The last post talked about incurring GST on the purchase of commercial property. As mentioned, there is an avenue for investors to be reimbursed for the GST incurred and that is to establish an Investment Holding Company.
When establishing a company, there are a few options of entity types to choose from. The most common ones are Self Proprietor and Pte Ltd. Each option has its pros and cons. Check out the next issue on which option suits you better.
Sunday, 16 June 2013
Tuesday, 4 June 2013
Main difference between buying commercial vs residential property
Welcome to my 2nd article on this blog!
The main difference between buying commercial property vs residential property in Singapore is that the buyer of a commercial property has to pay a Goods and Services Tax (GST) of 7% on the purchase price. So you have to factor this tax as part of your initial capital outlay which can be quite substantial; for example a commercial property of S$1 million attracts a GST of S$70000!
Having said that, there is a way for the GST to be 'reimbursed' to the buyer. Check out for my next article to learn how.
The main difference between buying commercial property vs residential property in Singapore is that the buyer of a commercial property has to pay a Goods and Services Tax (GST) of 7% on the purchase price. So you have to factor this tax as part of your initial capital outlay which can be quite substantial; for example a commercial property of S$1 million attracts a GST of S$70000!
Having said that, there is a way for the GST to be 'reimbursed' to the buyer. Check out for my next article to learn how.
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