Property Tax in Singapore: Guide for Foreign Companies

Singapore is one of the most heavily regulated and capital-intensive property markets for foreign buyers. Most overseas investors and businesses therefore hold real estate through corporate structures, ranging from Private Limited Companies (Pte Ltds), Special Purpose Vehicles (SPVs), and family offices.

This guide explains how Singapore’s property tax system works when property is owned by a company. We’ll cover how the Inland Revenue Authority of Singapore (IRAS) determines Annual Value, how tax rates apply across different property types, and filing requirements for foreign entities to stay compliant.

Annual Value (AV): The Base of Your Property Tax

When your company owns property in Singapore, IRAS assigns it an Annual Value (AV). This represents the estimated gross rent the property could achieve on the open market, excluding furniture, fittings, and maintenance charges.

This figure forms the base of your property tax:

Annual Property Tax = Annual Value (AV) × Applicable Tax Rate

To determine the AV, IRAS looks at comparable market rents. For example, if your Pte Ltd owns a Grade-A office in Raffles Place, IRAS looks at what similar offices in the same building or area are renting for. If those units typically lease at around S$8 per square foot per month, IRAS will base your AV on that market level, even if:

• the unit is vacant,
• you gave a tenant a discount, or
• your own staff uses the space.

The same approach applies to residential property held by companies. If your company owns a condominium that could rent for S$6,000 a month, IRAS will usually set the AV at around S$72,000 per year, even if no rent is being collected.

Because AV is based on market benchmarks, IRAS may over- or under-estimate it. If you believe the figure does not reflect current market rents or the condition of your property, you can object to the AV within 30 days of the Notice of Assessment.

How IRAS Values Specialised Properties

What if you own a specialized asset, like a purpose-built factory or a data center, where there are no comparable rentals? In these cases, IRAS uses a different method called the “Contractor’s Test.” This method estimates what a tenant would pay based on:

• the value of the land,
• the cost of constructing the building, and
• a standard return on capital.

Pro Tip: If you renovate your office or market rents in Singapore’s Central Business District (CBD) spike, your AV, and consequently your tax bill, will increase. Emerhub tax experts help monitor these changes and IRAS notices to ensure any objections are filed within the strict 30-day window.

Property Tax Rates for Foreign Entities in Singapore

​​Once IRAS sets your property’s Annual Value (AV), the tax you pay depends on how the asset is classified. Singapore uses the same framework for local and foreign owners, but for companies, one distinction matters more than anything else: how you use the property.

IRAS places every property into one of three categories:

• Owner-occupied residential (For individuals living in their own homes)
• Non-owner-occupied residential (Rental units, vacant homes, and company-owned residences)
• Non-residential (Commercial and industrial properties)

The most critical distinction for a business owner is that a company, being a “juristic person,” can never physically reside in a property. Consequently, even if your expatriate staff or directors occupy a corporate-owned unit, you are ineligible for lower tax bands and will be taxed at the non-owner-occupied rates. We break this down in the sections below.

A. Owner-Occupied vs Non-Owner-Occupied Residential Rates 

The difference between owning a residential unit as an individual versus through a company comes down to the “Owner-Occupier” concession. While individuals can benefit from lower progressive rates to support their primary residence, corporate entities must manage residential assets under a much steeper tax schedule.

Below is an overview of the progressive tax bands effective January 2025.

1. Owner-Occupier (OO) Tax Rates 

These concessionary rates are designed for natural persons (both local and foreign) who live in their own property.

Portion of Annual Value (AV)	Tax Rate	Tax Payable
First S$12,000	0%	S$0
Next S$28,000 (up to S$40,000)	4%	S$1,120
Next S$10,000 (up to S$50,000)	6%	S$600
Next S$25,000 (up to S$75,000)	10%	S$2,500
Next S$10,000 (up to S$85,000)	14%	S$1,400
Next S$15,000 (up to S$100,000)	20%	S$3,000
Next S$40,000 (up to S$140,000)	26%	S$10,400
Above S$140,000	32%	S$19,020

2. Non-Owner-Occupier (NOO) Tax Rates

These apply to all corporate entities. Because a company cannot occupy a home, any residential asset held by your Pte. Ltd. company, or SPV, is taxed under these higher, non-concessionary bands.

Portion of Annual Value (AV)	Tax Rate	Tax Payable
First S$30,000	12%	S$3,600
Next S$15,000 (up to S$45,000)	20%	S$3,000
Next S$15,000 (up to S$60,000)	28%	S$4,200
Above S$60,000	36%	S$10,800

B. Non-Residential Property Rates (Commercial and Industrial Assets) 

Most foreign-owned property in Singapore is held in commercial and industrial real estate. Offices, business parks, warehouses, factories, and logistics hubs form the foundation of how global companies operate here.

IRAS taxes these assets at a flat 10% of Annual Value. Unlike residential property, where rising valuations can push you into higher tax bands of up to 36%, commercial assets stay on a single rate. Your tax bill moves with the asset’s value, but it does not jump into steeper brackets simply because the property becomes more valuable.

Commercial and industrial property also sits under a far more open ownership regime. Foreign-owned companies can acquire these assets without the restrictions of the Residential Property Act and without triggering the 65% Additional Buyer’s Stamp Duty that applies to corporate residential purchases.

On a prime asset, that difference alone can change the economics of a deal by tens of millions of dollars. This is why commercial property remains the most capital-efficient way for foreign firms to own real estate in Singapore.

C. Mixed-Use Property Tax (Shophouses)

Shophouses combine business frontage with upper-floor space that may be used as offices, accommodation, or rental units. Foreign companies often use them for retail brands, hospitality concepts, professional firms, and family-office operations that need both presence and flexibility.

In a mixed-use scenario, IRAS doesn’t treat a mixed-use shophouse as a single asset. It splits the building by approved floor area:

• Commercial portion: Taxed at the predictable flat 10% rate
• Residential portion: Subject to the progressive 12%–36% non-owner-occupied rates

Crucially, when a shophouse carries “Commercial & Residential” zoning, it counts as restricted property under Singapore’s Residential Property Act. Your company must obtain a highly regulated approval from the Land Dealings Approval Unit (LDAU) before you can proceed. 

This is why most foreign buyers focus on fully commercial shophouses. They avoid residential restrictions, keep your property tax predictable, and sidestep residential stamp duties that can spike your overall acquisition costs.

D. Rental Income and Property Tax

In Singapore, property tax is a levy on the asset’s potential value, whereas rental income is taxed separately under the corporate income tax framework. If you own property through a Singapore Pte. Ltd. or SPV, your rental profit is taxed at a flat 17%. This is often much more efficient than owning it personally, especially for high-value assets.

You can also reduce your taxable profit by deducting business expenses. Before you pay that 17% tax, you can subtract:

• Mortgage interest
• Property tax
• Maintenance and management fees
• Agent commissions
• Repairs

Offshore property owners often assume that tax obligations ease when a factory or office sits empty. In practice, IRAS continues to assess property tax based on what the property could earn on the open market, not on whether it is currently generating rent. This remains in place even during periods of vacancy or renovation.

Property Tax Compliance for Foreign Companies in Singapore

In Singapore, your property tax bill is based on the Annual Value IRAS assigns for the year ahead, not on what the property earned last year. Each December, IRAS reviews market rents and issues a new assessment for the coming tax year, which is why your tax bill can change even if nothing about your property has.

Key Filing Obligations

IRAS issues your company’s property tax assessment in early December, normally around the first or second week of the month. The notice appears in the IRAS myTax Portal and is delivered to your company’s registered Singapore address or a local tax representative acting on your behalf.

The bill lists out the Annual Value, applicable tax rate, and the total amount payable. You must pay the full amount by 31 January, even if you intend to challenge the valuation. IRAS reviews objections separately and issues any refund after it adjusts the assessment. You can make payments through:

• GIRO instalments (for companies with a Singapore bank account),
• online banking, or
• manual payment via the IRAS portal.

For many offshore entities, the primary challenge lies in the logistics of compliance. In Singapore, IRAS primarily communicates through the Corppass portal and physical mail sent to the registered office. Without a local finance team to monitor these channels, you risk missing the strict 30-day window for valuation objections or the annual January 31 payment deadline. 

Navigating GIRO and Banking Barriers

The most seamless way to manage these payments is through GIRO, an automated electronic payment system used in Singapore that allows for 12 interest-free monthly installments. While GIRO is the standard for local businesses, foreign-owned holding companies often face a significant barrier:

• Local Bank Account Mandate: GIRO is a direct debit arrangement, meaning it requires a Singapore-based corporate bank account to authorize the monthly deductions.
• The Banking Barrier: Due to strict “Know Your Customer” (KYC) and Anti-Money Laundering (AML) regulations, Singapore banks typically require a local resident director or a physical presence to open an account. For offshore holding companies, this makes setting up the necessary infrastructure for automated tax payments a major hurdle.
• Manual Payment Risks: Without a local account to facilitate GIRO, companies must settle their full annual tax bill via international wire transfer. This process is prone to bank delays, fluctuating exchange rates, and high administrative overhead, significantly increasing the risk of missing the strict January 31 deadline.

It’s worth noting that manual payments essentially place more responsibility on your overseas finance team to track notices, confirm the figures, and execute the payment on time. If a payment slips past the due date, IRAS adds an immediate 5% late payment penalty. Continued non-payment can trigger further penalties and enforcement action, even when the funds were available.

How a Local Tax Agent Streamlines Your Property Tax Compliance

Singapore operates its property tax system almost entirely through Corppass and the IRAS portal. For foreign-owned companies, this creates a visibility gap. Notices, assessments, and objection deadlines sit inside local digital systems that overseas directors and finance teams don’t always monitor day to day.

Emerhub’s tax team acts as your on-the-ground point of contact by receiving IRAS correspondence, monitoring valuations and deadlines, and managing submissions through Corppass. This ensures objections, payments, and updates are handled as they arise, rather than after penalties or enforcement notices appear. We can also coordinate your wider tax compliance, including corporate tax and related filings.

If your group holds or plans to hold property in Singapore, our team can support you in managing these obligations end-to-end. Fill out the form below, and we’ll put you in touch with our advisors.