Who is this article written for
This article was specifically written for US Citizens looking to purchase an investment property in Singapore.
Getting straight to the point, you are a US citizen and you landed on this article because you have heard about the tax advantage that Americans have over other foreigners when buying a property in Singapore.
This article seeks to provide an exhaustive outline of everything a US Citizen needs to know when purchasing an investment property in Singapore. Added attention was given to articulate the type of property and the specific locale to be considered when looking to purchase an investment property in Singapore.
We are Decoupling Expertise
We are a team of specialist realtors based in Singapore. We specialise in helping investment minded property buyers research, shortlist and procure investment properties.
We have since expanded our service offering to provide specialised consultancy services for foreign property buyers from the United States of America, Switzerland, IceLand and Norway.
We work with an established network of conveyancing lawyers and tax consultants to ensure the purchase process remains tax efficient and legitimate.
Why should a US citizen consider buying a property in Singapore ?
#1 – Tax advantage for Americans akin to a Singaporean Citizen
Owning a property in a politically, economically stable and land scarce nation state like Singapore is an endeavour sought after by many wealthy foreign investors around the world.
Acknowledging that, the Singapore government has sought to create barriers of entry in the form of a foreign property buyer tax known as additional buyer stamp duty, ABSD.
Starting from 26 April 2023, all foreign property buyers will have to pay an 60% additional buyer stamp duty levied on the purchase price of their property, on top of all necessary duties and cost to be incurred.
Assuming the purchase of a property valued at $2.0 mil USD, a foreign buyer would have to incur $1.2 mil USD more than a local Singaporean citizen in the form of additional buyer stamp duty.
The crux of this is that citizens from countries that are currently on a free trade agreement with Singapore will enjoy the same tax treatment similar to that of a Singaporean Citizen.
This meant that Americans are able to purchase their 1st investment property in Singapore with 0% additional buyer stamp duty. Reference the table below for additional buyer stamp duty levied on buyers from different nationality and citizenship profile
Additional Buyer Stamp Duty
| Profile of Buyer | 1st Residential Property | 2nd Residential Property | 3rd and Subsequent Residential Property |
| Singapore Citizen | 0% | 20% | 30% |
| Singapore Permanent Residents | 5% | 30% | 35% |
| Foreigner | 60% | 60% | 60% |
| Foreigner from country with Free Trade Agreement with SingaporeNations and Permanent Residents of the USA, Switzerland, Iceland, Norway, Iceland, Liechtenstein. | 0% | 20% | 30% |
#2 – Singapore real estate being a recession proof investment
Singapore’s residential real estate is well placed in a unique supply and demand dynamic.
On the supply side, Singapore is a land scarce nation state with limited land up for development. On the demand side, its thriving economy means that citizen and expats dwelling in the country are financially well equipped to pursue the purchase of quality homes for both investment and lifestyle upgrade.
Referencing the table below, Singapore’s property prices have displayed resilience with prices continuing to trend upwards despite economic recessions and pandemic outbreaks.
Singapore Residential Property – Robust Growth Despite Financial Crisis
Singapore Residential Property Price Rebound to new heights post covid
#3 – Politically stable and foreign investor friendly government regime
Singapore’s stable political landscape. The Singaporean government is known to be foreign investor friendly. Its governmental regime has remained stable and consistent for decades.
Its tax regime is geared towards positioning it as a hub for foreign investors. There is no capital gain tax in Singapore, meaning the gain from the sale of a property or investment is not subjected to any additional taxes.
The influx of foreign investors’ family offices being set up in Singapore is a testimony of investors’ confidence in the nation state.
Growth in Family Offices in Singapore
Type of properties that a US citizen can buy in Singapore
Governed by the Singapore residential property act, the following are property types that are eligible for purchase by a US citizen.
US Citizen can purchase without approval from Singapore Land Authority
- Private residential condominium units
- Shophouse for commercial usage
- Industrial and commercial properties
US Citizen can purchase only with approval from Singapore Land Authority
- Landed properties in Sentosa Cove
- Landed properties subjected to special permission from Singapore Land Authority
Not eligible for US citizen purchase, reserved for Singaporean Citizen and PR
- HDB Flats – Government subsidised housing
- Executive condominium prior to privatisation (< 10 years in age)
Reference the images below for the difference between a private condominium unit and landed property in Singapore
Singapore private condo
Singapore landed property
Residential property as the priority asset class for US Investors
Residential real estate is normally the asset class that investors prioritise before moving on to consider other property types.
This is driven mainly by two reasons.
Singapore being a country where its citizens has a strong emphasis on home ownership creates a robust and resilient demand for residential property.
In Singapore, you will hardly see any significant volatility in property prices as affluent Singaporeans held on to their properties and only sell when their in a opportunity to upgrade to a better property
Next, from a purchasing quantum perspective, residential property can be purchased with a budget starting from $1.0 mil USD. As compared to a commercial shophouse that would cost anything from $3.0 mil upwards.
Residential property provides a much more financially palatable option for foreign investors.
Potential profit generated from investing in a Singapore property.
On average investors that own newly constructed private condominiums, purchased directly from a reputable property developer in Singapore will see a capital return of between 250k to 350k USD across a 4 to 5 year holding duration.
The table below depicts the average return of reputable and popular private condo developments sought after by local Singaporean property buyers.
Average return of investment property in Singapore
| Residential Condo Development | Year of Construction Completion | Selling 4 year after TOP – Average Profit (USD) |
| Whistler Grand | 2022 | 280,984 |
| Parc Botannia | 2022 | 177,930 |
| The Tre Ver | 2022 | 180,514 |
| Parc Esta | 2022 | 324,925 |
| Stirling Residences | 2022 | 247,690 |
| Jadescape | 2022 | 293,834 |
| The Tapestry | 2021 | 185,536 |
| Twin View | 2021 | 308,096 |
| Park Colonial | 2021 | 268,475 |
| Seaside Residences | 2021 | 327,867 |
| Queens Peak | 2020 | 234,748 |
| Grandeur Park Residences | 2020 | 222,328 |
| Forest Wood | 2020 | 309,155 |
| Average | 258,622 |
Cost of purchasing a property in Singapore
In the section that follows we will outline all the cost components to be incurred when purchasing a property in Singapore.
Cost of the property itself
A private condo in Singapore will be priced within the following price bands depending on location, with property closer to the city centre being priced higher.
| Price of Property | Purchase Quantum USD |
| 1 Bedroom Condo | $900k – $1.4 mil |
| 2 Bedroom Condo | $1.2 mil – $1.5 mil |
| 3 Bedroom condo | $1.4 mil to 2.6 mil |
Additional Buyer Stamp Duty
Referencing additional buyer stamp duty table shown in earlier section.
Under normal circumstances, foreign buyer will have to incur a 60% ABSD for any property purchase.
Specifically for US Citizens, you would enjoy the same tax privilege as a Singapore citizen. Additional Buyer Stamp Duty will not be applicable for your first property purchase.
Buyer Stamp Duty
Buyer stamp duty is a mandatory tax levied on all property purchase transactions in Singapore. Unlike the additional buyer stamp duty, there are no tax waival privileges available, not even for Singaporean citizens and permanent residents.
It will be levied on a progressive tax rate based on the following tax table.
| Purchase price/Market value | Rates for residential properties | Rates for non-residential properties |
| First $180,000 | 1% | 1% |
| Next $180,000 | 2% | 2% |
| Next $640,000 | 3% | 3% |
| Next $500,000 | 4% | 4% |
| Next $1.5 million | 5% | 5% |
| In excess of $3 million | 6% | 5% |
Seller Stamp Duty
Similar to the buyer stamp duty this is a duty that is levied whenever there is sale of property with holding duration shorter than 4 years.
The government intention is to prevent property owners from making short term flips in properties, ensuring more stable property prices.
Note that most investors will avoid this tax by selling their property only after a 4 year holding duration.
*Article has been updated with the latest Seller Stamp Duty Rates as of 4 July 2025
| Holding Period Before Sale | SSD Rate (from 4 July 2025) |
| Up to 1 year | 16% |
| More than 1 year, up to 2 years | 12% |
| More than 2 years, up to 3 years | 8% |
| More than 3 years, up to 4 years | 4% |
| More than 4 years | No SSD payable |
Property Tax
Applicable to property owners of all citizenship status, property tax will be applicable.
The property will be taxed on a progressive tax rate based on the annual value of estimated rental income that can be derived from the property.
Tax table as follows.
| Annual Value | Property Tax Rates for Non-Owner-Occupied Residential Properties | |
| Effective 1 Jan 2023 | Effective 1 Jan 2024 | |
| First $30,000 | 11% | 12% |
| Next $15,000 | 16% | 20% |
| Next $15,000 | 21% | 28% |
| Above $60,000 | 27% | 36% |
Rental Income Tax
If the property owned is rented out, a rental income tax will be incurred as well.
Rental income earned by foreign investors that are not residing in Singapore are tax at a non resident tax rate of 24%. The taxable income is computed after deducting property tax, insurance, maintenance and repairs from gross rental income.
Legal Conveyancing Fee
Lastly, to legitimise the purchase process and the transfer of ownership between seller to a US citizen, you will need to enrol the services of a reputable conveyancing lawyer.
Legal fee ranges from $2300 to $3500 for the purchase of a private condominium.
Purchase with confidence
Get connected with our panel of conveyancing lawyers experienced in investment property conveyance services for foreign buyers.
US Tax implication on owning a property in Singapore
Declaration of rental income
You will have to declare the rental income you make from your property in Singapore for income taxation purposes.
Capital Gain Tax
The capital gain from a sale of a foreign investment property will be deemed a taxable event in the US. You will need to report the capital gain and file taxes accordingly in the states.
Avoid double taxation
To avoid and clarify concerns over double taxation, we will work with a panel of experienced tax lawyers to help our readers and clients optimise for the best tax outcome.
How to secure a mortgage as a US citizen buying property in Singapore ?
As a foreign investor, getting a mortgage from a local Singaporean bank could be a slightly more complex process.
Banks will assess the application on a case by case basis and limit maximum eligible loan quantum to between 50% to 60% of property value.
If I am a US Citizen who is also a Singaporean PR. Do I pay 0% or 5% ABSD ?
A common questions from our readers who are both US citizen and Singapore PR, is whether you will still enjoy the 0% ABSD tax treatment on your first property or do you have to pay 5% ABSD on your first property like a usual Singaporean Permenant Resident.
The answer is the tax treatment arising from free trade agreement would still hold. You will still enjoy 0% ABSD on your first property.
For assurance refer to latest responds from IRAS pertaining this issue.
Factors to look out for as a American buying a property in Singapore
#1 – Understanding the source of buyer demand in Singapore
The primary factor to note as a foreign property investor in Singapore is to understand where the buyer’s demand is coming from.
This will help you hone in on the location and property type to purchase.
A common mistake that many foreign buyers make is to purchase in a prime central location like Sentosa or Orchard.
These areas cater to buyers that are fellow foreign investors and due to the hike in buyer stamp duty since 2021 to 60%, there has been subdued demand from foreign buyers.
Current buyers demand us coming from local middle to high income Singapore Citizen or PR striving to purchase a homestay property in the city fringe or residential district of Singapore.
# 2 – Attributes you should be looking out for when selecting a property in Singapore
Down to selecting specific condo developments, you should be looking out for the following attributes that will optimise for maximal capital gain and rental yield
For capital gain
- A good and desirable neighbourhood
- Proximity to reputable schools
- Proximity to subway Station
For rental yield
- Proximity to international school
- Presence of expat community in the area
- Proximity to place of work
#3 – Purchasing in the right location
Even though Singapore is a small country with not more than 20 mins of car ride between districts. Not all residential housing districts are made equal.
For quick summary and reference we summarised the annualised capital gain and rental yield of private condominiums in different districts below.
Singapore residential districts by capital gain and rental yield
| Planning Area | District | Region | Average Rental Yield (%) | Average Annualised Capital Gain (%) | Sum of Rental + Cap Gain |
| Marina Bay | 1 | CCR | 4.08 | 0.5 | 4.58 |
| Tanjong Pagar | 2 | CCR | 4.3 | 1.4 | 5.7 |
| Outram | 2 | CCR | 0 | ||
| Sentosa | 4 | CCR | 3.8 | -0.5 | 3.3 |
| Bugis | 7 | CCR | 4.4 | 4.9 | 9.3 |
| Orchard | 9 | CCR | 2.9 | 2 | 4.9 |
| River valley | 9 | CCR | 3 | 2.5 | 5.5 |
| Bukit Timah | 10 | CCR | 3.1 | 3.9 | 7 |
| Holland Village | 10 | CCR | 3.2 | 2.7 | 5.9 |
| Newton | 11 | CCR | 3.3 | 2.1 | 5.3 |
| Novena | 11 | CCR | 3 | 2.2 | 5.2 |
| Clementi | 5 | OCR | 3.7 | 3.6 | 7.3 |
| Bedok | 16 | OCR | 3.3 | 2.8 | 6.1 |
| Tanah Merah | 16 | OCR | 3.9 | 2.8 | 6.8 |
| Changi | 17 | OCR | 3.7 | 2.9 | 6.5 |
| Pasir Ris | 18 | OCR | 3.9 | 3.4 | 7.3 |
| Tampines | 18 | OCR | 4.1 | 3.4 | 7.5 |
| Hougang | 19 | OCR | 4.4 | -1.6 | 2.9 |
| Serangoon | 19 | OCR | 3.2 | 4.1 | 7.4 |
| Kovan | 19 | OCR | 3.6 | 3.5 | 7.1 |
| Punggol | 19 | OCR | 3.9 | 4.4 | 8.3 |
| Sengkang | 19 | OCR | 3.8 | 5 | 8.8 |
| Ang Mo Kio | 20 | OCR | 3.2 | 4.4 | 7.6 |
| Boon Lay / Lake Side | 22 | OCR | 4.1 | 4.2 | 8.4 |
| Jurong East | 22 | OCR | 4.4 | 2.8 | 7.2 |
| Jurong West | 22 | OCR | 0 | ||
| Bukit Batok | 23 | OCR | 3.9 | 3.3 | 7.2 |
| Bukit Panjang | 23 | OCR | 3.5 | 2.7 | 6.2 |
| Choa Chu Kang | 23 | OCR | 3.7 | 4.2 | 7.9 |
| Hillview | 23 | OCR | 2.9 | 2.8 | 5.8 |
| Lim Chu Kang | 24 | OCR | 0 | ||
| Tengah | 24 | OCR | 0 | ||
| Woodlands | 25 | OCR | 4.3 | 3.1 | 7.4 |
| Lentor | 26 | OCR | 3 | 3.7 | 6.7 |
| Sembawang | 27 | OCR | 3.2 | 4.1 | 7.4 |
| Yishun | 27 | OCR | 3.9 | 3.3 | 7.3 |
| Queenstown | 3 | RCR | 4 | 3.5 | 7.5 |
| Harbourfront | 4 | RCR | 3.4 | 2.4 | 5.8 |
| Buona Vista | 5 | RCR | 4 | 1.6 | 5.7 |
| Toa Payoh | 12 | RCR | 3.6 | 3.2 | 6.8 |
| Boon Keng | 12 | RCR | 4 | 2.9 | 6.9 |
| Potong Pasir | 13 | RCR | 3.8 | 3.1 | 6.9 |
| Woodleigh | 13 | RCR | 3.6 | 2.7 | 6.3 |
| Dakota | 14 | RCR | 3.3 | 3.7 | 7 |
| Geylang | 14 | RCR | 0 | ||
| Kallang | 14 | RCR | 4.2 | 2.4 | 6.6 |
| Paya Lebar | 14 | RCR | 3.9 | 3.1 | 7 |
| Marina Parade | 15 | RCR | 3.4 | 3.4 | 6.8 |
| Bishan | 20 | RCR | 3.4 | 2.2 | 5.6 |
| Thomson | 20 | RCR | 3.1 | 3.4 | 6.5 |
| Lorong Chuan | 20 | RCR | 3.5 | 3.3 | 6.7 |
How to buy a property in Singapore as a US Citizen ?
Step #1 – Find a specialist realtor that specialises in helping foreign investor procure investment property
It is important to note that there are many types of realtor in Singapore, most focus on serving the local market procuring homestay property.
When procuring an investment property that has a strong emphasis on the research process and knowledge with regards to property conveyancing for foreign buyers. Make it a point to work with a specialist.
Step #2 – Making the on-ground visit
Real estate is a ground game, only by having a structured and detailed on ground visit you will gain a good grasp of what you are buying.
As part of our service offering, we arrange a 2 day ground tour for key investment locations in Singapore for qualified foreign buyers from the United States.
Step #3 – Making the Purchase
Having selected the property of your choice the purchase consists of issuing a cheque with 5% of property sale price to receive an option to purchase.
The remaining amount will then be paid and administered at the conveyancing lawyer office.
Specialist real estate services for US citizen buying a property in Singapore
Drop us a whatsapp text for an exploratory chat to find out more about buying an investment property in Singapore.
Our 4 step investment property procurement service comprises the following components.
- Part 1 – Introductory consult
- Part 2 – Research and shortlist
- Part 3 – Ground Tours
- Part 4 – Execution
