US$1.6 billion levy complicates sale of Singapore land by Malaysian king’s son
A major real estate deal in Singapore involving the son of Malaysia's king is facing delays due to a potential US$1.6 billion land betterment tax. The tax, triggered by development approvals, has become a point of contention between the seller and prospective buyers.
Why it matters
The scale of the tax bill highlights the high costs associated with luxury real estate development in Singapore and the complexities of cross-border royal business dealings.
A Malaysian royal’s plan to sell a tract of land in the heart of Singapore faces a complication: a tax bill that may exceed US$1 billion.
A levy known as a land betterment charge has emerged as a sticking point in negotiations between some prospective buyers and the current owner, the eldest son of Malaysia’s billionaire king, according to people familiar with the matter. The owner wants any buyer to foot the bill, the people said, asking not to be identified because the information is private.
The tax, imposed when the government gives planning permission or other approvals that increase the value of land, may run north of S$2 billion (US$1.6 billion), according to estimates by three local property analysts.
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