In a move seen by analysts as targeting the super or ultra wealthy, Singapore has imposed extra property taxes so as to prevent these super or ultra wealthy to purchasing homes under opaque structures to avoid such levy schemes.
The Ministry of Finance said late Sunday that the relevant tax authorities will impose a 35% additional buyer’s stamp duty on homes transferred into a trust where there’s no identifiable beneficial owner, a normal practice by the super or ultra wealthy for obvious tax avoidance reason.
The latest tax will take into immediate effect this week, to close a loophole exploited by super or ultra wealthy who have been purchasing multiple homes under trusts with no clear name of who the beneficial owner is with the sole purpose of avoiding additional taxes.
Singapore is best known as one of the world’s property havens, its residential market heated up last year, with prices surging the most within a decade which at the same registered sales of high-end bungalows grow to about 300%.
The Ministry of Finance said in response to that the extra tax announced has the intention to ensure a stable and sustainable residential property market.
Such new ABSD thus will not affect new condo launch of The Arden and Sceneca Residence.
