In Singapore, for new launch projects (new property launches) under the Residential Property Law, foreigners can purchase apartment units without approval.
According to the Residential Property Law for buying new launch projects, who is considered a foreigner?
Anyone who is not a Singapore citizen, Singapore company, Singapore limited liability partnership or Singapore society is considered a "foreigner" in Singapore. For this reason, even SPR is considered a foreigner.
Steps and stamp duty to consider for foreigners considering buying new launch projects
#1: Double check the affordability of the new property launches
Before entering the new property launches (new launch prjects) buyer pool, double check the prices you can afford. Our affordability calculator can estimate the maximum housing loan amount you can afford and the purchase price of a property based on income, age, and current loan commitments. Also, please consider how long you intend to hold the property as the Inland Revenue Authority of Singapore (IRAS) levies a 4-12% Seller’s Stamp Duty (SSD) to those who sell their property within the first three years of purchase.
#2: Consider the stamp duty to be paid for new launch projects
Buyer's stamp duty: Foreigners can expect to pay Buyer's Stamp Duty (BSD), which is the tax paid on documents you sign when buying or purchasing a property in Singapore, regardless of nationality.
Additional Buyer Stamp Duty: Most importantly, foreigners need to pay an additional buyer's stamp duty (ABSD) of 20% when purchasing any residential property. But unlike BSD, ABSD only applies to residential properties. The ABSD exemption applies to citizens or permanent residents of countries that comply with certain free trade agreements, such as Iceland, Liechtenstein, Norway, Switzerland, and the United States (citizens only). Other fees payable include legal services and registration fees, as well as the commission of the property agent (if applicable).
#3: Applying for a bank loan
Foreign persons may approach any bank in Singapore for a home equity loan, but the number they will borrow varies counting on the quantity of outstanding housing loans he/she has.
#4: Buying on your "new launch projects" or engaging an agent?
When your finances are so as, it’s time to choose whether you may be engaging a property agent to shop for your unit or doing it yourself (DIY). Some buyers choose the latter to save lots of on agent’s commission, but many still prefer shouldering this cost for the services of a property agent.
#5: Hiring a Local Property Lawyer for new property launches
When buying new launch projects in Singapore, it’s important to rent a certified lawyer from your bank’s panel list. He or she is going to assist with contracts, perform searches to verify details of the property and its ownership and confirm the property won’t imminently be plagued by any major infrastructure projects. The lawyer will be to blame for due diligence checks on the vendor (for resale condos) and liaise directly with the developer’s solicitor to make sure everything’s above board.
#6: Securing the Your new launch projects
To secure your dream condo, you may should sign the OTP. But before you are doing so, ensure you've got your bank’s In-Principle Approval (IPA), which is basically their promise to increase you the house loan you wish for your property purchase. An IPA is usually valid for up to 2 weeks.
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