HK, Singapore Home To Asia’s Highest Property Taxes
In its recent Asia-Pacific Residential Review, global property consultancy Knight Frank has said that Hong Kong and Singapore have the highest tax burdens on foreign property investors.
It notes Singapore and Hong Kong have imposed taxes on foreign property buyers, such as additional duties, as a “macro-prudential tool … to cool residential markets.” Knight Frank said: “The strong price growth in these markets has led to numerous rounds of interventions by policymakers as they look to address the issues of affordability and household debt, with tax being one of the key tools at their disposal.”
“Singapore and Hong Kong stand out as the most costly places for a foreigner to invest. Not only are they more expensive than the other markets, foreign investors have to shoulder a significantly heavier tax burden than their local counterparts.”
Cambodia, South Korea, Thailand, and Malaysia are said to have “more benign” tax regimes on foreign purchasers. Japan is the only country that levies more taxation on domestic investors, the review says, as its local inhabitant tax is only levied on residents.
