Nearly 90% of Expats Cite Singapore’s Tax Policies as a Reason for Relocating

Singapore, Singapore Jul 12, 2026 ALN: Nearly nine in 10 expatriates surveyed reported that Singapore’s tax policies played a significant role in their decision to relocate. This statistic highlights the attractiveness of Singapore as a destination for internationally mobile professionals. Furthermore, an overwhelming 96 per cent of expatriates indicated that they earn and save more than they would in their home countries, suggesting that the financial landscape in Singapore is particularly favorable for these individuals.

However, the report from St. James’s Place, titled Money on the Move 2026, reveals that expatriates are also facing increasing challenges in managing their finances across borders. This complexity arises from the necessity of navigating different financial systems, regulations, and tax obligations in multiple jurisdictions. The study found that expatriates in Singapore are remaining overseas for longer than initially planned. Approximately 78 per cent of respondents expressed expectations of living abroad for at least eight years, while 54 per cent stated they have already exceeded their anticipated duration abroad.

Looking towards the future, the survey indicates a trend of long-term expatriation. Half of those surveyed indicated they are likely to return to their home country only after retiring, while 16% do not expect to return at all. This shift in mindset reflects a broader trend among expatriates, particularly among high-net-worth individuals. The likelihood of settling overseas permanently was significantly higher among wealthier respondents, with about 31 per cent of high-net-worth expatriates stating they do not anticipate returning home, compared to only 14 per cent among affluent and mass affluent respondents combined.

The financial advantages associated with working in Singapore are underscored in the report. Almost all respondents reported earning more than they would in a comparable role in their home country, and 97 per cent noted an increase in their monthly savings. These financial gains have a direct impact on long-term financial goals, with around 57 per cent of expatriates stating they would have needed at least five additional years to achieve financial freedom had they not moved overseas. Additionally, 59% believe that their overseas experience will enable them to retire at least three years earlier than they would have otherwise.

Despite these benefits, managing wealth across different jurisdictions presents significant challenges for expatriates. Currency fluctuations emerged as the most pressing issue, with 85 per cent of respondents identifying exchange rate volatility as a barrier to effective wealth management. This is particularly relevant in a global economy where currency values can fluctuate dramatically due to various factors, including economic conditions, political stability, and market sentiment. Following currency challenges, 83 per cent cited limited access to preferred investment products, and 82 per cent highlighted the complexities of cross-border regulations and taxation as significant hurdles.

Singapore’s tax framework continues to be a major attraction for internationally mobile professionals. A notable 89 per cent of expatriates indicated that the country’s tax policies influenced their decision to relocate. Additionally, 87 per cent pointed to Singapore's residency permit and visa arrangements as another key consideration, emphasizing the importance of a stable and favorable legal framework for expatriates seeking to establish themselves in a new country.

Despite the affluent profile of the respondents, the survey revealed that financial literacy remains relatively low among expatriates. Only 27 per cent of respondents considered themselves highly financially literate. This lack of financial knowledge could have implications for their long-term financial health and investment strategies. 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. This suggests that improving financial literacy could be a critical factor in enhancing the financial well-being of expatriates.

As expatriates accumulate wealth across multiple jurisdictions, the role of professional financial advice becomes increasingly important. More than half of the respondents, or 53 per cent, indicated that they rely on professional advisers to help manage their international finances. This reliance on expert guidance underscores the complexities involved in cross-border wealth management and the need for tailored financial strategies that consider the unique circumstances of expatriates. Respondents estimated that obtaining professional advice earlier could have helped them avoid an average of US$9,744 in financial losses each year. Furthermore, they reported that working with a financial adviser saves them an average of 4.2 hours every month, which equates to approximately 6.3 working days annually, highlighting the time efficiency gained through professional assistance.

Retirement and succession planning are also becoming increasingly international in nature. Among expatriates who do not expect to return to their home country, a significant 80 per cent stated that they have included assets held across multiple jurisdictions in their wills. This reflects a growing awareness of the need to manage and plan for wealth distribution effectively, particularly in a globalized context. More than half, or 56 per cent, identified tax optimization as the primary factor influencing their succession and inheritance planning, indicating that tax implications are a key consideration when structuring their financial legacies.

The findings presented in this report 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. This demographic is particularly relevant as it provides insights into the experiences and challenges faced by a significant segment of the expatriate community in Singapore. The results underscore the importance of understanding the financial landscape and the implications of living and working in a foreign country, particularly in a global financial hub like Singapore.