A guide to moving to Singapore from the UK
Whether you’re relocating for work or other reasons, Singapore is a popular destination for expats, offering a high standard of living, along with excellent career, salary and networking opportunities for many who choose to move there. Whilst the logistics of an international move can prompt a busy time, careful planning, particularly with your finances, can help you enjoy all that Singapore has to offer.
Living as an Expat in Singapore
There are 50,000 British Expats living and working in Singapore. The Singapore government has actively implemented policies and initiatives to foster a business-friendly environment along with incentives and support for companies establishing there, creating promising career prospects for many British expats.
Consider taxes and finances in Singapore
Before you make the move to Singapore, you should update the UK tax authorities about your plans and work closely with an expert adviser to help you understand the financial implications of your move. It is important to note that Singapore does not have a tax withholding requirement imposed on employers, so employees are responsible for filing their own tax returns and paying the tax due after assessment by the Inland Revenue Authority of Singapore (IRAS).
Getting a visa for Singapore
It is recommended that you secure a visa first before relocating to Singapore as without a visa you are unable to set up a bank account or secure accommodation. There are three types of visas for expats which include Employment Pass (EP), Personalised Employment Pass (PEP) and The Overseas Network and Expertise Pass (ONE PASS). The Employment Pass is issued to expats employed as foreign managers, executives and skilled professionals in Singapore. First time candidates can obtain an EP for an initial two years which can then be renewed for up to three years. The Personalised Employment pass is designed for high earning EP holders and overseas foreign professionals. This pass can only be issued once for three years. The fixed monthly salary criteria is $22,500. The ONE pass is designed for top oversees professionals in various fields. It offers greater employment flexibility allowing holders to work, start or operate multiple companies in Singapore. You must earn a fixed monthly salary of at least $30,000 under an employer for 12 consecutive months. Dependant passes for immediate family members can also be issued by the Ministry of Manpower.
To set up a bank account in Singapore you will need to show proof of your residence and to justify your need for a local bank account. You will need your visa, your passport along with your company ID. It’s also important to advise your UK bank or building society that you’ll be moving overseas to avoid any disruptions or issues accessing your accounts and any implications for international transactional fees.
Your property when moving from the UK to Singapore
If you have a property in the UK, you could consider keeping hold of it as part of your overseas move to Singapore. Maintaining a foothold in the UK can be a good option as part of your investment plans, and especially if you plan to return in the future. And if you rent your property out it can also provide an additional income. If you decide to let a UK property you may need to consider the Non-Resident Landlord Scheme to ensure that any UK taxes are properly calculated and paid.
Other considerations before relocating to Singapore
Gain a clear understanding of your UK residence status for tax purposes. Residence status is assessed for a complete UK tax year using the Statutory Residence Test (SRT). The SRT has three parts, applied in order:
- The Automatic Non-Resident Test
- The Automatic Resident Test
- The Sufficient Ties Test
Once one of these tests is satisfied, there is no need to consider the others. In some cases, Split Year Treatment may apply if your circumstances meet specific criteria. This allows the tax year to be divided into a resident and a non-resident period.
When you move to Singapore, it’s unlikely you will be able to contribute to your UK- pension long term. You may have access to alternatives, but this is usually a company benefit rather than a legal requirement and you will not receive tax relief on contributions, so it is important to be proactive about building your retirement once you move to Singapore.
Expat communities
A great way to meet people when arriving in Singapore is to get involved in expat associations or sports groups. British Expats can join The British Club, The British Chamber of Commerce and The British Association which all provide excellent networking opportunities.
Financial advice when moving to Singapore
Working with a knowledgeable financial planning professional whilst living and working in Singapore can help you make the most of your expat status. With offices in the UK and Singapore, many of our team have first-hand experience of making a move between these countries. We can support you with all aspects of your finances – from exiting the UK tax system and sensibly managing any income from a UK property to ensuring that your pension and retirement plans remain on track. Please contact our team here.
Important Note
The information contained within this document is subject to the UK regulatory regime and is therefore primarily targeted at consumers based in the UK.
This article is distributed for educational purposes only. This communication does not constitute financial advice. Individuals must not rely on this information to make a financial or investment decision. Before making any decision, we recommend you consult your financial planner to take into account your particular investment objectives, financial situation and individual needs.
The opinions stated in this document are those of the author and do not necessarily represent the view of Progeny and should not be relied upon to make a financial decision.
Information contained herein has been obtained from sources believed to be reliable but is not guaranteed.
