- Sponsored Content
In conversations with expatriates and locals in Singapore, several misconceptions about the financial landscape for foreigners often arise. As a major financial hub known for its stringent regulatory environment, it’s important to understand the local landscape to make better informed monetary decisions. Read on for clarity and advice on some common confusing matters.
- Expats Are Not Eligible for Tax Relief Schemes
One of the most common misconceptions is that expatriates cannot enjoy tax relief schemes available to residents, but this is not the case.Those with dependents living with them may claim tax reliefs, along with deductions for business expenses and life insurance premiums. Furthermore, the Supplementary Retirement Scheme (SRS) is an excellent option for tax relief, allowing foreigners to contribute up to $35,700 annually. Notably, only 50% of the amounts withdrawn from the SRS are taxable, making it a great savings tool. - Expats Cannot Access Affordable Medical Insurance
Another misconception is that expatriates are unable to purchase local insurance plans, which results in expensive medical coverage. However, expats can purchase Integrated Shield Plans, which are generally more affordable than many international options. These plans are designed to provide adequate medical coverage tailored to the needs of those living in Singapore, making healthcare more accessible. - Expats Are Barred from Buying Property
Many individuals wrongly assume that expats cannot invest in the SG real estate market. It’s crucial to understand that foreigners can purchase condominiums and certain landed properties, although they must pay an additional Stamp Duty of 60% (some nationalities are exempt). Additionally, there are financing options available, including bank loans, which can assist in property investment endeavours. - Investing in Singapore is Challenging for Expats
Another widespread myth is that investment opportunities in Singapore are challenging for expatriates. This is not the case; the investment process is designed to be user-friendly and offers numerous advantages. Since expats do not contribute to Singapore’s Central Provident Fund (CPF), they can explore various investment avenues more freely. Singapore’s stable and secure investment climate also fosters potential growth. - Insurance Coverage is Limited to Singapore
Lastly, many expats believe that insurance coverage is confined to their stay in Singapore. In fact, life insurance and other policies can provide benefits that continue even after leaving the country. This feature is important for expatriates, as it ensures ongoing financial protection regardless of their location.
In conclusion, separating fact from fiction is crucial for those navigating Singapore’s financial landscape. By debunking these myths, expats can make informed financial decisions that positively impact their lives here. Have you encountered any other misconceptions? Sharing these experiences can help foster a more informed expatriate community.
The levels and bases of taxation and reliefs from taxation can change at any time. The value of any tax relief depends on individual circumstances. You are advised to seek independent tax advice from suitably qualified professionals before making any decision as to the tax implications of any investment.
Danielle Teboul
Private Wealth Manager, Select Investors
Email: danielle.teboul@sjpp.asia / Mobile: 8445 7792
The ‘St. James’s Place Partnership’ and the titles ‘Partner’ and ‘Partner Practice’ are marketing terms used to describe St. James’s Place representatives. Members of the St. James’s Place Partnership in Singapore represent St. James’s Place (Singapore) Private Limited, which is part of the St. James’s Place Wealth Management Group, and it is regulated by the Monetary Authority of Singapore and is a member of the Investment Management Association of Singapore and Association of Financial Advisers (Singapore). Company Registration No. 200406398R. Capital Markets Services Licence No. CMS100851. St. James’s Place Wealth Management Group Ltd Registered Office: St. James’s Place House, 1 Tetbury Road, Cirencester, Gloucestershire, GL7 1FP, United Kingdom. Registered in England Number 02627518.
