We know that foreigners may have to pay additional buyer stamp duty or ABSD for residential properties in Singapore. As this is the case, some foreigners may want to invest in alternative asset classes such as industrial properties. Read on to find out if foreigners are actually eligible to purchase industrial properties in Singapore.
Foreigners Eligible
Foreigners are actually eligible to purchase industrial or commercial properties such as warehouses or factories in Singapore if they are looking at alternative asset classes in Singapore. While industrial properties may not seem familiar to many, there are still investors who like to put their money in this category of properties due to the rental returns it may bring.
No ABSD Unlike Residential Properties
Unlike residential properties, there is no Additional Buyer Stamp Duty or ABSD applicable for foreigners purchasing industrial properties or non-residential properties in Singapore. For this reason, some foreigners may choose to invest in industrial or commercial properties as they would not have to pay additional buyer stamp duties. However, you may note that seller stamp duty may be applicable for industrial properties.
GST Applicable
As industrial properties are also non-residential properties, they may be subject to Goods & Services Tax or GST if the seller is GST registered. You may note that most sellers especially the reputable ones in Singapore are usually GST registered companies and hence GST would be applicable if you were to purchase the property from these companies. However, there are also some companies who GST register in order to claim back the GST amount incurred from the purchase of the industrial or commercial property.
While foreigners may be eligible to purchase industrial or commercial properties in Singapore without incurring additional buyer stamp duties or ABSD, it is always important to understand the market before committing to any real estate purchases.