In most cases, buying residential property under a company name in Singapore ends up costing more, not less. Entities pay a flat 65 percent Additional Buyer’s Stamp Duty with no remission, cannot tap CPF, and are usually underwritten by banks on commercial lending terms rather than standard home loan rates. I get asked about this a few times a year, usually by business owners or families thinking about holding structures, so I want to walk through what actually happens when you put a property under a company name, where it can still make sense, and where it almost never does.
Why This Question Comes Up
Most people who ask me about buying under a company name are not trying to dodge anything illegal. They have heard, often secondhand, that a company structure might sidestep the higher ABSD tiers that apply once you already own property personally, or that it offers some privacy or asset protection benefit. There are also genuine cases, such as a family business that wants to hold a property as a long-term asset on its balance sheet, or a family office setting up succession structures across generations.
The confusion usually comes from mixing up personal ABSD tiers with entity ABSD. As an individual Singapore Citizen, your third property is taxed at 30 percent ABSD. It is natural to assume a company, being a separate legal person, might reset that calculation. It does not work that way, and the entity rate is actually higher than even the highest individual tier.
The ABSD and Stamp Duty Reality for Corporate Buyers
Any entity buying residential property in Singapore, whether it is a local company, a foreign company, or a trust structure classified as an entity, pays ABSD at 65 percent. This applies from the first property the entity buys, with no stepped tiers and no remission available. The married-couple remission that lets a Citizen household buy their next home first and get a refund within six months of selling their existing one only applies to individuals, not entities.
Buyer’s Stamp Duty is charged on the same tiered schedule regardless of who the buyer is, so that part does not change. What does change is property tax. A company cannot occupy a residential unit as its own home, so owner-occupier property tax rates are never available. The unit is taxed at non-owner-occupied residential rates for as long as the company holds it, which is a recurring annual cost on top of the upfront stamp duties.
Financing a Property Purchase Through a Company
Banks generally do not treat a corporate purchase of residential property as a standard home loan. Instead, it is assessed more like a commercial or investment facility, looking at the company’s financial statements, cash flow, and often requiring personal guarantees from directors or shareholders. The Loan-to-Value tiers of 75, 45 and 35 percent that apply to an individual’s first, second and third housing loans are built around personal ownership, so a corporate applicant should not assume the same ratios will apply.
TDSR and MSR are frameworks designed around an individual’s income and existing debt obligations, so they do not map cleanly onto a company borrower. Each bank sets its own underwriting criteria for this kind of facility, and terms can vary quite a bit between lenders. CPF savings cannot be used at all, since CPF housing withdrawal rules are tied to an individual’s own purchase, not a company’s. If you are exploring this route, I would speak to your bank’s commercial or business banking team directly rather than assume residential mortgage terms will carry over.
Landed Property and the Residential Property Act
Landed homes in Singapore, such as terraces, semi-detached and bungalows, fall under restricted residential property as defined by the Residential Property Act. A Singapore Citizen individual does not need approval to buy one, but a company, including one incorporated in Singapore, is generally treated differently and may need approval from the Singapore Land Authority before it can purchase such a property. This is separate from the ABSD question entirely, and applies even if every shareholder and director of the company is a Singapore Citizen.
Non-landed private property, such as condominium units and apartments, is typically not classified as restricted property, so a company does not usually need SLA approval to buy one. ABSD at the entity rate and non-owner-occupied property tax still apply either way. Because eligibility can depend on the specific shareholding structure and nationality mix of the company, I always recommend confirming the exact position with SLA and a property lawyer before signing anything, rather than relying on general assumptions.
When a Company Structure Might Still Be Considered
There are legitimate scenarios where holding property through a company makes sense, usually tied to an existing business need rather than a workaround for ABSD. A company that already owns commercial or mixed-use premises, or a family office structuring long-term holdings as part of a broader succession plan with proper legal and tax advice, might accept the higher upfront cost as part of a bigger picture that goes beyond any single property transaction.
What I would caution against is using a company purely to get around the ABSD rate that would otherwise apply to your next personal purchase. The entity rate of 65 percent is higher than the highest individual tier, financing is less straightforward, and you lose access to CPF entirely. For most families thinking about upgrading or adding a second property, looking at ownership structures between spouses, or using legitimate decoupling strategies, tends to be a more direct and lower-cost path than incorporating a company around a single home. If you are weighing this kind of decision, it is worth sitting down with a property lawyer and a tax advisor before committing to anything irreversible.
Common questions
Does a company have to pay ABSD when buying property in Singapore?
Yes. Any entity, including a Singapore-incorporated company, pays a flat 65 percent Additional Buyer’s Stamp Duty on residential property purchases, with no remission available. This applies from the very first property the entity buys.
Can a Singapore company buy landed property?
Landed residential property is restricted property under the Residential Property Act, and a company generally needs approval from the Singapore Land Authority to purchase it, even if it is locally incorporated and fully owned by Singapore Citizens. Always confirm the specific position with SLA before proceeding.
Can I get a home loan if I buy property under a company name?
It is possible, but banks typically treat it as a commercial lending matter rather than a standard residential mortgage, with its own Loan-to-Value ratios, underwriting criteria and often a requirement for personal guarantees. CPF savings cannot be used for a corporate purchase.
Is buying under a company name a way to avoid ABSD on a second or third property?
No. The entity ABSD rate of 65 percent is higher than even the top individual tier of 30 percent for Singapore Citizens, so using a company structure usually increases your upfront tax cost rather than reducing it.
Why would anyone buy property through a company then?
Usually it is tied to an existing business need, such as holding commercial or mixed-use premises, or part of a broader family office or succession planning structure set up with professional legal and tax advice, rather than a way to lower the cost of a single home purchase.
If you are a business owner or a family thinking through how to structure a property purchase, whether that is a straightforward upgrade, a second property, or something tied to succession planning, I am happy to walk through the practical side with you, including how financing and ABSD actually play out for your specific situation. Feel free to reach out on WhatsApp or drop me a message, no pressure at all.