Why Singapore?

There are many superlatives attributed to Singapore and the city-state has been consistently ranked high for a number of reasons in reports from all over the world.



Because, Singapore has been ranked:

#1 World's easiest place to do business
(Source: World Bank Report, 2007)
#1 Best Business Environment in Asia Pacific
(Source: EIU Country Forecast, January 2007)
#1 Best Labour Force
(Source: BERI, 2007)
#1 Best Investment Potential in Asia
(Source: BERI, August 2006)
#1 Best in avoiding bureacracy and red tape in Asia
(Source: Political and Economic Risk Consultancy, June 2006)
#1 World's Top 20 Most Globalised Nations
(Source: A.T. Kearny/ Foreign Policy Magazine Globalisation Index 2006)
#1 Best place to live for Asia expatriates
(Source: ECA International, 2006)

Source


Situated at the crossroads of international trade routes, Singapore is a top location for foreign investors, be they multinationals, part of Europe’s dynamic middle-market or technology start-ups. The on-going liberalisation of markets and industries and the privatisation of government-linked companies (‘GLCs’) offer excellent opportunities to invest in Singapore and the neighbouring markets. Integration of the 10 ASEAN countries under a free trade area (AFTA) with a population of more than 500 million people is on track. Free Trade Agreements with the US, Australia, Japan and many other countries provide easier access to the global market.

From Singapore you can access a market size of 2.8 billion people within 7 hours flight time. It its located within the Association of Southeast Asian Nations (ASEAN) representing a combined market of more than 500 million people. Singapore's seaport offers transport to more than 600 ports in 123 cities. Changi Airport won the Best Airport Award four times in a row and links to 140 cities in 50 countries.

Useful Resources:
Economic Development Board (EDB)
Infocomm Development Authority Singapore (IDA)
Inland Revenue Authority of Singapore (IRAS)
International Enterprise Singapore (IES)
Media Development Authority (MDA)

Is Singapore landlord friendly?

Is Singapore landlord friendly?

As there is no law governing the relations between landlords and tenants Singapore can be regarded as landlord friendly. All terms such as the deposit, the length of a lease and the right to termination can be freely negotiated in a contract. Disputes are mainly resolved through mediation under the Small Claims Tribunal.

However, you should note, that in Singapore the landlord is personally responsible for his tenant's legal residential status and should ask the tenant prior to lease commencement to supply the following documents:

-Copy of Employment/Dependent/Student passes for all occupants
-Copy of Passport for all occupants
-Confirmation of Employment Letter (in the case of a personal lease)
-Registration of Company Certificate (in the case of a corporate lease)

Property Management

Why should you engage the services of a professional property management company?

Most of us do lack the experience needed for the day-to-day management of a property, especially if it comes to property you own in a foreign country. Property managers know the rental market and can assist you to maximize your income. They will source and evaluate potential tenants and negotiate rental agreements according to local laws and regulations.

Property managers respond to the tenant's requests and coordinate and handle emergency and routine repairs and - above all- help you to avoid unnecessary repairs which will cut your expenses.

Property managers even offer to handle your taxes, determine profitability and present monthly statements on your rental income and expenses.

In Singapore the fees for this service depend on the number of units, type of property, location and any specific requirements from owners. Typically, for a 1 or 2 bedrooms apartment in prime district, the fees are about S$250 per month.

Tax on Rental Income

Tax is payable to the government on rental income of a property. The owner of the property receiving the income is responsible for declaring and paying this tax.

The total rent received from the tenant must be declared. However, expenses can be claimed against rental income of the property. Expenses incurred during vacancy period cannot usually be claimed unless the owner can show that they have exercise best effort in letting out the property, these expenses may be considered.

The total rent and deductible expenses claimed must be reporedt when filing income tax returns. Tax will be calculated on the net rent which is the total rent received less total deductible expenses.

The following are deductible for tax purposes:

-interest on a mortgage load

-property tax

-fire insurance on the property

-commission paid on getting a tenant

-cost of renewing a lease or getting a new tenant (except for the first tenant)

-tenancy works in getting the property ready for new tenant like painting, installing curtains, etc

-monthly maintenance charges to management corporations

Note: There are situation where income derived through collection of rent may be taxed in Singapore and again in native homeland, please seek legal advise from an accountant.

Useful Resources:

Inland Revenue Authority Singapore

Guide to Property Tax for Private Residential Property

Taxes for Foreigner owning a Property in Singapore

All about Property Tax

Investor's Guide on Property Tax