Getting A Singapore PR To Invest In Real Estate – Worth It?

Is it worth your hassle to go through a SG PR application, become a Singapore permanent resident to make use of the tax breaks to invest more efficiently in Singapore’s real estate? Let us find out!

Comparison in costs or taxes when it comes to property purchase for foreigners versus Singapore permanent residents

When it comes to foreigners, which you probably are right now, you will be required to pay additional buyer stamp duty (ABSD) of 20% for any residential property you purchase. This applies even for your first property purchase in Singapore.

Foreigner stamp duties in Singapore

Keeping in mind that foreigners can only purchase existing private condos such as Parc Olympia condo, or perhaps new ones like Midtown Modern, these usually cost at least around $700,000 for a one bedroom condo. 20% ABSD on that is a whopping $140,000!

Singapore PR stamp duties

For permanent residents, the first residential property you will be required to pay 5% for ABSD, and subsequently it will be 15%.

Taking into account the same $700,000 condo, that will be $35,000 and $105,000 respectively.

Differences laid out side by side

For your first property, you will be saving $105,000 in unnecessary property taxes!

Even if you wish to use an immigration agency or consultant to help you become a permanent resident, that usually only costs around $4000 to $20,000. Even if you tried 3 different agencies before you can apply for a Singapore PR status successfully, it will still save you lots of money!

If you are an investor and purchase $7 million worth of residential properties in Singapore, you will be able to save $420,000 simply if you are a permanent resident.

Small disclaimer here

Of course, there are other ways you can go about circumventing this law using legal loopholes, but you are advised to look for a lawyer here for trust incorporations or purchases under companies instead. But here, we will talk purely about foreigners purchasing versus Singapore permanent residents and for residential properties only.

Check the exact amount of stamp duty you need here

For the exact amount that you require to pay when it comes to stamp duties, you can refer to the IRAS website here and use their provided stamp duty calculator.

Conclusion as to whether you should become a Singapore PR for property investment in SG

Of course, a Singapore PR lots of other benefits financially as well, such as the lack of capital gains and death taxes in Singapore, and if those are also of interest to you on top of saving on property tax, then you should consider being a permanent resident in Singapore! After all, there is a reason why many wealthy people migrate to Singapore and get a Singapore PR status!

Another additional benefit of a Singapore permanent residence, instead of a Singaporean citizenship, is that it still affords you the luxury and choice of easily giving it up in future if you ever wish to change your mind, and it is way less complicated to process that reversal too even if ever required.

Getting A Singapore PR To Invest In Real Estate – Worth It?