Nearly 90% of expats cite Singapore’s tax policies as a reason for relocating

SINGAPORE: Nearly nine in 10 expatriates surveyed said Singapore’s tax policies played a key role in their decision to relocate, while the overwhelming majority of 96 per cent reported earning and saving more than they would in their home countries.

However, many also face growing challenges managing their finances across borders, according to St. James’s Place’s Money on the Move 2026 report.

The study found that expatriates in Singapore are remaining overseas for longer than originally planned. Around 78 per cent of respondents expect to live abroad for at least eight years, while 54 per cent said they have already stayed overseas longer than they had anticipated.

Looking ahead, half of those surveyed said they are likely to return to their home country only after retiring, while 16% indicated they do not expect to return at all.

The likelihood of settling overseas permanently was even higher among wealthier respondents. About 31 per cent of high-net-worth expatriates said they do not expect to return home, compared with 14 per cent among affluent and mass affluent respondents combined.

The report also highlighted the financial advantages many expatriates associate with working in Singapore. Almost all respondents said they earn more than they would in a comparable role in their home country, while 97 per cent reported that their monthly savings have increased.

These gains appear to be accelerating long-term financial goals. Around 57 per cent said they would have needed at least five additional years to achieve financial freedom had they not moved overseas. Meanwhile, 59% believe their overseas experience will enable them to retire at least three years earlier.

Despite these benefits, respondents said managing wealth across different jurisdictions presents significant obstacles.

Currency fluctuations emerged as the biggest challenge, with 85 per cent identifying exchange rate volatility as a barrier to effective wealth management. Limited access to preferred investment products followed closely at 83 per cent, while 82 per cent cited the complexities of cross-border regulations and taxation.

Singapore’s tax framework continues to be a major attraction for internationally mobile professionals. 89 per cent said the country’s tax policies influenced their decision to relocate, while 87 per cent pointed to its residency permit and visa arrangements as another key consideration.

The survey also found that financial literacy remains relatively low despite the affluent profile of respondents. Only 27 per cent considered themselves highly financially literate.

Those who rated themselves as more financially knowledgeable were more likely to maintain diversified investment portfolios, make preparations for wealth succession, seek professional advice in both their home and host countries, and report stronger financial outcomes.

As expatriates accumulate wealth across multiple jurisdictions, professional financial advice is playing a larger role. More than half of respondents, or 53 per cent, said they rely on professional advisers to help manage their international finances.

Respondents estimated that obtaining professional advice earlier could have helped them avoid an average of US$9,744 in financial losses each year. They also said working with a financial adviser saves them an average of 4.2 hours every month, equivalent to approximately 6.3 working days annually.

Retirement and succession planning are also becoming increasingly international in nature. Among expatriates who do not expect to return to their home country, 80 per cent said they have included assets held across multiple jurisdictions in their wills. More than half, or 56 per cent, identified tax optimisation as the primary factor influencing their succession and inheritance planning.

The findings are based on a double-blind survey conducted in May 2026 involving 450 affluent and high-net-worth residents in Singapore who have lived and worked across multiple jurisdictions.