Property Tax and Rental Income Tax for Foreign Owners

Two separate tax streams apply once you own SG property: annual property tax (regardless of whether you rent it out) and income tax on rental income (if you do). Here is how both work for foreign owners.

Annual Property Tax

Property tax is assessed on the Annual Value (AV) of your property — IRAS's estimate of the gross rent it could fetch if rented out unfurnished. AV is reviewed yearly.

Tax rate depends on whether you live in the property:

Owner-occupier rates (progressive) — for citizens, PRs and foreigners who actually live in the unit:

• 0% on first S$8,000 of AV
• 4% on next S$22,000
• 6% on next S$10,000
• 10% on next S$15,000
• 14% on next S$15,000
• 20% on next S$15,000
• 26% on next S$15,000
• 32% above S$100,000 (as of 2024)

Non-owner-occupier rates — applies if you rent it out OR leave it empty:

• 12% on first S$30,000 of AV
• 20% on next S$15,000
• 28% on next S$15,000
• 36% above S$60,000 (as of 2024)

A typical S$2M condo might have an AV of S$36,000-48,000, putting you in the upper non-owner-occupier brackets — expect annual property tax of S$4,800-9,000 for a non-owner-occupier.

Income Tax on rental income

Rental income (after allowable deductions) is taxed as ordinary income. The deductions you can claim include:

• Property tax paid
• Mortgage interest (not principal)
• Property management fees
• Repairs and maintenance (not improvements)
• Property insurance
• Agent commission for finding tenants

Net rental income is then taxed at your applicable rate:

Tax-resident (>= 183 days in SG in the calendar year) → progressive 0%-24% (2024 bands)

Non-resident (< 183 days) → flat 24% on rental income, with limited deductions

Most foreign property owners who don't live in SG are non-residents → flat 24% on net rental income.

Worked example

S$5,000/month rent → S$60,000 gross annual rent.

• Property tax: -S$6,000
• Mortgage interest (75% LTV @ ~3.5%): -S$52,500
• Management + repairs + insurance: -S$3,000

Net rental income: -S$1,500 (a loss for tax purposes, since mortgage interest is high).

In practice, foreign buyers with heavy mortgages often run a small paper loss for the first few years. The loss cannot be carried forward unless you are a tax resident.

Withholding tax for non-resident landlords

If you are not in Singapore, your agent or tenant is legally required to withhold 15% (or your applicable non-resident rate) and remit it to IRAS on your behalf. You then file an annual return to reconcile.

This is a real obligation — make sure you have a Singapore-based managing agent or representative who handles this correctly. IRAS audits non-resident landlords.

What to do next

1. Get a tax estimate from your property lawyer or a Singapore-based accountant before buying, not after.
2. If you'll rent it out, build the property tax + 24% income tax into your yield math.
3. If you're using a managing agent, confirm in writing that they handle non-resident withholding and IRAS filings.