Singapore is home to the largest proportion of high-earning Expats
by Roger Lee Monday, December 13, 2010
The Expat Explorer survey commissioned by HSBC bank shows that Singapore is the ideal destination for expats who aspire to earn the highest income. 45% of the Singapore-based expats included in the survey earned over US$200,000 on an annual basis. This figure is proportionately large when you consider the world average of just 21%. An interesting aspect of the report is that Singapore was placed ahead of countries like Russia, Hong Kong and Saudi Arabia. The survey that covered 4,127 expats in over 100 countries said that Singapore is the world's third wealth hot-spot among 24 other countries. It also ranked seventh for proportion of expats with a disposable income of over US$3,000 and 13th for luxuries owned by expats including items such as property, domestic help, cars and boats, holidays, health-care and swimming pools.
One of the main reasons behind Singapore's huge percentage of expats with higher disposable incomes is Singapore's tax system. The country imposes one of the least rates of personal and corporate income tax, enabling its residents to retain a higher portion of their income. Singapore's personal income tax rate starts at 0% and is capped at 20% (above S$320,000) for residents and a flat rate of 15% for non-residents. The corporate income tax rate is approximately 8.5% for profits up to S$300,000 and a flat 17% above S$300,000. The Expat Explorer survey cites that 61% of the 109 expats surveyed in Singapore think that they have more disposable income than they would had they been living in their country of origin.
According to Mr. Samir Gosh - a senior team member at Janus Corporate Solutions,
"Singapore is an attractive location for those who want to earn and more importantly retain a high proportion of their income. The country's tax system is designed in a way to ensure that you enjoy the fruits of your labor. It's not that salaries are going up. In fact these days expats are being offered "local packages"; but what really drives the high disposable income is the low rates of tax. The benefits that are to be gained are quite significant especially if you're an expat from countries such as the UK, US, Australia or even India."
With Asia poised at the center of economic recovery, more foreign businesses are setting up a company in Singapore. The economy witnessed record levels of GDP growth and the outlook is positive. As more MNCs expand their footprint in Asia with Singapore as their operational base, job opportunities abound. As a result, Singapore expats are optimistic about the future and unlike their European counterparts, are free from worries about their career progression.
Evidently, Singapore is fast becoming one of the most attractive expat destinations for more reasons than one. The quality of life; safe living environment;
excellent health-care, schooling and accommodation facilities; plentiful job opportunities; a low tax system are but some of the factors that are attracting foreign professionals and entrepreneurs to its sunny shores. So if it's the big bucks that you're after, perhaps it's time you consider Singapore.
Singapore Company Incorporation Guide
Janus Corporate Solutions Pte Ltd
16 Raffles Quay #33-03 Hong Leong Building
Phone: +65 6222 7445
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