In a move seen as targeting the ultra-high networth investors (UHNIs) who purchase homes under opaque structures to avoid such levies, Singapore has imposed extra property taxes.
Ministry of Finance of Singapore has imposed a significant 35% additional buyer’s stamp duty (ADSB) on homes transferred into a trust where there’s no identifiable beneficial owner in a move widely seen as a crackdown on ultra-high net worth individuals who use opaque structures.
It said in a statement that the ABSD of 35% will apply on any transfer of residential property into a living trust where the transfer occurs on or after 9 May 2022.
The latest tax is meant to close a loophole used by people who have been purchasing multiple homes under trusts where it isn’t clear who the beneficial owner is, thus avoiding additional taxes, according to analysts.
The Ministry of Finance further stated that the ABSD will be payable even if there is no identifiable beneficial owner at the time the residential property is transferred into a trust.
“ABSD aims to promote a stable and sustainable residential property market, and as such, it should apply to transfers of residential properties into all living trusts, irrespective of whether there are identifiable beneficial owners of the residential properties transferred into such trusts.”
