Is Decoupling Illegal in Singapore? Here's What You Need to Know
- Megan Soo
- Aug 3
- 2 min read
There’s been a lot of buzz lately about whether decoupling — the act of transferring a property from joint ownership to a single name — is legal. A recent High Court ruling has clarified the issue, and here’s what buyers need to know.
✅ What Is Legal
Decoupling itself is not illegal. In fact, it’s a common method used by couples who want to restructure property ownership — for example, when one party sells their share to the other in order to purchase a second property without triggering the Additional Buyer’s Stamp Duty (ABSD).
This is perfectly legal, as long as:
The transfer is genuine and final — meaning the seller no longer has any beneficial ownership.
There are no secret agreements that the seller still “benefits” from the property after the transfer.
All parties declare their ownership interests accurately, and stamp duties are properly paid.
❌ What’s Not Legal
The High Court ruling stemmed from a dispute between an unmarried couple who jointly owned a property in a 99-to-1 shareholding, with the woman holding 99% and the man 1%.
However, after the couple broke up, the man claimed in court that he actually owned at least 50% of the property — not just 1%. This revelation exposed the true intention behind the 99-to-1 arrangement: to avoid paying ABSD on a second purchase.
Justice Lee Seiu Kin ruled that while holding property in a 99-to-1 share split is legal on its own, it becomes problematic and potentially illegal if:
The minority owner gives up ownership only on paper, but still benefits as a co-owner behind the scenes.
There’s a “secret arrangement” to continue jointly owning both properties.
The structure is artificial or contrived, solely to avoid tax.
Tax experts stress that good faith matters. If a transfer is done purely on paper to “game the system” while secretly maintaining joint benefits, it can attract serious penalties, including:
Reassessment of stamp duties
Repayment of underpaid taxes
Up to 50% tax surcharge
The Bottom Line
Decoupling is legal if done transparently and without secret arrangements.
It becomes problematic only if used solely to avoid ABSD and structured in a way that’s misleading.
Buyers and owners should always seek professional legal advice and be clear about actual ownership and intent.
If IRAS determines the arrangement lacks commercial substance or is artificial, it may be treated as tax avoidance or evasion.
Final Thoughts
This ruling isn’t a crackdown on all decoupling. It’s a reminder to act in good faith and with transparency. As long as there are no hidden agreements and all transfers are genuine, buyers have nothing to fear.
Thinking of decoupling or planning your next property move? Let’s have a proper conversation to ensure your plans stay on the right side of the law.
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