Foreigners Under Singapore Free Trade Agreements to Pay Same Citizen Buyer Stamp Duty
Following with the news of the introduction of Buyer’s Stamp Duty, IRAS has came out with the circular to clear up on the property counts and news of some exemption to the new cooling measure introduced on 8th of December 2011.
Citizens of five countries that have free trade deals with Singapore, including the United States and Switzerland, will be treated as Singaporeans for the purposes of the new stamp duty measures. When they buy a private home, Americans, Swiss and nationals from Liechtenstein, Norway and Iceland will be treated the same as Singapore citizens.
This will enable them to avoid the new 10 per cent additional buyer’s stamp duty that foreigners now have to pay when they buy a private home.
Free trade agreements usually ensure that a country’s citizens are accorded certain trade protections when they are in the partner nation.
The tax guide basically spells most of the scenario how the Buyer’s Stamp Duty will work and which cases could apply for remissions. Fellow Realtors are highly encouraged to download and read it through to understand the different scenarios so you could go through with your clients.