Associated Leasing Costs

Associated Leasing Costs

When leasing office space in Singapore, make sure you are aware of ALL associated leasing costs. These include Stamp Duty (always paid by the tenant), landlord’s legal costs (sometimes just an admin charge but not if lawyers are outsourced, Third-party Insurance, Security Deposit, Advanced Rental and of course GST (currently @ 9%).

In all cases these costs are always payable by the tenant and are non-negotiable.

GST on Rental Payment

In the vast majority of cases the tenant will need to pay GST (Government Service Tax) on all rental payments. This currently stands at 9%. Tenants can offset the GST they pay against the GST they receive, provided they are GST registered.

Stamp Duty

Stamp duty is payable on all lease documents and is always paid by the tenant at the time the lease is stamped.

The amount of tax is fixed based on 0.4% of the total rent payable across the length of the lease. As a rough rule of thumb it works out to be around 15% of one month rental.

Legal Costs - tenant’s responsibility

The tenant normally pays both sides legal fees i.e. the tenant pays for the cost of the preparation of the tenancy agreement. Sometimes the landlord will use his in-house legal team and use their standard lease template so may only be charged an administration fee

Most landlords will have their basic set template they prefer to use, and an admin fee is charged for processing. In the event that many changes are requested and the landlord uses out-of-house lawyers, then fees could be around 10% of one month gross rent.


The Tenancy Agreement will contain provisions for insurance liabilities. Tenants will normally be required to provide additional cover for contents and public liability.

Agency Fees - None

Corporate Locations' agency fees are paid by the landlords for the successful introduction of a tenant to their building even when it is recognized that we are acting for the tenant.

Security Deposit

Tenants are required to lodge a cash deposit equivalent to 3 months gross rent, inclusive of service charge and government rates. The deposit is refundable at the end of the lease to the tenant, but without interest

Extra deposit money is normally an additional 3 months rental is required when the tenant paid capital is less than the equivalent of 6 months rental

Advanced Rental

Upon signing a binding offer/booking form or tenancy agreement the tenant is normally required to make an advanced payment equivalent to one month's gross rent inclusive of service charge and GST.

Property Tax / Government Rates

Property owners are liable to pay property tax. This is paid by the landlord but this is always recovered through a provision in the service charge. Any increase on property tax is usaully passed onto the tenant though the service charge

Car Parking Charges

The number of lots allocated to each tenant is usually based on the total floor area leased. The average ratio is often 1 lot per 1,000 to 4,000 sq ft. Costs average $200 to $450 per month per lot, exclusive of GST and are not included in the office rental. Additional spaces are sometimes offered on a seasonal quarterly basis, subject to availability.

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