Can I Use a Company to Buy Residential Property in Singapore
- a22162
- Aug 3, 2024
- 2 min read
Can I Use a Company to Buy Residential Property in Singapore
A company can purchase residential property in Singapore. However, it's crucial to be aware of the significant implications and costs involved.
Key Considerations:
Additional Buyer's Stamp Duty (ABSD): Companies face a hefty ABSD of 35% when purchasing residential property in Singapore. This is significantly higher than the rates for individuals.
Loan-to-Value (LTV) Ratio: The maximum loan you can obtain for a residential property purchased under a company is 20%. This is much lower than the LTV for individuals.
Qualifying Certificate (QC): Foreigners and Singapore Permanent Residents (PRs) buying residential property need a QC. Companies, regardless of ownership, are typically treated as foreigners for this purpose.
Purpose and Structure: Carefully consider why you want to purchase the property under a company. There might be tax implications or other factors to consider.
When Might It Be Considered?
While not common, there might be specific circumstances where buying a residential property under a company could be beneficial:
Investment purposes: If you plan to rent out the property, owning it under a company might offer certain tax advantages or asset protection benefits.
Multiple owners: If multiple individuals want to own the property, forming a company can simplify ownership and management.
How Bestar can Help with Buying Residential Property Under a Company in Singapore
Can I Use a Company to Buy Residential Property in Singapore
Bestar is invaluable when considering purchasing residential property in Singapore under a company structure. We can provide expert guidance on the complex legal and financial implications.
Bestar can assist with:
Company Formation: Setting up a company with the appropriate structure for property ownership.
Tax Implications: Assessing the potential tax consequences of owning the property under a company, including ABSD, income tax, and stamp duty.
Tax Planning: Developing strategies to minimize tax liabilities associated with the property purchase and ownership.
Structuring: Advising on the optimal company structure to achieve tax efficiency.
Compliance: Ensuring that all tax obligations related to the property are met.
Financial Analysis: Evaluating the financial viability of the investment, considering tax implications and other factors.
By working closely with Bestar, you can make informed decisions, mitigate risks, and optimize your investment.
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