Singapore’s reputation as a major property investment destination could be damaged by the implementation of heavier stamp duties, according to The Straits Times.
The report noted that the new rules could boost the status of rivals such as Britain and Hong Kong, which do not have such restrictions.
Black Brick Property Solutions, a British-based consultancy, has received inquiries from Asian and other overseas investors, who were initially attracted to Singapore property but have been discouraged by the new rules.
The unprecedented stamp duty taxes announced on 7 December requires foreigners wanting to buy residential property in Singapore to pay a 10 percent additional buyer’s tax. This is on top of the current buyer’s tax of around three percent and applied to the property’s market value or purchase price, whichever is higher.
Corporate entities, permanent residents and Singaporean investors are also subject to the 10 percent additional tax.
An earlier report noted that this is the first time in 15 years that measures to cool the property market have targeted foreigners.
Another report revealed that citizens of countries which have free trade agreements with Singapore will be regarded as Singaporeans when it comes to the new measures. These countries include Switzerland, United States, Liechtenstein, Norway and Iceland.
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