Expat Financial Advice In
Singapore

Moving to Singapore can be an exciting adventure, this cultural melting pot offers a blend of rich history, stunning landmarks, and a thriving international market, all set in a hot and humid city in the heart of Southeast Asia.

As a hub of commerce and trade, Singapore provides excellent career opportunities and is consistently ranked as one of the world's top economies for business.

Whilst starting a new chapter in this former British colony can be incredibly rewarding, it also requires careful preparation and planning, especially when it comes to your finances. Our guide will help you navigate the details and ensure your move to Singapore is as smooth as possible.

Article Summary

01 British Expats in Singapore: What to Expect

It's no secret that Singapore has a very high cost of living. In fact, it has topped the Economist’s Worldwide Cost of Living report for the past 11 years.

  • Despite the steep prices, this vibrant city remains one of the world's top destinations for expats, with nearly a third of the population made up of foreigners. An ever-increasing demand for real estate means that rent and property prices are amongst the highest in the world, but with these high costs comes a high quality of life. Singapore offers excellent education, high salaries, and is considered one of the safest places globally.

    The city’s diverse culture is reflected in its four official languagesβ€”English, Mandarin, Malay, and Tamilβ€”creating a welcoming environment for newcomers. Whether you're relocating for work, moving as a family, or retiring, you’ll find a strong international community to connect with. Plus, you’ll enjoy world-class cuisine, make friends from all over the globe, and have easy access to explore other Southeast Asian destinations in your spare time.

02 Expats in Singapore: Visa Requirements

  • Working in Singapore

    If you’re planning to work in Singapore, you’ll need to obtain a β€˜work pass’ (work visa) first. The country offers a wide range of passes for employees and entrepreneurs, such as an Employment Pass, EntrePass, Personalised Employment Pass, and Overseas Networks & Expertise Pass. A full guide can be found on the Ministry of Manpower website.

    As a favoured business destination, Singapore has a highly competitive job market, so it’s wise to have secured a contract with a local employer before making the move.

    Industries such as IT, banking, and education are particularly popular amongst expats, and individuals with experience and expertise in these fields can expect generous salaries.

    Retiring in Singapore

    Whilst most expats move to Singapore for work, the country doesn’t offer a specific retirement visa. However, some avenues make retiring in Singapore possible if you meet the right criteria.

    Typically, foreign retirees must have previously worked in Singapore to stay on once retired. Permanent residency is another option, which may be available if you are a spouse or parent of someone who is already a permanent resident, or if you hold an Employment Pass, S Pass or EntrePass.

    Alternatively, you can apply to the Global Investor Programme, which allows you to seek permanent residency by investing at least SGD 2.5 million (around Β£1.4 million) in a business or approved fund.

    Each pathway is subject to its own requirements, so it's wise to consult a visa expert to ensure eligibility and to guide you through the process.

    For retirees, Expat life in Singapore can be both enriching and peaceful. With diverse neighbourhoods offering different lifestyles, plenty of parks, coastlines and bustling markets to explore, and excellent private healthcare.

    Integration can be easy with a strong expat community and various clubs and organisations such as the British Association of Singapore.

    This nation city can be a wonderful place to enjoy your golden years.

03 Paying Tax in Singapore

In Singapore, the tax year runs from January 1st to December 31st, and it’s managed by the Inland Revenue Authority of Singapore (IRAS). The country follows a self-assessment tax system, which means that employers do not withhold tax from your income; instead, it's up to each individual tax resident to file their own tax return every year.

  • You are considered a tax resident of Singapore if you spend more than 183 days in the country within a year, making it important to understand your obligations when it comes to filing taxes.

    If you are unsure of your tax residency status or obligations, seek advice from a professional to ensure that you are tax compliant, and avoid any fines or penalties.

04

Income Tax

In Singapore, foreign-sourced income, including pension payments, is not subject to tax, which is great news for those receiving income from abroad. For tax residents, income earned in Singapore is taxed at standard progressive rates. More information can be found on the IRAS website.

Non-residents are either taxed at a flat rate of 15%, or in accordance with the progressive tax rates, whichever results in a higher tax bill.

The 2024 income tax bands are as follows:

05 Capital Gains

Singapore does not impose a Capital gains tax on either individuals or companies.

However, in some circumstances, the IRAS may view the frequent acquisition and disposal of assets such as real estate, stocks or shares as trading income, which may then be liable to income tax.

06 Stamp Duty

Whilst there is no capital gains tax in Singapore, stamp duty is imposed on most real estate transactions. You will need to pay Seller’s Stamp Duty (SSD) if you sell a residential property within 1-3 years of buying it.

If you purchase a property in Singapore, you will need to pay Buyer’s Stamp Duty (BSD) which is charged progressively from 1%-6%.

You will be subject to Additional Buyer’s Stamp Duty (ABSD) if you buy an additional property other than your primary home. This is a rate of 20% for locals and 30% for permanent residents.

07 Property Tax

The IRAS imposes an annual property tax based on the value of the property. Homeowners pay taxes ranging from 0% - 32% on their primary home.

Other properties such as investment homes, holiday homes or rental properties may be taxed at 12% - 36% and commercial properties and land is taxed at a flat rate of 10%.

08 Inheritance Tax

Singapore doesn't impose any inheritance or estate taxes, or gift tax.

However, if you inherit property in Singapore as a foreigner, you may have to pay stamp duty if you sell it within three years that the deceased took ownership. You may also be liable to pay Additional Buyer’s Stamp Duty (ABSD) if you buy an additional property after inheriting one.

09 Can I Transfer My UK Pension to Singapore?

If you’re considering retiring in Singapore, you have the option to leave your pension in the UK. However, this approach can expose you to currency risk when converting from GBP to SGD, potentially reducing the value of your retirement funds over time.

  • It's also important to note that Singapore is not on the UK's approved QROPS list, which means you will face charges if you try to move your pension out of the UK.

    For UK expats moving to Singapore, the International SIPP (Self-Invested Personal Pension) stands out as the best option. This pension scheme allows you to keep your funds in the UK, giving you greater control and access to tax advantages, while also remaining under the protection of UK regulators.

    The International SIPP provides the flexibility to make drawdowns in SGD, helping you manage currency fluctuations more effectively. Plus, it offers a wide range of investment opportunities, enabling you to diversify your portfolio and grow your wealth for a secure retirement.

    The Wealth Genesis | The International SIPP

10 Healthcare in Singapore

Whilst Singapore does have a public healthcare system which provides subsidised care to citizens, it is not available to expats living in Singapore unless they are permanent residents and have made CPF (Central Provident Fund) contributions.

  • For this reason, many expats choose to opt for private health insurance, which often means shorter waiting times and access to a wide range of treatment options and specialised services.

    There are many private health insurance providers to choose from in Singapore, including AXA, Allianz, Bupa Global and Cigna. 

11 Advice for UK Expats Moving to Singapore

Moving to a new country can be daunting and overwhelming, but managing your finances does not need to be an added stress.

We can create a tailored financial plan which aligns with your individual goals and needs, making your move a successful and stress-free experience.

The Wealth Genesis we are dedicated to helping expats manage and protect their wealth when moving overseas.

To discover more, book a call with one of our advisers today.