buying a property in singapore
TRANSCRIPT
Buying a Property in Singapore
A presentation brought to you by OpenCompanySingapore.com
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The Singapore Residential Property Act
• The Residential Property Act, signed in 1973, was enforced with the purpose of giving Singaporean citizens the possibility of buying their own property.
• The law states that foreign companies and persons who have received a permanent residency are also allowed to buy property here.
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Buying Real Estate as a Foreigner in Singapore
• Foreigners are allowed to purchase condominiums and apartments on the private real estate market in Singapore.
• Also, before buying a property in Singapore, foreign individuals may be required to apply for permission with the Land Dealings Approval Unit.
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Types of Properties in Singapore
• Singaporean housing legislation divides property in the following classes:
public housing, which is not available for purchase for foreign individuals;
private residential housing, which allows foreign ownership in certain conditions;
executive condominiums, available to foreigners 10 years after the condominiums have been completed.
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Real Estate Due Diligence in Singapore
• The most important action to take before purchasing a property in Singapore is to perform a real estate due diligence.
• Whether they want to verify the property themselves or ask the services of Singapore specialists, there are several types of real estate due diligence procedures available.
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Steps to Buy a Property in Singapore >>• The first step when purchasing a
property in Singapore is to choose the appropriate property and then contact the seller and agree on the price.
• In order to buy a property in Singapore you will be required to appeal to the services of a lawyer.
• Corporate entities may request the services of company formation experts in Singapore that will draft the Option to Purchase agreement.
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>> Steps to Buy a Property in Singapore
• Based on this agreement, one has exclusive rights to buy the property, but 10% of the property price must be paid when signing the agreement.
• The following step will be the transfer of the property and the payment of the remaining amount of money.
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Taxes Related to Buying a Singapore Property
• When purchasing real estate, one must also take into account the taxes they are subject to in Singapore.
• The first taxes will be levied when first buying the property and these include the VAT tax, which is 18%, the stamp duty that can rise up to 3% depending on the value of the Singapore property and the registration fees for ownership transfer.
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Registering the Property with the Singapore Land Register
• After purchasing a property, one is required to register the land or the estate with the Singapore Land Authority.
• The same procedure is required for both natural persons and Singapore companies buying office or any other commercial space.
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Assistance in Buying Real Estate in Singapore
• For real estate due diligence procedures you can contact our Singapore company formation agents.
• You can also rely on our local agents if you want to open a company in Singapore.
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Thank you for your attention!
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