There are certain limits to investing in property in Singapore. Even in a lacklustre property market, private property is still exorbitantly priced and comes with a whole bunch of inconveniences, like ABSD and not being able to rent to tourists on Airbnb for less than 3 months. And with all the rules surrounding HDB ownership, affluent investors are usually precluded anyway.
Whether you’re thinking of securing a retirement home overseas or simply looking out for investment opportunities in nearby Southeast Asia, Australia or the UK, you might be toying with the idea of buying properties overseas. So what are some of the things that you should be looking out for?
Can I buy overseas property if I own an HDB in Singapore?
If you own an HDB flat, you can buy overseas residential property only after you have fulfilled the Minimum Occupation Period (MOP), usually 5 years, on your HDB flat. If you’re buying overseas commercial property, you don’t need to wait until the MOP is up to buy.
Once your MOP is up, you can buy as many subsequent residential private properties (whether in Singapore or overseas) as you want.
When you have committed to an overseas property purchase, you will not be able to purchase an HDB flat if you do not already have one.
If you wish to buy an overseas property, you will need to sell your HDB flat within 6 months of the purchase of your flat.
Conversely, if you wish to buy an HDB resale flat after buying overseas property, you will need to sell additional private property (whether in Singapore or overseas) on hand within 6 months.
The good news for Singaporeans who wish to retire across the Causeway is that it is fairly easy for foreigners to own Malaysian property.
You are generally allowed full ownership of most property residential property types so long as they have a value of at least RM1 million ($331,090 SGD).
You are prohibited from buying certain residential units that the government has identified as low and medium cost, to be set aside for lower income Malaysians, as well as Bumiputera properties or those situated on Malay Reserved Land.
In practice, this means that you might end up looking at more luxurious property developments. There are no restrictions on ownership of landed property (except in the above mentioned cases), so if you’ve always wanted to own a house, or are already eyeing that spanking new JB property, this is your chance.
Buying property in Indonesia for foreigners
Foreigners are generally not allowed to purchase property in Indonesia unless they have some kind of link with the country, such as by being PRs in Indonesia, working there or owning a business there.
Ownership of property by eligible foreigners in Indonesia is generally restricted to non-subsidised houses, certain apartment units or vacant land on which you can build your own house. Actually, this “ownership” is a “right to use” title and generally lasts for only 25 years at a time, renewable for up to 70 years.
To get around the short duration of leasehold titles, you can get an Indonesian representative to buy property on your behalf through a legally binding contract. You might also be able to buy property through your business if you have one in Indonesia.
Buying property in Australia for foreigners
Due to an influx of Chinese buyers raising property prices, Australia recently tightened the rules and it is now harder for foreign buyers to buy property there.
As a non-resident foreigner, you can only buy brand new property, so you’ll need to look out for new launches rather than check out the resale market.
Before making a purchase, you will first need to obtain approval from the Foreign Investment Review Board and pay a fee of $5,000 for properties whose value is less than 1 million AUD or $10,000 for properties over $1 million, with the cost of the fee rising by $10,000 for each additional million.
The catch is that just because you pay the fee doesn’t mean you will necessarily get the property you desire. If the sale falls through, too bad.
Banks are also allowed to lend only a maximum of 60% of the value of the home, which means you’ll have to be prepared to fork out a deposit of at least 40%.
Finally, you’ll have to pay stamp duty, which in certain states like Victoria has risen for foreign purchasers.
Buying property in Thailand for foreigners
Some property developers in Bangkok now hold launches in Singapore, which is a testament to the popularity of investing in Thai property.
Foreigners are technically only allowed to wholly-own apartment units rather than land. This is the route taken by most Singaporean investors who buy luxury condo units in Bangkok. Even then, 51% of each building must be owned by Thais. Once the quota has been reached, you won’t be able to buy a unit on the property unless another foreigner sells their share.
When it comes to buying landed property, the situation is trickier as foreigners are technically not allowed to own land. The available options for would-be landed property owners include getting a 30 year lease and setting up a Thai company that has at least 51% Thai ownership and then using the company to buy the property.
Buying property in UK for foreigners
There are few restrictions on foreign buyers in the UK, except when it comes to loans. So long as you have the cash, most residential property is free game. Landed property tends to be freehold, while condos and apartments are more likely to be leasehold.
The minimum deposit is 10%, but as a foreigner banks might only loan you as little as 60% of the property value.
Overseas property loans
You can opt to take out a property loan either in Singapore or in the country where you are buying property.
Don’t forget to consider the following:
Interest rates:Lower and more stable interest rates mean the mortgage will cost you less.
How much money you can borrow:If you take out a Singapore mortgage, the TDSR might limit how much you can borrow. The limits on overseas mortgages will depend on the rules in the foreign country.
Exchange rate:The future of the exchange rate will affect the overall cost of the mortgage to you.
Visit the launch, exhibition or actual property:If you’re investing in new or unbuilt property, visit the launch and try to get a feel for the actual unit instead of relying wholly on brochures or websites.
Visit the country:Inspect the area where the property is located. You don’t want to buy a property in a dodgy neighbourhood. For resale property, it’s obviously a good idea to inspect it in person.
Research the developer:Take extra care to research on the developer of your potential dream house. Check their reputation and past projects to avoid falling prey to an overseas property scam.
Research the market:Research the market, property type and area before you buy. For instance, in big cosmopolitan cities, a studio apartment in the city centre might be a better investment than a big house in the suburbs.
Are you thinking of buying property overseas? Share your plans and questions in the comments.
Are Foreigners allowed to own land in Thailand? Generally, foreigners are not allowed to directly purchase land in Thailand. Simply put, Thai laws prohibit foreigners from owning land in their own name, although theoretically there is an exception but it is yet to be seen in practice.
Foreign ownership of property is liberal (foreigners can own 100% of the property) in Malaysia as long as minimum requirements are met. In law, foreigners can own any type of properties EXCEPT the following: Properties valued less than RM1 million in most of the major states.
Individual countries have the right to place restrictions on non-citizens who want to own properties. Even if the country you're interested in allows foreigners to buy homes, you may be required to obtain special residence permits or register with a government agency before you can complete a home purchase.
The tourist visa must generally be used within 90 days from the date of issue and allows an initial stay of 60 days. After arrival in Thailand, a tourist visa may be extended at the discretion of an immigration officer once for an additional 30 days with the total period of stay no longer than 90 days.
You can become a permanent resident in Thailand after three years of legally staying in the country. To do so, you must apply for a permanent residence permit at the local Thailand Immigration Office. The residence permit never expires. In addition, you have to apply for a Thailand residence certificate.
3. Minimum property price for foreign investment in 2023. Generally speaking, a minimum purchase value of RM1 million is applied to all kinds of property in almost every Malaysian state, except for 3 (refer to the table below).
The State Authority consent letter is required before the residential property can be transferred to the foreigner. An application fee of RM1,000-00 only will be payable for each application for foreign consent to transfer.
Only after getting the approval the lawyer can start the transfer. This will take additional 90 working days. Generally it would take around 6-7 months to complete the purchase of a leasehold or master title property in total.
Do US Citizens Have to Pay Taxes on Foreign Property? All US citizens must file a yearly tax return regardless of where they live in the world. When filing your return, you must report your worldwide income. This includes any gain or loss from selling a foreign property and rental income.
Yes, you must report foreign properties on your U.S. tax return just like you would report any owned U.S. property. To do that, you first need to know what type of ownership you have because it affects what tax forms you must file.
China owns roughly 384,000 acres of U.S. agricultural land, according to a 2021 report from the Department of Agriculture. Of that, 195,000 acres, worth almost $2 billion when purchased, are owned by 85 Chinese investors, which could be individuals, companies or the government.
Since mortgages generally aren't available to U.S. buyers overseas—and most U.S. banks won't lend for purchases abroad—what are some alternatives if you want to buy a home in a foreign country? Here, we look at three ways to finance your foreign real estate purchase.
That means any gain from selling your primary residence overseas is usually tax-free, as long as you meet the occupancy requirements and your gain is below these thresholds: $500,000 – if you're married filing jointly. $250,000 – if you use any other filing status.
Along with diversification, one of the biggest draws to foreign investments is the potential for higher returns. In particular, emerging markets allow investors to benefit from higher rental yields and lower costs of living.
Anyone wishing to retire in Thailand must obtain a retirement visa. It's pretty easy to get a retirement visa once you're aged 50 or older if you have either a Thai bank account with a minimum of THB ฿800,000 (around USD $24,000) or a monthly income of THB ฿65,000 (around USD $2,000) and up.
Immigration officials will place an entry stamp, known as a social visit pass (visa), in your passport authorizing a stay of up to 90 days. Travelers may apply to the Malaysian Immigration Department for extensions, which may or may not be granted. You must exit Malaysia using the same passport that you used to enter.
Can I Have Thai Dual Citizenship? Yes, you can. The Thai Government does not require you to renounce your prior nationality after obtaining Thai Citizenship. Similarly, if you apply for the nationality of another country while holding a Thai passport, you can still keep both citizenship/passports.
Hundreds of thousands of foreigners live in Thailand and millions more visit every year. We estimate that there are about 100,000 Americans in Thailand at any given time.
How much it costs to live in Thailand per month will differ based on individual needs, wants, and budgets. As the food and utility costs are affordable in Thailand, you can expect to shell out anywhere between $650 to $3,000 per month — which is around 2.6 times less than what you'd spend living each month in the U.S.
You'll need a good-standing Malaysian citizen to sponsor you. You're able to bring in your spouse and children (under 18 years old) as dependents. After 5 years of stay in the country, they'll also be eligible to apply for PR.
Some property buyers choose to take up a housing loan to not raise any alarms or suspicion by LHDN as it is considered unusual for people to purchase property with cash outright. However, as long as your money comes from legal and ethical sources, you will not encounter any problems.
Malaysia is regulated by sector-specific regulations issued by the Government. There are currently minimal restrictions to FDIs in Malaysia and foreign investors can hold up to 100% of the equity in all investments in new projects in certain sectors.
The legal fees are calculated based on a percentage of the buying price of the property, which can be anywhere from 0.5% to 1%, depending on the value of the property. For a property bought at RM600,000, the legal fees would be: 1% x RM500,000 = RM5,000. 0.8% x RM100,000 = RM800.
Malaysia's median gross household income is RM5,873 according to the latest official statistics in 2019, while the median home price is RM300,000 as of 2021.
Henry Butcher Malaysia in its report says, “The residential property market is expected to face some headwinds and challenging conditions in 2023 and will probably register a slight slowdown in its pace of growth, but it is not likely to reverse gears along its recovery path.”
While the pandemic-induced recession of the past two years has badly affected the global economy across the board, house prices have been surging due to increasing demands shored up by ultra-low interest rates, government stimulus, savings accrued during lockdowns, shortage in housing supply and changing lifestyles.
Unfortunately, there are no states without a property tax. Property taxes remain a significant contributor to overall state income. Tax funds are used to operate and maintain essential government services like law enforcement, infrastructure, education, transportation, parks, water and sewer service improvements.
Do I have to pay taxes on foreign inheritance to the IRS? Do I have to pay taxes on foreign inheritance to the IRS? No, the IRS does not impose taxes on foreign inheritance or gifts if the recipient is a U.S. citizen or resident alien.
Technically, yes. Expats are subject to the same inheritance taxes as Americans living in the US. However, as mentioned above, the IRS only taxes inheritances that exceed the exemption threshold. As a result, most expats will not end up owing any federal taxes on an inheritance.
There are two basic types of forfeiture actions that can be initiated by the United States against foreign assets. One would be against assets that are located in a foreign country; the other would be against foreign assets located within this country.
Through FATCA, the IRS receives account numbers, balances, names, addresses, and identification numbers of account holders. Americans with foreign accounts must also submit Form 8938 to the IRS in addition to the largely redundant FBAR form.
Who owns the most land in the U.S.? While not private landowners, the U.S. federal government owns about 640 million acres of land, which is 28% of the land in the country. Out of all of the states, Nevada has the highest percentage of federally owned land.
Of the 1.3 billion acres of private agricultural land in the United States, foreign entities fully or partially owned roughly 40 million acres valued at $74 billion in 2021.
America Mortgages offers conforming loans to U.S. Expats living and working overseas. These loans are identical to walking into your local U.S. bank but very specific to earning your income abroad as an expat overseas.
Well, if you qualify for the Foreign Tax Credit, the IRS will give you a tax credit equal to at least part of the taxes you paid to a foreign government. In many cases, they will credit you the entire amount you paid in foreign income taxes, removing any possibility of US double taxation.
When Americans buy stocks or bonds from a company based overseas, any investment income (interest, dividends) and capital gains are subject to U.S. income tax.
Nonresident aliens are subject to no U.S. capital gains tax, but capital gains taxes will likely be paid in their country of origin. Certain nonresident aliens that are in the U.S. for more than 183 days will be subject to capital gains taxes.
With a low-cost entry point and global markets on the rise, investing in overseas property can offer significant returns. Additionally, some foreign countries may provide tax incentives for non-residents who purchase real estate within their borders.
Thailand's investor visa is a de-facto permanent residence. You can indefinitely extend it for another one-year as long as you maintain the original ten million baht worth of real estate, bonds, or deposits.
Land ownership in Thailand is governed by the Land Code Act and under Thai land laws only Thai nationals are allowed to own land or have a confirmed right of possession of land. Foreigners may not own land unless there is a treaty or exemption allowing the foreigner to own land in Thailand (section 86).
As a result, a foreigner can obtain a residence permit together with the real estate for 5, 10 or 20 years. With such a residence permit you can enter the country an unlimited number of times, live in Thailand and enjoy various privileges.
With attractive property prices, increased rental demand, and tourist numbers on the rise, buying property in Bangkok remains a profitable investment opportunity.
When moving to Thailand, you'll need to get a visa – a requirement by Thai Immigration Law. Most people who move to Thailand do so with a tourist visa (valid for 60 days) or a non-immigrant visa which is initially valid for 90 days and which will then need to be extended through Thai Immigration.
Buying property in Thailand can be a great investment, but it can also be a complicated undertaking – especially if you are not native to the country. One of the best things you can do to ease the process and protect your investment is to hire a local lawyer.
It is to be stated that there is no general annual property tax in Thailand, but if individual owners rent out or put their property to commercial use, housing and rent tax is imposed at the rate of 12.5% yearly.
Foreigners aren't permitted to buy land in Thailand, but you can buy apartments and condominiums as a non-citizen. However, foreigners can't make up more than 40% of the apartment block or condo's total unit owners. Interestingly, you can buy the whole building as a foreigner, but not the land on which it is built.
Bangkok is a sought-after place for expats and native Thais alike to live and work, and it is debatably recognized as Thailand's economic centre. As an expat hub, Bangkok is the best places to invest in real estate in Thailand. The Chao Phraya River delta is where the capital city of Thailand is situated.
Given restrictions on land ownership, foreigners cannot own a villa outright, rather they must purchase a leasehold agreement. In general, this process is straight-forward and you should expect an offer of a 30-year lease on any villa or home, which is the maximum duration for any leasehold in Thailand.
Many prefer retiring in Thailand. Its beautiful beaches, delicious food, affordable prices, and tropical climate simply makes it the closest thing to paradise. This is why expats and retirees from all over the world prefer enjoying the remaining years of their lives in the country.
There is no prohibition on nationality, and any foreigner legally admitted to entering Thai territory can purchase a condominium which is generally a freehold property.
How much money do I need to live comfortably in Thailand? According to Numbeo, the average Thailand living cost is around 36.73% lower than the U.S. Hence, you can live in Thailand comfortably for around $1,500 a month.
We recommend that you change some money into Baht on arrival and it is advisable to carry local currency in small denominations (20, 50 and 100 Baht notes) for tipping and the purchase of small items.
Introduction: My name is Fr. Dewey Fisher, I am a powerful, open, faithful, combative, spotless, faithful, fair person who loves writing and wants to share my knowledge and understanding with you.
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