Reasons for Investing in Singapore
Reasons for Investing in SingaporeUpdated on Monday 22nd April 2019
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Why invest in Singapore?
During the last Singapore has developed so much it became an ideal place to work, live and raise children. With its high-class healthcare system, international school and work conditions in Singapore companies, the city-state is a magnet for foreign citizens. Investors also found great opportunities to put their money into industries such as tourism, real estate and finances.
For more information on the main reasons to invest in Singapore, you can watch the video below:
The advantages of investing in real estate in Singapore
The first great advantage of investing in the real estate market in Singapore is that there are no restrictions on the purchase of properties by foreign citizens. Also, the prices of properties in Singapore are generally lower than in other developed countries, not to mention the property taxes that have decreased starting with the beginning of 2015. Foreign investors looking for new business opportunities can prospect the real estate construction market in Singapore that provides favorable circumstances at the moment, as around 10,000 new apartments are built in the city on a quarterly basis. Home prices have also gone down thus increasing the citizens’ purchase power.
Investing in Singapore from a taxation point of view
One of the major decisions when moving to another country is the taxation system and the tax facilities it provides. From a taxation point of view Singapore is one of the most attractive cities in the world. Considering the progressive income tax and the corporate tax, the city-state suits both foreign citizens wanting to work here and investors wanting to open companies in Singapore. Among the tax exemptions one can benefit from are:
- - there is no capital gains tax,
- - foreign income is not taxed in Singapore,
- - there are no estate duties,
- - there are no taxes on interests,
- - there is no currency control.
Moreover, the Singapore legislation also protects foreign citizens and investors.
Incentives for investing in Singapore
The authorities created a large number of incentives for foreign businessmen interested in investing in Singapore. Among these, the most successful are:
- - the Regional Headquarters Award the provides reduced corporate tax rates for progressive income made by companies from qualifying activities,
- - the Integrated Investment Allowance that provides an allowance based on a percentage of fixed capital spent on placing productive equipment outside Singapore,
- - the Mergers & Acquisition Scheme that offers a 25% allowance of the value of acquisition,
- - the Pioneer Incentive that provides a corporate tax exemption on income from certain qualifying activities.
We invite you to contact our lawyers in Singapore in order to discover more reasons to invest in the city-state.