreigners are legally allowed to purchase private condos in Singapore, but there are a few conditions and distinctions to keep in mind: Private condominiums (no prior approval required)
Units in completed developments (no MOP restrictions) Landed residential properties (e.g., bungalows, terrace houses, cluster housing)
Executive Condominiums (ECs) that are less than 10 years old
Executive Condominiums (ECs) restrictions: ECs under 5 years: Only eligible to Singaporeans
ECs 5–10 years: Only Singaporeans and PRs
ECs after 10 years: Treated like private condos and available to foreigners
Important Note: Properties under the HDB scheme (public housing) are not available to foreign buyers except under very strict exceptions, such as forming a family nucleus with a Singaporean citizen.
The Buyer's Stamp Duty (BSD) is a property tax imposed on all real estate purchases in Singapore. The amount is based on the purchase price or the market value of the property, whichever is higher.
Current BSD Rates (Residential): Portion of Purchase Price BSD Rate First $180,000 1% Next $180,000 2% Next $640,000 3% Amount above $1,000,000 4%
Example:
For a $2,000,000 condo: 1% on first $180,000 = $1,800
2% on next $180,000 = $3,600
3% on next $640,000 = $19,200
4% on remaining $1,000,000 = $40,000
Total BSD = $64,600
Use a BSD Calculator to estimate your duty accurately.
The ABSD is a tax imposed on top of BSD. It applies based on the buyer's residency status and nationality.
ABSD Rates (as of 2025): Buyer Profile ABSD Rate Singapore Citizen (1st home) 0% Singapore PR (1st home) 5% Foreigners (any nationality) 60% Entities (Companies/Trusts) 65%
Special Exemptions:
Some nationalities are exempt from the 60% ABSD under Free Trade Agreements (e.g., USA, Switzerland, Norway, Liechtenstein). These buyers enjoy the same ABSD rates as Singapore citizens.
Example with ABSD:
Buying a $2,000,000 condo as a foreigner: ABSD (60%) = $1,200,000
BSD = $64,600
Total Stamp Duty = $1,264,600
This tax burden is significant, and many buyers choose to explore long-term rental or corporate ownership structures to manage it.
Aside from stamp duties, buyers should be aware of other fees involved in the transaction: Cost Component Estimated Range Notes Legal/Conveyancing Fees $2,500 – $5,000 Required for title transfer and contracts Property Valuation Report $500 – $1,000 Needed for mortgage processing Mortgage Arrangement Fees 0.5% – 1% of loan amount Varies by bank Home Insurance $300 – $800 annually Depends on coverage Property Agent Fees Usually paid by seller Buyer pays $0 unless agreed otherwise
It's wise to keep a 10–15% buffer above the property price for taxes and associated costs.
Yes, foreigners can get a mortgage in Singapore, although the terms may differ from locals. Loan-to-Value (LTV) ratio is capped at 75% for the first housing loan
for the first housing loan You must pass the Total Debt Servicing Ratio (TDSR) framework—your total monthly debt obligations must not exceed 55% of your gross monthly income
framework—your total monthly debt obligations must not exceed of your gross monthly income Banks may require additional documentation like: Proof of overseas income Tax returns Employment contracts
Pro Tip:
Always get an Approval in Principle (AIP) from your bank before making an offer. This shows sellers you're a serious buyer and gives you clarity on your borrowing limits.
Here are some highly sought-after areas favored by foreign investors: Luxury shopping, top schools, and CBD access
High-end condominiums with strong rental demand Expat-friendly neighborhoods with greenery and elite schools Near East Coast Park, heritage charm, and a relaxed vibe
Emerging condos like Emerald of Katong and The Continuum offer good growth potential Prime CBD area; great for capital appreciation
High-yield from executive tenants Foreigners can legally buy private condominiums without approval.
Be prepared to pay BSD and up to 60% ABSD.
Use online tools like the BSD Calculator to estimate your total tax obligations.
Consider financing, legal fees, and maintenance costs in your budget.
Choose condo locations wisely for long-term appreciation or rental yield.
Despite the steep ABSD, many foreign buyers continue to see value in Singapore's transparent legal framework, low crime rate, and long-term capital stability. For those with a strategic investment horizon or planning to relocate, the rewards can outweigh the initial tax hurdle—especially in prime or undervalued districts.
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