Tax is a natural expense that comes with owning a property. But what if you could alleviate your tax bill? Fortunately, Singapore offers property tax exemptions that can benefit both residents and overseas investors. Let's explore how you can unlock these tax breaks!
In this article:
What is property tax exemption?
Think of property tax exemption as a perk that reduces or eliminates your annual tax burden. It should not be confused with a rebate, which is a one-off relief. The exemption can apply to various property types, though there are specific eligibility criteria.
Support for homeowners
If you own a residential property, then there's a concession for you! There is an exemption scheme that targets owner-occupied homes. The extent of the exemption depends on your property's Annual Value (AV), an estimate of its yearly rental income. As of 2024, properties with a low AV of up to $8,000 are completely exempt from property tax. This exemption may change in the future, so be sure to check back here for updates. You should also pay attention to the eligibility requirements below.
You (the owner) must occupy the property
The property is not owned by a company, trust, association or body of persons
The property is not a commercial or industrial building or land
And remember, you can also apply for housing grants for additional financial relief.
Registered charities
Certain commercial and industrial properties can also qualify for exemptions. This applies to buildings that are used:
As a place for public religious worship
For a public school receiving grants-in-aid from the government
For charitable purposes, or
For purposes conducive to social development in Singapore
If only parts of the building qualify, then partial exemption may be granted.
Final thoughts
Property tax exemption plays a significant role in shaping Singapore's real estate landscape. Reducing tax burdens for property owners incentivises home ownership and investment, fostering market stability and growth. It also provides financial relief to vulnerable groups, social services and small businesses. Understanding these exemptions might just help you save some budget and avoid getting taxed.
