Foreigner's Guide to Buying Property in Singapore

Who is Considered a "Foreigner"?

For property purchase purposes in Singapore, a "foreigner" refers to any person who is not a Singapore Citizen, Singapore Permanent Resident (PR), Singapore company, or Singapore limited liability partnership. Singapore PRs are also subject to certain restrictions and higher ABSD rates compared to Singapore Citizens for some purchases.

What Properties Can Foreigners Buy in Singapore?

Foreigners have some restrictions on the types of residential property they can purchase:

Generally Allowed (No special approval needed):

• Condominium Units: Most units in private condominium developments (including new launches and resale units).
• Apartment Units: Units in private apartment buildings that are not part of a full condominium development (e.g., walk-up apartments).
• Executive Condominium (EC) Units (after 10 years): ECs are a hybrid public-private housing. Foreigners can only buy EC units on the resale market after the 10-year mark from the EC's Temporary Occupation Permit (TOP) date, when it becomes fully privatized.

Restricted Properties (Requiring LDAU Approval):

Foreigners (including Singapore PRs for some of these categories) must obtain approval from the Land Dealings (Approval) Unit (LDAU) under the Singapore Land Authority (SLA) before they can purchase:

• Landed Houses: This includes terrace houses, semi-detached houses, bungalows (detached houses), and strata landed units not within an approved condominium development (e.g., cluster houses that are not condos).
• Vacant Residential Land.
• Shophouses (if zoned residential or mixed residential/commercial).

Approval for restricted properties is granted on a case-by-case basis, typically to those who can demonstrate significant economic contribution to Singapore or possess professional qualifications or skills beneficial to the country. Sentosa Cove landed properties are a notable exception where foreigners can more readily obtain approval to buy landed homes (though LDAU approval is still required).

Properties Foreigners Generally Cannot Buy:

• HDB Flats: New Build-To-Order (BTO) flats and most resale HDB flats are restricted to Singapore Citizens and eligible PR households.

Additional Buyer's Stamp Duty (ABSD) for Foreigners

ABSD is a significant consideration for foreign buyers. As of the latest cooling measures (effective from 27 April 2023):

• Foreigners (FR): Pay 60% ABSD on the purchase price or market value, whichever is higher, for any residential property.

You can estimate your ABSD using our Stamp Duty Calculator or learn more in our BSD & ABSD Guide.

Free Trade Agreements (FTAs) - Exceptions for Certain Nationalities

Under respective Free Trade Agreements, nationals and Permanent Residents of the following countries are accorded the same Stamp Duty treatment as Singapore Citizens:

• 🇮🇸 Iceland
• 🇱🇮 Liechtenstein
• 🇳🇴 Norway
• 🇨🇭 Switzerland
• 🇺🇸 United States of America (Nationals only)

This means for their first residential property purchase in Singapore, they pay 0% ABSD. For their second and subsequent residential properties, they will pay the ABSD rates applicable to Singapore Citizens.

Financing for Foreigners

• Loan-to-Value (LTV) Limits: LTV limits for foreigners taking housing loans from Singapore financial institutions are generally tighter than for Singapore Citizens. The maximum LTV can vary but is often lower (e.g., potentially 65-75% for a first loan, subject to bank assessment and regulations). This means a larger cash downpayment is usually required.
• Total Debt Servicing Ratio (TDSR): Foreigners are also subject to the TDSR framework, where total monthly debt repayments cannot exceed 55% of their gross monthly income. Income earned overseas may be subject to a "haircut" (discounted) by banks when assessing loan eligibility.
• In-Principle Approval (IPA): It's highly advisable for foreigners to obtain an IPA from a bank in Singapore before committing to a property purchase to understand their loan eligibility.
• Source of Funds: Be prepared to provide documentation on the source of your funds for the downpayment and purchase.

Our Mortgage Loans Guide provides more general information on home loans, and our Affordability Calculator can help with preliminary estimates.

The Buying Process for Foreigners (Simplified for Non-Restricted Properties)

1. Financial Planning & Eligibility Check: Determine your budget, understand ABSD implications, and check what type of properties you are eligible to buy.
2. Secure In-Principle Approval (IPA): Get an IPA from a Singapore-based bank.
3. Appoint a Property Agent (Optional but Recommended): An experienced agent can help you navigate the market, find suitable properties, and assist with negotiations.
4. Property Search and Viewings.
5. Make an Offer & Obtain Option to Purchase (OTP): Pay the 1% Option Fee.
6. Appoint a Singapore-based Lawyer: You will need a lawyer to handle the conveyancing process.
7. Exercise the OTP: Pay the Option Exercise Fee (typically 4%) within the Option Period.
8. Pay Stamp Duties (BSD & ABSD): Usually within 14 days of exercising the OTP.
9. Completion: Typically 8-12 weeks after exercising the OTP. Your lawyer will handle the final payments and legal transfer.

For a more detailed overview of the general buying process, see our Guide to Buying Private Property.

Other Important Considerations for Foreigners

• Bringing Funds into Singapore: Understand any regulations or reporting requirements for transferring large sums of money into Singapore.
• Property Tax: Foreigners pay the same property tax rates as Singaporeans for properties they own but do not live in (non-owner-occupied rates).
• Renting Out Your Property: If you plan to rent out your property, you'll be subject to income tax on the rental income.
• Legal Advice: Always engage a qualified lawyer in Singapore to handle your property transaction and advise you on all legal aspects.