Singapore imposes 10% stamp duty on foreign property buyers

The Singaporean Government has decided to impose a hefty new 10% cent stamp tax on overseas property investors buying residential property in the city.

The authorities have decided to follow the Chinese lead and take measure to cool down Singapore’s overheated residential property market.

The government has said that it wants “the move to create a stable and sustainable market, after significant price rises in recent times. Prices of private homes are up 16% from a recent peak in the second quarter of 2008.”

The new stamp duty, which takes effect from today, December 8 2011, will be levied on top of the existing buyers' stamp duty rules which are stepped.

The current rules allow the tax office to take a 1% fee from the first $180,000 of the purchase price, 2% for the next $180,000 and 3% for everything above $360,000.

Permanent residents who already own a property, and are buying a second or subsequent property will also pay an extra stamp duty of 3%.