# Buying Property in Singapore as a Foreigner: 60% ABSD and Residential Property Act > Foreigners can buy condos freely, landed property requires LDAU approval. 60% ABSD for foreigners, FTA exceptions, SSD on early sales, and why structures don't work. Author: Мария Плотникова — юрист, Family Office (https://wiki.private.law/authors/plotnikova) Last modified: 2026-07-17T00:07:00.000Z Canonical: https://wiki.private.law/en/singapore-property-purchase Topics: investments Jurisdictions: singapore Semantic tags: wealth-planning --- ## Concept Singapore does not prohibit foreigners from buying residential property—it makes it economically pointless for speculators and tolerable for those who need the city seriously and for the long term. Foreigners can buy condominiums and apartments freely, without permits. Houses with land—bungalows, townhouses, plots—are restricted by the Residential Property Act: approval from the government committee LDAU is required, which is almost never granted without permanent resident status and significant economic contribution. The exception is Sentosa Cove island, where landed property for foreigners is approved quickly and almost always, but only for own occupation. Public housing HDB, where the majority of Singaporeans live, is completely inaccessible to foreigners. > 🍓 Singapore's key figure: 60% ABSD on the price for a foreign buyer. A condo for two million Singapore dollars costs three and a quarter million including stamp duties. Exception under free trade agreements—citizens of the USA, Switzerland, Liechtenstein, Norway, and Iceland: first property with no ABSD at all. ## How the Transaction Works No preliminary tax registrations are required. The market mechanics are peculiar: the seller issues the buyer an Option to Purchase against one percent of the price. The buyer has about two weeks to exercise the option by paying the deposit and stamp duties, after which the transaction closes in eight to twelve weeks. It is handled by a conveyancing lawyer; banks and law firms run standard source-of-funds checks. The CPF pension system is unavailable to foreigners; mortgages are possible with leverage up to three-quarters of the price, but are calculated through a strict total debt servicing ratio limit. ## Entry Taxes There are two layers. The basic stamp duty BSD is paid by everyone: a progressive scale from one to six percent, with the top rate applying to the portion of the price above three million Singapore dollars. Then comes ABSD—an additional duty depending on the buyer's status: a foreigner pays sixty percent of the entire price, any company or trust—sixty-five. On a condo for S$2 million, that's S$69,600 in basic duty and S$1,200,000 in additional duty. The only major loophole is legal and nationality-based: under free trade agreements, citizens of the USA, as well as citizens and permanent residents of Switzerland, Liechtenstein, Norway, and Iceland, buy their first residential property like Singaporeans—with no ABSD at all. A second citizenship suddenly becomes the main tax planning tool for a Singapore property transaction. ## What the Purchase Provides Nothing. No visa, no permanent residency, no preferences in immigration programs. The Global Investor Programme requires ten million Singapore dollars in business, twenty-five in a fund, or a family office with assets of at least two hundred million—and residential property does not count even partially. The logic of the transaction here is the reverse of Europe: first status—work permit, then PR—and only then property. A permanent resident pays 5% ABSD on the first property instead of sixty. ## Ownership and Rental Annual property tax is calculated on the notional annual rental value of the property. For rented or vacant housing, a progressive scale from twelve to thirty-six percent of this notional rent applies; for owner-occupied housing—a preferential scale, and a foreign owner can obtain it if they actually live in the apartment. Rental income of a non-resident is taxed at a rate of twenty-four percent on net income. There is no wealth tax—its role is fulfilled by the progressive property tax itself. ## Structures They don't work. A company or trust pays sixty-five percent ABSD, so practically everyone buys housing personally. A partial refund of the duty for a trust is possible only under a strict condition: beneficiaries are specific individuals with unconditional shares. The paradox is that Singapore trust structures are excellent—which is precisely why they hold portfolios, companies, and real estate around the world. Everything except local housing: for trust infrastructure—see the [Singapore hub](https://wiki.private.law/en/singapore-hub). ## Exit and Inheritance There is no capital gains tax in Singapore. Instead—the seller's stamp duty SSD, aimed against quick resales: for property purchased from July 4, 2025, a sale in the first year costs sixteen percent of the price, in the second—twelve, in the third—eight, in the fourth—four, after four years—zero. There has been no inheritance tax since 2008, and ABSD is not charged on inheritance. One nuance: if a landed house passes by inheritance, a foreign heir still needs LDAU approval—otherwise the property will have to be sold. ## Russian Passport There are no special restrictions for Russian citizens—60% ABSD, like all foreigners. But Singapore has imposed its own sanctions against a number of Russian banks—VTB, Sberbank, VEB, Promsvyazbank, and others—so money should not come through these channels, and local banks scrutinize Russian funds with heightened attention. General payment logistics—in the [hub](https://wiki.private.law/en/foreign-real-estate-purchase). > 🍓 Singapore property for a foreigner is consumption, not investment: with 60% ABSD, the transaction makes sense only on a very long horizon or after obtaining PR. First status—then square meters. This material is for reference purposes and does not constitute individual legal advice. --- ## Factual claims - There are no special restrictions for Russian citizens—60% ABSD, like all foreigners.