Do I have to pay property tax for property that I purchase in Singapore?
Generally, all immovable properties attract property tax. The amount of property tax for an owner-occupied property is considerably lesser than if it has been rented out. As soon as the sale and purchase of the subject property is completed, and if the purchaser and his family is going to live there, he should apply to the Property Tax Department for concession (the relevant application form is supplied by the said department free of charge).
Property tax payable by purchaser for an owner-occupied premises, as at todate, is about 4% of the "annual value" of the property. And the "annual value" is dependent upon the rent received or should have been received if the property is rented out. If the property is rented out, the tax rate is 10%.
Stamp Duty
What is the "Stamp Fees/Duties" payable in respect of purchase of land or property?
The rate of stamp fees is as follows :-
(a) first $180,000.00 of the purchase price – 1%
(b) next $180,000.00 of the purchase price – 2%
(c) thereafter – 3%
Can I use my CPF savings to pay for the stamp duty and legal fees?
Yes, you can do so as long as the bank or finance institution has no objections.
Goods and Services Tax (GST)
Is Goods and Services Tax (GST) payable for the sale and purchase of Non-Residential/Commercial Property?
Sales of such property are subject to payment of GST if the seller is GST registered. The sale price should state if it is inclusive or exclusive of GST.
Valuation
What is "an area of the house or land"?
The title document will state the area of the land in the case of a landed property or the strata area in the case of an apartment / condominium. Disputes often occur when the advertised area is different from the area stated in the title document. Purchasers may prefer to consult a lawyer before making any kind of commitment. If the area of the property is crucial to you, the area should be stated in the Option to Purchase or Sale and Purchase Agreement.
Do I need to do a valuation of the property that I am purchasing?
The Monetary Authority of Singapore (“MAS”) guideline is that a bank or finance institution can only lend up to 90% of the purchase price or valuation of the property (whichever is lower). When you obtain a loan, the bank or finance institution would arrange for a valuation to be done on the subject property.
Where can I get a valuation done?
A bank or finance institution would normally assist you in this matter. Alternatively, you may obtain an indicative value through on-line valuation services.
Sale of Property
How do I sell my property?
The following are the steps that you may like to follow:-
(a) You may either advertise your intended sale on your own or through an agent. You may either sell your property by way of an Option or Sale & Purchase Agreement. Discuss this with your lawyer.
(b) When selling your property the 10% or 5% deposit paid by the purchaser may often be required by the purchaser to be held as stakeholders until final completion. If you require the 10% or 5% immediately then your option should state that the 10% or 5% are to be released to you.
(c) Your will have to give requisite notice to your bankers (normally 3 months) and/or the CPF Board if the property is under a mortgage or CPF Charge. You should therefore ensure that the completion date stated in the Option gives your sufficient time to provide notice to your bankers.
What are the "Costs involved in selling my property"?
Your legal fees will be a minimum of $900/- if selling price is below $2 million.
What is the "Estate Duty Implications" when I sell my property?
If the property is in joint names of the husband and wife and the husband provided all the funds for the purchase, the husband’s estate is liable for estate duty if the husband died within 5 years of purchase.
Estate duty is exempted for :-
- All dwelling houses or house of the deceased up to a value of $9 million.
- $600,000.00 of remaining property.
- The excess over $600,000.00 of CPF savings. Rate of Estate Duty For every dollar of the 1st $12,000,000 – 5% for every dollar exceeding 12,000,000 – 10%
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