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.

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