10 ways to maximise your wealth as an expatriate living in Singapore
Living in a foreign country can be exciting and paying lower income tax rates can be rewarding. But, many expatriates are still faced with incredibly complex financial decisions.
As an expatriate living in Singapore, what can you do to maximise your financial position? Here are 10 ways to help you grow and preserve your financial assets.
Review Your Pension Schemes
Find out if you can continue to contribute and grow your pensions in your home country. Know your tax reliefs and obligations that arise from maintaining your pension schemes. Check the rules about moving pension pots out of your home country and consider your options. If necessary, you may wish to inform your pension provider that you are a non-resident.
Take Advantage of a Low Tax Environment
Don’t return home with nothing to show for your time in Singapore! Singapore offers you a friendly investment and tax environment. Take advantage of the various tax-efficient investment opportunities and invest for your future. The benefits you reap from it can continue even after you return home. Some of these investments can also further assist with estate and succession planning.
Review Your Mortgage Options
If you are a Singapore resident and intend to buy a property back home, consider engaging with a mortgage broker who is familiar with expat mortgages so that you can better assess the rates and the lenders available. Oftentimes, the rates for expats are much higher.
Review your existing insurance plans
Consider taking out specific plans for your time here in Singapore. Check with your provider whether your insurance plans back home are still valid. If not, consider taking out similar plans here to ensure that you remain covered. If you have a valid visa, you can sign up for the local Integrated Shield Plan. Otherwise, you can purchase international health insurance plans.
Protect your valuable items under a Home and Contents insurance if you are renting in Singapore. Likewise, if you still own a property back home, check with your provider if it is still covered by your existing policy now that you have moved abroad.
Get the best foreign Exchange Rates
If you transfer funds between countries regularly, consider using a multi-currency bank account or the services of an FX
Understand your CPF and SRS Potential
Only Singaporeans and Permanent Residents (PR) can contribute to a Central Provident Fund (CPF). If you are a PR, top ups to your Special/Retirement Account and/or MediSave Account from 1 Jan 2022 will allow you to enjoy tax relief of up to $8,000.
If you are not a PR, consider contributing to the Supplementary Retirement Scheme (SRS). As an expat, you can contribute up to S$35,700 per annum. This offers you a higher investment return when compared to leaving your money in the bank.
You can also seek tax relief on your contributions. When you contribute to your SRS account, you can lower your taxable income, thus, reducing your income tax bill.
Understand Pension Rules back in your home country
If applicable to your scenario, check if you are eligible to continue contributing to your State Pension back home so that you can maximise your retirement funds.
Be aware of your ongoing Tax obligations back home
If you are renting out your property back home, the income you receive may be taxable in your home country. So, make sure that you are aware of the tax rules.
Ensure your existing Will and Power of Attorney Remains Valid
In addition, consider appointing a trusted temporary guardian who can look after your children should the unthinkable happen.
Do A Complete Review Of Your Finances
Track how you are moving towards your goals. A St. James’s Place Partner can help you perform a comprehensive financial review. We work with carefully selected specialists from various industries, including legal, mortgage, and tax advisory, giving you access to an extensive range of high-quality products and services all backed by the high standards of service you expect.
The Expatriate always tries to make sure all information is accurate. However, when reading our website, please always consider our Disclaimer policy.
