Singapore's real estate market attracts investors and professionals globally, including those from India. While the city-state allows foreigners to purchase property, it's important to understand the specific regulations and eligibility criteria. Here's a guide for Indians looking to buy a home in Singapore:

Eligibility and Property Types

• Foreigners Defined: In Singapore, a foreigner is anyone who isn't a Singapore citizen, a Singapore company, a Singapore limited liability partnership, or a Singapore association. This includes Singapore Permanent Residents (PRs).
• Permitted Properties: Foreigners can typically buy condominiums and apartments in private developments without needing prior approval.
• Restricted Properties: Foreigners generally can't buy landed properties like bungalows, terrace houses, and semi-detached houses outside of Sentosa Cove. To purchase landed property, approval from the Land Dealings Approval Unit (LDAU) is needed. Approval isn't usually granted unless the buyer has made significant contributions to Singapore's economic, scientific, or technological development.
• HDB Flats: Non-Permanent Residents (Non-SPRs) can buy new HDB (Housing Development Board) flats, but not resale HDB flats or new Executive Condominiums (ECs). Resale ECs with a Minimum Occupation Period (MOP) of five years are permitted.
• Executive Condominiums (ECs): Foreigners can buy Executive Condos (ECs) on the open market after the 11th year of the EC project.
• Sentosa Cove: A notable exception exists in Sentosa Cove, where foreigners can buy landed properties.
• Commercial Properties: There are generally no restrictions on foreigners owning commercial properties such as office buildings and shops.

Financial Considerations

• Buyer's Stamp Duty (BSD): Everyone buying property in Singapore must pay Buyer's Stamp Duty (BSD). BSD varies based on the property value:
  • 1% for properties under 180,000 SGD.
  • 2% for properties between 180,000 SGD and 360,000 SGD.
  • 3% for properties above 360,000 SGD.
• Additional Buyer's Stamp Duty (ABSD): Foreigners must also pay an Additional Buyer's Stamp Duty (ABSD). As of April 2023, the ABSD rate for foreigners is 60% of the property value.
• Conveyancing Fees: Legal fees (conveyancing fees) are approximately 0.30% of the property price, with a minimum fee of 1,800 SGD.
• Mortgages: Foreigners are eligible for bank loans in Singapore, potentially covering up to 75% of the property's purchase price. Loan eligibility is influenced by income, employment status, and creditworthiness. Banks may repossess the property if you default on repayments, so it's wise to have at least 12 months of savings set aside.
• Loan-to-Value (LTV): The Loan-to-Value (LTV) ratio, which determines the maximum amount a bank can lend, typically ranges from 50-70% for foreigners, but this varies by bank.

Purchasing Process

1. Negotiation and Price Agreement: Negotiate the property price with the seller.
2. Option to Purchase (OTP): Secure the property with a 1% down payment of the purchase price via an OTP, which is valid for a specified period.
3. Exercise OTP: Confirm the purchase by paying the remaining 9% down payment within the OTP timeframe.
4. Legal Verification: A lawyer will verify the property ownership and saleability.
5. Apply for a Bank Loan: Explore financing options, keeping in mind the LTV limits for foreigners.
6. Engage a Property Agent: Although not required, it is advisable to hire a buyer's agent to assess and negotiate pricing and navigate the paperwork, taxes, and fees.

Other Important Considerations

• No Residency Requirement: You don't need to be a resident of Singapore to buy property. However, owning property doesn't automatically grant you any special residential status.
• Visa Requirements: There's no specific visa requirement for buying property. If you plan to live in the property, you'll need to obtain the appropriate visa or residency permit separately.
• Residential Property Act: This act restricts what foreigners can buy, and acquiring certain properties might require meeting specific legal and economic contributions to Singapore.
• Tax and Estate Laws: Singapore has specific tax and estate laws for property owners, including foreigners. While there's no capital gains tax, other taxes like BSD and ABSD apply.
• Exit Strategy: If buying as an investment, consider the potential for capital appreciation and rental income. Have an exit strategy in mind, such as selling, renting, or transferring the property to a family member.
• Professional Advice: It’s recommended to engage an experienced property agent and legal professional to navigate the process smoothly.