Singapore

Singapore imposes no capital gains tax and no inheritance tax. The corporate tax rate is 17%, but new startups benefit from a 75% exemption on the first SGD 100,000 of chargeable income for the first three years, resulting in an effective rate below 5% at early stages.

Personal income tax is progressive, topping out at 24%, but effective rates are considerably lower for most income levels. The Employment Pass allows skilled professionals to work and reside in Singapore, while the EntrePass targets entrepreneurs establishing innovative companies. Singapore is consistently ranked as the world's most competitive business environment by multiple international indices.

Tax residency in Singapore is generally triggered by physical presence exceeding 183 days in a calendar year. The country operates on a territorial basis: income sourced abroad is not subject to local income tax for residents, making it particularly attractive for individuals with cross-border income streams. No statutory CFC rules apply, which can facilitate the use of foreign holding structures without automatic income attribution. Special tax regimes available include: startup tax exemption scheme, Global Trader Programme, Financial Sector Incentive, Pioneer status. Singapore taxes residents on income accrued in or derived from Singapore. Foreign-source income received in Singapore is generally exempt under the Foreign-Sourced Income Exemption, with conditions. Singapore maintains a network of approximately 95 double taxation treaties, which may reduce withholding rates and provide certainty on income sourcing.

New startups: 75% exemption on first SGD 100,000 for first 3 years (effective rate ~4.25%). Partial exemption applies thereafter. No capital gains tax. No inheritance tax.

The standard corporate income tax rate is 17%. Company formation typically takes approximately 1 working days, at an estimated cost of €700. The administrative process is considered straightforward, with minimal bureaucratic friction. Ongoing annual compliance costs are estimated at €2,000, covering statutory filings, accounting, and audit obligations where applicable. Consistently ranked No. 1 globally for ease of doing business. Strong IP protection, efficient judiciary, and access to ASEAN markets.

Account opening in Singapore can be challenging for foreign nationals or non-resident businesses, and enhanced due diligence is common practice. World-class banking infrastructure with DBS, OCBC, UOB, and all major international banks present. Singapore is the Asia-Pacific hub for private banking and wealth management. Internet infrastructure is excellent, with widespread fibre broadband and reliable mobile connectivity across urban and suburban areas.

Singapore is a member of the Financial Action Task Force (FATF) and meets its anti-money-laundering standards. EU tax blacklist status: not_listed. Structures involving this jurisdiction may attract additional scrutiny or reporting obligations under EU member state rules. Singapore participates in CRS (Common Reporting Standard), FATCA, BEPS Inclusive Framework, meaning financial institutions will automatically exchange account information with relevant tax authorities. OECD compliance rating: compliant. Points to consider: High cost of living and housing; Employment Pass income thresholds have increased significantly; Permanent residency is discretionary and competitive. Singapore is consistently rated as Asia's most reputable jurisdiction and one of the world's top-ranked for rule of law, transparency, and business environment.

Singapore is consistently rated as Asia's most reputable jurisdiction and one of the world's top-ranked for rule of law, transparency, and business environment.

Based on our scoring model, Singapore ranks highest for Founder / Entrepreneur and High Net Worth Individual. It offers a strong proposition for founder / entrepreneur (score: 78/100). It offers a strong proposition for high net worth individual (score: 74/100).