Singapore is indeed one of the most livable Asian countries for expats. It promises a good quality of life with great financial prospects. However, if you want to get the best benefits of living in Singapore as an expatriate, you need to know a few things about the financial laws of the land. You face any money problems in Singapore; you can always apply for a foreigner loan from a licensed money lender. Here are three useful money management tips for expats in Singapore.
1. Understand the tax implications of renting out your property back home
If you lived in your own property back home, you might want to rent it out now that you are moving to another country. While some countries do not have additional taxes levied on expats renting out their properties, others may not have any such parameters. You need to know these before subletting your property. Also, if you are planning to sell off your property it is advisable to finalize the deal before you leave your home country.
2. Know the local tax system
Singapore does not have a capital gains tax or an inheritance tax. However, the taxation system is not as simple as it perhaps appears. For instance, if your company is offering you stock options, they become part of your income and the gains are made taxable. Similarly, if you are planning to buy a property here, you need to know that as an expat, you will be paying 15 percent more in stamp duties. Speak to a tax manager for better clarity.
3. Do not plan to buy a car
Singapore is a heavily connected, small island where you can travel from one end to the other in 90 minutes flat. There is no reason to own a car here since it can prove to be pretty expensive.
Spare a thought for money management during your initial phases of settling down in this new country. Licensed money lenders can be approached for help, in case you require additional funds.