Moving to Singapore

Planning a move from the UK to Singapore

Singapore attracts professionals, executives, entrepreneurs, investors and families looking for an established international base in Asia. For somebody relocating from the UK, however, the move can involve much more than obtaining permission to work or live there.

You may need to consider your work pass, family residence, UK and Singapore tax, property, business interests, banking, investments, schooling and the position of assets or commitments you retain in the UK.

Knightsbridge helps clients consider these issues as part of one coordinated international relocation plan.

Our role is to understand what you are trying to achieve, identify the areas that require attention and coordinate the appropriate immigration, tax, property and professional advice around the move.

Why are you moving to Singapore?

The right structure depends on the reason for relocating. You may be moving because you are:

• accepting employment in Singapore;
• relocating with an international employer;
• taking up a senior executive role;
• establishing or expanding a business;
• building an Asian headquarters;
• investing in Singapore;
• moving with your family;
• managing businesses across several jurisdictions; or
• considering a longer-term move away from the UK.

Different objectives can lead to very different immigration, tax and business considerations. The starting point should therefore be the outcome you are trying to achieve.

Singapore work and residence options

Foreign nationals moving to Singapore commonly require an appropriate work or residence pass. Depending on the circumstances, routes can include:

• Employment Pass;
• S Pass;
• Personalised Employment Pass;
• Overseas Networks & Expertise Pass;
• EntrePass;
• Dependant’s Pass;
• Long-Term Visit Pass; and
• permanent residence in qualifying circumstances.

The appropriate route depends on factors such as your employment, seniority, qualifications, salary, business activity and longer-term plans. For many professionals, the immigration position will be closely connected with their Singapore employer.

For founders, entrepreneurs and internationally mobile executives, a different structure may be appropriate.

Employment in Singapore

Singapore is a major regional centre for sectors including:

• financial services;
• technology;
• professional services;
• pharmaceuticals;
• life sciences;
• logistics;
• commodities;
• engineering;
• international trade; and
• regional corporate headquarters.

Where the move is employment-led, the employment package should be considered alongside the immigration position.

This can include:

• salary;
• bonuses;
• equity;
• housing;
• healthcare;
• schooling;
• pension arrangements;
• tax;
• family relocation; and
• the timing of departure from the UK.

For senior executives, the wider financial position can be particularly important.

Employment Pass

The Employment Pass is one of the principal routes for foreign professionals working in Singapore.

Eligibility is assessed under Singapore’s prevailing work-pass requirements and is connected to matters including the proposed role, salary and applicant profile.

For professionals relocating from the UK, it is important to understand not only whether the Employment Pass can be obtained, but also what the proposed employment arrangement means for:

• family members;
• tax residence;
• remuneration;
• equity;
• benefits; and
• longer-term residence planning.

The work pass should therefore be considered as part of the overall relocation rather than as a standalone application.

Moving to Singapore with your family

Family arrangements should be considered before the move is finalised. Eligible Employment Pass holders can apply for certain family members to join them in Singapore.

Singapore’s current rules provide for a Dependant’s Pass for qualifying legally married spouses and unmarried children under 21. Other qualifying family members may be eligible for a Long-Term Visit Pass. Current Employment Pass family eligibility generally includes a minimum fixed monthly salary requirement of S$6,000, with higher requirements applying in some situations.

The family position may therefore depend on:

• the main applicant’s work pass;
• salary;
• relationship;
• children’s ages;
• employment arrangements;
• schooling; and
• the intended duration of the move.

These questions should ideally be addressed before the family commits to the relocation.

Can a spouse or partner work?

The right of an accompanying spouse or partner to work should not be assumed. A dependant may need their own appropriate work authorisation before taking employment in Singapore.

For dual-career households, this can be an important consideration. A relocation package that works well for the principal applicant may look very different if their spouse or partner cannot immediately continue their career.

The position should therefore be considered as part of the wider family plan.

Schools and education

Singapore has an extensive international-school sector as well as a highly regarded domestic education system.

Families moving from the UK may need to consider:

• international schools;
• British curriculum options;
• International Baccalaureate;
• school fees;
• admissions;
• availability;
• term dates;
• transport; and
• distance between home, school and work.

School places can affect both the timing and location of the family move. For this reason, education planning should begin relatively early where children are involved.

Tax when moving from the UK to Singapore

A move to Singapore can change your tax position, but it does not automatically bring UK tax residence to an end.

The UK position may continue to depend on matters including:

• the date you leave;
• days spent in the UK;
• available accommodation;
• family connections;
• employment;
• UK property;
• business interests; and
• other continuing ties.

Singapore then applies its own rules for determining whether an individual is tax resident.

Singapore’s tax authority states that foreign individuals can become tax resident through qualifying periods of stay or employment, including the commonly relevant 183-day tests and certain multi-year arrangements. Resident individuals are taxed at progressive rates.

For somebody moving from the UK, the key issue is therefore how the two tax systems interact. The timing of the move can matter.

Business owners and entrepreneurs

Singapore is also widely used as a base for business activity across Asia.

A client may be considering:

• establishing a Singapore company;
• relocating an existing business;
• creating a regional headquarters;
• entering Asian markets;
• investing into a Singapore business;
• relocating senior management; or
• establishing operations alongside an existing UK company.

These decisions can involve questions around:

• corporate structure;
• ownership;
• licensing;
• taxation;
• employment;
• work passes;
• banking;
• investment; and
• management.

The business structure and personal relocation should therefore be considered together.

Keeping a UK business while living in Singapore

Many business owners do not intend to close or move their UK company. Instead, they may live in Singapore while continuing to own, manage or receive income from the UK business.

This can create questions around:

• company management and control;
• directorships;
• salary;
• dividends;
• UK employees;
• Singapore operations;
• business travel;
• taxation; and
• transactions between companies in different jurisdictions.

Moving personally does not automatically move the company. Where significant business interests are involved, the corporate and personal positions should be reviewed together.

Permanent residence and longer-term planning

Some clients move to Singapore for a defined employment assignment. Others intend to establish a much longer-term base.

Where the objective extends beyond an initial work pass, it can be useful to consider early whether the individual’s circumstances may support a future permanent residence strategy.

For investors and substantial business owners, Singapore also operates the Global Investor Programme through which qualifying investors may apply for permanent residence, subject to the relevant requirements.

Long-term residence planning should be considered separately from the immediate work-pass application.

Renting property in Singapore

Many people relocating to Singapore initially rent.

This can provide flexibility while you become familiar with:

• neighbourhoods;
• commuting;
• schools;
• transport;
• business locations;
• housing costs; and
• longer-term plans.

Housing costs can form a significant part of the overall relocation budget, particularly for families.

Where employment packages include housing support, the terms should be understood before the move.

Buying property in Singapore

Foreign ownership rules in Singapore are more restrictive than in some other international relocation destinations.

The rules depend heavily on the type of property being purchased.

Foreign persons require approval to purchase certain types of residential property, particularly landed residential property. Singapore’s Land Authority confirms that purchases such as landed houses generally require approval under the Residential Property Act.

Before purchasing property, clients may therefore need to consider:

• whether the property can be purchased by a foreign national;
• whether government approval is required;
• purchase taxes and duties;
• financing;
• ownership structure;
• long-term residence plans; and
• the UK tax implications of overseas property ownership.

Property should therefore be considered within the wider relocation strategy rather than as a separate transaction.

Banking and moving money to Singapore

An international relocation can require substantial changes to banking arrangements.

You may need to consider:

• opening Singapore bank accounts;
• retaining UK accounts;
• receiving salary;
• transferring savings;
• business banking;
• property funds;
• international payments;
• currency; and
• source-of-funds requirements.

Clients with business, investment or property interests may need more extensive documentation.

Planning this early can reduce delays once funds need to move.

Investments and pensions

A move to Singapore may also affect existing UK financial arrangements.

You may already hold:

• pensions;
• ISAs;
• investment accounts;
• company shares;
• UK property;
• private businesses;
• trusts; or
• other financial assets.

Changing residence can affect the tax treatment, availability or management of certain products.

Where regulated pension or investment advice is required, it should be provided by an appropriately authorised professional.

Knightsbridge can help identify where specialist advice is required and coordinate it as part of the wider relocation.

Leaving the UK properly organised

The Singapore side of the move is only one half of the relocation.

Before leaving the UK, you may also need to consider:

• tax residence;
• your UK home;
• rental property;
• employment;
• business interests;
• investments;
• pensions;
• banking;
• insurance; and
• existing UK immigration status where relevant.

For many clients, decisions made before departure can continue to have consequences after they have become resident overseas.

The UK departure and Singapore arrival should therefore be considered together.

How Knightsbridge helps

We approach a move to Singapore as a wider international relocation rather than simply a work-pass application.

We can help you:

Assess

Understand why you are moving and which residence or work-pass options may fit your circumstances.

Plan

Identify the immigration, tax, property, family and business issues involved.

Prepare

Coordinate the immigration and documentation process within the appropriate professional framework.

Coordinate

Work alongside Singapore-based professionals where local legal, tax, property, corporate or other specialist advice is required.

Review

Consider how your Singapore arrangements interact with the UK position you are leaving behind.

Before you move to Singapore

Singapore can provide a strong base for professionals, executives, entrepreneurs and internationally active businesses.

But a successful relocation involves more than obtaining a work pass.

Your employment arrangements, family position, tax residence, business interests, property and UK financial affairs should all support the same longer-term objective.

If you are considering moving from the UK to Singapore, tell us what you are trying to achieve, who will be moving with you and what UK property, business or financial interests you intend to retain.

We can help identify the areas that require attention and build the next steps around your proposed relocation.