Singapore’s commercial property market is hot in spite of the several cooling measures introduced by the government in recent years. This is because the measures were mainly aimed towards bringing down the prices of residential properties, thus leaving the commercial market largely untouched.
As buying Singapore commercial properties remains a wise choice, buyers have two options to choose from. Either buy the property in an individual’s name, or incorporate a private limited company – a vehicle which is then used to buy the commercial real estate.
Going by the benefits that a corporate entity enjoys in holding a commercial estate, it’s definitely advisable to go for the latter. Below, we detail the reasons for doing so.
Benefits of Buying a Commercial Property with a Corporate Entity
No Capital Gains Tax in Singapore
Generally, the gains derived from the sale of a property in Singapore is not taxable as it is considered a capital gain and the country has no capital gains tax. The exception to the rule is when a person is deemed to be trading in properties. This is determined based on the following:
* frequency of transactions (buying and selling of properties)
* reasons for acquiring and selling of property
* financial means to hold the property for long term
* holding period
Read the advantages of incorporating a Singapore company at Singapore Company Incorporation.
